House Education Committee gives do-pass to bill increasing minimum Early Childhood Trust Fund distribution

The New Mexico House Education Committee on Valentine’s Day recommended passage of House Bill 71, voting 10–2 to advance the measure that would raise the minimum annual distribution from the Early Childhood Education and Care Trust Fund from $250,000,000 to at least $500,000,000.

The bill’s sponsor, Representative Doreen Gallegos, told the committee the change would allow the Early Childhood Education and Care Department (ECECD) to “increase access to services for 10,000 or more children.” Secretary Elizabeth Graginski of the Early Childhood Education and Care Department appeared with Gallegos and described the department’s plans for the additional funds and the agency’s stewardship of the trust.

Committee members and more than two dozen supporters from nonprofits, tribal programs, providers and parents spoke in favor of the measure during the hearing. Testimony described uses for increased distributions including higher wages and a career ladder for early childhood educators, expanded home visiting and early intervention services, support for tribal pre‑K and continued expansion of universal pre‑K for 3‑ and 4‑year-olds.

Several witnesses described personal and programmatic impacts. JD Bullington, a registered lobbyist for the Pueblo of Laguna, said the Pueblo “supports this bill” and that it moves resources “where it matters towards our earliest children.” Ruby Rodriguez of El Centro recounted family experience with child‑care copay changes and urged passage so parents can afford to work: “Support HB 71 because children are the future of New Mexico.” Carrie Armijo, cabinet secretary of the Health Care Authority, said Medicaid programs have used prior distributions to expand maternal and child health services and urged continued investment.

ECECD and supporters described the statutory mechanics cited in testimony: currently the trust’s annual distribution equals 5% of a three‑year average of the fund’s year‑end value or a minimum of $250,000,000, whichever is greater. The bill would raise the statutory minimum to $500,000,000. Representative Gallegos told the committee the fund was endowed with roughly $300,000,000 in 2020 and that projections anticipate distributions could reach $500,000,000 by 2028 or 2029 without the change; the bill accelerates when larger distributions would begin.

Committee members asked detailed implementation questions. Secretary Graginski said the department cost‑modeled wage increases that would move an entry‑level child‑care wage from about $15 to $18 per hour and estimated roughly $74,000,000 of the governor’s budget request would support that wage change. She described how child‑care and pre‑K providers are paid (family‑eligibility for child care; contracts or grant/grant‑application processes for home visiting and pre‑K), monitoring of provider spending through budget templates and invoice review, and the department’s work to build a professional development information system to capture workforce data.

Lawmakers also raised accountability and sustainability questions. Representative Chatfield and others asked whether doubling the minimum distribution is too large a jump; Secretary Graginski said the agency aims to be transparent and that roughly 90 percent of funds flow directly into communities. Representative Vincent and Representative Collin asked about private providers’ profits, the fund’s sensitivity to oil and gas revenue, and whether funding supports brick‑and‑mortar expansion; the secretary said past appropriations and a New Mexico Finance Authority program have provided renovation and expansion support but that department money cannot be used to buy buildings directly.

After questions and additional public testimony, Chair Romero moved that the committee give HB 71 a do‑pass recommendation; Representative Torres Velasquez seconded. The committee recorded 10 votes in favor and 2 opposed. The committee’s recorded no votes were Representative Baca and Representative Vincent; recorded yes votes included Representatives Chatfield, Gonzales, (Gorola/Corolla), Lara, Maribel Moya, Roybal Caballero, Collins, Torres Velasquez, Romero and Garrett. The motion carried and the bill will move forward for further consideration.

Supporters emphasized long‑term returns on investment and the program’s role in workforce development, maternal and child health and school readiness; opponents and some members sought additional detail on accountability, pacing of increases and the fund’s durability under volatile revenue conditions.

The committee hearing combined a significant number of public and organizational supporters, detailed department testimony on implementation and a formal committee action that advances HB 71 to the next legislative step.