GENERAL FUND TRANSFERS TO OTHER FUNDS

SB0177

SENATE BILL 177

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

INTRODUCED BY

George K. Muñoz
and
Meredith A. Dixon

AN ACT

RELATING TO PUBLIC FINANCE; MAKING TRANSFERS FROM THE GENERAL
FUND TO ECONOMIC-RELATED FUNDS; MAKING APPROPRIATIONS FOR
ECONOMIC DEVELOPMENT-RELATED PURPOSES AND INITIATIVES OF THE
ECONOMIC DEVELOPMENT DEPARTMENT, NEW MEXICO UNIVERSITIES AND
BUSINESSES IN THE FIELDS OF ARTIFICIAL INTELLIGENCE, QUANTUM
TECHNOLOGY, ADVANCED ENERGY, AEROSPACE AND DEFENSE AND
BIOSCIENCE; MAKING APPROPRIATIONS FOR PROJECTS WITH AN
ASSOCIATED EFFECT ON ECONOMIC DEVELOPMENT; MAKING
APPROPRIATIONS FOR PUBLIC SAFETY INITIATIVES.

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

SECTION 1.
TRANSFER--OUTDOOR EQUITY GRANT PROGRAM FUND.--

On July 1, 2026, nine million dollars ($9,000,000) is
transferred from the general fund to the outdoor equity grant
program fund.

SECTION 2.
TRANSFER--RESEARCH, DEVELOPMENT AND DEPLOYMENT
FUND.--On July 1, 2026, one hundred eleven million dollars
($111,000,000) is transferred from the general fund to the
research, development and deployment fund.

SECTION 3.
TRANSFER--SITE READINESS FUND.--On July 1,
2027, twenty million dollars ($20,000,000) is transferred from
the general fund to the site readiness fund.

SECTION 4.
TRANSFER--DEVELOPMENT TRAINING FUND.--On July
1, 2027, ten million dollars ($10,000,000) is transferred from
the general fund to the development training fund.

SECTION 5.
TRANSFER--LOCAL ECONOMIC DEVELOPMENT ACT
FUND.--On July 1, 2027, twenty million dollars ($20,000,000) is
transferred from the general fund to the Local Economic
Development Act fund.

SECTION 6.
APPROPRIATION--ADVANCED ENERGY INDUSTRY
INNOVATION HUB AND VENTURE STUDIO.--Twenty-five million dollars
($25,000,000) is appropriated from the general fund to the
economic development department for expenditure in fiscal years
2027 through 2029 to contract for services to provide
operational support for an advanced energy industry innovation
hub and venture studio that will create, launch and scale
start-ups targeted to technologies designed to enhance the
performance, affordability and reliability of advanced energy
systems, including renewable energy deployment, energy
efficiency solutions, battery storage and climate technology
solutions. Any unexpended balance remaining at the end of
fiscal year 2029 shall revert to the general fund.

SECTION 7.
APPROPRIATION--ADVANCED ENERGY ENTREPRENEURS
AND TRADE ASSOCIATIONS.--

A. Thirty-seven million five hundred thousand
dollars ($37,500,000) is appropriated from the general fund to
the economic development department for expenditure in fiscal
years 2027 through 2029 to provide money in amounts as
determined by the department to entrepreneurs to create
advanced energy start-ups; to advanced energy trade
associations to advocate on behalf of the state and solicit
industry and company interest and collaboration; to provide
matching funds for federal grants for such entrepreneurs and
trade associations; to provide advanced energy workforce
training programs at a higher education institution or New
Mexico business; to support New Mexico businesses in recruiting
and retaining an advanced energy workforce; and to enable
quantum computing researchers at Los Alamos national laboratory
and Sandia national laboratories to use sabbatical leave to
pursue commercial opportunities in New Mexico. Recipients
shall be prioritized and selected as determined by the
department. Any unexpended balance remaining at the end of
fiscal year 2029 shall revert to the general fund.

