SANTA FE — New Mexico lawmakers have advanced legislation intended to stabilize foster care placements for children with high behavioral or medical needs, as the state continues to face a shortage of foster homes and scrutiny over emergency housing practices.
House Bill 65, sponsored by Rep. Rebecca Dow, R–Truth or Consequences, would establish a three-year pilot program within the state’s Children, Youth & Families Department to provide intensive, short-term services for children already in state custody who experience repeated placement disruptions. The proposal cleared the House Health and Human Services Committee on Feb. 4 and now heads to the House Appropriations and Finance Committee.
The measure comes as CYFD faces ongoing oversight related to its use of agency offices as temporary housing when foster placements are unavailable. While HB 65 does not directly regulate that practice, supporters say the program is designed to intervene earlier in high-risk cases to prevent crises that can lead to emergency removals or placement breakdowns.
Under the bill, CYFD would partner with the New Mexico Health Care Authority to contract with child welfare providers to deliver evidence-based services in home or home-like settings. Services outlined in the legislation include around-the-clock crisis intervention, weekly therapy for children, family therapy, caregiver training and coordinated treatment planning. Participation would be guided by standardized behavioral health assessments.
Lawmakers say the pilot is intended to shift the system toward earlier stabilization rather than reactive responses once placements fail. Dow said in a Facebook post that children with complex needs require specialized care to avoid unsafe or temporary housing situations. “New Mexico is housing medically fragile children in government office buildings because there aren’t enough appropriate foster placements,” Dow wrote. “We owe our most vulnerable children safe, proper care.”
The bill proposes a $2.5 million appropriation over two fiscal years to operate the pilot in selected counties, with unused funds reverting to the state. Legislators discussed adding reporting requirements to measure outcomes and program effectiveness.
Some lawmakers expressed concern about whether additional funding alone would resolve broader systemic challenges within CYFD. Rep. Kathleen Cates, D–Rio Rancho, said she supports the bill’s goals but questioned whether financial investments without clear performance benchmarks would address underlying issues. “My concern is that the solution seems to be financial,” Cates said. “I don’t think that that is true.”
HB 65 is one of several child welfare proposals under consideration this session. Dow is also sponsoring House Bill 76, which would expand placement options outside congregate care for older youth and children with higher needs. That measure has also advanced through its first committee.
The debate occurs as Gov. Michelle Lujan Grisham has ordered an end to overnight office stays through an executive directive scheduled to take effect March 1, part of broader efforts to reform the state’s foster care system amid years of litigation and oversight.
