The "Paid Parental Leave for Qualified School Employees Act" establishes a framework for providing up to twelve weeks of paid parental leave to full-time employees of school districts or charter schools in New Mexico. This leave can be utilized following the birth, adoption, or foster care placement of a child. The act defines key terms such as "qualified employee," "parental leave," and "qualifying event," and outlines the conditions under which the leave can be taken, including that it must be used within a fifty-two-week period and cannot be accrued or paid out upon separation from employment. Additionally, the act mandates that health insurance coverage be maintained during the leave period.

To support the implementation of this act, the New Mexico Public Education Department is tasked with developing a reimbursement process for employers who provide parental leave, ensuring they are compensated for eligible costs such as substitute educators. The act also requires employers to establish guidelines for administering parental leave and mandates annual reporting on its usage and impact. An appropriation of $7.5 million is allocated to fund these provisions, with the act set to take effect on July 1, 2026.