B. As used in this section, "advanced energy" means
technologies for cleaner and more efficient energy production
than fossil fuel technology, including technology and
innovation that makes energy use cleaner, safer, more secure
and more reliable, battery storage, electric and hybrid
vehicles and efficiency improvements for homes, industries and
transportation.

SECTION 8.
APPROPRIATION--DEFENSE TECHNOLOGY, BIOSCIENCE
AND AEROSPACE INDUSTRY INNOVATION HUB AND VENTURE STUDIO.--Thirty million nine hundred thousand dollars ($30,900,000) is
appropriated from the general fund to the economic development
department for expenditure in fiscal years 2027 through 2029 to
contract for services to provide operational support for a
defense technology, bioscience and aerospace industry
innovation hub and venture studio that will create, launch and
scale start-ups and include a sensitive compartmented
information facility. Any unexpended balance remaining at the
end of fiscal year 2029 shall revert to the general fund.

SECTION 9.
APPROPRIATIONS--NATIONAL SECURITY RESEARCH AND
INFRASTRUCTURE.--

A. Nine million dollars ($9,000,000) is
appropriated from the general fund to the board of regents of
the New Mexico institute of mining and technology for
expenditure in fiscal years 2027 through 2029 to enable a
wireless technology hub at the institute's Playas research and
training center to provide instrumented, real-world test ranges
and laboratories for emerging wireless technologies, shorten
the path from research to fielded capability for defense and
commercial users and build a durable talent pipeline and
supplier base across New Mexico. Any unexpended balance
remaining at the end of fiscal year 2029 shall revert to the
general fund.

B. Seven million dollars ($7,000,000) is
appropriated from the general fund to the board of regents of
the New Mexico institute of mining and technology for
expenditure in fiscal years 2027 through 2029 to establish a
gateway for an energetic reliability and aging studies facility
at the institute's energetics materials research and testing
center to deliver high-value, actionable data to the United
States department of defense by enabling controlled, repeatable
examination of aged munitions and components. Any unexpended
balance remaining at the end of fiscal year 2029 shall revert
to the general fund.

C. Two million dollars ($2,000,000) is appropriated
from the general fund to the board of regents of the university
of New Mexico for expenditure in fiscal years 2027 through 2029
to purchase robots, three-dimensional printers and supporting
equipment and renovation of a centralized training facility.
Any unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

D. Eight million dollars ($8,000,000) is
appropriated from the general fund to the board of regents of
the university of New Mexico for expenditure in fiscal years
2027 through 2029 to purchase equipment for a flexible ion
implanter, cryogenic optical spectroscopy and quantum spin-photon tools; to purchase a focused ion beam milling system
with variable-energy and multispecies capability; to purchase
fiber semiconductor lasers and high-power microwave test
stands; to construct laboratory upgrades; and for a nitrogen
liquefaction plant cost-controlled cryogens for mission-critical United States department of defense collaborations
with the United States air force, Sandia national laboratories
and Los Alamos national laboratory that depend on uninterrupted
cryogenics for directed energy, quantum materials, biobanking
and clinical operations. Any unexpended balance remaining at
the end of fiscal year 2029 shall revert to the general fund.

E. Five million dollars ($5,000,000) is
appropriated from the general fund to the board of regents of
the university of New Mexico for expenditure in fiscal years
2027 through 2029 for the university of New Mexico health
sciences center for unified activities with the school of
engineering and the college of arts and sciences in
acoustomicrofluidic microneedle systems, compact optical, radio
frequency and biosensors; multimodal brain imaging scanners and
functionally guided brain stimulators; and genomic and
transcriptomic next-generation sequencing equipment. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

F. Five million dollars ($5,000,000) is
appropriated from the general fund to the board of regents of
the university of New Mexico for expenditure in fiscal years
2027 through 2029 for the university of New Mexico health
sciences center for centralized high-performance computing
upgrades, quantum computer access and data center renovations
to expand bioscience-related activities and develop artificial
intelligence and quantum computing approaches. Any unexpended
balance remaining at the end of fiscal year 2029 shall revert
to the general fund.

