The New Mexico House of Representatives passed a bill late Tuesday creating a universal child care program expected to serve around 60,000 children, moving the state closer to being the first in the US to offer free child care statewide.
Senate Bill 241, also known as the Childcare Assistance Program Act, passed on a 37-19 party-line vote. It previously cleared the New Mexico Senate, 25-15.
With the House making some amendments to the bill, it will return to the Senate for concurrence. Gov. Michelle Lujan Grisham said on Wednesday she is confident the bill will “reach her desk before lawmakers adjourn at noon Thursday.”
What is SB 241?
SB 241 seeks to establish a universal child care program requiring copays only for higher-income families, with an exception for high inflation, unexpected enrollment growth, or declining oil revenues.
The bill authorizes the state to tap up to $700 million over five years from the $11 billion Early Childhood Education and Care Trust Fund to fund the program. It also sets wage requirements for participating child care providers and mandates referrals to support services for children at risk of developmental delays or disabilities.
Supporters say the bill could bring long-term stability to families and providers.
“It creates predictability for families, providers, and the state, enabling long-term planning, enhanced child care quality, and improving the development of participating children,” said Rep. Doreen Gallegos (D-Las Cruces), who sponsored the bill in the House.
The lawmaker shared on her Facebook page a post by NM House Democrats announcing the bill’s passage.
Funding concerns
Republican lawmakers questioned whether the trust fund can support the program in the long term.
“My concerns with this really are the amount and the sustainability of the fund,” said Rep. Brian Baca, a Republican from Los Lunas.
In a Source NM report, the Republican lawmaker raised the issue, saying, “if we are going to be able to sustain this.”
The approved measure advances Lujan Grisham’s promise last year to make New Mexico the first state to offer free universal child care. Funding sustainability, however, has been a key issue throughout the 2026 legislative session.
The bill will head to the governor’s desk if the Senate signs off on the amendments made by the House.