Keaton PetersA major transportation investment in New Mexico is another step closer to approval. The legislation authorizing $1.5 billion in transportation bonds easily cleared the House Appropriations and Finance Committee, as well as the Transportation, Public Works and Capital Improvements Committee, before securing unanimous approval from the House of Representatives.
The proposed legislation addresses the state’s $5.6 billion road funding shortfall through a comprehensive bond program.
House Bill 145 would empower the State Transportation Commission to issue bonds for highway projects across New Mexico. The bonds would be backed by a combination of federal funds and state transportation taxes, creating a sustainable funding mechanism without requiring new tax increases.
The legislation comes as much of New Mexico’s transportation infrastructure is overdue for repairs. A January report from transportation research nonprofit TRIP revealed that 57% of the state’s roads are in poor or mediocre condition, costing New Mexico drivers an estimated $3.6 billion annually in vehicle repairs, increased fuel consumption and accelerated vehicle depreciation.
Rebecca Roose, infrastructure adviser for the state governor, said, “This bipartisan legislation represents a smart, fiscally responsible approach to funding our state’s critical transportation infrastructure needs.”
The bill establishes fiscal guardrails by capping total outstanding bonds at $1.12 billion. Projects funded through the program would be selected through the established Statewide Transportation Improvement Program, ensuring funds are directed to the highest-priority needs across urban and rural communities.
The Department of Transportation currently relies on two primary revenue streams: federal allocations and the State Road Fund, which collects revenue from fuel taxes, vehicle registration and truck weight fees.
However, this traditional funding model faces mounting pressure from multiple directions. Construction costs have surged nationwide, reducing the purchasing power of each dollar invested. Simultaneously, the State Road Fund faces projected decreases in revenue as vehicles become more fuel-efficient and electric vehicles gain market share, reducing gas tax collections.
“We can’t afford to fall further behind in tackling the list of road projects needed statewide,” warned state Transportation Secretary Ricky Serna. “This bonding creates sustainable and adequate funding for roads in New Mexico.”
The bond authorization would allow the state to accelerate critical projects while leveraging current federal funding opportunities. By front-loading infrastructure investments, New Mexico could potentially save millions in future construction inflation costs while addressing safety concerns and economic bottlenecks caused by deteriorating roads.
The proposal now advances to the Senate, where lawmakers will scrutinize the fiscal implications. If approved, the legislation would mark one of the most significant infrastructure investment packages in New Mexico’s recent history.
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Dougtone via Wikimedia Commons
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