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LOCAL COLUMN

OPINION: New Mexico outperforms the nation in child poverty reduction

State tax policy lifts families out of poverty

Published

New Mexico is leading the nation in reducing child poverty — and the full picture is more encouraging than many people realize.

The latest federal Official Poverty Measure data shows that New Mexico reduced child poverty by 3.2% in 2024, while the average national improvement was just 0.4%. No other state topped New Mexico’s progress in reducing child poverty.

But the headline number only tells part of that story. Understanding the full picture matters if we want to keep making progress.

The standard measure of poverty — the Official Poverty Measure — was developed by the U.S. Census Bureau in the early 1960s. It has remained largely unchanged. The Official Poverty Measure considers only a state’s pre-tax income relative to a national poverty threshold. It does not account for tax credits, government benefits, health coverage, child care assistance or cost of living. In short, it doesn’t accurately reflect New Mexicans’ true standard of living for children and families

The U.S. Census Bureau launched a more precise measurement tool in 2011. The Supplemental Poverty Measure — which the bureau describes as “designed to keep pace with changes in data, methods and new research” — accounts for the full range of resources that determine what families have, what they owe and what they can afford.

Under the Official Poverty Measure, New Mexico's child poverty rate is 24.2%. Under the Supplemental Poverty Measure, it falls to 10.3% — 2.6 points below the national average.

Under the leadership of Gov. Michelle Lujan Grisham, New Mexico has built one of the most robust antipoverty tax structures in the United States. The Child Tax Credit, the Working Families Tax Credit and the Low-Income Comprehensive Tax Rebate put money directly back into the pockets of working families. We have shielded New Mexicans from rising health insurance costs, eliminated out-of-pocket child care expenses for thousands of families and created an Opportunity Scholarship so that every New Mexican can enter the workforce without the weight of student loan debt. We also reduced gross receipts taxes for the first time in 40 years and eliminated state income tax on Social Security for most seniors.

The 14-point gap between New Mexico's official and supplemental child poverty rates reflects the tangible impact of these investments. That’s a legacy I’m proud to cement.

Those of us who live in New Mexico should be proud of this achievement and to live in a place where political promises are routinely put into action. The Lujan Grisham administration insists on delivering more for New Mexicans and it’s changing thousands of lives for the better.

To be clear, child poverty has not been eradicated in New Mexico. Our work is far from finished. But the data clearly show that the governor’s leadership is working for kids who need it most, and sustaining and expanding these investments is the right path forward. 

Stephanie Schardin Clarke is the cabinet secretary of Taxation and Revenue.