The proposed bill establishes the "Animal Welfare Program" in New Mexico, aimed at providing funding for projects that enhance the welfare of domestic cats and dogs. Starting July 1, 2025, the program will allow the Department of Finance and Administration to award grants to municipalities, counties, or eligible entities, including Indian nations, tribes, or pueblos. These grants can be used for various purposes, such as repairing or renovating animal shelters, controlling stray animals, improving enforcement of animal cruelty laws, providing spay and neuter services, and developing educational materials on animal welfare. Applicants must submit detailed proposals to the department, which will evaluate and approve projects through a competitive review process.

Additionally, the bill creates the "Animal Welfare Program Fund," a nonreverting fund in the state treasury that will consist of appropriations, gifts, grants, and donations. The fund will be administered by the Department of Finance and Administration, which will use the money to support the animal welfare program. The department is required to submit an annual report to the legislative finance committee detailing funded projects, their progress, and any projects that were approved but did not receive funding due to insufficient resources.