A bipartisan bill authorizing $1.5 billion in transportation bonds cleared its first legislative hurdle on Feb. 20, 2025, winning unanimous approval from the House Transportation, Public Works & Capital Improvements Committee to help address New Mexico's $5.6 billion road funding shortfall.
The House Appropriations and Finance Committee will next consider House Bill 145, sponsored by Reps. Dayan Hochman-Vigil, Patricia A. Lundstrom, Art De La Cruz, Cathrynn N. Brown and Nathan P. Small. The legislation would empower the State Transportation Commission to issue bonds for highway projects, backed by federal funds and state transportation taxes.
"This bipartisan legislation represents a smart, fiscally responsible approach to funding our state's critical transportation infrastructure needs," said Rebecca Roose, infrastructure advisor for Gov. Michelle Lujan Grisham. "I want to thank Reps. Hochman-Vigil, De La Cruz, Lundstrom, Brown and Small for their leadership."
In January, a TRIP report revealed that 57 percent of state and local roads are in poor or mediocre condition, costing New Mexico drivers $3.6 billion annually.
"We can't afford to fall further behind in tackling the list of road projects needed statewide," said NMDOT Cabinet Secretary Ricky Serna. "This bonding creates sustainable and adequate funding for roads in New Mexico."
Under HB 145, total outstanding bonds cannot exceed $1.12 billion. Eligible projects would be identified through the Statewide Transportation Improvement Program.
The department of transportation relies on two main funding sources: federal government allocations and the State Road Fund, which draws revenue from fuel taxes, vehicle registration and truck weight fees.
The bond authorization aims to address several mounting challenges associated with increased construction costs and projected decreases in road fund revenues.
