Bill > SB397

This bill establishes the New Mexico Next Generation Act, a program designed to create financial opportunities for certain children born in or connected to New Mexico. The act creates two key funds: the Next Generation Trust Fund and the Baby Bonds Fund, with an initial appropriation of $500 million. Beneficiaries are children born in New Mexico after July 1, 2025, who either have parents who have lived in the state for five consecutive years or who have been in state protective care. When beneficiaries reach between 18 and 40 years old, they can claim funds for specific eligible expenditures like educational expenses (including tuition, housing, and school supplies) or a down payment on a home in New Mexico, but only after completing a financial literacy course. The state investment officer will manage the trust fund's investments, and distributions will be made to the Baby Bonds Fund starting in July 2043. Importantly, the bill specifies that these benefits are not guaranteed and do not create an enforceable property interest. Additionally, the bill provides a state income tax exemption for funds spent through the program and requires various state departments to share information to administer the program. The bill is set to take effect on July 1, 2025, with an initial administrative appropriation of $100,000 to the Department of Finance and Administration.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=397&year=25