New Mexico Becomes First U.S. State to Guarantee Universal Childcare — Free Care for All Families Starting Nov. 1

New Mexico Guarantees Universal Childcare

When our daughter was born, we were fortunate that a close family friend and a devoted aunt took turns caring for her after my wife returned to teaching. Leaving a baby to resume work is difficult, but it felt more manageable knowing she was in trusted hands. I don’t recall what we paid them, but it certainly wasn’t enough — a reminder of how costly childcare can be for many families juggling mortgages or rent.

Policy background

Recognizing that burden, Gov. Michelle Lujan Grisham made affordable childcare a central plank of her 2018 campaign. After taking office, she helped create the Early Childhood Education and Care (ECEC) Department. In 2022, New Mexico voters approved a constitutional amendment directing a portion of the state’s Land Grant Permanent Fund — a century-old endowment largely supported by taxes on oil and gas production — toward early childhood and public school education.

What’s new

Building on that change, the ECEC expanded services and, effective Nov. 1, New Mexico became the first state in the nation to guarantee universal childcare. Under the program, families across the state can receive free infant and toddler care or be reimbursed for childcare costs. The benefit is available to all households regardless of income, with no co-pays.

Funding, savings and workforce supports

The program uses dollars from the Land Grant Permanent Fund and establishes a new $13 million facilities fund to build new centers and expand or renovate existing childcare sites. The expansion also includes incentives for early childhood providers to raise wages — including a commitment to pay entry-level staff at least $18 per hour — in hopes of recruiting more caregivers amid a statewide worker shortage.

Officials estimate the initiative will save a typical New Mexico family more than $12,000 per child each year. In addition to the permanent fund allocation, the governor plans to request another $120 million from the legislature to help sustain the rollout.

Gov. Michelle Lujan Grisham: “Childcare is essential to family stability, workforce participation, and New Mexico’s future prosperity. By investing in universal childcare, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive.”

Reception and debate

Supporters praise the policy for easing family budgets, boosting workforce participation and improving early learning access. Critics argue that universal eligibility means higher-income households also receive free care; opponents have derisively called the program “nannies for millionaires.” Proponents counter that broad coverage simplifies administration and can increase labor-force stability and child outcomes across the board.

While a number of states have expanded early childhood programs in recent years, New Mexico is the first to enshrine a universal guarantee. State leaders hope the program will serve as a model for others considering similar investments.

On a lighter note, my wife worked at a daycare center while in college and jokingly called herself a sommelier because she became an expert on whines.

Author: Reg Wydeven, partner at McCarty Law LLP (Appleton). Contact: pcbusiness@postcrescent.com.

This article originally appeared in the Appleton Post-Crescent: "New Mexico is first state to guarantee universal childcare."