NEW MEXICO NEXT GENERATION ACT

SB 397 creates the New Mexico Next Generation Act to provide funding for education or home down payments to children born in New Mexico after July 1, 2025, who meet specific residency requirements (e.g., parent lived in NM continuously for five years before birth). It establishes a "Next Generation Trust Fund" to grow investments and a "Baby Bonds Fund" to pay for eligible educational expenses or housing costs when beneficiaries (aged 18-40) complete a financial literacy course. The program explicitly states benefits are not guaranteed and funds won’t count as assets for need-based aid. Administration requires new rules for eligibility, expenditures, and data sharing between state departments.