Albuquerque and Bernalillo County set to use up COVID-19 relief funds before deadline

ALBUQUERQUE, N.M. (KRQE) – Time is running out for New Mexico cities and counties to spend tens of millions of dollars in federal COVID relief funding. Here in the metro, leaders are trying to spend on a handful of last-minute projects using the American Rescue Plan Act or "ARPA" funds. "We wouldn't have been able to be in the shape that we are in financially now," said Donna Sandoval, Director of the Department of Finance & Administration, City of Albuquerque.

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At the height of the pandemic, lockdowns forced closures all over New Mexico putting financial pressure on both businesses and local governments. The feds responded with the American Rescue Plan Act in 2021, giving billions in relief. Albuquerque got more than $200 million in funds they used across a handful of projects.

"Freed up some funds in APD and fire to be able to cover that payroll for a couple of different years, fiscal years. We also had some homelessness projects that also was funded by ARPA money," said Sandoval.

While the city's already spent $94 million, another $100 million is earmarked for projects. Some of those include the Gateway Center and the new "Minority Business Development Center." There's $8 million left, but the city says it's confident it will get used.

Meanwhile, Bernalillo County got nearly $132 million in ARPA funds. $85 million has been devoted to water infrastructure and the rest to non-infrastructure projects like paying workers, but the county says some projects have fallen through.

"We ran into some issues with the neighborhood wanting to approve it and it was already up against a tight timeline, it was the Upper La Cueva Watershed project. And so, we're asking for those dollars to be reallocated so that we can do something else," said Shirley Ragin, Interim County Manager.

Meanwhile, the county has funded improvements for the South Valley Economic Development Center and Mesa Del Sol athletic fields. "And we want to make sure that we do good for the Albuquerque community because that's really what the money is for. All the projects that we do are to fund things that are needed in the community and hopefully help our residents," said Ragin.

The county said it's looking at spending the remaining funds on public safety salaries which faces commission approval on Tuesday night. All ARPA funds have to be spent by December 2026.