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SB 162

SEVERANCE TAX PERMANENT FUND INVESTMENTS

2025 Regular Session Introduced by Pete Campos

SB 162 modifies New Mexico's Severance Tax Permanent Fund investment strategies to potentially increase education revenue, but stalled in House committees in June 2025.

action postponed indefinitely
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Bill Summary · SB 162

Legislative bill overview

SB 162 modifies how New Mexico's Severance Tax Permanent Fund invests its assets, likely expanding investment authority or changing allocation strategies for revenues generated from oil, gas, and mineral extraction taxes. The bill passed the Senate with amendments in February 2025 but was postponed indefinitely in the House in June 2025, preventing final enactment.

Why is this important

The Severance Tax Permanent Fund is a major revenue source for New Mexico's public schools and universities, making investment decisions consequential for education funding stability and long-term growth. How these funds are invested directly affects the amount of money available for schools and higher education institutions over decades.

Potential points of contention

  • Investment risk vs. returns: Expanding investment authority may allow higher-risk, higher-return strategies that could generate more revenue but expose the fund to greater volatility and potential losses
  • Fossil fuel dependency: Changes to investment practices could either deepen or reduce the state's reliance on volatile oil and gas revenues during energy transition
  • Intergenerational equity: Investment decisions made now affect future generations' access to education funding, raising questions about appropriate risk tolerance and return expectations

Compiled from official sources — confirm details with the bill’s official record.

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