HB 247 is sponsored by Derrick J. Lente (Democrat).

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New Mexico 2026 Regular Session Status: Enacted 1 D cosponsors

HB 247 — CAPITAL OUTLAY CHANGES

Last action March 10, 2026 — Signed

✓
Introduced
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In Committee
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Passed House
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Passed Senate
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To Executive
6
Enacted

This bill has been enacted into law. Introduced January 30, 2026. Enacted.

Signed by Governor Michelle Lujan Grisham (Democratic) on March 10, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 52% · moderate confidence

Enacted

Current position in the legislative process.
1 sponsor

1 primary, 0 co-sponsors signed on.
Single-party support

Sponsorship is currently within one party (1 D).

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

301 added · 1 removed

Plain-language change summary

The updated bill, HB 247, introduces new requirements for capital outlay projects, specifically limiting how often and for how long projects can be reauthorized or reappropriated. Projects can't be reauthorized more than once and can only have a two-year time frame for such actions, along with a stipulation that at least ten percent of the initial funding must be used by a certain date. These changes aim to ensure more accountability and efficiency in how public funds are utilized for capital projects, encouraging timely completion and reducing waste of unspent funds.

~~57TH~~AN ~~LEGISLATURE~~ACT ~~-STATEOFNEWMEXICO-~~RELATING ~~SECOND~~TO ~~SESSION,~~CAPITAL ~~2026~~EXPENDITURES;

PROVIDING LIMITATIONS AND REQUIREMENTS FOR CERTAIN CAPITAL OUTLAY PROJECTS, REAUTHORIZATIONS AND APPROPRIATIONS;

AMENDING SECTIONS OF LAWS 2022 THROUGH 2025 TO REQUIRE CERTAIN UNEXPENDED GENERAL FUND CAPITAL OUTLAY APPROPRIATIONS TO REVERT TO THE CAPITAL DEVELOPMENT AND RESERVE FUND OR THE TRIBAL INFRASTRUCTURE PROJECT FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.

CAPITAL OUTLAY PROJECTS--REAUTHORIZATIONS AND APPROPRIATIONS--LIMITATIONS.-- A.

A capital outlay project shall not be reauthorized or reappropriated:

(1) more than once;

(2) for a time period greater than two years;

and (3) unless at least ten percent of the initial appropriation has been encumbered by January 1 of that year, as determined by the department of finance and administration.

A capital outlay project may be reauthorized or reappropriated to make a technical change, but a reauthorization or reappropriation shall not alter the original purpose of the capital outlay project.

A capital HB 247/a Page 1 outlay project that is reauthorized or reappropriated to make a technical change is not subject to the encumbrance requirement provided in Paragraph (3) of Subsection A of this section.

Capital outlay authorizations and appropriations of one hundred thousand dollars ($100,000) or more shall not be made for a project unless the project is included on an infrastructure capital improvement plan.

Capital outlay appropriations made from the general fund shall revert to the capital development and reserve fund, except for tribal projects that shall revert to the tribal infrastructure project fund.

If severance tax bonds have been issued and no amount of the proceeds have been encumbered or expended for a capital outlay project for which bonds were issued by January 1 of the fiscal year in which unexpended balances will revert, the board of finance division of the department of finance and administration shall freeze the account, and any encumbrances after that date shall be considered invalid.

If no amount has been encumbered or expended for a capital outlay appropriation from the general fund or other state funds by January 1 of the fiscal year in which the unexpended balance will revert, the department shall freeze the account, and any encumbrances after that date shall be considered invalid.

An expenditure does not include a lawful, automatic HB 247/a Page 2 deduction from the total proceeds or appropriation.

The department of finance and administration shall provide an annual report to the legislature by January 15 on the capital outlay projects that have been frozen.

The balances of frozen accounts shall be available for authorization or appropriation in that fiscal year for other purposes, subject to any applicable rules and state board of finance oversight of severance tax bonds, including, as applicable, requirements of federal tax laws relating to tax-exempt bonds.

