New Mexico is set to become the first state in the U.S. to offer free universal child care to all residents, regardless of income, starting November 1, 2025. This landmark initiative, announced by Governor Michelle Lujan Grisham, aims to provide significant financial relief to families, with an estimated average annual saving of $12,000 per child.
The program builds upon the groundwork laid in 2019 with the creation of the Early Childhood Education and Care Department. A substantial $10 billion fund, bolstered by oil and gas tax revenues, provides a stable financial foundation for this endeavor. This commitment was further solidified by a 2022 constitutional amendment ensuring consistent funding for universal child care services.
To expand the availability of child care, New Mexico has introduced a $12.7 million low-interest loan fund to support the construction and renovation of child care facilities. The state is prioritizing an increase in care for infants and toddlers, with a focus on supporting low-income families and children with special needs. Additionally, incentives are being implemented for programs that offer staff a minimum wage of $18 per hour, addressing the estimated need for approximately 5,000 additional early childhood professionals.
Experts, such as Neal Halfon, a professor at UCLA, have lauded New Mexico's data-driven and community-centric approach as a "model for the nation." The initiative is anticipated to not only alleviate financial pressures on families but also stimulate economic growth by improving workforce engagement and encouraging families to remain in the state. While some have suggested prioritizing vouchers for at-risk children, tribal leaders have commended the program for its potential to address critical needs, including increasing provider wages.