"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.

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.