Executive Summary:

New Mexico faces significant infrastructure challenges that climate change, population growth, rural-urban divides, and funding limitations have worsened. Key issues include deteriorating transportation systems, water scarcity and aging water infrastructure, limited broadband access, and an energy grid that is transitioning to renewable sources amid reliability concerns.

This plan outlines targeted strategies to address these challenges, utilizing federal funding from programs such as the Infrastructure Investment and Jobs Act (IIJA) and the Broadband Equity, Access, and Deployment (BEAD) initiative, as well as state revenues from oil and gas, and public-private partnerships. The objective is to achieve resilient and equitable infrastructure by 2036, with phased implementation beginning in 2027.

The total estimated investment needed for these initiatives is between $15 billion and $20 billion over the next ten years, with priorities set in accordance with the state’s Infrastructure Capital Improvement Plan (ICIP).

1. Identification of Key Issues:

Based on recent assessments, New Mexico's infrastructure receives mixed grades, with transportation and water systems particularly strained. For instance, roads and bridges show significant condition gaps, while water infrastructure requires billions in upgrades to combat scarcity. Broadband access lags in rural areas, affecting 15% of the population, and energy systems face bottlenecks in integrating renewables. Other concerns include high-hazard dams and flood control vulnerabilities.

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2. Strategic Objectives and Actions:
The plan adopts a phased approach: Short-term (2027-2029) for immediate repairs and planning; Medium-term (2030-2033) for major expansions; Long-term (2034-2036) for sustainability and monitoring. Actions emphasize equity for rural and tribal communities, climate resilience, and workforce development (e.g., training for broadband and EV infrastructure jobs).

2.1 Transportation:
Issues:

Roads cost each driver $767 annually in repairs; unfunded needs total $5.6B amid rising construction costs. Bridges and highways are vulnerable to climate impacts like wildfires and floods.
Strategies:

• Short-term: Allocate $1.5B from state road funds and IIJA for priority repairs on 57% of substandard roads, focusing on urban areas like Albuquerque. Partner with NMDOT to invest $100M in local projects, including bridge inspections and retrofits.

• Medium-term: Expand public transit and rail systems, including EV charging stations via the $675M BEAD-adjacent funds, to reduce congestion costs by 20%. Implement smart traffic systems in high-congestion areas.

• Long-term: Develop a 20-year resilience plan integrating climate data, aiming for 80% of roads in good condition by 2036. Fund via bonds and oil/gas revenues.

Stakeholders: NMDOT, local governments, federal DOT.

Timeline: Annual progress reports via Transportation Infrastructure Revenue Subcommittee.

2.2 Water Systems:
Issues:

Scarcity affecting groundwater; $1.4B needed for drinking water and $6.5B for wastewater upgrades; overpumping and aging infrastructure prevalent.
Strategies:

• Short-term: Secure $200M in state funds for immediate wastewater and drinking water repairs, prioritizing rural communities. Advocate for federal incentives for conservation research.

• Medium-term: Invest $20M in watershed restoration and $15M in tribal water rights settlements. Upgrade treatment plants and pipes using IIJA grants, targeting aquifer recharge projects like those in Albuquerque.

• Long-term: Implement the State Water Plan, focusing on sustainable management to combat aridification. Promote "One Water" approaches integrating reuse and conservation.

Stakeholders: Office of the State Engineer, EPA, tribal nations.

Timeline: Biennial updates through the Water Policy and Infrastructure Task Force.

2.3 Broadband:
Issues:

High costs and delays in rural deployment; 15% digital divide risking economic isolation. Construction issues like unsafe fiber installation.
Strategies:

• Short-term: Deploy $675M BEAD funds for fiber and satellite projects, ensuring 100/20 Mbps minimum speeds. Enforce construction standards to avoid shutdowns.

• Medium-term: Expand public Wi-Fi in underserved areas and workforce training for 1,000+ jobs in installation.

• Long-term: Achieve 100% coverage by 2031 via partnerships with providers, integrating with EV and smart grid initiatives.

Stakeholders: Office of Broadband Access and Expansion, NTIA. Timeline: Quarterly grants via Connect New Mexico.

2.4 Energy:
Issues:

Grid bottlenecks; outages from aging systems; risks from fires and floods. Transition to net-zero by 2050 amid oil/gas dominance.
Strategies:

• Short-term: Modernize grid with $500M for interconnection upgrades and hazard mitigation. Address nuclear waste via alternative federal sites post-Holtec abandonment.

• Medium-term: Expand tax credits for household solar; integrate with transportation for EV infrastructure.

• Long-term: Achieve clean energy goals through distribution planning and emissions reductions in oil/gas.

Stakeholders: Energy, Minerals and Natural Resources Department, utilities like PNM.

Timeline: Annual risk assessments via State Energy Security Planning.

2.5 Other Areas (Dams, Flood Control, Schools):
Strategies:

• Prioritize $1B for high-hazard dam repairs and flood infrastructure via ICIP. Allocate $500M for school upgrades, integrating energy-efficient designs.

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3. Funding and Resource Allocation:

• Sources: $13B from oil/gas revenues; federal grants (IIJA, BEAD); state bonds; public-private partnerships. Avoid piecemeal funding by centralizing through ICIP.

• Budget Breakdown: 40% Transportation, 30% Water, 15% Broadband, 10% Energy, 5% Other.

• Equity Focus: 30% of funds for rural/tribal areas.

4. Implementation, Monitoring, and Evaluation:

• Governance: Led by a cross-agency task force under the Governor's Office, with legislative oversight.

• Timeline: Phase 1 launch in Q1 2027; full review every 2 years.

• Metrics: Track progress via KPIs like road condition percentages, broadband penetration rates, and water loss reductions. Use ASCE report cards for benchmarking.

• Risks and Mitigation: Address funding shortfalls through revenue diversification; incorporate climate modeling for resilience.

This plan positions New Mexico for sustainable growth, ensuring infrastructure supports economic vitality and quality of life for all residents.

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(Last Edited & Published Oct. 2025)

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