Nearly half of New Mexico households continue to live below the ALICE survival budget, or are simply struggling to make ends meet despite holding jobs that keep the state’s economy running, according to the latest report released by United Way.
The report found that 42 percent of New Mexico residents live below the ALICE survival budget, marking the second straight year that about four in 10 households were unable to cover essential monthly expenses. Although the situation has improved from 46 percent reported last year, it highlights the financial struggle facing thousands of working families statewide.
The ALICE report — short for Asset Limited, Income Constrained, Employed — found that households do not earn enough to cover the actual cost of living. Rodney Prunty, president and chief executive officer of United Way of North Central New Mexico, said the findings challenge the belief that simply having a job is enough to achieve financial stability.
Having a Job is not Enough
“People often say, ‘All you have to do is get a job, pull yourself up by your bootstraps, and you’ll be good to go,'” Prunty said. “That’s exactly what the ALICE population is doing. They’re working in jobs that matter to our economy, yet they’re still struggling.”
Researchers calculated the ALICE survival budget by examining local costs for necessities, including housing, child care, food, transportation, health care, technology, taxes, and other basic expenses, using publicly available census and labor data.
According to the report, a single adult in Bernalillo County needs to earn more than $31,000 annually to meet basic expenses. A family of four with an infant and a preschooler would need nearly $94,000 a year to cover basic expenses.
ALICE Survival Budget Measure and Its Relevance
United Way officials said the report is intended to help policymakers better understand the financial realities facing working households and shape policies that address the gap between wages and the cost of living. Prunty said the organization also plans to expand direct support beginning in 2027 through a proposed Financial Empowerment Center to offer workforce development, financial literacy education and coaching, and other services in one place.
The report found that single mothers comprise the largest share of ALICE households, with 73 percent, or about seven in 10, falling below the ALICE threshold.
At the same time, older adults represent the fastest-growing segment of the ALICE population. Jeanette Brahl, New Mexico’s statewide director for ALICE, said half of households headed by someone age 65 or older now fall below the threshold, an increase of 57 percent between 2010 and 2024 as the baby boom generation ages.
Brahl said the ALICE measure offers a more accurate picture of financial strain than the federal poverty level because it reflects today’s actual living costs instead of relying on an outdated formula. She said the federal poverty measure was originally based largely on food costs and does not account for modern essentials such as health care, technology, and other necessary expenses.
This year’s report shows modest improvement. But United Way leaders said the findings demonstrate that employment alone is not a guarantee of economic security for many New Mexico households, especially those working in basic occupations that form the backbone of the state’s economy.
