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NMFA and regional COGs report widened Colonias funding and new training push as $20M remains unallocated
Summary
NMFA and Southwest New Mexico Council of Governments officials told the oversight committee the Colonias Infrastructure Board awarded most FY25 funds but that $20 million remains unallocated; staff recommends reserving that balance for emergency disaster grants and COGs are organizing technical assistance and mentoring to address local capacity gaps.
The oversight committee heard a detailed briefing on the Colonias Infrastructure Board, its award history and the capacity challenges facing small communities.
Marquita Russell, NMFA CEO and secretary to the Colonias board, said the Colonias Infrastructure Act (created in 2010; first funding cycle in 2011) targets communities with inadequate potable water, sewer, roads, housing and flood control within 150 miles of the U.S.–Mexico border that had colonia conditions before Nov. 1, 1990. She said the program typically funds projects as a 90% grant/10% loan mix and that NMFA staff administers the fund and project reviews.
Russell reported 32 awards in May totaling about $51 million, with five additional awards of $3.55 million expected to bring the cycle to 37 awards. She corrected an earlier slide to say approximately $86 million is available for the FY25 cycle and that roughly $20 million could remain unused; NMFA staff recommended the board consider reserving those unawarded dollars for emergency grants to colonias affected by gubernatorial disaster declarations within the prior three years.
Priscilla Lucero, executive director of the Southwest New Mexico Council of Governments (COG), described decades of hands-on work helping communities meet designation and application criteria, then outlined a newly formed New Mexico Association of Regional Councils to deliver training and peer mentoring. Lucero and legislators emphasized that application preparation is only one hurdle; smaller local governments lack capacity for procurement, accounting and project implementation and need "hand‑holding" and sustained technical assistance.
Why it matters: Russell said larger award pools in recent years have outpaced some communities’ capacity to plan and implement projects, leading to unused funds despite clear need. The proposed emergency-grants set‑aside would allow rapid response for disaster‑impacted colonias without converting those funds into loans.
Next steps: The Colonias board will consider staff recommendations at its next meeting; NMFA will continue applicant training and open the next application cycle with technical assistance sessions in January.
