New Mexico First in the U.S. to Offer Universal Free Child Care
Governor Michelle Lujan Grisham launches groundbreaking child care plan to save families $12,000 annually and expand early childhood services.
Starting November 1, 2025, the state of New Mexico will become the first in the United States to guarantee universal free child care for all families, regardless of income level.
Governor Michelle Lujan Grisham, in partnership with the state’s Early Childhood Education and Care Department, announced the initiative, which is expected to save families an average of $12,000 per child per year. The plan also includes expanding the number of child care centers and raising wages for workers to meet growing demand.
From Income Limits to Universal Access
Previously, free child care was available only to families earning up to 400% of the federal poverty level—roughly $124,000 annually for a family of four. Under the new policy, the income cap has been eliminated entirely, and families will no longer be required to make co-payments.
In a press statement, Governor Grisham said:“Child care is fundamental to family stability, workforce participation, and the future prosperity of New Mexico. This investment reduces financial burdens on families, strengthens the economy, and ensures equal opportunities for every child.”
Implementation and Expansion
To implement this expansion, the department will request additional funding in the next legislative session to open new child care centers and hire an estimated 5,000 additional early childhood workers. Providers who pay their employees at least $18 per hour will also qualify for higher state reimbursement rates.
National Context
While New Mexico is the first state to offer universal free child care, others are beginning to explore partial models. For example, Connecticut plans to provide free child care to families earning under $100,000 by 2027.
The policy comes at a time when costs are skyrocketing. A LendingTree study estimates that the average cost of child care in the U.S. in 2025 is $17,836 annually, making child care one of the largest expenses for families.
Michelle Kang, President of the National Association for the Education of Young Children (NAEYC), praised New Mexico’s leadership:“By investing in teachers, families, and children, New Mexico shows that it’s possible to build a comprehensive, sustainable, and accessible early childhood system for all.”
With this bold move, New Mexico has positioned itself as a national leader in early childhood policy, potentially setting the stage for other states to follow.
