Committee advances bill allowing child care facilities to apply for LIDA/LITA economic‑development funds

The House Commerce & Economic Development Committee voted to advance HB227, a bill that would allow child care facilities to apply for funding under the Local Economic Development Act (LITA), a program that provides matching state funds for local economic development projects.

Sponsors and advocates said the change treats child care as critical economic infrastructure. Kate Noble, president and CEO of Growing Up New Mexico, described facility needs in Santa Fe — including a renovation cost estimate of $4–$5 million for a single preschool building — and argued that rural and smaller communities need access to capital to retrofit school or municipal buildings into licensed child care spaces.

Proponents framed the bill as expanding local options to invest in child care infrastructure that enables workforce participation. “Child care and early childhood is critical foundational economic development,” Noble said, noting a mixed delivery system of private and public providers and the high fixed costs of facilities.

Some lawmakers questioned whether LITA is the right program, because LITA traditionally targets projects intended to expand an economic base and create jobs that bring outside dollars into the community. Representative Armstrong noted that the act historically focuses on economic‑based enterprises that export goods or services outside the state, and asked why child care should receive an exception; supporters said child care enables working parents to participate in the workforce and therefore supports broader economic development goals.

Committee members also pointed to other avenues of capital for child care — for example, an existing $10 million program of low‑interest loans for facility improvements — and discussed differences between capital needs and workforce or operating subsidies. Sponsors responded that the available funds are insufficient for the scale of facility investment many providers need.

Final committee action: a do‑pass motion carried with a recorded committee tally of 7 yes and 3 no. The bill now proceeds from committee with the committee recommendation to the full House.

Discussion vs. action: the hearing combined advocacy testimony and policy questions; the committee made a procedural decision to advance the bill with a do‑pass recommendation.

Practical effect: if enacted, HB227 would allow local governments, private child care providers and nonprofit providers (that meet LITA criteria) to seek state matching funds for facility projects that support child care capacity. Sponsors emphasized the bill does not automatically appropriate money — projects must still meet LITA criteria and be vetted locally and at the Economic Development Department.