Qualifying young New Mexicans could apply for education and home-buying help

The Department of Finance and Administration may make an eligible payment for a beneficiary after receiving a claim. The person must have been born in New Mexico on or after July 1, 2026, and either have a parent who lived in New Mexico for the five years immediately before the birth or have been placed in qualifying state care or with a licensed child placement agency before turning 18. The person must complete a financial literacy course approved by the state treasurer. The bill says benefits are not guaranteed. A beneficiary may submit a claim while between 18 and 40 years old.

The bill would set aside money in two funds to support eligible payments and program administration. The trust fund would send money to the baby bonds fund, which would pay eligible expenses for beneficiaries. Spending from the trust fund requires legislative appropriation, and the bill does not guarantee benefits. The proposed appropriations cover fiscal year 2027 and later years. Trust fund transfers would begin July 1, 2044, and continue each July 1.

The bill would exempt money spent for beneficiaries from state income tax and exclude money in the two funds from asset counts for need-based aid. The tax exemption uses the same birth, parent residency, and qualifying placement criteria as the program's definition of a beneficiary. The asset exclusion applies except where federal law provides otherwise. The bill sets July 1, 2026, as its effective date.

The health and children’s services agencies would share necessary identifying information with the Department of Finance and Administration. The duty applies to the Department of Health’s vital records and health statistics bureau and the Children, Youth and Families Department. The information must help determine or verify the identity or number of people who may qualify. The agencies would enter into an information-sharing agreement on or after July 1, 2026.