Child care costs are one of the biggest financial burdens for families in America. Now, New Mexico has taken a major step to ease that burden. Starting November 1, the state will extend free universal child care to every parent, regardless of income. For the average New Mexican family, this means savings of about $12,000 a year.
Gov. Michelle Lujan Grisham said, “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.” Let us break down what this program really means for you and your family.
How does universal free child care in new Mexico work?
The program does not hand out money directly to parents. Instead, the state pays child care providers on your behalf. Here is how it works:
- Parents apply for assistance through the state, choosing the child care center they want.
- The state sets rates depending on the child’s age, the quality of the center, and the type of care provided.
- About 85% of providers in New Mexico are already part of the program. Centers that choose not to participate may charge higher tuition.
This means that for most families, the cost of child care will no longer be coming out of your pocket.
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How much money will families actually save?
On average, families will save $12,000 a year, but the savings can be even higher depending on your situation.
Here is what families usually pay in New Mexico:
- Infant care: around $14,244 per year
- Child care for a 4-year-old: about $9,993 per year
For many single parents, child care can eat up more than a third of their income. For married couples, it often takes more than 11%. By making care free, the state is putting thousands of dollars back into family budgets.
As Lena Bilik, program manager at the Roosevelt Institute, explained, “Child care is a cost of living issue.”
Does new Mexico have enough providers to meet the demand?
This is one of the biggest challenges. The state estimates it needs about 5,000 more early childhood workers to fully meet the demand for universal child care.
Right now, many centers already operate at capacity. To close the gap, the state is:
- Recruiting more teachers and child care professionals.
- Offering higher reimbursement rates for centers that pay staff at least $18 an hour.
- Creating a $12.7 million loan fund to expand and build new child care centers.
- Asking for an additional $20 million in the 2027 budget to strengthen the system further.
Elizabeth Groginsky, secretary of New Mexico’s Early Childhood Education and Care Department, admitted it will take time. But she also pointed out that free child care could encourage families to move to New Mexico and boost the workforce in the long run.
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Who is paying for universal child care in new Mexico?
This is a common question, and the answer is tied to the state’s energy resources.
- In 2019, New Mexico created the Early Childhood Education and Care Department.
- In 2020, the state started the Early Childhood Education and Care Fund with $320 million from oil and gas revenues.
- That fund has now grown to nearly $10 billion.
- Each year, interest from the fund helps cover child care costs.
- In 2022, voters also approved using money from the state’s Land Grant Permanent Fund to support early childhood education.
This long-term funding plan makes New Mexico the first state in the U.S. to guarantee child care for every family, no matter their income.
Are other states likely to follow new Mexico’s lead?
Parents and employers across the country are watching New Mexico closely. Several states and cities are exploring similar ideas:
- Connecticut plans to have universal preschool by 2032.
- Vermont has passed laws expanding access and raising pay for child care workers.
- Oregon’s Multnomah County is rolling out a tax-funded preschool program.
Experts believe the demand for affordable child care is only growing. During the pandemic, federal programs showed how much of a difference strong child care support can make. Some argue that a nationwide plan could be the next step.
