- New Mexico is offering about $35 million for brackish water projects.
- Funding can support projects from early research through construction.
- The state is prioritizing infrastructure that can produce treated water for use.
- The program encourages partnerships between communities and private companies.
- State officials say new supplies could reduce pressure on limited freshwater resources.
Friday, August 21, 2026 — New Mexico is putting another $35 million behind an effort to turn salty groundwater into a usable water supply.
The New Mexico Environment Department and Office of the State Engineer announced on August 20 
that communities and water project developers can apply for a second round of funding through the state’s Strategic Water Supply Program.
The money is intended for projects that develop, treat, and put New Mexico’s brackish water to beneficial use.
Brackish water is naturally occurring groundwater that contains enough salt to generally require treatment before it can be used.
New Mexico officials see that water as one possible way to add supplies while easing some of the demand placed on freshwater used by communities, farms and the environment.
From Research to Working Water Projects.
The latest funding round emphasizes projects that can move beyond studies and planning.
According to the state, the Strategic Water Supply Program is prioritizing critical infrastructure and projects that produce treated water for use.
The program also includes a process intended to encourage partnerships between public and private interests. Under that approach, community water needs could be paired with private-sector technology, expertise and investment.
“New Mexico is moving from studying water scarcity to investing in solutions that can deliver results,” Environment Secretary James Kenney said.
Kenney said the new funding could help move brackish water projects into infrastructure development, treatment and beneficial use.
Why Brackish Water Is Getting Attention.
The funding is part of Gov. Michelle Lujan Grisham’s 50-Year Water Action Plan.
That plan calls for developing new water supplies while also conserving existing supplies and protecting water quality as the state prepares for hotter and drier conditions.
“New Mexico cannot wait for water scarcity to dictate our future,” Lujan Grisham said.
She said investment in brackish water could help support communities and the state’s economy while protecting freshwater supplies relied upon by residents, agriculture and the environment.
State Engineer Elizabeth Anderson also pointed to drought as a reason to look for additional sources.
“As we face some of the worst drought conditions on record, it is more important than ever to look for opportunities to develop new water supplies,” Anderson said.
She said the state plans to work with partners across New Mexico to help communities develop more resilient water supply systems through the Strategic Water Supply Program.
Five Types of Projects Can Receive Funding.
The Strategic Water Supply Program was established under the 2025 Strategic Water Supply Act. It can support projects throughout their development, including early research and planning, design, permitting and construction.
The new funding is available for five categories.
Construction projects can receive money to build or expand full-scale brackish water treatment facilities and the infrastructure needed to support them.
Design pilots can test and improve treatment technologies before they are put into use on a larger scale.
Environmental documentation and demonstration projects can receive support for environmental reviews, permitting and demonstration work needed to move a project forward.
Feasibility assessments can examine whether a proposed project makes technical and economic sense and identify possible ways to put it into operation.
Research studies can investigate treatment technologies and improve scientific understanding of New Mexico’s brackish water resources.
How the $35 Million Will Be Divided.
The New Mexico Environment Department and Office of the State Engineer will divide approximately $35 million among those five categories.
The amount going to each category will depend on program priorities and the quality of the proposals received.
According to the state, selected projects are expected to develop new and reliable water supplies, move promising water technologies closer to real-world use, support economic development and community resilience, reduce pressure on limited freshwater resources and strengthen long-term drought preparedness.
Applications Are Now Open.
The request for applications for grant funding opened August 20.
A separate request for proposals for contracts is expected to become available in the coming weeks.
The latest funding round represents another step in New Mexico’s Strategic Water Supply Program, with projects ranging from scientific research and feasibility work to full-scale treatment facilities eligible for support.
