New Mexico has embarked on a significant initiative to modernize the heating, ventilation, and air conditioning (HVAC) and electrical infrastructure in its public schools.
As Senate Bill 125 was signed into law earlier this year, the law allocates $10 million annually beginning in the 2025–2026 fiscal year to fund critical upgrades in school buildings across the state.
The program is aimed primarily at replacing outdated systems—some more than 40 years old—that continue to serve classrooms throughout New Mexico, particularly in underserved and rural districts.
The newly created Building System Innovation Project, an amendment to the Public School Capital Outlay Act, provides a dedicated funding stream outside the existing severance tax bond-backed capital outlay process. The revision empowers the Public School Capital Outlay Council to direct money from the state’s general fund into projects that focus specifically on improving HVAC systems, electrical wiring, and ventilation infrastructure.
Districts seeking funds must submit detailed assessments of their current systems, demonstrate a commitment to energy efficiency, and outline plans to reduce energy consumption.
Projects that are ineligible for existing federal or state grants—such as those not covered by the Public School Capital Outlay Council’s existing framework—will receive priority consideration.
A key goal of the program is to support schools serving high-poverty populations and those with limited access to existing capital improvement funding.
Many schools targeted for upgrades have long faced temperature control issues, poor ventilation, and aging electrical panels that compromise not only student comfort but also learning outcomes.
These concerns are not theoretical: studies have linked extreme classroom temperatures and poor air quality to lower academic performance and increased absenteeism.
While federal pandemic relief efforts provided temporary ventilation support in some districts, New Mexico’s state-level response is intended to deliver long-term improvements that go beyond emergency stopgaps.
However, the new law is not without controversy.
Analysts from the Legislative Education Study Committee have flagged concerns about the potential duplication of efforts already underway through the systems-based grant program administered by the Public School Facilities Authority and funded by the Public School Capital Outlay Council. And that program awarded approximately $27 million in fiscal year 2024, with $5.4 million budget for HVAC projects alone.
Critics warn that creating a parallel funding stream could undermine the state’s existing prioritization framework based on the weighted New Mexico Condition Index (wNMCI), a metric born out of a landmark legal case to ensure equitable school funding and facility standards.
Despite such concerns, however, the new funding mechanism offers significant flexibility by allowing unspent funds to carry forward, unlike other programs where unallocated money reverts to the general fund.
This initiative could benefit districts that need longer lead times to complete assessments, apply for grants, or plan complex retrofits.
Applications will open in July 2025, with the Public Education Department and the Public School Facilities Authority jointly overseeing implementation.
Districts will undergo site evaluations and facility planning reviews, and selected projects will receive not only upgrade funding but also support for maintenance training and energy audits.
