The proposed legislation, known as the "Pathway Act," aims to provide eligible foster children in New Mexico with a one-time financial benefit of $2,000 to assist with housing, education, or workforce training. To qualify for this benefit, individuals must have spent at least eighteen months in foster care, be at least eighteen years old on or after January 1, 2026, and have successfully 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 exclusively for the specified purposes.

Additionally, the Pathway Act clarifies that the benefits provided do not create any enforceable property interest and are not guaranteed. It also includes a provision exempting the funds transferred to beneficiaries from state income taxation. An appropriation of $4 million is allocated from the early childhood education and care fund to support the Pathway Program for fiscal year 2026 and beyond. The act is set to take effect on January 1, 2026.