By Paige Knight
May 16, 2025
New Mexico’s kids – not billionaires – should be the beneficiaries of the natural resources that belong to us all. Yet, under Congressional Republicans’ current budget proposal, oil companies stand to add to their immense profits by paying far less for the privilege to extract these resources. Combined with tax cuts that overwhelmingly benefit the wealthiest amongst us, these giveaways will result in harsh cuts to vital services like Medicaid and SNAP, programs that our children and families rely on.
One component of the budget proposal would allow oil and gas companies to pay a lower royalty rate than what many states, including New Mexico, already charge on state lands. Thankfully, New Mexico’s leaders understand that our kids should come before billionaires in the way we manage our money and natural resources. Our state just raised its royalty rate for production on state land to bring it in line with the amount charged in Texas and on private lands in New Mexico. This could bring in an estimated $1.3 billion in revenue for our public schools and students by 2050, boosting our investment in our children.
Unfortunately, the same can’t be said at the federal level. To fund these giveaways to the wealthy and well-connected, Congressional Republicans’ budget proposal would take from working families, including $12 billion in cuts to the Department of Education, $880 million in cuts to Medicaid, along with tens of billions more in cuts to food and tax credits for families.
The lost revenue from lower royalty rates and extended tax cuts could dismantle entire programs at a time when families need more support than ever to get by, as tariffs and inflation raise the cost of everything from eggs to oil. Three in five rural New Mexico kids get their health care through Medicaid. Many of the tax credits targeted by these funding cuts lift thousands of children out of poverty each year, and more than 38% of SNAP recipients in New Mexico are children. Our studies show that these vital health, economic, and nutrition initiatives have helped those struggling the most to make ends meet.
For everyday families, ending or reducing these benefits while the cost of living continues to rise will force some to make difficult decisions. It’s unconscionable to pad the pockets of the most powerful and profitable companies in the world at the cost of making it more difficult for families to provide for their children.
Fortunately, New Mexicans’ priorities are in the right place. A recent poll showed 79% want to keep in place reasonable royalty rates and other protections on national public lands provided by recent changes to the federal government’s oil and gas program.
We thank New Mexico’s Congressional delegation for standing with us and rejecting the special interests that are trying to use this budget proposal to add to their already considerable wealth. Congress must prioritize our kids over profits, and ensure they have every opportunity to thrive and lead healthy lives. You can help by sharing with our state’s U.S. Senators and Representatives how federal cuts will impact you and your loved ones.
Rep. Melanie Stansbury – (202) 225-6316
Rep. Gabe Vazquez – (202) 225-2365
Rep. Teresa Leger Fernandez – (202) 225-6190
Sen. Martin Heinrich – (202) 224-5521
Sen. Ben Ray Luján – (202)-224-6621
Paige Knight, MPP, is the Director of Research at NM Voices for Children.