Aragon also was fined $750,000 — the bulk of which he already has forfeited to the government — and ordered to pay at least $649,000 in restitution.
Aragon, an Albuquerque Democrat who served in the Senate for 29 years, offered a rambling 20-minute speech in which he apologized for his crimes, and then broke into tears, before being sentenced by U.S. District Judge William P. Johnson.
Neither Aragon nor his attorneys commented to reporters after the hearing.
Once one of New Mexico's most powerful politicians, Aragon last year pleaded guilty to three federal felony counts of conspiracy and mail fraud in a scheme to defraud the state of some $4 million in the construction of the Bernalillo County Metropolitan Courthouse in Albuquerque.
U.S. Attorney Greg Fouratt said after Tuesday's hearing that "the era of picking the taxpayers' pockets is over."
In an October plea deal, Aragon had agreed to the 5½ years in prison, but attorneys argued over the amount of fines and restitution he should pay.
Aragon has already forfeited more than $662,000 to the U.S. government and was the only defendant in the case to return all of his share of the stolen assets, his attorneys said. That forfeiture will be applied to the $750,000 owed in fines, the judge ruled.
The judge's order of $649,000 in restitution from Aragon could increase to as much as $1.2 million. The additional $541,000 is to be shared among Aragon and other defendants in the corruption case - with Aragon responsible for the whole amount if it is determined the others cannot afford to pay.
Before the hearing, Fouratt had challenged any impression that Aragon is suffering financially.
Aragon has "extensive high dollar real estate holdings, large cash and liquid investments and a monthly cash flow" that would continue while he serves his prison term, Fouratt wrote in a court filing late last week.
Fouratt said Aragon has sufficient resources to pay restitution and a substantial fine immediately.
"Defendant Aragon is a wealthy man," Fouratt wrote.
The degree of Aragon's punishment had been fodder for debate for weeks as dozens of New Mexicans wrote letters to the judge to share their views. Those messages poured in during the past week after media reports that several notable New Mexicans, including Archbishop of Santa Fe Michael Sheehan and former University of New Mexico athletic director Rudy Davalos, wrote to support Aragon.
Nearly all of the 50 letters asked Johnson to give Aragon a harsh sentence to send a message to any other New Mexico politicians who may be corrupt.
"That a trusted public servant would deceive and betray his constituents is beneath contempt," Melody Dudley wrote to Johnson. "Throw the book at him - hard!"
Aragon's supporters also included legislators and former lawmakers, such as state Senate President Pro Tem Timothy Jennings and state Rep. Henry Kiki Saavedra, chairman of the House Appropriations and Finance Committee.
The supporters say Aragon spent years advocating for poor people in New Mexico and they talked of his professionalism in their work with him while he was in office.