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Las Cruces wins $60 million federal grant for new road; developers project 4,000 homes and water questions

August 18, 2025 | Water & Natural Resources, Interim, Committees, Legislative, New Mexico


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Las Cruces wins $60 million federal grant for new road; developers project 4,000 homes and water questions
Las Cruces officials told a New Mexico legislative committee that a $60,000,000 federal infrastructure grant will pay to build a new road from the Oregon Mountains area south toward Lohman, a project city leaders said will enable large-scale residential and economic development over the next several years.

City of Las Cruces Mayor Enriquez said the grant will fund the road design and construction and that the city will act as the fiscal agent for the funding. "We did receive a $60,000,000 grant, a federal grant for infrastructure," Mayor Enriquez said, adding that the road will connect the Oregon Mountain High School area to Lohman and is expected to support about 4,000 new homes in the next four years on the northern portion of the corridor.

The road is roughly a 50-mile corridor, officials said. Dona Ana County Commission Chair Christopher Schelder Hernandez told the same committee the county expects the infrastructure to help attract private investment and said a private developer has already spent about $1.5 million on planning and design for the larger build-out.

Why it matters: Officials said the road will unlock private acreage, state land and Bureau of Land Management parcels for housing, commercial and industrial uses. Mayor Enriquez and Commissioner Schelder Hernandez both said the project could spur as many as 4,000 homes in the near term and as many as 10,000 homes in the broader area over time — numbers that local officials linked directly to the new road infrastructure.

Details and constraints: City officials said the developer will provide the upfront design work and that the federal grant covered construction; there may be matching funds or state assistance in addition to developer contributions. Mayor Enriquez said about 40% of the planned housing in the developer's northern phase must be "affordable/attainable housing" and that the developer and city are weighing utility choices (electric, gas, solar) and how to coordinate with El Paso Electric and water providers. "With every blessing there comes burdens, and it's the water usage, our most valuable resource," the mayor said.

Officials also noted public-safety and amenity needs; Senator Steinborn asked whether parks, fire stations or police infrastructure would be part of the negotiations with the developer. "That would be part of it," the mayor replied, and he said the city is advocating for public safety capacity, parks and other public infrastructure tied to new neighborhoods.

Context and caveats: Committee members pressed the mayor on whether the $60 million covers housing; the mayor and city staff clarified the grant is for the road and not a direct housing subsidy. Multiple committee members asked whether the city or developer had committed to all-electric construction or to EV charging infrastructure; the mayor said the question of gas lines versus all-electric homes is still under review with utilities and the developer and that some subdivisions built by the same developer in other areas have been all-electric while others are not.

Next steps: Officials said permitting and design work are underway and that some private parcels are already platted. Commissioners said they expect applications for related state grants and potential public–private partnerships, and they asked the Legislature to consider how state rules or incentives could lower costs for builders and homebuyers.

Ending note: County and city officials framed the grant as a rare win but repeatedly emphasized that water supply, utilities and transportation bottlenecks will determine how much housing and development actually follow the roadway project.

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Scribe from Workplace AI
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