House Passes Legislation to Give New Mexico Children a Financial Head Start
“Baby Bonds” would help New Mexico’s children achieve financial independence and overcome generational poverty
Santa Fe, N.M. – Today, the House of Representatives voted 38-26 to pass legislation to provide a head start at financial independence for every child born in New Mexico.
House Bill 7: the Children’s Future Act and Fund would create a trust fund to provide financial support, also known as “baby bonds,” for all individuals born in New Mexico after January 1, 2025. These funds would be allocated to children at birth then be invested so they could continue to grow. When the child turns 18 and graduates from high school, they would be able to use the funds for education, housing, entrepreneurship costs, or investment opportunities.
“Our children’s ability to pursue their business ideas or apply to their dream college should not depend on the financial situation they were born into,” said lead sponsor Rep. Linda Serrato (D-Santa Fe). “Future Funds open up incredible opportunities for children across New Mexico. This is a vote of confidence in our young people, demonstrating that we believe in their potential to achieve great things and will support them to follow their dreams, even if their families cannot.”
HB 7 establishes the Children’s Future Fund and creates a task force to help design the program’s implementation and establish guardrails. The taskforce would report their recommendations to the Governor and legislature by the end of 2025.
HB 7 is also sponsored by House Speaker Javier Martínez (D-Albuquerque) and Rep. Patricia Roybal Caballero (D-Albuquerque).
This session, House Democrats are pushing forward a slate of legislation to make life better and more affordable for New Mexicans, including efforts to break cycles of generational poverty and begin building generational wealth.
Additional measures Democrats are bringing forward this session would raise pay and strengthen benefits for working people, protect consumers from corporate greed, and lower the costs of essentials, like housing and healthcare.
So far, the House has passed more than a dozen bills focused on affordability, including:
Raising minimum pay for workers on publicly-supported projects (HB 6)
Stopping employers from taking credit card fees out of the wages of tipped workers (HB 22)
Raising minimum teacher salaries by $5,000 and providing a 4% average salary increase for public school personnel, while increasing funding for employee benefits so educators and school staff can keep more of what they earn (HB 2, 156)
Expanding access to the federal Public Service Loan Forgiveness (PSLF) program within New Mexico (HB 69)
Providing free high school equivalency testing and preparatory services (HB 167)
Delivering $15 billion in state and federal funding for Medicaid and other critical healthcare services (HB 2)
Strengthening New Mexico’s healthcare workforce, particularly in high-demand fields, by incentivizing New Mexico alumni working in healthcare to return to the state (HB 5)
Improving food security with $10 million in annual funding for food banks (HB 2)
Directing $110 million to targeted housing development, including transitional housing, with a focus on Bernalillo and Doña Ana counties (HB 2)
Making $45.9 million available to housing providers to focus on specialized housing solutions and a strategic response to homelessness (HB 2)
Improving access to housing and protecting renters from discrimination (HB 339, 253, 453, 448)
Allowing public utilities to implement additional rate structures intended to reduce utility costs for low-income customers (HB 91)
Increasing property tax exemptions for veterans (HB 47)
Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature’s Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.
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