FY26 New Mexico Match Fund- Matching Grant Application

The Office of Governor Michelle Lujan Grisham and the Department of Finance and Administration (DFA) continue implementation of the New Mexico Match Fund with a second-year appropriation of $72 million. The Match Fund was originally created in 2024 by House Bill 177 ("HB177"), sponsored by Rep. Meredith Dixon, Rep. Gail Armstrong, Rep. Susan Herrera, Sen. Pete Campos and Sen. Pat Woods, with an initial appropriation of $75 million. The Match Fund provides a unique opportunity to leverage once-in-a-generation federal funding for infrastructure, research, economic development, the energy transition, and other projects that foster healthy communities. New Mexico Match Fund With this continued investment, New Mexico is prioritizing state funding to put more federal dollars to work in New Mexico and enhancing support for state, local, tribal, and community capabilities in pursuing and managing federal grants.

Fiscal Year 2026 Matching Grant Program- The Matching Grant program supports eligible entities needing supplemental funding to satisfy federal grant matching requirements. The Department of Finance and Administration commits to allocating a minimum of 40% of the $50 million available program funds specifically for rural, frontier, and tribal government applicants. Application Process and Timeline- Applications are reviewed on a rolling basis using a first-come, first-served approach. Each application receives a date/time stamp upon submission. DFA will review complete applications and make determinations within 20 business days of receipt. If eligible projects are submitted after available funding is exhausted, they will be placed on a waitlist and funded in order of application receipt when funds become available. Application Funding Limits- State agencies and higher education institutions may request up to $2.5 million per individual application and corresponding federal grant. State agencies should assess whether pursuing matching funds through the annual appropriations process (for recurring and nonrecurring funding) or the annual capital funding process would be more appropriate for their federal grant requirements. All other eligible applicants may request up to $10 million per individual application and corresponding federal grant. Non-state agency entities requesting more than $2.5 million through a Matching Grant may be asked by DFA to provide supplementary documentation demonstrating both the necessity for the requested matching funds and their organizational capacity to effectively manage the combined federal and state funding. Additional Funding Sources and In-Kind Contributions- Matching Grant applicants must disclose their total matching requirement, the amount of matching funds secured from other sources, and the specific amount requested from the Match Fund. Applicants are required to certify that all provided information is accurate and that they have explored all other potential matching fund sources. While strongly encouraged, the use of additional funding sources beyond the Match Fund is not mandatory. Application Management- Incomplete applications that remain inactive for 20 business days will trigger system-generated notifications to applicants. If no activity occurs after an additional 10 business days, applicants will be contacted by email and phone. Applications remaining inactive for another 10 business days will be terminated, requiring reapplication if funding is still needed.

Project Readiness Requirements- Applicants must demonstrate project readiness by having either submitted a federal grant application or committing to submit within 120 days of their Matching Grant application. Entities that fail to provide evidence of a complete federal grant application within this 120-day window will be deemed ineligible for an award but may reapply once they meet the readiness requirement.

Eligible entities include: • County • Municipality (city, town or village) • Drainage, conservancy, irrigation, soil and water conservation, water or sanitation district • Public water cooperative association • Community ditch association • Public schools • Public post-secondary education institution • State of New Mexico or any of its branches, agencies, departments, boards, instrumentalities or institutions • Any other political subdivision of the state • Federally recognized Indian nation, tribe or pueblo, the boundaries of which are located wholly or partially in New Mexico.

Please see DFA's New Mexico Match Fund webpage for additional information.

Monthly reporting will be required starting July 1, 2025.