The Office of Housing at the New Mexico Department of Workforce Solutions will begin distributing $120 million for housing and homelessness projects across the state, Governor Michelle Lujan Grisham announced. The funding is part of a broader effort to expand affordable housing, reduce homelessness, and improve public safety.
The $120 million is drawn from $140 million in general fund, Government Results and Opportunity (GRO) Fund, and capital outlay appropriations approved by New Mexico over the past two years for these initiatives.
“These investments prioritize solving New Mexico’s housing crisis through focused investments in affordable and attainable housing, support for prevention, and proven solutions to the challenge of homelessness,” said Gov. Lujan Grisham. “When we face a challenge of this magnitude, we must take an ‘all the above’ approach.”
Initial allocations are based on goals set by legislative intent for projects in metropolitan areas such as Albuquerque-Bernalillo County and Las Cruces-Doña Ana County. The funds are expected to be fully spent by June 30, 2026. Future opportunities will focus on site readiness and innovative approaches to build a pipeline of eligible projects.
Funding sources include $110 million in general funds appropriated in 2025 for various types of housing support; $16.14 million from GRO funds allocated in 2024 for statewide homelessness initiatives; $5 million earmarked in 2025 for local government grants addressing homeless encampments; and $13 million from capital outlay designated in 2025 for statewide housing projects.
Key highlights from the initial allocation are more than $80 million directed toward projects in Albuquerque-Bernalillo County, over $11 million allocated to Las Cruces-Doña Ana County area efforts, more than $13 million reserved for other parts of New Mexico, and $7.8 million aimed at supporting families experiencing homelessness through McKinney-Vento programs within major school districts.
“We know what works to address the complex issues around housing and homelessness, and we need to invest more in those proven strategies,” said NMDWS Cabinet Secretary Sarita Nair. “We know that building more housing makes housing more affordable, that preventing homelessness is more cost-effective than shelter, and that transitioning people into stable housing requires wrap-around support and thoughtful interventions. Today’s investments double down on exactly these approaches.”
The investment is expected to create or support over 1,500 affordable or attainable units statewide as well as provide shelter beds with navigation services. It also includes transitional units for people leaving shelters and prevention programs projected to help over 3,500 families through rapid rehousing or home repair assistance.
Partnerships with local governments, developers, and service providers will be formalized as intergovernmental agreements are completed. Additional project proposals will be solicited over the next month.
In 2025, NMDWS expanded its scope by adding the Office of Housing to its oversight responsibilities concerning New Mexico's public workforce system.
