The New Mexico Next Generation Act establishes a framework for providing financial assistance to eligible beneficiaries through the creation of the Next Generation Trust Fund and the Baby Bonds Fund. The Act defines beneficiaries as individuals born in New Mexico on or after July 1, 2025, who meet specific residency or custody criteria. The Next Generation Trust Fund will be funded through various sources, including appropriations and investments, and will distribute funds to the Baby Bonds Fund, which is designated for educational and housing assistance. The Department of Finance and Administration is tasked with administering these funds and ensuring that eligible expenditures are made on behalf of beneficiaries.

Additionally, the Act includes provisions that exempt money spent for beneficiaries from state income tax and clarifies that no guarantees of benefits or property interests are created under this Act. It mandates information sharing between relevant state departments to verify beneficiary eligibility and requires the Department of Finance and Administration to develop rules for the program's administration. The Act appropriates $500 million to the Next Generation Trust Fund and $100,000 for administrative costs, with an effective date of July 1, 2025.