New Mexico now ranks second among states with $64 billion in investment trusts thanks to a nearly five-fold surge in oil and gas production revenue from federal and state lands since 2017. Albuquerque Journal said production has “delivered a financial windfall for state government, helping fund higher teacher salaries, tuition-free college, universal free school meals and more.”
The Journal said New Mexico set aside billions of dollars in investment trusts for future spending in case the world’s thirst for oil falters, including early childhood education fund to help expand preschool, childcare subsidies, and home wellness visits. The state’s investment trusts – the state’s second biggest source for general fund spending – are second only to Alaska’s permanent fund.
After Alaska and New Mexico, the states receiving the most federal oil and gas royalties are Wyoming, Louisiana, North Dakota and Texas. The nation’s top oil producer, Texas shares the bountiful Permian Basin with New Mexico, but it has far less federal land and therefore less exposure to royalties.