New Mexico has high poverty rates and low rankings across every economic indicator, yet the state holds a $63 billion permanent fund, among the largest in the nation. New Mexico Business leader Jeff Apodaca and local entrepreneur-investor Lawrence Chavez say that the disconnect between wealth and opportunity is a matter of choice, not circumstance.
Apodaca, a former gubernatorial candidate and media executive, has for years advocated for using a small percentage of the state’s permanent fund for local investment. He says that New Mexico is “the third wealthiest state in the country” in terms of funds and assets, but chooses “to live poorer” by investing almost all of that money outside the state. Chavez was born and raised in New Mexico and has worked in finance, launched companies, and participated in the local venture capital ecosystem. Both men call for systemic change to harness New Mexico’s untapped potential.
According to Apodaca, up to 99% of the state’s investment funds are invested outside the state. He says even a modest shift—just 5%, or $3 billion—would provide a massive economic boost. Chavez agrees. “I'm talking 50%,” he says, to build infrastructure and industries that could support innovation and job creation. “We need to do the infrastructure of those labs. We also need to take $30 billion of real money into infrastructure, water infrastructure, energy infrastructure, transportation infrastructure.”
Despite being number two per capita among all states in federal R&D funding, New Mexico ranks 32nd in venture capital. “That money doesn’t get translated,” Chavez says. He compares the situation to mining gold, where the technology exists, but turning it into commercial products requires investment and infrastructure. “People diminish the time and effort it takes to extract and refine those technologies,” Chavez says. “That’s where the investment needs to come in.”
The two also point to a lack of long-term planning in government. “We do capital outlay like it’s a cash cow,” Apodaca says, describing how infrastructure funding is spread too thin across thousands of small projects rather than prioritized for impact. He proposes narrowing the focus to 100 projects. “Let’s figure out what we’re going to do for the next 20 years,” he says.
Both men say that investing in small businesses, particularly in rural areas, is key to lifting incomes across the state. “Ninety-seven-percent of our economy is small business,” Apodaca says. “Their number-one [need] is capital to grow their business–we have to help those rural communities.” He proposes using part of the fund for small interest loans to entrepreneurs.
Apodaca is adamant that it’s not about maximizing returns at any cost. “The State Investment Council’s job is to invest funds,” he says, while “our political jobs are to create economic opportunities and job creation for New Mexico.” He proposes insulating the Council’s performance bonuses from locally-directed investments so the financial incentives don’t conflict with public interest goals.
Both stress that the obstacles are cultural and political, not legal. “There are no barriers legally,” Apodaca says. “It’s in the Constitution.” Chavez adds, “It’s a mindset within New Mexico,” which he calls “a scarcity mindset that prevents us from doing the things that will change the dynamics of our state.”
That mindset, they say, can be changed from the bottom up. “We need to stand up as a community,” Chavez says. “We can expect more from our government. We can expect more from our legislators. We can expect more from the State Investment Council.” He calls on voters to educate themselves, talk to their lawmakers, and advocate for change. “There are tools online—you can find your legislator, you can talk to them.”
Apodaca agrees that citizen engagement is essential. “Come to me with solutions," he says. “Let’s start thinking about that instead of complaining with each other.” He urges legislators and candidates in the 2026 election cycle to take up the cause.
Chavez believes New Mexico could be in the top 10 in personal income in the United States by 2050. According to him, “we have the resources, we have the people, and we can bring people in–we just need to choose to invest.”
