The bill establishes a three-year pilot project known as the "monetary stipend project," aimed at providing monthly assistance payments to eligible adults who are former foster or delinquent children. The project seeks to demonstrate that financial support for basic cost-of-living expenses can enhance educational, employment, and health care outcomes for these individuals. Eligibility criteria include being a New Mexico resident, a U.S. citizen or lawful permanent resident, and under the age of twenty-six, with specific participation in educational or workforce development programs. The higher education department will administer the project and determine individualized stipend amounts, which cannot exceed $2,000 per month, based on participants' income and other public assistance.

Additionally, the bill mandates the higher education department to create rules for application processes and evaluation methodologies, and it requires regular reporting to the legislative health and human services committee. An appropriation of $3 million from the general fund is allocated for the project, covering fiscal years 2026 through 2028, with any unspent funds reverting to the general fund at the end of the project.