Federal Compliance Offset Grant

The Federal Compliance Offset Grant, part of the New Mexico Match Fund, provides funding to eligible entities to cover higher project costs incurred due to compliance with federal requirements, such as sourcing US-made materials for construction projects or adhering to specific worker wage standards. The program has a total funding of $17.5 million for FY26. Applications are reviewed on a rolling, first-come, first-served basis, with determinations made within 20 business days of a complete application. Eligible applicants include state and local governments, school districts, public higher education institutions, and federally recognized Indian nations, tribes, or pueblos.