New Mexico is first state to promise free child care to all families

New Mexico’s governor is promising universal free child care to families of all income levels.

Gov. Michelle Lujan Grisham announced her plans this week, saying she wants to leverage a financial windfall from oil and gas production to help more parents by removing the state’s income eligibility limit starting Nov. 1.

Rules for the program are being hashed out and lawmakers still have to approve funding, but New Mexico already is several steps ahead of other states when it comes to subsidizing child care.

The latest initiative expands on previous early childhood education investments by extending access to another 12,000 children and making low-interest loans available to spur construction of new child care centers as demands surge.

The concept of free child care is being embraced by lawmakers including Zohran Mamdani, the Democratic nominee for mayor of New York City, through proposed tax hikes. 

New Mexico in 2020 began diverting surplus government income linked to surging oil and gas production to a trust for early childhood education. The balance is nearing $10 billion, with about $500 million in investment earnings being funneled each year to early childhood education programs.

To meet increased demand, the Lujan Grisham administration says it will need more than 50 new licensed child care centers, 120 licensed homes that accommodate a dozen children and as many as 1,000 new registered homes that serve four children.

Child care slots already are in short supply across New Mexico. And attendance from low-income families declined as assistance expanded to higher income brackets, according to a review by the Legislature’s budget and accountability office.

There’s also little evidence that New Mexico children are better prepared for school than children in other states. The 2025 survey by the Annie E. Casey Foundation ranked New Mexico’s public education system last among 50 states.


(AP Photo Dylan Dovan)