New Mexico adds 18,000 families to universal childcare program

New Mexico officials announced this week that more than 50,000 children across the state receive free childcare under the universal program. Of those, 18,000 families joined the initiative during the past year, the first full year of universal access.

The state remains the only jurisdiction in the nation offering free care to all families regardless of income. The Early Childhood Education and Care Department noted that the majority of participants are infants and toddlers. Officials stated that 75% of the 18,000 families who enrolled after the expansion already qualified for financial assistance before the change.

Kendal Chavez, a leader with the department, described the initiative as a long-term strategy for the state. “We know the return on investment is going to pay off, and that it’s going to take a few years for things to settle,” Chavez said. The department reported that 270 new providers opened in the last 12 months, creating 7,000 new childcare slots.

Despite the growth, supply still lags behind demand. Leaders estimate that 12,000 slots are needed to meet current needs, meaning the state is currently short by approximately 6,000. Chavez said the department is prioritizing infrastructure for infants and toddlers in areas with the highest demand. “We’re laser focused on building supply,” Chavez said. The department is using capital outlay funds and a revolving loan fund to expand capacity.

For the next fiscal year, the department is requesting a budget of $750 million. This figure is $157 million higher than the current budget. Chavez attributed the increased costs to rising participation and the higher expense of care for younger children. “We have been pretty close to our original projections,” Chavez said.

State law requires families with higher incomes to contribute to the cost. Families earning more than $198,000 annually will face copays, a policy that affects fewer than 10% of participating households. These families will receive 90 days' notice before payments begin. Chavez acknowledged the difficulty of introducing fees while new state funds enter the program. “There’s a little bit of heartburn around charging families for copays when the state has, you know, lots of new money coming in through the door,” Chavez said.

As a new administration prepares to take office, the department is managing ongoing operational adjustments. Chavez noted that the rollout was never expected to be flawless. “We were clear in the beginning that we weren’t going to flip the switch and it was going to be perfect on day one,” Chavez said.