G. Sixteen million dollars ($16,000,000) is
appropriated from the general fund to the board of regents of
New Mexico state university for expenditure in fiscal years
2027 through 2029 to purchase and install equipment supporting
the physical sciences laboratory. Any unexpended balance
remaining at the end of fiscal year 2029 shall revert to the
general fund.

SECTION 10.
APPROPRIATION--FEDERAL GENESIS MISSION.--

A. One hundred eighteen million dollars
($118,000,000) is appropriated from the general fund to the
economic development department for expenditure in fiscal years
2027 through 2029 to leverage opportunities pursuant to the
genesis mission that will

accelerate the artificial
intelligence and quantum computing revolutions and double the
productivity and impact of American science within a decade.
Any unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

B. As used in this section, "genesis mission" means
the United States department of energy's genesis mission to
train scientific models and create artificial intelligence
agents to test new hypotheses, automate research workflows and
accelerate scientific breakthroughs, pursuant to the executive
order of the president of the United States dated November 24,
2025.

SECTION 11.
APPROPRIATION--QUANTUM BENCHMARKING
INITIATIVE.--

A. Forty-nine million three hundred thousand
dollars ($49,300,000) is appropriated from the general fund to
the economic development department for expenditure in fiscal
years 2027 through 2029 to match federal funds for the United
States department of defense's defense advanced research
projects agency's quantum benchmarking initiative. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

B. As used in this section, "quantum benchmarking
initiative" means an initiative to verify and validate whether
a quantum computing approach can achieve utility-scale
operation, in which the operation's computational value exceeds
its cost, by 2033.

SECTION 12.
APPROPRIATION--OPEN USER FACILITY FOR QUANTUM
COMPUTING TESTBED.--

A. One hundred fourteen million dollars
($114,000,000) is appropriated from the general fund to the
economic development department for expenditure in fiscal years
2027 through 2029 to match federal funds to maintain a quantum
computing testbed. Any unexpended balance remaining at the end
of fiscal year 2029 shall revert to the general fund.

B. As used in this section, "quantum computing
testbed" means an open-access quantum computer testbed
providing researchers with white-box control, which involves
observing or modifying a neural network's internal activations
and workings to prevent potential harm from misaligned
artificial intelligence models, over hardware to study quantum
computing fundamentals, architecture and algorithms that is
funded by the United States department of energy's office of
science for scientific discovery.

SECTION 13.
APPROPRIATION--QUANTUM ENTREPRENEURS AND
TRADE ASSOCIATIONS.--Thirty-seven million five hundred thousand
dollars ($37,500,000) is appropriated from the general fund to
the economic development department for expenditure in fiscal
years 2027 through 2029 to provide money in amounts as
determined by the department to entrepreneurs to create
quantum-computing-related start-ups; to quantum-computing-related trade associations to advocate on behalf of the state
and solicit industry and company interest and collaboration; to
provide matching funds for federal grants for such
entrepreneurs and trade associations; to provide quantum-computing-related workforce training programs at a higher
education institution or private business; to Los Alamos
national laboratory and Sandia national laboratories to enable
quantum computing researchers to use sabbatical leave to pursue
commercial opportunities in New Mexico; and to support
businesses in recruiting and retaining a quantum-computing-related workforce. Recipients shall be prioritized and
selected as determined by the department. Any unexpended
balance remaining at the end of fiscal year 2029 shall revert
to the general fund.

