Bill > SB304

This bill, titled the "New Mexico Next Generation Act," establishes a program to provide financial assistance for educational expenses or home down payments to eligible beneficiaries, defined as individuals born in New Mexico on or after July 1, 2026, who meet specific residency or child welfare criteria. The act creates two funds: the "Next Generation Trust Fund," which will be invested by the State Investment Officer, and the "Baby Bonds Fund," which will be administered by the Department of Finance and Administration (DFA) and will receive distributions from the trust fund starting in 2044. The DFA is tasked with creating rules for the program, and other state departments will share necessary information to identify eligible beneficiaries. Importantly, the bill clarifies that benefits are not guaranteed and do not create an enforceable property interest, and any money spent for beneficiaries under this act will be exempt from state income tax. The act also appropriates $20 million to the Next Generation Trust Fund and $100,000 to the DFA for administrative costs, with an effective date of July 1, 2026.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=304&year=26