N.M. Stat. § 27-2-3
Standard of need; income determination.
A. Consistent with the federal act and subject to the availability of federal and state
funds, the board shall adopt a standard of need which shall establish a reasonable level
of subsistence.
B. Consistent with the federal act, the board shall define by regulation exempt and
nonexempt income and resources. Medical expenses shall not be deducted from either
income or resources in determining eligibility.