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New Mexico set to become the first state with universal child care

Learning Policy Institute

Lizbeth Martinez runs a daycare out of her home in Albuquerque.

鈥淟et's take turns on it. Dominic, thank you,鈥 she told one of her young charges recently. 鈥淲hen she's done, then you can play with it.鈥

She has 12 kids in her care and she鈥檚 aware of the plans announced by Gov. Michelle Lujan Grisham to make childcare available regardless of income. But she鈥檚 not sure about the details.

鈥淚 understand everybody's gonna have free childcare. I don't know how it's going to impact me,鈥 said Martinez.

But she鈥檚 pretty sure this will be a good thing for families in New Mexico. Martinez said it doesn鈥檛 take much to make childcare unaffordable.

鈥淏eing in the business for so long, I do see a lot of struggling parents, and sometimes $1 or two kicks them off the program,鈥 she said.

The for people who make less than four times the federal poverty level, which is just over $145,000 a year for a family of three. But this new plan would remove income restrictions 鈥 with a few caveats.

Participants must . Others will be exempt from those requirements (Grandparents raising grandchildren, families caring for babies born substance-exposed, families experiencing housing instability, and families involved with the Children, Youth and Families Department.)

Jesse Gremore, a parent in Santa Fe who works in public health, had to find a new job after budget cuts, but said this announcement convinced her family to stay in New Mexico.

鈥淲e decided that we were not going to move to California to be closer to family to help with childcare. So, we have a lot of faith that this is gonna go through,鈥 said Gremore.

New Mexico expects to spend just under $600 million in the first full year of the program.

The state has spent years building early childhood funding 鈥 In 2020 it created a using revenue from its booming oil and gas industry. Then, in 2022 voters approved drawing more from the Land Grant Permanent Fund.

Jacob Vigil with New Mexico Voices for Children said New Mexico has one of the , and calls free universal child care a game changer.

鈥淚magine what that means for families who are just trying to make ends meet, the cost of food and other necessities has just increased so much,鈥 said Vigil.

The governor estimates this program will save families up to $12,000 a year.

But Republicans here said a universal system isn鈥檛 the right move. State Party Chair Amy Barela said it鈥檚 unsustainable as it leads to greater government dependency, and overwhelming demand will limit family choice.

鈥淏uild the services for those who need the services. It is not a universal requirement,鈥 said Barela.

Early Childhood Education Secretary Elizabeth Groginsky said the planned expansion includes 2,000 slots reserved for families making 200% or less of the federal poverty level. These slots are made available as incentives for providers serving vulnerable families.

鈥淲e are cognizant of the need to make sure that our lowest income families are getting access to childcare as we build the supply and as we work towards this universal system,鈥 said Groginsky.

Statewide, the Early Childhood Education and Care Department projects there will be a total of 12,000 new child care spaces statewide through recruiting new providers, expanding facilities, and capital investment.

But finding enough childcare workers is a big challenge. Officials estimate they鈥檒l need 5,000 more to handle the demand. Providers who seek higher reimbursement rates from the state must offer an $18-per-hour wage for entry-level staff and operate 10 hours per day, five days a week.

That could be a strain for some. Barbara Tedrow owns several early childhood centers in Farmington.

鈥淚 have 125 employees and to say that I am going to increase $6 an hour for 125 employees and pay those payroll taxes, that is a huge burden,鈥 said Tedrow.

Providers can bill the state for the higher wages, but only after employees have already been paid.

Working parents like Jesse Gremore are hopeful the state will be able to deliver on its promise of free childcare for any family that needs it.

鈥淲e鈥檙e excited. We kinda took a peek at the application and sort of want to get our ducks in a row,鈥 Gremore said.

Families can apply anytime for child care assistance, but the begin on Nov. 1.

Support for this coverage comes from the W.K. Kellogg Foundation.

Updated: October 21, 2025 at 5:33 PM MDT
This story has been updated to reflect that participants in the universal child care program must be employed, searching for a job, or in school, except for certain exemptions, and adds state projections for total new child care slots. It also clarifies when an entry-level wage of $18 is required.
Taylor is a reporter with our Poverty and Public Health project. She is a lover of books and a proud dog mom. She's been published in Albuquerque The Magazine several times and enjoys writing about politics and travel.
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