HOUSE BILL 404

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Art De La Cruz

 

 

 

 

 

AN ACT

RELATING TO SOCIAL SERVICES; CREATING THE MONETARY STIPEND PROJECT AS A THREE-YEAR PILOT PROJECT TO PROVIDE MONTHLY ASSISTANCE PAYMENTS TO DEMONSTRATE THAT A MONETARY STIPEND FOR BASIC COST-OF-LIVING EXPENSES IMPROVES EDUCATIONAL, EMPLOYMENT AND HEALTH CARE OUTCOMES FOR ADULTS WHO ARE FORMER FOSTER OR DELINQUENT CHILDREN; PROVIDING FOR PROGRAM ELIGIBILITY, PROGRAM TERMS AND REPORTING REQUIREMENTS; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] PILOT--MONETARY STIPEND PROJECT--ELIGIBILITY--PROGRAM TERMS--REPORTING AND EVALUATION.--

          A. The "monetary stipend project" is created as a three-year pilot project that provides monthly assistance payments to eligible adults and measures the effect of monetary stipends on socioeconomic outcomes. The purpose of the monetary stipend project is to demonstrate that a monetary stipend for basic cost-of-living expenses improves educational, employment and health care outcomes for adults who are former foster or delinquent children. The monetary stipend project shall be administered by the higher education department.

          B. An eligible participant shall be a New Mexico resident, United States citizen or lawful permanent resident and an adult who is less than twenty-six years of age and who is a former foster child, was adjudicated and incarcerated pursuant to the Delinquency Act or who participated in and aged out of the fostering connections program as provided in the Fostering Connections Act and is:

                (1) enrolled in a post-secondary educational program;

                (2) participating in an apprenticeship program or workforce development recognized by the workforce solutions department; or

                (3) participating in a program or activity designed to promote employment or remove barriers to employment.

          C. Subject to appropriation, the higher education department shall determine the amount of a monetary stipend in consultation with the health care authority. The amount of a monetary stipend shall be individualized for each participant and adjusted based on the participant's income and on other public assistance that the participant receives; provided that a monetary stipend shall not exceed two thousand dollars ($2,000) per month. A monetary stipend may be expended on cost-of-living expenses, including housing expenses, as provided by rule.

          D. The higher education department shall promulgate rules for the form and manner of the application, procedures and criteria for reviewing applications, the methodology for evaluating participants and other rules necessary to carry out the provisions of this section. If the higher education department determines that the federal Social Security Act requires waivers or authorizations from the United States in order to carry out the monetary stipend project, the department shall notify the health care authority, and the authority shall request such waivers or authorizations no later than December 31, 2025.  

          E. The higher education department shall report to the legislative health and human services committee on May 1 and November 1 of each year of the monetary stipend project. No later than October 1, 2031, the higher education department shall provide a final report to the legislative health and human services committee on the outcomes for the participants, the fiscal impact of the program and other recommendations that the higher education department deems appropriate."

     SECTION 2. APPROPRIATION.--Three million dollars ($3,000,000) is appropriated from the general fund to the higher education department for expenditure in fiscal years 2026 through 2028 for the monetary stipend project. Any unexpended or unencumbered balance remaining at the end of fiscal year 2028 shall revert to the general fund.

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