New Mexico lawmakers rejected a proposal to increase the diesel tax by 4.4 cents per gallon and the gasoline tax by 5.4 cents per gallon, bringing the fuel tax for both to 22.4 cents per gallon.

Under HB975, the increase would back bonds issued to finance 15 road projects, including interchange improvements, upgrading interstates and expanding roads to four lanes. For these projects, the bill could total $561 million.

Additionally, the bill would stop a 1-cent-a-gallon tax reduction scheduled for July.

The bill passed the House and gained a "do pass" March 15 from the Senate Corporations and Transportation Committee, which passed it on to the Senate Finance Committee. However, the Finance Committee withdrew the bill from consideration, essentially killing the measure.