CYFD SHORT-TERM STABILIZATION PILOT PGM

HB0065

HOUSE BILL 65

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Rebecca Dow
and
Cathrynn N. Brown
and
Elaine Sena Cortez

and
Charlotte Little
and
Elizabeth "Liz" Stefanics

AN ACT

RELATING TO CHILD WELFARE; AMENDING THE CHILDREN, YOUTH AND
FAMILIES DEPARTMENT ACT TO CREATE THE SHORT-TERM STABILIZATION
PILOT PROGRAM; DIRECTING THE CHILDREN, YOUTH AND FAMILIES
DEPARTMENT AND THE HEALTH CARE AUTHORITY TO COLLABORATE TO
CONTRACT WITH CHILD WELFARE EXPERTS TO DEVELOP AND IMPLEMENT
THE THREE-YEAR PILOT PROGRAM IN DONA ANA, CHAVES, SAN JUAN,
MCKINLEY, BERNALILLO, SANTA FE AND EDDY COUNTIES; PROVIDING
THAT THE PILOT PROGRAM WILL SERVE ELIGIBLE CHILDREN IN STATE
CUSTODY AND THEIR FAMILIES AND WILL INCLUDE ENHANCED FOSTER
CARE SERVICES; PROVIDING ELIGIBILITY REQUIREMENTS; ALLOWING
PLACEMENT GAP INCENTIVES; REQUIRING EVIDENCE-BASED ASSESSMENTS
AND TREATMENT MODELS; DEFINING TERMS; PROVIDING FOR SPECIALIZED
INCENTIVE TRACKS; MAKING AN APPROPRIATION.

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

SECTION 1.
A new section of the Children, Youth and
Families Department Act is enacted to read:

"[
NEW MATERIAL
] SHORT-TERM STABILIZATION PILOT PROGRAM
CREATED--PURPOSE--PROGRAM REQUIREMENTS--ELIGIBILITY--ADMINISTRATION.--

A. The "short-term stabilization pilot program" is
created within the department as a three-year pilot program for
children in state custody and their families within Dona Ana,
Chaves, San Juan, McKinley, Bernalillo, Santa Fe and Eddy
counties. The purpose of the pilot program is to provide
children with in-home or home-like placements along with
short-term stabilization support and services and crisis
response and bridge placement when appropriate.

B. The department, in collaboration with the health
care authority, shall contract with child welfare experts who
possess demonstrated experience in evidence-based treatment
models and stabilizing placements for children with acute
behavioral health or mental health needs. Contractors selected
to provide services pursuant to this section shall work with
the department and the health care authority to develop and
implement the short-term stabilization pilot program that uses
home-like settings intended to reduce placement disruptions,
including therapeutic foster homes. The pilot program shall
provide the following evidence-based treatment and enhanced
foster care support and services:

(1) twenty-four-hour crisis intervention;

(2) monthly in-home caseworker visits to
discuss child functioning, parenting techniques and caregiver
self-care;

(3) weekly in-home child therapy;

(4) monthly in-home family therapy;

(5) parent training focusing on therapeutic
communication and trauma-informed crisis management; and

(6) treatment team meetings to collaborate on
a child's individualized service and support plan.

C. To fill placement gaps for children who require
short-term stabilization or behavioral health support services,
the department, in collaboration with the health care
authority, shall establish financial and program incentives to
expand placement options, including small, home-like facilities
or therapeutic foster homes. The incentives may include:

(1) enhanced contract rates for qualified
therapeutic foster parents or home-like facility providers;

(2) start-up financial support for small,
home-based or residential placement settings that serve six or
fewer children; and

(3) bonus payments for placement providers who
accept children participating in specialized incentive tracks
as provided in Subsection E of this section.

D. A child's participation in the short-term
stabilization pilot program shall be based upon the child's

CANS assessment at the time of entry into the program and as
may be required or recommended after initial entry. Children
with a history of frequent placements, a risk of placement
disruption or a clinical diagnosis requiring higher levels of
therapeutic support shall be prioritized for program
participation.

E. The short-term stabilization pilot program shall
include specialized incentive tracks developed for children
participating in the program who:

(1) have acute behavioral needs;

(2) are adolescents;

(3) are part of a sibling group; or

(4) require short-term stabilization
placements of seven to thirty days as a bridge to permanency or
long-term placement.

F. Upon implementation, the short-term
stabilization pilot program shall be administered by the
department with continuing assistance as appropriate by the
health care authority.

G. For the purposes of this section:

(1) "CANS" means a standardized child and
adolescent needs and strengths assessment tool widely
recognized and used as a clinical case-planning tool within
child welfare systems;

(2) "evidence-based treatment" means a
clinical or therapeutic intervention that is recognized by a
national or state child welfare or behavioral health authority
and is validated by research and supported by outcomes data;

(3) "specialized incentive track" means a
structured path that provides a child extra support and
services and includes enhanced payments or benefits to the
foster parents or provider who cares for the child; and

(4) "therapeutic foster home" means a licensed
foster home or kinship placement approved to provide in-home
behavioral health services."

SECTION 2.
APPROPRIATION.--Two million five hundred
thousand dollars ($2,500,000) is appropriated from the general
fund to the children, youth and families department for
expenditure in fiscal years 2027 through 2029 to, in
collaboration with the health care authority, contract with
child welfare experts to develop, implement and administer the
short-term stabilization pilot program in Dona Ana, Chaves, San
Juan, McKinley, Bernalillo, Santa Fe and Eddy counties. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

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