"Baby Bonds" would help New Mexico's children achieve financial independence and overcome generational poverty

Santa Fe, N.M. – Legislation to provide a head start at financial independence for every child born in New Mexico is now headed to the House Floor, after passing the House Appropriations and Finance Committee today by a vote of 9-5.

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.

"We are creating a nest egg that young people can tap into when they enter adulthood to help jump start their careers, start businesses, invest, or simply have more financial security," said lead sponsor Rep. Linda Serrato (D-Santa Fe). "Future funds are more than a resource for our kids – it's a reminder that we believe in them and will ensure they have an opportunity to thrive."

HB 7 establishes the Children's Future Fund and creates a task force to help design the program's implementation and 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. Below is a non-comprehensive list of House Democrats' affordability legislation that has already passed the House this session:

Worker Pay & Benefits

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)
Providing New Mexicans with job protection and financial support when they welcome a child, fall ill, or need to take care of a loved one (HB 11)
Providing a 4% average salary increase for public school personnel, raising minimum teacher salaries by $5,000 per license level, and increasing funding for employee benefits so educators and school staff can keep more of what they earn (HB 2)
Expanding access to the federal Public Service Loan Forgiveness (PSLF) program within New Mexico (HB 69)
Provide free high school equivalency testing and preparatory services (HB 167)

Housing & Utilities

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 and artificial rent increases (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)

Healthcare & Childcare

Delivering $15 billion in state and federal funding for Medicaid and other critical healthcare services (HB 2)
Increasing funding for the Early Childhood Education and Care Department by $170 million, or 21.6%, to greatly expand pre-K, childcare assistance, and more (HB 2)
Launching a pilot program to provide financial support for grandparents or other relatives raising the children of a family member (HB 252)

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.