Background on the Indigenous Infrastructure Social Fund (FAISPIAM)
The Indigenous Infrastructure Social Fund (FAISPIAM) was established on January 16, 2025, through a convention signed by the federal government, state governments, and the Head of Government of Mexico City. The fund aims to allocate 10% of the Fondo de Aportaciones para la Infraestructura Social (FAIS), one of eight funds that make up Ramo 33, Aportaciones Federales para Entidades Federativas y Municipios. The FAISPIAM is intended to directly benefit registered indigenous and afro-Mexican communities listed in the National Catalog of Indigenous Peoples and Afro-Mexicans by the National Institute of Indigenous Peoples (INPI).
Fund Allocation and Distribution
As of mid-year, the FAISPIAM has distributed 10,877.9 million pesos to 26 federal entities. These resources will benefit 1,257 municipalities and 17,758 communities, addressing the priorities of 70 indigenous groups and the afro-Mexican community. Chiapas and Oaxaca receive 44.6% of the total FAISPIAM funds for the fiscal year 2025. Resource distribution was planned in three phases: April (30%), July (40%), and October (30%).
Concerns Over Transparency and Fiscal Stability
Fitch Ratings warns that the creation of FAISPIAM, while promoting equity, weakens municipal finances and alters the Mexican constitutional framework without legislative consensus. The fund’s transition to the Secretariat of Well-being deepens fiscal uncertainty regarding its coordination role and confirms resource centralization.
- Q: How does the FAISPIAM affect municipal finances? A: The fund weakens municipal finances by altering the federalism framework without legislative consensus, creating fiscal instability.
- Q: What is the purpose of FAISPIAM? A: FAISPIAM aims to allocate resources directly to registered indigenous and afro-Mexican communities for basic infrastructure projects.
- Q: How are resources distributed under FAISPIAM? A: Resources are distributed to 26 federal entities, benefiting 1,257 municipalities and 17,758 communities, with Chiapas and Oaxaca receiving the largest shares.
- Q: What concerns does Fitch Ratings raise about FAISPIAM? A: Fitch Ratings is concerned that the fund’s direct administration by community committees may pose challenges to transparency and accountability mechanisms, especially in communities with limited administrative capacities.
Impact on Federalism and Local Participation
The establishment of FAISPIAM through an administrative agreement signifies a shift in the federalism institutional framework. Although the new scheme aims for greater local participation via community committees, the lack of representation from municipal and state governments generates uncertainty regarding transparency and accountability mechanisms. While regulatory monitoring controls have been set, their operational effectiveness in communities with limited administrative capabilities presents a challenge.
