The New Mexico Next Generation Act establishes a framework for supporting the educational and housing needs of future beneficiaries born in New Mexico on or after July 1, 2025. The Act creates the Next Generation Trust Fund, which will be managed by the state investment officer and will consist of various sources of funding, including appropriations and donations. The Act also establishes the Baby Bonds Fund, which will provide resources for eligible beneficiaries to cover educational expenses and down payments for housing. The Department of Finance and Administration is tasked with administering these funds and ensuring that eligible expenditures are made on behalf of beneficiaries who meet specific criteria.

Key provisions of the Act include the exemption of funds spent on beneficiaries from state income tax, the requirement for information sharing between relevant state departments to verify beneficiary eligibility, and the stipulation that no guarantees of benefits or property interests are created under the Act. Additionally, the Act appropriates $500 million to the Next Generation Trust Fund and $100,000 for the administration of the Act, with the effective date set for July 1, 2025.