SANTA FE, New Mexico families enrolled in the state's universal child care program could face monthly payments ranging from $15 to $148.50 under rules proposed by outgoing Gov. Michelle Lujan Grisham's administration. The proposal responds to an inflation-related requirement in the law establishing the program, with payments set to begin no earlier than 2027.
The Early Childhood Education and Care Department has not chosen an implementation date. Spokeswoman Julia Sclafani said affected families would receive at least 90 days' notice, putting the start after Gov.-elect Deb Haaland takes office. About 10% of enrolled families would be subject to the charges, according to Sclafani.
The law limits co-pays to working families earning more than 600% of the federal poverty level, currently $198,000 annually for a household of four. Families with one child enrolled in a child care center would pay between $15 and $99 a month, depending on income. Charges would be higher for families with multiple enrolled children, with a monthly ceiling of $148.50. A public hearing on the rules is scheduled for Dec. 3 in Santa Fe.
Haaland, who won the governor's race last week, has pledged to preserve universal child care and described it as an “economic driver.” At a news conference following her victory, she said her administration would explore ways to keep families from having to pay co-pays. Whether she can delay the charges remains uncertain because the legislation's inflation provision has triggered them. Once introduced, the payments would continue through June 2027, the end of the state's current budget year.
New Mexico launched the nation's first universal child care initiative last year. Department figures show that more than 50,000 children now receive state-paid care, compared with about 33,000 before the launch. The expansion has drawn national attention, including a reference on “Saturday Night Live,” while also facing logistical difficulties and questions about its cost and long-term financial sustainability.
The Governor's Office says Lujan Grisham resisted co-pays during this year's 30-day legislative session, but lawmakers included them to obtain passage of the bill, which received bipartisan support. Her administration has attributed high inflation to President Donald Trump's foreign policy decisions. Sclafani said the governor also opposed linking child care bills to national economic fluctuations, arguing that inflation already puts pressure on household finances.
The legislation permits withdrawals of up to $700 million from the state's early childhood trust fund over five years, beyond its regular annual distributions. The fund is projected to be worth roughly $12 billion at year's end. Rep. Doreen Gallegos, D-Las Cruces, raised concerns about its future solvency after lawmakers redirected some incoming revenue toward new Medicaid and behavioral health trust funds.
Gallegos, a sponsor of the 2020 legislation creating the early childhood fund, said she wants the child care program to remain available for future generations. In a Monday interview, she said she hoped to discuss funding with Haaland's transition leaders and would pursue changes to the universal child care law during the 60-day legislative session beginning in January.
Sclafani said the proposed payments would bring in little revenue compared with the program's overall budget while increasing paperwork and administrative demands for providers and state administrators. She maintained that universal child care is sustainable and said the outgoing administration would continue defending it.