SECTION 14.
APPROPRIATION--SCIENCE AND TECHNOLOGY
ENTREPRENEURS AND SMALL BUSINESSES.--Thirty-four million eight
hundred thousand dollars ($34,800,000) is appropriated from the
general fund to the economic development department for
expenditure in fiscal years 2027 through 2029 to provide money
in amounts as determined by the department to entrepreneurs and
small businesses to start science and technology businesses.
Any unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

SECTION 15.
APPROPRIATION--INNOVATION HUBS.--Sixty
million dollars ($60,000,000) is appropriated from the general
fund to the economic development department for expenditure in
fiscal years 2027 through 2029 to provide funding for an
innovation hub that will co-locate laboratory and office space
for companies and entrepreneurs in target sectors and build
programming to support technology and innovation growth. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

SECTION 16.
APPROPRIATION--TECHNOLOGY INNOVATION PRIZE.--Twenty-one million dollars ($21,000,000) is appropriated from
the general fund to the economic development department for
expenditure in fiscal years 2027 through 2029 to fund
technology innovation prizes pursuant to the technology
innovation prize program. Any unexpended balance remaining at
the end of fiscal year 2029 shall revert to the general fund.

SECTION 17.
APPROPRIATION--HEALTHY FOOD FINANCING.--

A. Six million dollars ($6,000,000) is appropriated
from the general fund to the economic development department
for expenditure in fiscal years 2027 through 2029 for the
department's healthy food financing program. Any unexpended
balance remaining at the end of fiscal year 2029 shall revert
to the general fund.

B. As used in this section, "healthy food financing
program" means a program that provides increased food security
for New Mexicans by increasing access to food for historically
underresourced communities, addressing workforce development
challenges through the creation and retention of jobs in the
food and agricultural supply chain, strengthening and
diversifying in-state market channel access for small and mid-scale food and agricultural operations, advancing food safe
storage, aggregation, distribution and transportation in
regional food supply chain networks and supporting the
implementation of regenerative agricultural practices.

SECTION 18.
APPROPRIATION--TRAILS PLUS GRANT PROGRAM.--

A. Thirty million dollars ($30,000,000) is
appropriated from the general fund to the New Mexico outdoor
recreation division of the economic development department for
expenditure in fiscal years 2027 through 2029 for the
division's trails plus grant program. Any unexpended balance
remaining at the end of fiscal year 2029 shall revert to the
general fund.

B. As used in this section, "trails plus grant
program" means a program that provides grants for projects for
the planning, development and improvement of outdoor space,
including trails, river parks, wildlife viewing areas and
trailheads.

SECTION 19.
APPROPRIATION--INDIGENOUS FILM FESTIVAL.--Nine million dollars ($9,000,000) is appropriated from the
general fund to the economic development department for
expenditure in fiscal years 2027 through 2029 to contract for
services to provide an indigenous film festival. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

SECTION 20.
APPROPRIATION--QUANTUM AND ADVANCED ENERGY
FACULTY ENDOWMENTS AND RESOURCES.--

A. Sixty million dollars ($60,000,000) is
appropriated from the general fund to the economic development
department for expenditure in fiscal years 2027 through 2029
for a total of three quantum and two advanced energy faculty
endowments at state research universities, awarded by the
technology and innovation network advisory board. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

B. Forty-five million dollars ($45,000,000) is
appropriated from the general fund to the economic development
department for expenditure in fiscal years 2027 through 2029 to
provide research teams and laboratory usage for use by three
endowed faculty teaching positions in quantum-related
technologies at New Mexico research universities. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

C. Twenty-four million dollars ($24,000,000) is
appropriated from the general fund to the economic development
department for expenditure in fiscal years 2027 through 2029
for research teams and laboratory usage for two endowed
advanced energy faculty teaching positions at New Mexico
research universities. Any unexpended balance remaining at the
end of fiscal year 2029 shall revert to the general fund.

SECTION 21.
APPROPRIATION--CENTER FOR QUANTUM INFORMATION
AND CONTROL RESEARCH ASSISTANTS.--Three million dollars
($3,000,000) is appropriated from the general fund to the
economic development department for expenditure in fiscal years
2027 through 2029 for twenty research assistant positions at
the university of New Mexico's center for quantum information
and control; provided that no more than five positions shall be
held by post-doctoral students and no more than two positions
shall be held by graduate students. Any unexpended balance
remaining at the end of fiscal year 2029 shall revert to the
general fund.

