New Mexico Pioneers Free Child Care for All Families
Starting November 1, 2025, New Mexico will become the first state in the United States to offer free child care to nearly all families, regardless of income. This groundbreaking policy aims to alleviate financial burdens on parents, boost the local economy, and improve children's opportunities. The program covers children from birth to age 5.
Addressing the National Child Care Crisis
The cost of child care has become a significant struggle for families across the United States. A 2023 report by Theirworld found that nearly 70% of parents are struggling to afford child care. Over a quarter (27%) have had to quit jobs or drop out of studies to avoid these costs. New Mexico's initiative offers a potential solution to this national crisis, providing relief and opportunity for working parents.
How New Mexico's Free Child Care Program Works
Yvette Sanchez Fuentes, SVP at Start Early, explains that families can enroll their children in licensed centers, family child care homes, and preschool classrooms without tuition bills. The state reimburses providers directly. Jessica Chang, CEO of Upwards, adds that the system operates through a provider-payment model, with the Early Childhood Education and Care Department directing funds to providers. Families apply through the state portal and indicate their preferred facility.
Funding comes from a voter-approved constitutional amendment that directs a portion of New Mexico’s Land Grant Permanent Fund toward early childhood education. This ensures a stable and renewable resource, allowing the state to pay providers fairly and keep care free for families. Nannies, babysitters, and Family, Friends & Neighbors (FFN) are not included in the program.
Financial Impact on Families and the Economy
Universal free child care could save New Mexico families thousands of dollars each year, potentially exceeding $12,000 per child. According to Chang, the average cost of infant care in New Mexico is over $14,000 annually. Reliable child care enables parents, especially mothers, to remain in or join the workforce, benefitting employers through improved retention and hiring.
Upwards operates similar child care subsidy programs in Los Angeles, California, and Park City, Utah, demonstrating a 200% return on investment for local economies. Research shows inadequate child care results in an annual cost of $122 billion in lost earnings, productivity, and revenue.
Will Other States Follow New Mexico's Lead?
Many communities are already expanding support for child care, recognizing the social and economic benefits. Park City and Summit County’s Needs-Based Childcare Subsidy program, launched in 2024, and Tri-Share public-private programs are examples of promising models. However, expanding access requires addressing workforce shortages and provider closures, issues exacerbated by the COVID-19 pandemic. New Mexico estimates needing an additional 5,000 early childhood professionals.
Chang notes that many communities are already expanding support for child care, recognizing the social and economic benefits of those investments. Fuentes adds that New Mexico has plans to address barriers to accessing child care through loans for building and renovating facilities and raising wages for workers.
Governor's Vision and the Future of Child Care in New Mexico
New Mexico Governor Michelle Lujan Grisham stated, “Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity. 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 program expands upon previous efforts, removing income limits and eligibility hurdles previously capped at 400% of the federal poverty level. This groundbreaking initiative reflects a commitment to families and future generations.
