Summary
Community foundation and community action agency leaders told the Legislative Finance Committee that federal grant cuts threaten nonprofit services across Southern New Mexico and asked the Legislature to consider state investments and changes to the anti-donation clause to enable stronger public-private partnerships.
Three nonprofit leaders told the legislative committee that cuts to federal grant funding are already straining nonprofits and local services in southern New Mexico and asked lawmakers for state-level supports and statutory changes.
At a committee meeting in Las Cruces, Dr. Tara Winter, chief executive officer of the Community Foundation of Southern New Mexico, said her foundation and a recently reactivated regional nonprofit coalition are working to build capacity and prepare for reduced federal support. "As federal dollars are being cut throughout the nation, while also affecting New Mexicans here each and every day, we respectfully ask for your support to secure sustainable funding to address these growing shortfalls," Winter said.
Dawn Hamer, CEO of Community Action Agency and the state association's representative, told the committee her organization and the six designated Community Action Agencies (CAAs) statewide serve all 33 counties and asked that the committee include $4,500,000 for CAAs in the HCA budget to sustain and expand CSBG-funded services. Hamer described CSBG (the Community Services Block Grant) as a flexible federal funding source used for basic needs, employment training, early childhood services, housing and emergency response. "The CSBG funding is critical to support these families, but also for creating new programs and responding to emergencies when they arise," she said.
Why it matters: The speakers said nonprofit and CAA services support employment, food distribution and emergency response across rural and urban communities in southern New Mexico. The groups asked for state funding and legislative clarity to ease partnership barriers, including discussion of changes to the state's anti-donation clause that speakers said can limit public-charitable partnerships.
Evidence and details
- Economic role: Winter said nonprofits account for 8% of New Mexico's private-sector workforce and described multiplier effects of out-of-state philanthropic dollars on the local economy.
- Scale of federal funding: Winter cited April 2025 analysis projecting substantial federal grant reductions nationwide over 18 months and warned those cuts could lead to job losses and service reductions statewide.
- CAA staffing and impact: Hamer said the six CAAs employ about 650 people across New Mexico and that for every dollar of CSBG funding her agencies generate about $11 in additional resources. She requested $4.5 million in state HCA (Human Services-related) funding to sustain CAA operations.
Local delivery examples
Lorenzo Alba, executive director of a southern food bank operation, and other local leaders described the region's collaboration in rapidly distributing food and emergency supplies. Alba told the committee the facility has distributed more than 7.4 million pounds of food in a single year and credited partnerships among community foundations, CAAs and local food banks for regional disaster response.
Requests to the committee
Speakers asked lawmakers to:
- Consider state investments that provide flexible funding to nonprofits and CAAs to offset lost federal grant support; - Review statutory constraints, including the state's anti-donation clause, that speakers said complicate partnerships between government and charitable organizations; - Support capacity building for regional nonprofits, including training and disaster-response readiness.
Speakers and attendees offered to meet individually with committee members and staff to provide additional information.
Ending note
Committee members thanked the nonprofit leaders and encouraged continued engagement. The meeting did not include any formal committee votes on funding; the nonprofit request for $4.5 million was presented as an ask for consideration in the HCA budget process.