SECTION 22.
APPROPRIATION--ADVANCED TECHNOLOGY WORKFORCE
TRAINING.--Nine million dollars ($9,000,000) is appropriated
from the general fund to the economic development department
for expenditure in fiscal years 2027 through 2029 for advanced
technology workforce training. Any unexpended balance
remaining at the end of fiscal year 2029 shall revert to the
general fund.

SECTION 23.
APPROPRIATION--ADVANCED ENERGY PILOT PROJECT
GRANTS.--Twenty million dollars ($20,000,000) is appropriated
from the general fund to the economic development department
for expenditure in fiscal years 2027 through 2029 for grants
for pilot projects in advanced energy, to be coordinated with
the state investment council's venture capital investments.
Any unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

SECTION 24.
APPROPRIATION--ECONOMIC DEVELOPMENT
DEPARTMENT ACCOUNT MANAGER POSITIONS.--Six million dollars
($6,000,000) is appropriated from the general fund to the
economic development department for expenditure in fiscal years
2027 through 2029 for account manager positions for target
sectors in the technology and innovation division. Any
unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

SECTION 25.
APPROPRIATION--QUANTUM NEW MEXICO
INSTITUTE.--

A. One hundred thirty-five million dollars
($135,000,000) is appropriated from the general fund to the
economic development department for expenditure in fiscal years
2027 through 2029 for the following purposes for the quantum
New Mexico institute at the university of New Mexico to support
projects that solve major challenges in the fields of
artificial intelligence, quantum technology, advanced energy,
aerospace and defense and bioscience:

(1) to purchase an on-premises hybrid quantum-classical system; planning, design and development of
facilities; installation costs; and technical support to
further strengthen collaborations between research
institutions, national laboratories and the private sector in
the state;

(2) to support projects that solve major
challenges in the fields of artificial intelligence, quantum
technology, advanced energy, aerospace and defense and
bioscience; and

(3) for hybrid quantum-classical cloud
computing upgrades and computer time.

B. Any unexpended balance remaining at the end of
fiscal year 2029 shall revert to the general fund.

SECTION 26.
APPROPRIATION--SCIENCE, TECHNOLOGY,
ENGINEERING, ART AND MATHEMATICS INITIATIVES.--Eighteen million
dollars ($18,000,000) is appropriated from the general fund to
the economic development department for expenditure in fiscal
years 2027 through 2029 for science, technology, engineering,
art and mathematics initiatives. Any unexpended balance
remaining at the end of fiscal year 2029 shall revert to the
general fund.

SECTION 27.
APPROPRIATION--MARKETING AND PROMOTION.--Seventy-five million dollars ($75,000,000) is appropriated from
the general fund to the economic development department for
expenditure in fiscal years 2027 through 2029 to market and
promote New Mexico's economic development opportunities and
cultural and tourism events. Any unexpended balance remaining
at the end of fiscal year 2029 shall revert to the general
fund.

SECTION 28.
APPROPRIATION--NEW MEXICO PARTNERSHIP.--Six
million dollars ($6,000,000) is appropriated from the general
fund to the economic development department for expenditure in
fiscal years 2027 through 2029 for the New Mexico partnership.
Any unexpended balance remaining at the end of fiscal year 2029
shall revert to the general fund.

SECTION 29.
APPROPRIATION--BIOSCIENCE AUTHORITY.--Six
million dollars ($6,000,000) is appropriated from the general
fund to the board of regents of the university of New Mexico
for expenditure in fiscal years 2027 through 2029 for the New
Mexico bioscience authority. Any unexpended balance remaining
at the end of fiscal year 2029 shall revert to the general
fund.

SECTION 30.
APPROPRIATION--PUBLIC SAFETY INITIATIVES.--Sixty million dollars ($60,000,000) is appropriated from the
general fund to the department of finance and administration
for expenditure in fiscal years 2027 through 2029 for public
safety initiatives. Any unexpended balance remaining at the
end of fiscal year 2029 shall revert to the general fund.

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