Some states have programs that benefit the top students without regard to need like Florida’s bright futures or Ga’s HOPE/Zell Miller. Some benefit those with need, like NY’s Excelsior, sort of without considering academics (except that the schools admit who they want). Others just give every student a flat amount, like Colorado, which will go farther at a less expensive school than at the flagship, but every credit you take gets you $75.
NM seems to be combining several of these, as those with higher academics can get more state dollars if they go to the more expensive flagship, but they aren’t taking need into consideration.
This works unless they raise the fees, like Massachusetts does, rather than raising tuition.