SANTA FE – Gov. Michelle Lujan Grisham today celebrated 90 years of one of the most iconic, successful programs in American history, recognizing Social Security as a system that has lifted millions out of poverty, treated people with dignity, and provided security in their retirement years.

The governor emphasized that Social Security represents earned income for retirees and disabled workers—while calling out Congress for failing to address the real financial pressures facing the program.

“While Congress refuses to deal with inflation and the real-life financial pressures people face, we’re making sure those eligible for Social Security keep every single dollar they earned,” said Gov. Lujan Grisham. “Politicians in Washington want to call Social Security an ‘entitlement,’ but this is your money that you paid into your entire working life.”

New Mexico has eliminated state income taxes on Social Security for most recipients, but many seniors don’t realize this relief exists. Starting in tax year 2022, the state stopped taxing Social Security income for middle- and low-income earners. Approximately 86% of New Mexico seniors now keep every dollar of their Social Security income without state taxes. Single filers earning up to $100,000 annually and joint filers earning up to $150,000 are completely exempt.

“The most important thing seniors need to know is that we already removed state taxes on your Social Security income,” said Lujan Grisham. “We eliminated those taxes because that money belongs to you – it’s income you earned, and you shouldn’t be taxed twice on it.”

According to Think New Mexico, the tax elimination has returned significant money to New Mexican families: approximately $710 annually per senior household. The total relief reached $84 million in 2022 and is projected to hit $99.5 million by 2025.

Building on Social Security’s foundation
While Social Security represents money workers have earned, the system was originally intended to ensure people had income in their post-working years. For 90 years, it has lifted millions of older people and disabled people out of extreme poverty and provided them with dignity. However, Social Security is only part of the solution.

“We need Congress to keep thinking—and state policymakers too—about ways to treat retirees, older adults, and disabled people with much more respect and dignity,” said Lujan Grisham. “New Mexico recognizes that the state can and should do more to lift up senior citizens, veterans, and disabled persons. We do a lot of other work beyond Social Security tax relief.”

The state has invested in comprehensive support systems, including New MexiCare for long-term care services, the New Mexico State Veterans Home for housing and care for veterans, and the successful resolution of the 35-year Jackson lawsuit that eliminated the developmental disabilities waiver waitlist and strengthened community-based services for intellectually and developmentally disabled New Mexicans.

“Congress should take a lesson from New Mexico on how we take care of people,” Lujan Grisham added. “We can do more, and we will.”

Social Security faces funding challenges because Congress has failed to act. According to the Social Security trustees’ 2024 report, the program’s trust funds are projected to be depleted by 2033 unless Congress takes action, which could result in automatic cuts of approximately 20% to payments if no changes are made.

“For 90 years, Social Security has made sure that when you can’t work anymore, part of what you earned during your lifetime is still there for you,” said Lujan Grisham. “We’re talking about 470,000 New Mexicans who paid into this system their whole working lives. This is income they earned.”

About Social Security in New Mexico:

• 468,030 total beneficiaries as of December 2023
• 345,706 retired workers
• 54,280 disabled workers
• 55,319 additional New Mexicans receive Supplemental Security Income (SSI)
• Monthly benefits totaled $778.2 million statewide as of December 2023