FOR IMMEDIATE RELEASE

February 14, 2025

Contact: Bushra Elfarissi

(505) 819-8887

bushra.elfarissi@sto.nm.gov

JANICE Y. BARELA

Deputy State Treasurer

State Senators Antonio “Moe” Maestas and Leo Jaramillo Drop the “Next Generation Act” In Observance of Love Day

Santa Fe – Love is in the air this Valentine’s Day! The State Treasurer’s Office is filled with enthusiasm as State Senators Antonio “Moe” Maestas (District 26) and Leo Jaramillo (District 5) introduce the groundbreaking “Next Generation Act” (Senate Bill 397), marking a pivotal step in fulfilling our promise of Baby Bonds for the children of New Mexico. This bill was crafted after nearly a year of thoughtful collaboration, statewide conversation, national outreach, and hard work among our coalition. SB 397 represents our unwavering commitment to bridging the wealth divide in New Mexico and strengthening our economy.

“As Senator representing Los Alamos, Rio Arriba, Sandoval & Santa Fe counties, I know how much the Next Generation Trust Fund will support children and families across the state,” stated State Senator Jaramillo. “We always reiterate the need to invest in our children, and this bill is set to accomplish our goal of uplifting families and keeping new Mexicans working in state, ultimately advancing economic stability in New Mexico.”

The Next Generation Act aims to address wealth inequality by establishing trust accounts for beneficiaries, which is defined as “any baby born after July 1st, 2025, who has a parent who has resided in New Mexico for at least five consecutive years immediately preceding the person’s birth;” or who is in New Mexico foster care.

There are two funds - the pledge startup capital, held in the “Next Generation Trust Fund,” will be invested by the State Investment Council (SIC) and gain interest over time. The second, the “Baby Bonds Fund,” will be created in the State Treasurer’s Office and appropriated by the Department of Finance and Administration to make eligible expenditures on behalf of beneficiaries after they complete a financial literacy course approved by the State Treasurer’s Office.

“I have been a staunch advocate for Financial Literacy throughout my legislative career,” said State Senator Maestas. “The importance of providing financial literacy

education to the children who are set to indirectly utilize this fund can’t be understated. SB 397 includes the necessary financial education which will set up beneficiaries for success.”

An alternative bill, the Children’s Future Fund Act (House Bill 7), has been publicly opposed by the State Treasurer’s Office in its current form. The State Treasurer’s Office, in addition to the State Investment Council and the State Ethics Commission, have filed legislative analyses highlighting its technical and substantive concerns.

“The legislative analyses submitted underscore the need for continued collaboration,” asserted State Treasurer Laura M. Montoya. “At the end of the day, SB 397 fundamentally advances the creation of Baby Bonds, which intends to invest in our children, bridge the wealth divide in our state, and strengthen our workforce and economy. I am thankful that Sen. Maestas and Sen. Jaramillo recognize both the need and the vision to establish this trust fund.”

Laura M. Montoya became New Mexico’s first female State Treasurer on January 1, 2023, and the nation’s first elected Latina State Treasurer, bringing the office over two decades of experience in banking, investments, and public policy. Under Treasurer Montoya’s direction, the office manages the state’s $17 billion investment portfolio. The Treasurer serves on 13 boards, councils, and commissions with fiduciary responsibility for state funds exceeding $150 billion.