This bill establishes a "short-term stabilization pilot program" within the Children, Youth and Families Department, aimed at providing support for children in state custody and their families in specific counties, including Dona Ana, Chaves, San Juan, McKinley, Bernalillo, Santa Fe, and Eddy. The program will focus on offering in-home or home-like placements, crisis response, and enhanced foster care services. It mandates collaboration between the department and the health care authority to contract with child welfare experts who will implement evidence-based treatment models and provide various support services, such as crisis intervention, in-home therapy, and parent training.

Additionally, the bill outlines eligibility requirements for children to participate in the program, prioritizing those with a history of frequent placements or higher therapeutic needs. It introduces financial and program incentives to expand placement options, including enhanced rates for therapeutic foster parents and support for small residential settings. The bill appropriates $2.5 million from the general fund for the program's development and implementation over three fiscal years, with any unspent funds reverting to the general fund at the end of the period.