The proposed bill establishes the Youth Internship Pilot Project in New Mexico, aimed at demonstrating the benefits of paid internships for youth in supporting workforce development. The project will be administered by the Workforce Solutions Department, which will award grants to eligible internship programs run by nonprofit organizations, school districts, charter schools, or federally recognized Indian nations, tribes, or pueblos. The grants can be used to supplement intern pay, provide support services, and cover administrative expenses, with a one-year term that may be renewed based on the program's success and available funding.

To qualify for grant awards, internship programs must meet specific criteria, including a vetting system for host entities, a pay structure involving contributions from both the program and the hosting entity, and the provision of support services such as training and career counseling. The department is tasked with determining grant application processes, collecting data for evaluation, and reporting on the project's effectiveness to the legislature and the governor. The bill also appropriates $250,000 from the general fund for the project, with any unspent funds reverting to the general fund at the end of fiscal year 2029.