Should the proposed authorization or appropriation of a capital outlay project initially funded with proceeds of tax-exempt bonds pursuant to this subsection extend the time for expenditure of such proceeds beyond the date which is three years from the date of original issuance of the associated tax-exempt bonds, such authorization or appropriation shall be permitted only if it has been demonstrated to the satisfaction of the state board of finance that the reasons for the failure to expend proceeds within such time period were unanticipated at the time of the related tax-exempt bond issue, that such proceeds are to be expended as promptly as possible, and that the investment and expenditure of such proceeds will comply with applicable requirements of federal tax laws governing the associated tax-exempt bond issue.

As used in this section:

HB 247/a Page 3 (1) "encumbrance" includes only direct project costs and excludes administrative fees charged by a fiscal agent;

(2) "purpose" includes the functionality, use or primary objective of a project or the type of project or asset;

and (3) "technical change" means a minor correction or an adjustment that does not alter the original purpose of the capital outlay project and includes correcting a drafting error, changing the administering agency, changing the fiscal agent or expanding the eligible uses of an appropriation within the same project.

SECTION 2.

Laws 2022, Chapter 53, Section 2 is amended to read:

"SECTION 2.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

Except as provided in Subsection D of this section and as otherwise specifically provided by law, the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2023 if the project for which an appropriation was made has less than five percent of the project's total appropriation amount subject to a binding written agreement with a third party on HB 247/a Page 4 that date;

(b) the end of fiscal year 2024 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

Show all 116 changed lines (76 more)

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or (c) the end of fiscal year 2026 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2026.

Money that is appropriated from the general fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

The unexpended balance of an appropriation made in this act from the general fund that has not reverted on or before the effective date of this 2026 act shall revert in HB 247/a Page 5 the time frame set forth in Subsection A of this section to the capital development and reserve fund, except for tribal projects that shall revert to the tribal infrastructure project fund." SECTION 3.

Laws 2023, Chapter 199, Section 1 is amended to read:

"SECTION 1.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

Except as provided in Subsection E of this section and as otherwise specifically provided by law, the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2024 if the project for which an appropriation was made has less than five percent of the project's total appropriation amount subject to a binding written agreement with a third party on that date;

(b) the end of fiscal year 2025 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or HB 247/a Page 6 (c) the end of fiscal year 2027 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2027.

Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

The unexpended balance of an appropriation made in this act from the general fund that has not reverted on or before the effective date of this 2026 act shall revert in the time frame set forth in Subsection A of this section to the capital development and reserve fund, except for tribal projects that shall revert to the tribal infrastructure project fund." SECTION 4.

Laws 2024, Chapter 66, Section 1 is amended HB 247/a Page 7 to read:

"SECTION 1.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

(1) no later than September 30 following:

(a) the end of fiscal year 2026 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or (b) the end of fiscal year 2028 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2028.

The agencies named in this act shall certify to the department of finance and administration that the money appropriated in this act is needed for the purposes specified in the applicable section of this act.

If an agency has not HB 247/a Page 8 certified the need for the appropriation for a particular project by the end of fiscal year 2026, the authorization for that project is void.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

Laws 2025, Chapter 159, Section 2 is amended to read:

"SECTION 2.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

Except as provided in Subsection E of this section and as otherwise specifically provided by law, general fund appropriations made pursuant to this act may be HB 247/a Page 9 expended in fiscal years 2026 through 2029;

provided that the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2027 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or (b) the end of fiscal year 2029 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2029.

If an agency has not certified the need for the appropriation for a particular project by the end of fiscal year 2027, the authorization for that project is void.

Money that is appropriated from the general HB 247/a Page 10 fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

APPLICABILITY.--The provisions of Section 1 of this act apply to capital outlay appropriations made on or after January 1, 2027.

