The proposed "Pathway Act" aims to provide eligible foster children in New Mexico with a one-time benefit of $2,000 to assist with housing, education, or workforce training. To qualify, beneficiaries must have spent at least eighteen months in foster care, be at least eighteen years old on or after January 1, 2026, and have completed a financial literacy course. The act establishes the Pathway Program and the Pathway Program Fund, which will be administered by the Department of Finance and Administration in collaboration with the Children, Youth and Families Department. The fund will consist of various financial sources, including appropriations and donations, and will be used solely for the specified purposes.

Importantly, the Pathway Act clarifies that the benefits provided are not guaranteed and do not create any enforceable property interest. Additionally, funds transferred to beneficiaries under this act will be exempt from state income taxation. An appropriation of $4 million from the early childhood education and care fund is designated for the Pathway Program Fund for fiscal year 2026 and beyond, ensuring the program's financial support. The act is set to take effect on January 1, 2026.