This bill appropriates funds from the general fund to various municipalities and counties in New Mexico to mitigate potential revenue losses due to restrictions on agreements with private entities for the use of municipal or county correctional facilities, as established by Laws 2026, Chapter 5. The appropriations include $900,000 for the town of Estancia, $642,000 for Torrance County, $5.94 million for Otero County, $375,000 for Cibola County, and additional funds for the village of Milan and the city of Grants. The bill also outlines a clawback provision, requiring municipalities or counties to notify the local government division if their correctional facilities are used for revenue-generating purposes, which would halt further disbursements.

Additionally, the bill makes appropriations for fiscal year 2026 and 2027 to various state departments, including $2.7 million to the juvenile justice division and $7 million to the protective services division of the Children, Youth and Families Department for their operational duties. For fiscal year 2027, it allocates $8 million for the child welfare information system, $4 million for school improvement activities, $4 million for the New MexiCare program, and $6 million for the rural air service enhancement grant program. Notably, the bill removes language regarding payments to the Pueblo of Zia for "past, present and future" use of the Zia symbol.