New Mexico Opens Doors with Free Child Care in Attempt to Improve Economy

November 3, 2025 – New Mexico has become the first state in the nation to provide free child care for all residents, a sweeping initiative that state leaders say will bolster the economy, expand workforce participation, and address long-standing challenges in education and child welfare.

Governor Michelle Lujan Grisham announced the statewide program on Monday, calling it “a landmark investment in New Mexico’s families and future.” The policy builds on the state’s 2022 constitutional amendment that dedicated a share of the state’s oil and gas revenue to early childhood education.

The new system eliminates income caps for subsidized child care, meaning every family — regardless of earnings — can now access free services for children under five. The state will reimburse licensed centers and home-based providers directly.

Supporters say the plan could help thousands of parents, particularly mothers, rejoin the workforce. “When families no longer have to choose between a paycheck and child care, the entire economy benefits,” said Elizabeth Groginsky, New Mexico’s Secretary for Early Childhood Education and Care.

New Mexico ranks among the lowest states in child well-being, literacy, and poverty rates, according to the Annie E. Casey Foundation. Lawmakers hope free child care will help reverse those trends by improving early learning outcomes and reducing family financial strain.

Critics, however, warn that funding stability may depend too heavily on volatile oil revenues. Still, advocates call the initiative a national model. “New Mexico is proving what’s possible when early education is treated as essential infrastructure,” said U.S. Education Secretary Miguel Cardona.