NM SB304

Creates the New Mexico Next Generation Act establishing a "baby bonds" program for children born in New Mexico on or after July 1, 2026, whose parent has resided in the state for at least five consecutive years, or who are placed in state protective custody or with a licensed child placement agency

Beneficiaries between ages 18 and 40 who complete a state-approved financial literacy course may claim funds for educational expenses (tuition, housing, supplies at public post-secondary institutions or approved vocational/apprenticeship programs) or down payments on New Mexico residences

Establishes the Next Generation Trust Fund as a nonreverting investment fund, with annual distributions beginning July 1, 2044 to the Baby Bonds Fund based on projected eligible beneficiaries and expenditures

Appropriates $20 million from the general fund to the Next Generation Trust Fund and $100,000 to the Department of Finance and Administration for program administration starting fiscal year 2027

Exempts program expenditures from state income tax and excludes fund balances from consideration as assets when determining eligibility for need-based public assistance programs