New Mexico's Senate passed the House legislation last month sending the bill to the governor's desk.
Navajo Nation President Jonathan Nez told the Navajo Post that the change is long overdue.
"For many years, Indigenous people have protested Columbus Day because it celebrates colonialism, oppression, and injustice inflicted on Indigenous peoples," Nez told the Post. "Observing Indigenous Peoples' Day allows citizens to recognize our rich heritage and represents a step toward healing and growth."
New Mexico followed Oregon, Minnesota, Vermont and Alaska in renaming Columbus Day Indigenous Peoples' Day. South Dakota celebrates Native American Day and Hawaii celebrates Discoverers' Day. Dozens of U.S. cities also now honor native people on the second Monday in October.