New Mexico Seeks Public Input on Water Project Funding

The Interstate Stream Commission is drafting a policy for the next round of applications for the $130 million New Mexico Unit Fund.

Feb. 3, 2026 at 10:07pm

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The Interstate Stream Commission (ISC) in New Mexico is seeking public input on a draft policy for the next round of water project applications for the New Mexico Unit Fund. The fund, which now amounts to over $130 million, was established from New Mexico's $66 million share of the 2004 Arizona Water Settlements Act. By law, the funds must be used for water projects in Catron, Grant, Hidalgo and Luna counties. The proposed policy includes changes such as supporting smaller rural communities and allowing projects ready for construction to apply, in addition to planning and design projects. Public listening sessions have been scheduled in each of the four counties, and a virtual session will also be held.

Why it matters

The distribution of these water project funds is crucial for addressing water infrastructure needs in southwestern New Mexico. The public input process allows local stakeholders to provide feedback on the proposed policy and help shape how the money will be spent to benefit their communities.

The details

The draft N.M. Unit Fund Pilot Cycle II policy can be downloaded from the state's website. Public input is being accepted through February 28th, and a series of public listening sessions have been scheduled in each of the four eligible counties on February 17-19, with a virtual session on February 24th. The policy proposes changes such as supporting smaller rural communities like acequias and ditch associations, and allowing projects ready for construction to apply in addition to planning and design projects. The first pilot funding cycle last year awarded $4.2 million to 11 projects, and the second cycle is expected to see an increase in the number of awarded projects if the draft policy is approved.

  • The draft policy is available for public review through February 28, 2026.
  • Public listening sessions are scheduled for February 17-19, 2026, with a virtual session on February 24, 2026.
  • The Interstate Stream Commission hopes to approve a final draft of the policy in March 2026, leading to a call for proposals in early June 2026.

The players

Interstate Stream Commission (ISC)

The state agency responsible for managing New Mexico's water resources and overseeing the distribution of the New Mexico Unit Fund.

Jesse Shapiro

Manager of the Arizona Water Settlements Act for the Interstate Stream Commission.

Priscilla Lucero

Executive director of the Southwest New Mexico Council of Governments.

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What they’re saying

“All of this is leading us to trying to bring a final draft to the commission for approval in March, all leading to what we hope will be an opening for a call for proposals in early June.”

— Jesse Shapiro, Manager of the Arizona Water Settlements Act

“This is our opportunity to help us decipher how we're going to move forward with the rules and whether they like the rules, and should we spend all the money at once or do it in increments. I think those are all valuable points that they could bring insight to, at least to see how we can spend that money to do what's intended.”

— Priscilla Lucero, Executive Director, Southwest New Mexico Council of Governments

What’s next

The Interstate Stream Commission hopes to approve a final draft of the policy in March 2026, leading to a call for proposals in early June 2026.

The takeaway

The public input process on the proposed policy for the New Mexico Unit Fund is crucial for ensuring the $130 million in water infrastructure funding is distributed in a way that best meets the needs of the four eligible counties in southwestern New Mexico.