The bill proposes an appropriation of $100,000 from the general fund to the local government division of the Department of Finance and Administration for the fiscal year 2026. This funding is designated for a grant-in-aid to the Southeastern Council of Governments to conduct a feasibility study regarding local governance options for Chaparral, an unincorporated community. The study will explore various governance possibilities, including the potential incorporation of Chaparral as a municipality, the creation of a new county, or adjustments to the boundaries between Otero and Dona Ana counties.

Additionally, the bill stipulates that any unexpended or unencumbered funds remaining at the end of fiscal year 2026 will revert back to the general fund. This ensures that the allocated funds are utilized effectively within the designated timeframe, promoting accountability in the expenditure of state resources.