As of Nov. 1, parents of children under 13 in New Mexico no longer have to worry about child care costs.
The state has become the first in the nation to provide no-cost universal child care to families regardless of income — an unprecedented move estimated to save families an average of $12,000 per child each year.
And the initiative could be a test case for what’s possible in a country where child care has become a barrier to financial stability, particularly for Black and working-class families.
A National Problem, A State-Level Solution
More than two-thirds of children in the United States live in households where both parents/guardians work outside the home. Yet child care costs are rising faster than housing or college tuition.
A 2023 survey found that roughly 79% of families seeking childcare reported either being unable to find adequate child care or finding it unaffordable. And most families who said this added that the problem prevented them from finding or keeping a job.
For roughly three to four million Black families with children — well over half of all Black families raising kids — the costs are unsustainable. Many spend the largest percentage of their monthly income on child care for 3- and 4-year-olds. They’re also more likely to be unable to find childcare at all.
Without affordable child care, parents — especially mothers — are forced out of the workforce. That affects the nation’s economic productivity, but that lost income also means families have less money for healthy food and preventive doctor’s visits.
From One of the Poorest States to a Policy Leader
New Mexico is one of a handful of states that consistently rank among the lowest in childhood well-being. But it now joins European countries like Norway and Belgium that offer free universal childcare for children under 3. Bulgaria offers free early childhood education to all children until they enter elementary school.
The shift began in 2019 when the state made free childcare available to families with incomes at or below 400% of the federal poverty level — approximately $62,000 for a one-person household and roughly $128,000 for a family of four. This year, New Mexico removed all income caps and eliminated family copayments.
Funds go directly to child care providers and the state is making efforts to expand access by creating an additional 5,000 child care providers and 14,000 more child care slots.
It’s also launching a $12.7 million low-interest loan fund for providers planning to construct or expand child care facilities, as well as a new incentive system that rewards programs paying staff at least $18 an hour and offering full-day care.
A Model for the Nation
Several states have provided funds to address these gaps in child care and early childhood education, and most others are considering legislation and other means to expand child care access. But right now, all eyes are on New Mexico.
“Childcare is essential to family stability, workforce participation, and New Mexico’s future prosperity,” Gov. Michelle Lujan Grisham said. “By investing in universal childcare, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive.”
