In an unprecedented move, New Mexico is making child care free.
Beginning in November, it will be the first state in the nation to provide child care to all residents regardless of income, Gov. Michelle Lujan Grisham announced this week.
The state has been working to lower child care care costs since 2019, when it created the Early Childhood Education and Care Department and started to expand eligibility for universal child care. This latest change removes income eligibility requirements from the state’s child care assistance program altogether and waives all family copayments.
The initiative is expected to save families $12,000 per child annually.
“Child care is essential to family stability, workforce participation and New Mexico’s future prosperity,” Lujan Grisham said in her announcement. “By investing in universal child care, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive.”
The United States allocates some federal funding to states to lower the cost of child care for low-income kids, but eligibility for that funding is very limited and by and large, most families are paying an average of $13,000 on child care annually. It’s much higher in many states.
In the absence of a federal universal child care system, some states have worked to build their own systems, and New Mexico has been a leader in that effort over the past several years.
The state’s Early Childhood Education and Care Department got a budget increase of $113 million in the most recent legislative session, taking its total operating budget to nearly $1 billion. Half of that money goes specifically to child care payment support.
The state also established a fund in 2020 with money earmarked for early childhood education. Thanks to tax collections from the oil and gas industries, the fund has grown from $320 million to $10 billion. Latinas in New Mexico led the charge in 2022 to help pass a constitutional amendment in 2022 that ensured a portion of that fund went specifically to universal child care. Funding for the new initiative will come at least in part from there, and Lujan Grisham will also be requesting an additional $120 million in state funding next year, a spokesperson for the governor said.
The news also comes with improvements for child care facilities and, potentially, raises for their staff. As part of the rollout, the state will establish a $13 million loan fund to construct and expand facilities, launch a recruitment campaign for home-based providers and incentivize programs to pay staff a minimum of $18 an hour.
The state hopes the initiative will lead to the creation of 55 new child care centers and 1,120 home-based child care options.
Still, response to the initiative so far has been mixed. Republican state Rep. Rebecca Dow told the Albuquerque Journal that she believes child care vouchers should be reserved for children most at risk for child abuse and neglect. Since the state’s child care assistance program expanded eligibility over the past five years, fewer low-income families have participated in the program, the Journal reported.
But Thora Walsh Padilla, the president of the Mescalero Apache Tribe, praised the initiative, saying during a press conference Monday that it addresses various challenges the tribe has struggled with, including raising wages for providers. There are only three child care facilities on the 463,000 acre reservation.
“It is so timely and it answers so many needs,” she said. “A building? Oh my goodness, we’ll be one of the first to apply.”
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