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The American Rescue Plan: Impacts on New Mexico
The Need for Action in New Mexico
The pandemic and the associated economic crisis have had a severe impact on New Mexico. The need for action is clear:
- Since the pandemic began, more than 186,922 people have been infected with COVID-19 and more than 3,808 people have died.
- The unemployment rate is 8.6%, up from 5.3% before the pandemic.
- Since February 2020, more than 35,623 fewer people are employed.
- 182,000 adults – 13% of all adults in the state – report not having enough food to eat. This includes 106,000 adults living with children, or 19% of all adults living with children, who report that the children in their household do not have enough to eat.
- An estimated 65,000 renters or 16% of renters are not caught up on rent.
- An estimated 568,000 adults or 38% of all adults statewide report having difficulty covering normal household expenses.
The Effect of the American Rescue Plan on New Mexico
President Biden’s American Rescue Plan will provide New Mexico with:
- $1.857 billion in state fiscal relief
- $772 million in local fiscal relief
- More than $1 billion in relief for K-12 schools
- Economic impact payments of up to $1,400 per person (above the $600 per person provided in December) for more than 1,361,700 adults and 585,800 children. This is 92% of all adults in the state and 93% of all children in the state.
- Additional relief of up to $1,600 per child through the Child Tax Credit to the families of 454,000 children, lifting 32,000 children out of poverty
- Additional relief of up to nearly $1,000 through the Earned Income Tax Credit to 135,000 childless workers, including many in frontline jobs
- Marketplace health insurance premiums that are $909 lower per month for a 60-year old couple earning $75,000 per year
