New Census figures show gains, especially for children, while state leaders debate how to build lasting financial independence
By James Bennett, managing editor of the Albuquerque Journal.
November 7, 2026
New Mexico has long struggled with one of America’s highest poverty rates.
It will be one of the top issues that Gov.-elect Deb Haaland will face as she moves into her new digs in Santa Fe.
But new Census Bureau figures reveal something encouraging: The state is making progress, particularly in helping children escape poverty.
The Times-Picayune in New Orleans recently reported that Louisiana topped the nation in poverty, raising an important question about how New Mexico compares.
According to Census figures covering 2023 through 2025, Louisiana’s official poverty rate was 19.6%, compared with 16% in New Mexico and 10.7% nationally.
That’s still roughly 1 in 6 New Mexicans living in poverty.
But those numbers don’t tell the whole story.
A remarkable improvement
New Mexico Taxation and Revenue Secretary Stephanie Schardin Clarke highlighted the state’s progress in an opinion column last week.
She wrote that New Mexico has “reduced poverty at triple the national rate” despite inflation and other economic pressures.
The state’s official poverty rate declined 1.2 percentage points, compared with a national improvement of 0.4 points.
The Census Bureau’s Supplemental Poverty Measure, which accounts for taxes, government assistance and living expenses, offers an even more encouraging picture.
Under that measure, New Mexico’s poverty rate falls to 13.2%, almost identical to the national average of 13%.
Louisiana’s supplemental rate remains at 19%.
The difference is especially dramatic for children.
New Mexico’s official child poverty rate is 20.9%. Under the supplemental measure, it drops to 10.9%, below the national rate of 13.5%.
Schardin Clarke points to New Mexico’s Child Tax Credit, which provided $138 million in relief to 255,000 families this year.
Those are encouraging numbers. But what do they really tell us about families’ long-term economic prospects?
“While we should all celebrate such a meaningful reduction in child poverty, this is no time to let off the gas,” Schardin Clarke wrote.
“New Mexico must keep investing in tax policy and programs that help those who need it most while creating durable jobs that grow our economy. That’s how we can achieve the goal of lifting every New Mexican out of poverty once and for all.”
Double-edged sword
Charles Sallee, director of the New Mexico Legislative Finance Committee, weighed in from a financial point of view.
“The supplemental poverty measure is a two-edge sword,” Sallee told the Journal.
It demonstrates that government assistance is reducing poverty, he said, but also that many families lack sufficient earned income to escape poverty without that assistance.
The ultimate goal, Sallee argues, should be helping families become financially independent.
He points to the federal Earned Income Tax Credit and New Mexico’s Working Families Tax Credit as examples of policies that reward employment.
Both provide additional financial support as eligible parents increase their earnings, with benefits gradually declining as incomes rise.
That creates what Sallee describes as a “softer landing,” avoiding the abrupt loss of benefits that can discourage families from earning more.
“Directionally they encourage eventual independence,” he said.
Sallee also questions how effectively some other programs reach the families most in need.
The Child Tax Credit, he said, primarily helps families near the poverty threshold cross that line under the supplemental measure.
“While the cash transfer helps, it doesn’t move the needle for families in deep poverty.”
Are we targeting assistance effectively?
Universal childcare could make it easier for parents to work and increase their earnings. But Sallee questions whether the growing investment will significantly reduce measured poverty.
He estimates that in 2019, roughly half of children receiving assistance were from families at or below the poverty level. He believes that share has fallen below 23%, although he cautioned that those figures need confirmation.
The program now extends to families regardless of income.
That raises a legitimate question about whether the state is directing enough resources toward families facing the greatest financial hardship.
Universal programs may provide broader benefits, including greater workforce participation. But those benefits should be measured alongside their cost and their effectiveness in reducing poverty.
The ultimate measure of success
New Mexico’s long-term challenge is creating enough good-paying jobs to help families become financially secure.
Our national laboratories, universities, energy industries and emerging quantum technology sector provide extraordinary opportunities.
But those investments must reach communities where poverty has persisted for generations.
That requires stronger schools, workforce training, affordable housing and policies that encourage businesses to create jobs.
The Journal’s Data Scoreboard is designed to measure whether New Mexico is making meaningful progress.
The latest poverty figures provide reasons for encouragement. Government assistance is helping families, especially children.
But we should measure success not only by how many families government programs lift above the poverty line, but also by how many can eventually remain there through their own earnings.
The ultimate measure of New Mexico’s prosperity isn’t how much assistance we provide. It’s how many families gain the opportunity to no longer need it.
