Poverty in New Mexico falls 1.2 percentage points, triple the national rate

New Mexico’s official poverty rate fell 1.2 percentage points, from 17.2% to 16%, in the U.S. Census Bureau’s most recent three-year estimates, which cover 2023 to 2025.

Source: Office of the Governor Michelle Lujan Grisham

SANTA FE — New Mexico’s sustained investments in working families are paying off: poverty in the state decreased at triple the national rate in recent years, according to new data from the U.S. Census Bureau.

New Mexico’s official poverty rate fell 1.2 percentage points, from 17.2% to 16%, in the U.S. Census Bureau’s most recent three-year estimates, which cover 2023 to 2025. The national poverty rate fell by just 0.4 percentage points in the same period, while poverty rose in 16 states.

“This data confirms that our unprecedented investments in families are paying dividends,” said Gov. Michelle Lujan Grisham. “More families are building wealth, more kids are getting the nutritious meals they need to succeed in school and more young New Mexicans can afford to stay and build their lives here.”

The new data also indicates that New Mexico is doing more than any other state to address poverty. New Mexico continues to demonstrate the largest gap of any state between its official poverty rate – a number calculated using household income and consumer prices – and its supplemental poverty rate, a measure which accounts for tax credits, food and housing assistance, and other government programs. When using the supplemental poverty measure, New Mexico’s poverty rate drops from 16% to 13.2%, the largest gap of any state in the nation. Accounting for state programs, the poverty rate for children under 18 plunges by nearly half – from 20.9% to 10.9%, well below the national average of 13.5%.

New Mexico also improved its official child poverty ranking from 50th to 48th  among all states and D.C. This builds on last year’s success, when New Mexico reduced child poverty more than any other state in the nation. The new census data doesn’t yet account for the household financial relief provided by New Mexico’s first-in-the-nation universal child care program launched in November 2025.

“With half of eligible young children now enrolled in universal child care, many families are relieved from the financial burden and stress of finding reliable care,” said Early Childhood Education and Care Department secretary Elizabeth Groginsky. “Paired with the gains New Mexico is already seeing, universal child care is set to drive even greater, lasting progress for children, families and communities.”

Under the Lujan Grisham administration, New Mexico has enacted free college, revised the state’s tax code to become one of the most progressive in the nation, and expanded food assistance and housing benefits to low-income families. 

“This continued poverty reduction is concrete evidence that our policies are working,” said Secretary of Taxation and Revenue Stephanie Schardin Clarke. “New Mexico is in a unique fiscal position to expand targeted tax relief and improve our business climate to bring prosperity to all New Mexicans.”

Despite a national affordability crisis, New Mexico continues to lead the nation in family income growth. Strong economic development and business recruitment have fueled rapid growth in high-paying sectors such as advanced energy and advanced computing.

“New Mexico’s priority is building an economy where businesses can grow and more families can achieve lasting economic security,” said Economic Development New Mexico Secretary Rob Black. “By creating high-paying jobs and expanding opportunity across the state, we’re opening more pathways for New Mexicans to prosper and build a better future.”