Child Care Costs in New Mexico Now Higher Than College Tuition, Impacting Education

The cost of child care in New Mexico has reached an alarming level, surpassing in-state college tuition and creating challenges for families and the education system.

According to a report from the Economic Policy Institute (EPI), the average cost of infant care in New Mexico is $14,000 per year—or about $1,167 per month. This is 86% higher than the average annual tuition at a four-year public university in the state, making child care unaffordable for many working families.

EPI’s findings reveal the heavy financial burden child care places on parents:

• Infant care costs approximately $14,244 per year.
• Care for a four-year-old costs around $9,993 per year.
• A minimum-wage worker in the state would need to spend 64% of their total annual income just to afford infant care for one child.
• The U.S. Department of Health and Human Services considers child care affordable if it costs 7% or less of a family’s income—meaning most families in New Mexico are paying far beyond sustainable levels.

For many families, these costs make quality early childhood education inaccessible, limiting children’s learning opportunities before they even enter kindergarten.

How Child Care Costs Increase Affect Education in NM?

The escalating cost of child care in New Mexico poses significant challenges to the state’s educational landscape. With annual infant care expenses averaging over $14,000—86% higher than in-state public college tuition—many families find quality early childhood education financially out of reach.

This financial barrier often results in children entering kindergarten without essential skills in literacy, math, and social interaction—setting them at a disadvantage from the start.

The repercussions extend into the K-12 system, where students lacking preschool experience frequently struggle academically, leading to increased demand for remedial and special education services. This places additional strain on school resources.

Furthermore, parents, particularly mothers, may reduce work hours or leave their jobs due to unaffordable child care, which could result in economic instability that negatively affects children’s educational outcomes.

State Solutions to Address the Crisis Enough?

​New Mexico has implemented several initiatives to address the escalating cost of child care, such as expanding subsidies, eliminating co-payments, increasing wages for early childhood educators, and securing long-term funding through a constitutional amendment. While these measures have significantly improved access and affordability, challenges persist, particularly in meeting the diverse needs of all families.

Notably, the expansion of child care subsidies to families earning up to 400% of the federal poverty level and the elimination of co-payments have made child care free for many low- and middle-income families. This policy shift has been instrumental in reducing financial barriers and increasing access to early learning opportunities.

However, research from the University of New Mexico’s Cradle to Career Policy Institute indicates that some families still struggle to find child care that aligns with their specific needs, such as non-traditional work hours or specialized care requirements.

Hailey Heinz, deputy director of the institute, noted, “More families than ever before are accessing child care and getting it for free, which is making a huge difference for them, but there’s more work to do to ensure that child care is available during the hours families need.”

Despite these advancements, challenges remain in fully addressing the child care cost crisis. Families working non-traditional hours, those facing transportation issues, and parents of children with special needs often encounter difficulties in accessing suitable child care options. Additionally, the sustainability of these programs requires continuous evaluation to ensure they adapt to the evolving demographic and economic conditions.​

Experts emphasize the need for ongoing public investment and policy innovation to create a child care system that is both affordable and high-quality. Strategies such as calculating the true cost of care, developing wage scales that create parity with K-12 compensation, and offering incentives to expand child care options in underserved areas are among the recommended actions for states to bolster their child care infrastructure.