A little-known provision in New Mexico's 2026 budget dedicates millions to help small trades businesses offset the cost of training new workers.
Most construction and trades owners in New Mexico don't realize that the state budget passed in 2026 includes a specific funding stream designed to help them hire and train workers—and offset some of the wage costs while doing it. That opportunity sits inside HB2, the General Appropriation Act of 2026, buried in language about economic development. Here's what you need to know.
HB2 appropriates $8.46 million to the Economic Development Department (EDD) specifically for job training grants to small businesses. This money is part of a larger $14.2 million allocation (combining state general fund and federal dollars) that supports two programs: the Job Training Incentive Program (JTIP) and the Local Economic Development Act (LEDA) grant programs.
Here's the practical side: if you own a construction, plumbing, electrical, HVAC, or other trades business and you hire new workers, JTIP can reimburse you for a portion of their wages during a training period. You're not getting free labor—you're getting help covering training costs while you bring someone up to speed on your jobs.
LEDA works differently. It's designed for municipalities and counties to use those funds to support economic development projects, which can include supporting businesses that meet local hiring or training goals. If your city or county has allocated LEDA funds, they may use them to attract or retain trades businesses in their area.
JTIP is open to small businesses across the state. The specifics of eligibility—company size thresholds, wage levels, training duration, and reimbursement percentages—are set by EDD and can vary. Your local EDD office or your city/county economic development office can confirm whether your business qualifies and what the current terms are.
The funding window is Fiscal Year 2027, which runs from July 1, 2026, through June 30, 2027. That's your active period to apply and draw down these grants. After June 30, 2027, any unspent allocation typically reverts or rolls into the next fiscal year's budget.
Labor shortages remain a real challenge in New Mexico's trades. Training new workers is expensive and time-consuming, and many small businesses absorb that cost entirely themselves. This program acknowledges that reality and puts state money behind it. If you've been hesitant to hire and train because of wage costs, this is worth exploring.
The funding is authorized in Section 4, Subsection D (Commerce and Industry) of HB2, under the Economic Development Department's Program (1) Economic Development line item. It's real money, formally appropriated, not a pilot or proposal.
Contact your local EDD office or your city or county economic development department to ask about current JTIP application windows, eligibility criteria, and reimbursement rates. Requirements and availability can shift year to year, so confirm details directly rather than assuming.
Source: HB2, General Appropriation Act of 2026, Section 4, Subsection D; New Mexico Economic Development Department.