The New Mexico Next Generation Act establishes a framework for supporting the educational and housing needs of 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 expenditures related to education and housing for beneficiaries. The Department of Finance and Administration is tasked with administering these funds and will be responsible for rulemaking to ensure proper management and distribution of benefits.

Additionally, the Act includes provisions that exempt money spent on behalf of 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 project future eligible expenditures. The Act appropriates $500 million to the Next Generation Trust Fund and $100,000 for administrative purposes, with an effective date of July 1, 2025.