New Mexico becomes first state with free universal child care—what families can expect on Nov. 1

Starting November 1, 2025, child care bills in New Mexico will drop to $0 for every family in the state. Whether you’re a single parent finishing school, a mom returning to work after maternity leave, or a family juggling multiple kids in care, eligibility will no longer depend on income. Family copays are waived, replaced with the promise of predictable, universal access.

New Mexico’s Early Childhood Education and Care Department estimated families will save $12,000 on average per child each year.

“Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity,” Governor Michelle Lujan Grisham said in a press release. “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.”

At a glance: What parents need to know

• Who qualifies: Every family in New Mexico, regardless of income (via Child Care Assistance). 
• When it starts: Nov 1, 2025.
• What families save: About $12,000 per child each year (state estimate).
• What’s changing: Family copays are waived; income limits removed. 
• Supply boost: $12.7M loan fund; home-provider recruitment. 
• How to apply: Families can apply through nmececd.org (Apply for Services); contact details are provided there.

Why this matters for families

Child care is often a family’s second-largest expense after housing. For some, it costs more than college tuition. Eliminating that bill gives parents freedom to make choices based on what works for their family, not what they can afford.

Until now, free child care was available to most—but not all—families, with eligibility capped at four times the federal poverty level (about $124,000 for a family of four). The new policy removes that cap, guaranteeing access for every family in the state.

Parents who already received child care support through New Mexico’s earlier program say it changed everything. As one New Mexico mom told The Guardian, the support allowed her “to finish college, enroll in nursing school, and buy groceries for my family.”

Starting this fall, every family in the state can share that sense of stability.

Related: Summer break is costing parents more than just time—here’s how debt is becoming the new normal for child care

How families are reacting

The announcement is sparking pride and relief across New Mexico. On Governor Michelle Lujan Grisham’s Facebook post celebrating the milestone, parents and community members shared what this shift means to them:

• “New Mexico should be incredibly proud of this!!! May they be the first of all 50!” — Jake Tyler
• “This is so life changing for us!! Couldn’t be more proud to be a New Mexican.” — Jasmine Garcia
• “Thank you Michelle we are so lucky to have you as our governor!!!!!!” — Peggy Thompson
• “This is a tremendous accomplishment Governor. Thank you so much for your diligence and for fulfilling your promise to New Mexico’s children and families. I am delighted that we have the bragging rights for being 1st!!” — Patricia Evans

Together, these reactions reflect what’s at stake for parents: more stability, more choice, and more hope for their children’s future.

Related: Child care costs over 50% of income in some states—and moms are done staying quiet

Why providers are paying attention

Universal child care doesn’t work unless classrooms stay open. That’s why New Mexico is pairing family relief with major provider investments:

• Establishing a $12.7 million low-interest loan fund to build, expand, and renovate facilities (with an additional $20 million requested in the Fiscal Year 2027 budget).
• Launching a statewide campaign to recruit licensed and registered home providers.
• Partnering with employers and school districts to expand child care options.
• Raising wages and reimbursing providers based on the actual cost of care.
• Incentivizing programs that pay entry-level staff at least $18/hour and provide full-day care.

The state estimates an additional 5,000 early childhood professionals are needed to fully achieve a universal system.

“Early childhood care and education is a public good,” said ECECD Secretary Elizabeth Groginsky in a press release. “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.”

Why other states are watching

New Mexico is the first state in the U.S. to make child care free for all, and the way it’s paying for it is turning heads. Instead of relying on limited federal funds, the state uses:

• The Land Grant Permanent Fund, expanded by voters in 2022.
• An Early Childhood Trust Fund, seeded with oil and gas revenues.

That dedicated, long-term funding is why experts call this a “generational change” and why policymakers elsewhere are studying it closely. If outcomes show stronger child development, higher workforce participation, and greater financial stability for families, other states could follow.

“New Mexico is creating the conditions for better outcomes in health, learning, and well-being,” said Neal Halfon, professor of pediatrics, public health and public policy at UCLA. “Its approach is rooted in data, driven by communities, and becoming a model for the nation.”

The bigger picture for parents everywhere

Even if you don’t live in New Mexico, this moment matters. It signals a growing recognition that child care is essential infrastructure, as critical to the economy as roads or electricity.

For now, families in New Mexico can apply through nmececd.org. For the rest of us, the state offers a glimpse of what’s possible: a world where every parent has the freedom to work, study, or stay home by choice—not by cost.