Almost a year after New Mexico launched its no-cost universal child care program, residents continue to debate its implementation. In a recent social media post of Governor Michelle Lujan Grisham, discussions emerged about the initiative’s legitimacy. Some citizens questioned whether child care in the state can truly be “free.”
With the new school year, Lujan Grisham assured parents that they have the support they need to help their children learn, grow, and thrive.
The governor posted:
“For the first time, every New Mexico child up to age 13 is eligible for no-cost child care, including the before- and after-school care families rely on. That can save families an average of $13,000 per child, per year.
This is about more than saving money. It’s about giving parents the freedom to work if they choose, giving kids the support they deserve and strengthening our workforce and economy. New Mexico is showing the country what’s possible when we invest in families.”
While some citizens expressed gratitude for the state’s intervention, others expressed doubts about this direction. They argued that the program does not benefit every child and that not every family receives free child care support. Some also claim that the state still enforces income restrictions, limiting the number of beneficiaries. Others said personal income taxes fund the program.
Our team conducted research to verify the facts and debunk misinformation about New Mexico’s no-cost universal child care program.
QUESTION #1: Has the no-cost universal child care program been implemented for many years?
TRUE: New Mexico launched the no-cost universal child care program on November 1, 2025. Lujan Grisham signed universal child care into law on March 10, 2026.
FALSE: The no-cost universal child care program has been running for years.
QUESTION #2: Did New Mexico follow other states in implementing the no-cost universal child care program?
TRUE: New Mexico is the first state in the nation to guarantee no-cost child care. The program sets young children up for success and helps make life more affordable for families.
FALSE: Other states have started no-cost universal child care programs.
QUESTION #3: Is universal child care free?
TRUE: Universal child care means every family in New Mexico will have access to free, licensed childcare. This includes care for infants and toddlers, preschool, and before- or after-school programs.
The state pays providers directly rather than requiring families to handle fees, creating a simpler and more predictable system.
FALSE: New Mexico’s universal child care requires families to pay for services.
QUESTION #4: Are there income restrictions for the no-cost universal child care program?
TRUE: Families at any income level can apply. The initiative makes child care available to all New Mexicans, regardless of income. It removes income eligibility requirements from the state’s child care assistance program and continues to waive family copayments.
Universal child care could save families an average of $12,000 per child each year. The state will need to license and register about 5,000 more providers to meet the demand for child care. Recruitment efforts are already underway.
FALSE: High-income families are not eligible for the no-cost universal child care program.
QUESTION #5: Are 15-year-olds accepted for the universal child care program?
TRUE: New Mexico’s universal child care program covers children up to age 13. Families with children under age 13 can access no-cost child care if their parents work, attend school, or search for jobs. The program covers licensed or registered child care. The constitutional amendment funds the program, and it won’t raise taxes.
FALSE: Families with children up to 15 years of age qualify for the universal child care program.
QUESTION #6: Does New Mexico use personal income taxes to fund the no-cost universal child care program?
TRUE: The Early Childhood Trust Fund, Land Grant Permanent Fund, and surplus oil and gas revenue keep the program running.
New Mexico maintains substantial permanent funds capitalized by taxes and royalties on oil and gas production. Permanent funds are endowments that invest in financial assets. They pay out investment earnings without drawing down the principal. As a result, the fund balances will grow over time even without continued inflows.The funds will continue to grow as long as distributions remain below inflows and capital gains.
In March, Lujan Grisham signed Senate Bill 241, the Universal Child Care bill, into law. The measure establishes the statutory foundation for universal child care in the state. It allows the legislature to appropriate up to $700 million from the Early Childhood Education and Care Fund between 2026 and 2031, provided the fund remains above $10 billion.
FALSE: Residents’ income taxes are used to fund the no-cost universal child care program.
QUESTION #7: Did New Mexico allocate additional funding for child care providers?
TRUE: New Mexico has currently set aside $60 million for increased wages for the state’s child care workforce.
The Lujan Grisham administration and the New Mexico Legislature have invested in improving wages and benefits for child care professionals. These investments led to the nation’s steepest increase in child care wages and a 64% increase in the number of child care professionals.
FALSE: Child care professionals will not receive higher wages and additional benefits under the no-cost universal child care program.
QUESTION #8: How will child care providers receive reimbursement?
TRUE: The state will reimburse child care providers directly. Those that pay staff at least $18 an hour and remain open full days will qualify for higher reimbursement rates. The state also offers grants and low-interest loans to help providers expand facilities, especially in areas with limited childcare.
FALSE: Child care providers will need to negotiate with the state before receiving direct reimbursement.
Families no longer have to prove financial hardship or meet complex income guidelines. However, they still must meet basic requirements to qualify for universal child care. They must:
- live in New Mexico;
- have children who reside in the state, regardless of their citizenship or immigration status (state funds cover children who do not qualify federally);
- use a licensed or registered child care program; and
- provide proof of residency, identification, and basic documentation for their children.
Under the new rules, families can choose their providers and continue using providers they already know and trust. The universal child care program includes:
- child care centers;
- home-based child care providers;
- before- and after-school programs; and
- summer programs.
