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flag A 2025 GOP law cut federal oil/gas royalties, threatening New Mexico’s $5.1B in future revenue and state programs.

flag A Republican-backed law signed in July 2025 reduced the federal oil and gas royalty rate from 16.7% to 12.5%, reversing a Biden-era increase. flag The change, aimed at boosting energy production, is expected to cut federal royalty collections by $6 billion over the next decade, with New Mexico—its largest recipient—potentially losing up to $5.1 billion by 2050. flag This threatens state-funded programs like early childhood education, universal child care, and teacher pay raises. flag In response, New Mexico raised its own royalty rate to 25% on new leases and lifted a sales moratorium, but declining revenue projections have sparked debate over funding priorities and program eligibility. flag Other states like Wyoming, Louisiana, North Dakota, and Texas also face fiscal shifts, though Texas is less impacted due to limited federal land. flag The full effects will unfold gradually over the next decade as existing leases expire.

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