HB 247/a Page 11 25

Latest

~~57TH~~ ~~LEGISLATURE~~ ~~-STATEOFNEWMEXICO-~~ ~~SECOND~~ ~~SESSION,~~ ~~2026~~

AN ACT RELATING TO CAPITAL EXPENDITURES;

PROVIDING LIMITATIONS AND REQUIREMENTS FOR CERTAIN CAPITAL OUTLAY PROJECTS, REAUTHORIZATIONS AND APPROPRIATIONS;

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.

CAPITAL OUTLAY PROJECTS--REAUTHORIZATIONS AND APPROPRIATIONS--LIMITATIONS.-- A.

A capital outlay project shall not be reauthorized or reappropriated:

(1) more than once;

(2) for a time period greater than two years;

and (3) unless at least ten percent of the initial appropriation has been encumbered by January 1 of that year, as determined by the department of finance and administration.

A capital outlay project may be reauthorized or reappropriated to make a technical change, but a reauthorization or reappropriation shall not alter the original purpose of the capital outlay project.

An expenditure does not include a lawful, automatic HB 247/a Page 2 deduction from the total proceeds or appropriation.

The department of finance and administration shall provide an annual report to the legislature by January 15 on the capital outlay projects that have been frozen.

As used in this section:

HB 247/a Page 3 (1) "encumbrance" includes only direct project costs and excludes administrative fees charged by a fiscal agent;

(2) "purpose" includes the functionality, use or primary objective of a project or the type of project or asset;

SECTION 2.

Laws 2022, Chapter 53, Section 2 is amended to read:

"SECTION 2.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

(1) no later than September 30 following:

(b) the end of fiscal year 2024 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

Show all 116 changed rows (76 more)

Latest

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or (c) the end of fiscal year 2026 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2026.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

Laws 2023, Chapter 199, Section 1 is amended to read:

"SECTION 1.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

(1) no later than September 30 following:

(b) the end of fiscal year 2025 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or HB 247/a Page 6 (c) the end of fiscal year 2027 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2027.

Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

Laws 2024, Chapter 66, Section 1 is amended HB 247/a Page 7 to read:

"SECTION 1.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

(1) no later than September 30 following:

(a) the end of fiscal year 2026 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or (b) the end of fiscal year 2028 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2028.

If an agency has not HB 247/a Page 8 certified the need for the appropriation for a particular project by the end of fiscal year 2026, the authorization for that project is void.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

Laws 2025, Chapter 159, Section 2 is amended to read:

"SECTION 2.

GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.-- A.

provided that the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2027 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment;

heavy equipment;

books;

educational technology;

or other equipment or furniture that is not related to a more inclusive construction or renovation project;

or (b) the end of fiscal year 2029 for a project for which an appropriation was made related to an inclusive construction or renovation project;

or (2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2029.

If an agency has not certified the need for the appropriation for a particular project by the end of fiscal year 2027, the authorization for that project is void.

For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

APPLICABILITY.--The provisions of Section 1 of this act apply to capital outlay appropriations made on or after January 1, 2027.

HB 247/a Page 11 25

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Action History

March 10, 2026
Signed
February 19, 2026
House concurred in Senate amendments
February 18, 2026
passed Senate
February 12, 2026
DO PASS, as amended, committee report adopted
February 10, 2026
Sent to Senate Finance Committee
February 09, 2026
passed House
February 06, 2026
DO PASS, as amended, committee report adopted
January 30, 2026
Sent to House Taxation & Revenue Committee

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 111 not signed on

Sponsors (1)

Derrick J. Lente Democrat

Co-sponsors (0)

None.

Not signed on (111)

111 members have not signed on to this bill.

Show all 111 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 247?: HB 247 is sponsored by Derrick J. Lente (Democrat).
What is the current status of HB 247?: This bill has been enacted into law. Introduced January 30, 2026. Enacted.
Where can I track HB 247?: Track HB 247 free on One Click Politics — get push/email alerts when it moves.

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At a glance

Identifier: HB 247
Jurisdiction: New Mexico
Session: 2026 Regular Session
Type: Bill
Introduced: January 30, 2026
Status: Enacted
Prime sponsor: Derrick J. Lente

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