All families in New Mexico will get free childcare in unprecedented policy move
“It’s not an expenditure, it’s an investment."

As of November, all childcare will be no-cost for families in New Mexico.
In the modern era, one of the biggest financial considerations families have to navigate is the cost of childcare. Many families can't make it on one income, but those who work in lower-wage jobs often find that childcare costs nearly as much as they make, putting them between a pricey rock and an expensive hard place. Single parents are in even more stuck, and with the cost of other basic living expenses putting a squeeze on people's pocketbooks, most have no choice but to work full-time.
That's why New Mexico becoming the first U.S. state to provide universal, no-cost childcare to all families across the state, regardless of income, is a big deal. As of Nov. 1, 2025, that financial burden is lifted for all families statewide.
New Mexico will cover childcare costs for all families across the state, regardless of income. www.facebook.com
“The blueprint for early childhood education in America is happening right here in New Mexico,” Lujan Grisham said at a news conference at the state Capitol. That blueprint includes eliminating the current income limit (which is 400% of the federal poverty level) to qualify for childcare assistance, upping the pay for childcare providers to a minimum of $18 an hour, and a plan to build 55 more licensed child care centers and register 1,000 new in-home daycares. The state estimates an additional 5,000 early childhood professionals are needed to fully achieve a universal system, which means more job opportunity for New Mexico residents as well.
According to the Albuquerque Journal, the Early Childhood Education and Care Department (ECECD) currently spends about $463 million per year (about half of that department's budget) on child care assistance for families. Gov. Michelle Lujan Grisham will reportedly seek an additional $120 million during the 30-day session that begins in January to fully implement the new plan, but officials
“It’s not an expenditure, it’s an investment," said Lt. Gov. Howie Morales. That appears to be how many countries around the world view it as well, since the United States sits as an outlier among developed nations when it comes to money spent subsidizing childcare.
“Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity,” said Lujan Grisham. “By investing in universal child care, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive.”
Pew Research found that a majority of Americans feel that providing free child care would encourage more people to have kids, which matters since birth rates have dropped in the U.S. and fertility rates worldwide are in a sharp decline. Economists and other experts have expressed concern over declining populations being unable to replace themselves and the social and economic ramifications of that potentiality. While the number of children someone has is a personal family decision, initiatives like universal childcare make it easier for families to have the number of children they desire.
“Early childhood care and education is a public good,” said ECECD Sec. Elizabeth Groginsky
. “By providing universal access and improving pay for our early childhood workforce, we are easing financial pressure on families, strengthening our economy, and helping every child learn in safe, nurturing environments. This is the kind of investment that builds equity today and prosperity for the future.”
Families in New Mexico won't have to worry about affording childcare. Photo credit: Canva
What many Americans may not know is that the U.S. actually did have universal childcare once before. During WWII, the U.S. government subsidized childcare so mothers could work and help out with the war effort. An estimated 550,000 to 600,000 children were cared for at daycare facilities at no cost for families, but despite letters and petitions asking to keep the program going, the government ended it in 1946.
Will other states follow in New Mexico's footsteps? We'll see. New Mexico appears to be a good place to start investing more in early childhood and childcare, as the state ranks close to the bottom in child well-being, health, and education. While government can't fix all societal problems, it can strive to ensure that families have the resources they need to stay above water and afford the basic necessities.