New Mexico's Free Childcare Initiative

New Mexico implemented a innovative program in 2022 making childcare free for most families in the state.

Prior to 2022, only families below 200% of poverty (i.e., making $55,000 for a family of four) could receive childcare assistance, and even then, they had to make co-payments. Many moderate-income families just above the cutoff faced childcare costs averaging $8,000–$10,000 per year. By 2019, less than a third of eligible children were in high-quality care, and the state’s labor force participation, particularly for women, lagged the national average.

In April 2022, the New Mexico state government expanded the Child Care Assistance Program, raising the income eligibility to 400% of the federal poverty level; co-pays were also waived. In essence, childcare became free or very close to free for most families in New Mexico. The policy was funded through a combination of federal relief dollars and a new state Early Childhood Trust Fund. Simultaneously, the state dedicated $10 million in grants to expand childcare supply in underserved areas, aiming to add capacity for up to 800 more children. The state’s Early Childhood Education & Care Department reported an influx of applications from moderate-income families who had never before qualified. By late 2022, New Mexico had built what officials call a “universal, high-quality and family-centered early childhood system,” becoming a national model.

~14-18 months