The New Mexico Next Generation Act establishes a framework for supporting beneficiaries born in New Mexico on or after July 1, 2026, through the creation of the Next Generation Trust Fund and the Baby Bonds Fund. The Act defines "beneficiary" and outlines eligibility criteria, including residency requirements for parents and specific circumstances for children in protective custody. The Next Generation Trust Fund will be a nonreverting fund managed by the state investment officer, with distributions made to the Baby Bonds Fund to support educational and housing assistance for beneficiaries. The Department of Finance and Administration is tasked with administering the funds and ensuring compliance with the Act's provisions.

Additionally, the Act includes provisions for information sharing between various state departments to verify beneficiary eligibility and mandates the Department of Finance and Administration to create rules for fund administration. Notably, the Act clarifies that benefits are not guaranteed and do not create enforceable property interests. It also exempts expenditures made on behalf of beneficiaries from state income tax. The Act appropriates $20 million to the Next Generation Trust Fund and $100,000 for administrative costs, with an effective date of July 1, 2026.