A groundbreaking move that could reshape how America supports parents, children, and the economy.
A First for Families
For most parents, childcare isn’t optional, it’s essential. But for many American families, it’s also one of the most crushing expenses in their monthly budgets.
That’s why New Mexico’s new plan is making national headlines. Beginning November 1, 2025, the state will become the first in the nation to provide universal, no-cost childcare to all families, regardless of income level.
Gov. Michelle Lujan Grisham called it a “blueprint for early childhood education in America.”
The new policy eliminates the current income cap, raises pay for childcare providers to a minimum of $18 per hour, and funds the creation of 55 new childcare centers and 1,000 registered in-home daycares across the state.
The initiative will also create an estimated 5,000 new early childhood education jobs, boosting the local economy while expanding access to care.
“It’s not an expenditure, it’s an investment,” said Lt. Gov. Howie Morales, emphasizing that universal childcare benefits not just families, but the entire state.
Investing in the Future
The Early Childhood Education and Care Department (ECECD) already spends roughly $463 million per year on childcare assistance, half of its total budget.
Gov. Lujan Grisham plans to request an additional $120 million in the upcoming legislative session to fully fund the expansion.
“Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity,” said Lujan Grisham. “By investing in universal child care, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive.”
Elizabeth Groginsky, Secretary of the ECECD, agrees.
“Early childhood care and education is a public good,” she said. “By providing universal access and improving pay for our early childhood workforce, we are easing financial pressure on families, strengthening our economy, and helping every child learn in safe, nurturing environments.”
Economists say this kind of program is long overdue. The United States spends far less on childcare subsidies than other developed nations, leaving families to shoulder costs that can rival college tuition.
A Look Back, and Forward
What many Americans don’t realize is that the U.S. once had universal childcare, during World War II.
To support women entering the workforce while men were at war, the government funded free daycare for an estimated 550,000 to 600,000 children. Families begged for the program to continue, but it ended in 1946.
Nearly 80 years later, New Mexico is reviving that spirit with a modern, sustainable model.
The timing couldn’t be more critical. U.S. birth rates are falling, fertility rates are declining worldwide, and financial insecurity is often cited as a leading reason people delay or avoid having children.
A Pew Research Center survey found that a majority of Americans believe free childcare would encourage more people to have kids, something experts say is vital for maintaining a stable, balanced population.
The United States spends basically nothing on childcare and early education, making us a huge outlier https://t.co/ox1g9a1zxq pic.twitter.com/2cc2m3nj4z
— Bryce Covert (@brycecovert) October 6, 2021
Building Equity Through Care
New Mexico’s universal childcare policy represents more than just financial relief, it’s a statement about values.
By treating childcare as infrastructure, much like roads or schools, the state is investing in both the present and the future: families, children, and economic stability.
While critics debate the logistics, supporters see this as a model other states could follow.
“This is the kind of investment that builds equity today and prosperity for the future,” said Groginsky.
As the rest of the country watches, New Mexico has become the first to put family wellbeing at the very heart of its economic plan.
Featured Image by: ParentiPacek from Pixabay