SANTA FE — The New Mexico Children, Youth and Families Department (CYFD) today warned that severe underfunding in the current House budget proposal will jeopardize essential child welfare services and put the state at risk of costly federal penalties.

The House has allocated just $1.79 million in recurring general fund—a mere 2.9% of the department's crucial $62 million in recurring funding need. Additionally, the House did not provide requisites deficiency of $12.3 million and a shortfall supplemental of $20 million.

"This dramatic shortfall threatens New Mexico's ability to protect our most vulnerable children and families," said CYFD Secretary Teresa Casados. "Without adequate funding, we face the very real possibility of reducing services and facing costly penalties for non-compliance with court-mandated improvements."

The funding gap particularly hurts CYFD's ability to meet requirements under the Kevin S. Settlement Agreement, a court mandate to improve child welfare services. Critical unfunded needs include:

Increased foster family support ($9.8 million general fund) to double monthly stipends with an increase up to $900 per child.

50 new Case Aid positions ($4.8 million) to support frontline child protective services staff.

Regional emergency response team of 25 professionals ($2.8 million) for critical after-hours child welfare emergencies.

13 new training positions to ensure proper preparation of child welfare workers.

Five dedicated foster family recruitment specialists ($800,000) for high-needs counties.

Essential data system upgrades ($900,000) to meet compliance requirements.

The House provided $30 million, $8 million per year over three years in state funding and $2 million of federal funding, for positions relating to the Kevin S. Settlement Agreement in Government Results & Opportunity (GRO) funding, a non-recurring source originally intended for pilot programs at state agencies.

"We are working day and night to strengthen our child welfare system and improving the agency, but fiscally restraining CYFD only hinders the state's progress," said Casados.

CYFD urges the Senate to recognize the severe implications of underfunding child welfare services and to fully fund these essential programs. The department stands ready to work with legislators to ensure New Mexico's child welfare system receives the resources necessary to protect and serve the state's most vulnerable children and families.