Trump New Mexico oil gas drilling royalties.

A Republican push to make drilling cheaper on federal land is creating new fiscal pressure for states that depend on oil and gas revenue, most notably in New Mexico. President Donald Trump’s signature spending and tax-cut legislation restored royalty rates to 12.5% on new oil and gas leases from a bump to 16.7% under the Biden administration. The stakes are highest for New Mexico as it expands early childhood education and saves for the future. It’s the largest recipient of federal mineral lease payments and recently raised its own royalty rates on prime land. Meanwhile in Alaska, natural resource managers say they’re encouraged by the potential for increased development.