On January 21, 2025, the New Mexico House of Representatives introduced House Bill 116 (HB116), titled "Boarding For Certain Health Discharges." This legislative proposal aims to establish a framework for compensating licensed boarding homes that provide housing for individuals discharged from specific mental health facilities, namely the New Mexico Behavioral Health Institute at Las Vegas and the University of New Mexico Adult Psychiatric Center.

The bill outlines key provisions, including the requirement for the Department of Health to create rules governing the payment process for boarding homes. These rules will specify the necessary documentation that boarding homes must submit to qualify for payment and implement safeguards to prevent potential fraud. The definition of a "boarding home" is also clarified, referring to facilities licensed by the Department of Health.

A significant aspect of HB116 is the appropriation of $250,000 from the general fund for the fiscal year 2026. This funding is designated to support the payment of licensed boarding homes accommodating individuals transitioning from the aforementioned mental health institutions. Any funds that remain unspent or uncommitted by the end of the fiscal year will revert back to the general fund.

As the bill progresses through the legislative process, it may face discussions regarding its financial implications and the adequacy of the proposed funding. Stakeholders in the mental health and housing sectors are likely to weigh in on the effectiveness of the bill in addressing the needs of individuals requiring transitional housing after discharge from psychiatric care.

Overall, HB116 represents a targeted effort to enhance support for individuals with mental health challenges, ensuring they have access to appropriate housing as they reintegrate into the community. The bill's future will depend on legislative debates and potential amendments as it moves forward in the New Mexico House.