Governor announces $120 million for housing and homelessness 

SANTA FE – Gov. Michelle Lujan Grisham today announced that the Office of Housing at the New Mexico Department of Workforce Solutions will distribute $120 million for housing and homelessness projects across New Mexico beginning this month.

The investment aims to expand affordable housing options while reducing homelessness and improving public safety. The $120 million expenditure is part of $140 million contained in the general fund, Government Results and Opportunity (GRO) Fund, and capital outlay appropriations approved by the New Mexico over the past two years for these purposes.

“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.”

The first round of allocations is based on goals established in the appropriation, legislative intent for projects in the Albuquerque-Bernalillo County metropolitan area and the Las Cruces-Doña Ana County metropolitan area, and the potential for fully expending the funds by June 30, 2026.

Future funding opportunities will focus on site readiness and housing innovations, with the goal of building a pipeline of projects eligible for funding from current and future appropriations.

The initial allocation includes projects from a number of funding sources, including $110 million in general funds appropriated in 2025 to support housing, affordable housing, transitional housing, and the expansion of housing and homelessness programs; $16,140,000 in GRO funds appropriated in 2024 for statewide homelessness initiatives; $5,000,000 in general funds appropriated in 2025 for grants to local governments to support homeless encampment response; and $13 million in capital outlay appropriated in 2025 for statewide housing projects.

Highlights of the initial allocation of funds include:

• More than $80 million for housing and homelessness projects in the Albuquerque-Bernalillo County metropolitan area
• More than $11 million for housing and homelessness projects in the Las Cruces-Doña Ana County area
• More than $13 million for housing projects in other areas of New Mexico
• $7.8 million for projects to support families experiencing homelessness through the McKinney-Vento programs in Albuquerque Public Schools, Las Cruces Public Schools, and Santa Fe Public Schools

“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.”

These investments are expected to include creation and support of:

• More than 1,500 affordable and attainable housing units
•  More than 1,500 shelter beds paired with housing navigation programs
• More than 150 transitional housing units for people exiting shelter
• Prevention programs to help more than 3,500 families through rapid rehousing, case management and home repair
• Street outreach with support services to address unsheltered homelessness

The Office of Housing will partner with local governments, developers, and service providers to make formal announcements of projects as intergovernmental agreements are finalized. Requests for proposals and applications for additional projects will be issued over the next month.

The New Mexico Department of Workforce Solutions (NMDWS) oversees the New Mexico public workforce system. In 2025, NMDWS expanded to include the Office of Housing.