New Mexico opens grant fund to invest in new businesses
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By
Chris Teale
The state’s $150 million Research, Development & Deployment Fund invests in early-stage companies in emerging industries, as a complement to any federal funding received.
Early-stage companies in New Mexico can apply for a grant from a new $150 million fund as the state looks to encourage startups in new industries where it wants to innovate.
The Research, Development & Deployment Fund from the New Mexico Economic Development Department was created in 2025 as state officials said they are looking to “build, attract and scale deep tech companies in New Mexico.” It provides support to technologies coming out of startups, universities and national labs as they look to commercialize. The state is prioritizing four technology sectors in this effort: advanced computing and quantum; advanced energy; aerospace and defense systems; and bioscience.
The fund comes at a crucial time, as federal grant funding through the National Science Foundation, the Department of Energy and other federal entities for research and development have either been delayed, cancelled altogether or reduced. It’s an instance of a state looking to complement any grants that do come through, all in the name of attracting new technologies and growing companies themselves.
“One of the things that we are aiming to do with the RD&D Fund, and that we also aim to do with all of our economic development work, is move at the speed of business as opposed to at the speed of government,” said Nora Sackett, director of NMEDD’s Technology and Innovation Office, which oversees the funding. “That's something that has resonated with companies and founders that we work with, especially in these fields when they are sometimes looking to make quick decisions about where they're scaling or where they are developing their next product.”
Initially, the fund is welcoming solicitations for projects and businesses registered in the state that have secured at least $1 million in out-of-state funding, whether that be through priority federal programs like NSF’s X-Labs or Energy’s Critical Minerals & Materials Accelerator. Applicants must be reasonably expected to advance at least two of the six objectives in those federal grant programs, including creating jobs or economic opportunities in New Mexico.
This funding comes at an intriguing time for New Mexico itself, which reportedly has $75 billion available in an investment fund thanks to its status as the nation’s second largest producer of oil and one of its top five producers of gas. One of the ways the state is looking to capitalize on that is attracting businesses and encouraging early-stage companies to grow to boost its economy, while also investing in statewide universal child-care and other policy priorities.
Its status as a leader in various emerging technologies is strong too. New Mexico boasts three national laboratories, three research universities, the nation's highest concentration of PhDs per capita and a quantum infrastructure buildout that includes a quantum physics-powered telecommunications network. The state also pushed its science and technology roadmap earlier this year, where it emphasized that innovation has driven the New Mexico economy for decades and can continue to do so.
Given the federal government’s retrenchment in funding some areas of research and development, Sackett said the state can step in to boost emerging technologies and benefit not just New Mexico, but the United States as a whole.
“In this area, New Mexico is uniquely positioned due to our oil and gas industry to have excess revenues that we are then able to reinvest into the state, including in economic development and economic diversification,” she said. “That is the reason for our focus on these industries: to grow our economy, to diversify the state's economy, create additional jobs and opportunities for New Mexico families. While we do that, it also fits into a bigger picture of the need to advance a lot of these technologies for the benefit of people, including New Mexicans, but also larger than just New Mexicans.”
In time, the fund will be broadened to allow applications for state funding for those that are not applying for or receiving non-state public, philanthropic or private capital. Sackett said in the next five years, state officials hope to see “marked growth” in their various priority areas, both in terms of companies located in New Mexico as well as the number of jobs supported. If all goes well, she said, the state can continue to build on its previous success.
“It's being intentional and strategic about how we deploy these funds to leverage them to bring additional funding into the state for company growth and innovation advancement,” Sackett said.