Targeted Federal Match Grant Program

The Targeted Federal Match Solicitation is administered by the New Mexico Technology and Innovation Office (TIO), a division of the Economic Development Department. It operates under the state’s Research, Development and Deployment Fund, which is designed to catalyze innovation, economic growth, and job creation across key technology sectors. The program represents the first Track 1 solicitation under the fund and is intentionally structured to move quickly by leveraging existing federal funding competitions rather than conducting a full state-level merit review process. The state relies on federal agencies to evaluate project merit, while it focuses on eligibility and alignment with New Mexico’s economic priorities. The core purpose of the solicitation is to provide state grant funding that serves as a match or leverage component for applicants pursuing awards from designated federal programs. By doing so, the program aims to increase the competitiveness of New Mexico-based projects in securing federal funding and to attract substantial external investment into the state. The initiative prioritizes sectors such as aerospace, biosciences, clean energy and water, and advanced computing, including emerging areas like quantum technologies and artificial intelligence. Projects at any stage of research, development, or deployment are eligible, emphasizing both early innovation and commercialization activities. Funding is provided exclusively through grants from the RD&D Fund, with a minimum award amount of one million dollars. Each project must also secure at least one million dollars in non-state funding, ensuring that state resources are used to leverage external capital. The program does not impose a fixed matching formula; instead, it mirrors the requirements of the underlying federal opportunity. In cases where matching is required by the federal funder, the state grant can fulfill that obligation. Where matching is optional but beneficial, the state determines the grant size based on how much it strengthens the application’s competitiveness. Eligibility is limited to New Mexico public entities and businesses registered to do business in the state, although businesses may apply if they commit to registering prior to receiving funds. National laboratories and public post-secondary institutions may also apply or lead projects. Projects must satisfy a “two-of-six” impact test, demonstrating contributions such as advancing innovation, fostering collaboration, leveraging external investment, creating economic opportunities, generating jobs or workforce training, or supporting commercialization. Additionally, applicants must be pursuing a qualifying federal funding opportunity that either requires or rewards matching or leveraged funding. The application process is intentionally streamlined. Applicants must submit basic organizational and project information, describe expected impacts, identify the federal opportunity being pursued, and provide documentation of matching requirements or justification for leverage. Supporting materials include a project budget, letters of support, partnership agreements where applicable, timelines for fund usage, and disclosures of other matching funds. Applications are submitted through an online portal and are reviewed on a rolling basis, with a target turnaround time of approximately twenty working days for complete submissions. TIO conducts a light eligibility and fit review rather than a competitive scoring process. Applications are evaluated on a first-come, first-served basis, and multiple applicants may receive commitments for the same federal opportunity if funds are available. When approved, applicants receive a commitment letter that reserves state funding contingent upon winning the external award. This letter is not a guarantee of funding but serves as proof of committed state support to strengthen the federal application. Awards are disbursed only after the applicant secures the external funding and meets all conditions, including maintaining eligibility and executing a grant agreement. Funds may be used over multi-year periods aligned with the external award timeline, and a portion may cover administrative costs. The program is ongoing with no fixed deadline, operating continuously until available funds are exhausted. This rolling structure allows applicants to align with varying federal deadlines and respond quickly to emerging funding opportunities.

Emphasize how the project meets at least two of the six statutory goals and clearly demonstrate how state funding improves competitiveness for federal awards while aligning with New Mexico economic priorities