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Committee tables HB196, a $60 million proposal for NMFA loan funds for behavioral health, primary care and child care
Summary
House Bill 196, which would have appropriated one-time funds for three New Mexico Finance Authority loan programs serving behavioral health, primary care and child-care providers, was tabled after committee questions about program uses and loan terms.
House Bill 196, a measure to provide capital to existing New Mexico Finance Authority (NMFA) loan programs for behavioral health, primary care and child care, was tabled by the House Appropriations and Finance Committee following committee questions.
The sponsor described the proposal as a one-time injection of capital to existing NMFA programs that provide low-cost loans to providers serving medically underserved communities and child-care deserts. The bill as presented would have allocated $25 million to the Behavioral Health Capital Fund, $25 million to the Primary Care Capital Fund and $10 million to the Child Care Revolving Loan Fund. The sponsor said the programs have financed roughly 30 projects and served hundreds of thousands of patients historically.
Why it matters: Supporters said the low-interest loan programs help clinics and child-care providers expand or purchase facilities and, since 2023, statutory changes allow loans to be used for working capital (including initial payroll) for new providers while they ramp up operations. Committee members asked whether working-capital uses were appropriate and whether the loans would be used primarily for bricks-and-mortar or for payroll in early months.
Program details discussed: NMFA's CEO Marquita Russell explained the funds had historically been used mostly for facility projects but noted 2023 changes allow working capital; she reported interest rates on the programs are currently 2% (primary care and behavioral health) and 3% for child care, with a possible reduction to 2% for child care in coordination with ECECD. The CEO said the programs have a record of re-loaning repaid proceeds and that past projects included rural expansions.
Action taken: Committee members moved and passed a motion to table the bill (mover: Representative Duncan; second: Representative Herrera). The chair told members the budget currently lists $10 million for the relevant childcare program and the bill was tabled pending further work.
Ending: The committee tabled HB196 and asked sponsors and NMFA to provide follow-up details on loan performance, historic repayment outcomes and how working-capital provisions have been used.
