State programs and tax credits credited for driving 3.2% drop — the largest improvement in the U.S.

Organ Mountain News report

SANTA FE - New Mexico has achieved the largest reduction in child poverty in the nation according to new data from the U.S. Census Bureau.

While the national child poverty rate improved by just 0.4%, New Mexico’s rate fell 3.2% in the most recent survey year. The state also saw an overall 1.3% improvement in its official poverty measure — more than four times the national average.

“Our federal government is moving in the wrong direction but New Mexico has proven its commitment to eradicating poverty,” Gov. Michelle Lujan Grisham stated in a news release. “We will continue to improve and deliver for families in need.”

The supplemental poverty measure — which accounts for state-level tax policies and benefits — shows even greater progress. While New Mexico’s official child poverty rate is 24.2%, it drops to 10.3% under the supplemental measure, ranking the state 21st in the nation and better than the U.S. average. The 13.9-point difference — the widest in the country — highlights the impact of recent initiatives aimed at supporting low- and moderate-income families.

“Despite the challenges all states face in light of federal cuts New Mexico has built a strong financial foundation that will protect the most vulnerable New Mexicans for decades to come,” said Stephanie Schardin Clarke, secretary of the state Taxation and Revenue Department.

Since 2019, New Mexico has expanded food and housing assistance, free college tuition, affordable health coverage and early childhood education. Tax reforms have included creating a child income tax credit, expanding the working families tax credit and reducing the statewide gross receipts tax for the first time in four decades.

Early Childhood Education and Care Secretary Elizabeth Groginsky said the state’s commitment is reflected in its new universal child care program.

“Expanding access to food, housing, health care, and early childhood education has helped thousands move above the poverty line,” she said. “With universal child care, we can continue this progress so all New Mexico families and young children are thriving.”

Gabrielle Uballez, executive director of NM Voices for Children, said bold state investments have helped break cycles of poverty but warned of potential setbacks.

“Looming federal cuts threaten the progress we’ve made so unless we protect vital programs like SNAP and Medicaid we may see our poverty rates rise next year,” she said.