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Committee advances expansion of childcare loan fund; committee substitute broadens eligibility and repayment options
Summary
The committee approved a committee substitute to expand New Mexico's childcare revolving loan fund so loans and contract-for-service repayment options can reach more providers, with a state appropriation expected in the budget.
Senate Bill 175, revised by a committee substitute, expands the authorization and eligible uses of the Child Care Revolving Loan Fund administered by the New Mexico Finance Authority.
Sponsor Sen. Bergman described the fund's history and said it had received limited appropriations since 2003, noting last year's funding allowed NMFA to approve a loan that doubled childcare capacity in Tucumcari. Marquita Russell, CEO of the New Mexico Finance Authority, said the original statutory cap (loans limited to a percentage of the small fund) limited impact and that the recent appropriation enabled a larger loan that produced measurable capacity gains.
The committee substitute rearranged and clarified statutory language to allow contract-for-service repayment arrangements, expand eligible applicants (including employer-sponsored childcare), and prioritize providers in childcare deserts, providers with at least 50% Child Care Assistance Program enrollment, and those offering nontraditional hours. Shelly Strong of the Early Childhood Education and Care Department said the change would help providers access capital for expansion.
Speakers from small providers described difficulty obtaining capital and competing with public funding that has different capital-outlay access. The committee voted unanimously (10–0) to advance the substitute; the sponsor noted the governor's recommended budget included a $10 million appropriation expected to appear in House Bill 2.
