Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR
Sens. Stefanics, Trujillo, and
Hamblen
/Rep. Serrato
LAST UPDATED
ORIGINAL DATE 2/27/2025
SHORT TITLE Public Assistance Programs Eligibility
BILL
NUMBER Senate Bill 189
ANALYST Hernandez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
System
Enhancements
$3,645.0 $3,645.0 Nonrecurring General Fund
Program Costs $9,995.7 $9,995.7 $9,99 5.7 $29,987.1 Recurring Federal funds
Staffing FAA $107.2 $212.6 $212.6 $532.4 Recurring General Fund
Staffing FAA $202.6 $401.9 $401.9 $1,006.4 Recurring Federal funds
Career
Development
Specialist
$538.3 $538.3 $538.3 $1,614.3 Recurring Federal funds
Total $14,488.8 $11,148.5 $11,148.5 $36,785.8
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Health Care Authority (HCA) Agency Analysis was Solicited but Not Received From
Department of Health (DOH)
SUMMARY
Synopsis of Senate Bill 189
Senate Bill 189 (SB189) amends portions of the Public Assistance Code (NMAC 27-2B) in
relation to the Temporary Assistance for Needy Families (TANF) program. The first change
would allow the Health Care Authority the flexibility to set the federal poverty level (FPL)
income limit for TANF, which is currently restricted in state law to 85 percent of the FPL. The
second change would allow families to increase their assets from $2,000 to $15 thousand in
nonliquid resources and from $1,500 to $15 thousand in liquid resources. The third change
would allow children to retain eligibility even if the parents are found to be noncompliant while
the parents work on becoming compliant. The fourth change would expand both the New
Mexico Works and Education Works Program for TANF recipients to increase education
opportunities. Finally, there is clean up, which replaces the term “food stamps” with
“supplemental nutrition assistance program.” Senate Bill 189 – Page 2
The effective date of SB189 is contingent on the passage of an appropriation for expanding the
TANF program in the General Appropriation Act of 2025, the General Appropriation Act of
2026, or the General Appropriation Act of 2027.
FISCAL IMPLICATIONS
SB189 has no fiscal impact to HCA unless the Legislature appropriates additional funding in the
future to the TANF program.
HCA notes four areas would need investment to fully implement SB189. First, HCA would need
$3.6 million to enhance their information technology systems. Second, additional staff would be
needed to “handle eligibility determinations and provide ongoing case management for
individuals, helping them meet work requirements, and access necessary support services.” As
such, HCA would need an additional four family assistance analysts (FAA), which would be
funded at 36.4 percent from general fund and 65.4 percent from federal funds. Additionally, the
authority states a need for seven career development specialists, which would be fully federally
funded. Finally, HCA would draw down an additional $9.9 million in federal funds for program
costs.
SIGNIFICANT ISSUES
LFC Stacking of Income Supports Progress Report recommended that the Legislature increase
asset limits for income support programs, including TANF, to mitigate the cliff effect. The
progress report found that New Mexico’s current benefit structure likely disincentivizes
increasing wages. To decrease the effects of the benefit cliff effect, a report released by Montana,
demonstrated that states that have increased asset limits and expanded workforce development
programs have seen a decrease in potential cliff effects. Allowing income support recipients to
build up assets can help them when they face additional costs due to benefit reductions and can
help lower the chance of program churn (when individuals move on and off programs) by
improving financial stability. Workforce development programs may help provide training in
high-demand occupations.
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