New Mexico Governor Proposes Universal Free Childcare for Families of All Incomes
Governor Michelle Lujan Grisham aims to expand access using oil and gas revenues to cover more children and reduce financial strain on parents.
Most Americans view the cost of childcare as a critical issue, though there is debate over the government’s role in covering these costs. Many states have limited capacity to fund such programs, especially after cuts or freezes in federal education funding in previous administrations.
Governor Lujan Grisham emphasized that free childcare will transform families’ lives by freeing up funds for groceries, utilities, and other essentials. She hopes the initiative will spark national discussion beyond New Mexico.
“I hope that as elections unfold across the country, our congressional and gubernatorial candidates will speak about these investments in childcare,” the Democratic governor stated.
Lawmakers, including New York City mayoral candidate Zehran Mamdani, support the concept of free childcare, often proposing tax increases to fund such programs.
Other states have made similar strides. Oregon, the most populous state, expanded its comprehensive pre-K program this year despite funding challenges, while Illinois established a dedicated state agency for early childhood education last year.
Funding the Plan
In 2020, New Mexico began channeling surplus revenues from oil and gas production into a dedicated early childhood education fund. The balance now approaches $10 billion, with approximately $500 million in annual investment returns allocated to early childhood programs.
The expansion of childcare access will rely on these savings, some federal funding, and an additional $120 million annually requested from state legislators. Michael Coleman, spokesperson for Governor Lujan Grisham, noted this represents a 26% increase from current spending of $463 million.
The Democratic-led legislature has historically rejected entitlement programs and repeatedly opposed private-sector paid family leave requirements. Republican lawmakers express concern that the governor’s plan could inadvertently benefit wealthy families.
In 2022, New Mexico expanded eligibility and eliminated co-payments for families earning up to four times the federal poverty level—approximately $128,000 for a family of four this year.
Paul Gessing, president of the Rio Grande Foundation, criticized extending financial aid to high-income parents, calling it “confusing” given current support already reaches families earning up to 400% of the poverty line.
By removing income caps, state officials aim to improve family financial stability, encourage economic participation, and better prepare young children for school.
Anticipated Challenges
Meeting rising demand will require more than 50 new licensed childcare centers, 120 licensed homes accommodating 12 children each, and up to 1,000 new registered homes serving four children each.
New Mexico already faces a shortage of childcare slots. Expanding assistance to higher-income families has slightly reduced participation among lower-income households, according to a legislative budget review.
Evidence does not yet show that New Mexico children are better prepared for school than children in other states. A 2025 Annie E. Casey Foundation survey ranked New Mexico’s public education system last among all 50 states.
Governor Grisham’s plan includes incentives to improve quality, raising the base hourly wage for childcare workers to at least $18 where excellence is demonstrated.
Comprehensive childcare coverage will span the early years of infants and toddlers, both before and after children become eligible for public pre-K, with average annual costs of approximately $12,000 per child.
Eligibility also extends to grandparents caring for grandchildren, often due to parental struggles with addiction, without requiring employment.
