by Santa Fe, NM – Starting next week, New Mexico will become the first state in the United States to offer free universal child care for all families, regardless of their income. This historic move is set to alleviate the significant financial burden on families across the state, saving them on average $12,000 annually on child care costs.
Governor Michelle Lujan Grisham, the driving force behind this initiative, emphasized the importance of investing in early childhood care to support working families and economic growth. “In 41 states in America, your child care payment is more than your mortgage payment,” she told CBS News. This groundbreaking program represents a major shift in child care accessibility and affordability nationwide.
Transforming Child Care Affordability in New Mexico
The burden of child care expenses has been especially heavy for working parents like Santa Fe teachers Hannah Mierley and Nathan Herzog. They currently pay over $14,000 a year for their toddler, Atticus. Herzog remarked, “It is all of the leftover budget that we have,” while Mierley added, “It’s second to our mortgage.”
The new program eliminates these costs entirely, allowing families to redirect their finances to savings or investments in their children’s futures.
Funding and Expansion Efforts
The initiative is funded through New Mexico’s robust oil and gas revenues, underscoring how the state’s economic success is fueling improvements for families. Governor Lujan Grisham explained,
“All sectors of our economy are overperforming. You can’t stay that course unless you have a robust early childhood and child care setting.”
Beyond cost coverage, the program expands child care availability by recruiting and licensing more registered home providers, including qualified family members, to meet increasing demand.
Additional investments include a $12.7 million low-interest loan fund for construction, expansion, and renovation of child care facilities, with an extra $20 million requested for 2027 to ensure sustainable growth.
Impact on Labor Force and Families
Nationally, about 67% of women with children under 5 participate in the labor force, a number that has declined recently. The new program aims to reverse this trend by making child care more accessible and affordable, enabling more parents to return to work.
Addressing critics who label the program a political “handout,” Governor Lujan Grisham responded emphatically:
“I say it’s a Democrat that’s got twice the national average in economic output. This is about investing in mothers and fathers, being able to go back to the workforce.”
For families like Mierley and Herzog’s, the program offers newfound financial breathing room and hope for the future. “It gives us some relief,” Mierley said. Herzog added, “It’s the first time that we can really start thinking about, ‘How do I prepare for Atticus’ future?'”
Looking Ahead
As New Mexico pioneers this bold step, the nation watches closely to see if free universal child care can become a model for others to follow. The initiative promises to reshape how child care is perceived and accessed across America.
For more information, visit the full report on CBS News.
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