LESC bill analyses are available on the New Mexico Legislature website (www.nmlegis.gov). Bill analyses are
prepared by LESC staff for standing education committees of the New Mexico Legislature. LESC does not assume
any responsibility for the accuracy of these reports if they are used for other purposes.
LEGISLATIVE EDUCATION STUDY COMMITTEE
BILL ANALYSIS
57th Legislature, 1st Session, 2025
Bill Number HB71 Sponsor Gallegos/Johnson
Tracking Number .229474.1 Committee Referrals HEC/HAFC
Short Title Early Childhood Ed & Care Fund Transfers
Original Date 2/13/2025
Analyst Estupiñan Last Updated
BILL SUMMARY
Synopsis of Bill
House Bill 71 (HB71) would amend Section 9-29A-1 NMSA 1978 to increase the minimum
annual distributions from the early childhood trust fund from $250 million to $500 million.
The bill would be effective July 1, 2025. FISCAL IMPACT
The bill does not contain an appropriation. HB71 would increase the distribution from the early childhood trust fund from the $299 million
currently projected by the consensus revenue forecasts for FY26 to $500 million.
Source: LFC Files
According to Volume Two of the Legislative Finance Committee (LFC) appropriation
recommendations for FY26, the Early Childhood Education and Care Department (ECECD)
requested an increase of $165.2 million from the general fund, representing a 47.5 percent increase over the FY25 operating budget. The primary focus of this request was expansions for childcare
HB71 – Page 2
assistance, prekindergarten, home visiting supports for new families, the wage and career pilot,
and higher provider rates for the Family, Infant, Toddler program.
In FY25, ECECD received $250 million from the early care and education trust fund (ECTF) and,
for FY26, requested an additional $37.5 million, bringing the total trust fund revenue request to
$287.7 million. The FY26 LFC recommendation increases the distribution from the ECTF to
$289.9 million.
SUBSTANTIVE ISSUES
Early Childhood Trust Fund. The early childhood education and care fund was established on
July 1, 2020, with an initial infusion of $300 million. Statute required that oil and gas emergency
school tax revenue in excess of the five-year average be deposited in the early childhood education
and care fund if general fund reserves exceed 25 percent of recurring appropriations. Additionally,
statute required that federal mineral leasing payments in excess of the five-year average also be
deposited in the early childhood education and care fund.
Statute required a minimum distribution of $20 million be made to the early childhood education
and care program fund in FY22, $30 million in FY23, $150 million in FY24, and $250 million in
FY25 and subsequent fiscal years.
SOURCES OF INFORMATION
• LESC Files
• LFC Files
• State Investment Office (SIC)
DE/clh/mca/jkh