Committee backs memorial asking CYFD to study foster parent pay and report by Nov. 30

The House Health and Human Services Committee voted to give House Memorial 59 a do-pass recommendation. The memorial asks the Children, Youth and Families Department (CYFD) to study fair compensation for foster parents, including the consideration of a cost-of-living allowance, and to report findings and recommendations to the legislative Health and Human Services Committee by Nov. 30.

Jason Espinosa, representing the New Mexico Child First Network, testified in support of the memorial, urging the committee to reevaluate foster parent rates and noting regional rates are among the lowest in the Southwest. "Foster families open their hearts and their homes to children at times when they need it most," Espinosa said.

Brenda Donald, chief operating officer at CYFD, answered committee questions about how the study would be conducted and about current foster-care payments. Donald said CYFD has used contractors in past studies (the department completed a related study in 2021) and would likely rely on a contractor again to meet federal guidelines. She provided current figures: the department has a little over 1,100 licensed foster parents (including relatives) and about 2,100 children in care, which the department described as typical because the agency maintains more licensed beds than children currently placed.

Donald said treatment foster care parents have compensation tied to Medicaid rates in some cases, but the broader foster parent stipend is not generally a Medicaid rate. CYFD said an additional stipend (about $400) is available for harder-to-place children during stabilization. On clothing, the department said it built a $50 per month clothing allowance into the foster parent payment (equivalent to up to $600 per year) and retains vouchers or reimbursement for special circumstances; New Mexico IMPACT will allow itemized payment statements in the future.

Donald also explained that Social Security benefits received on behalf of children are now reserved in escrow accounts for those children rather than being included in the base room-and-board rate, and that the committee’s requested study could review those funds separately. On licensing delays, the department said it is reviewing its licensing process (including business process mapping and the use of contractors for home studies) to shorten approval timelines and reduce dropout during the approval process.

Representative Anaya moved the do-pass recommendation for House Memorial 59 and Representative Ferrari seconded; with no opposition recorded in the transcript, the committee gave the memorial a do-pass recommendation.

The memorial requests a study and does not itself change statute or funding. The committee’s action moves the memorial forward for further consideration and reporting; any policy or funding changes would be subject to future legislative action based on the study’s recommendations.

Next steps: CYFD would conduct or contract the study and report back to the committee by Nov. 30 per the memorial’s language.