What does it take to make child care free? New Mexico is finding out. The state on Saturday
became the first to offer universal, no-cost childcare, for which all families are eligible.
The program is launching under New Mexico’s Democratic Gov. Michelle Lujan Grisham. When the state announced its program—which had supported families with incomes up to 400% of the poverty line—was going universal, the governor explained why she believed child care was so crucial. “Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity,” she said in a September
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.”
Lower down in this release are some of the nuts and bolts of what this will take. Namely:
– An additional 5,000 child care providers throughout the state
– 14,000 more child care slots
– Increasing reimbursement rates for childcare providers who participate in the program
– A $12.7 million low-interest loan fund to construct and expand child care facilities
To reach those benchmarks, the state is debuting an incentive system. Child care programs that commit to paying entry-level staff at least $18 per hour and offer 10 hours of care, five days a week, will receive a higher rate. Families pay through a voucher system.
It’s a big commitment. But for New Mexico’s governor, it’s also a political win. Helping families afford care for their kids was a promise made in 2019, when New Mexico created its Early Childhood Education and Care Department.
New Mexico typically ranks either
last or close to it among states in other benchmarks for child well-being—like education. Investing in child care makes a statement that the state is committed to changing that, starting with kids’ earliest years. And though child care is one of the most broken systems in the U.S., perhaps it’s easier for a state to start from scratch and expand access to care rather than overhaul a complex, statewide public school system.
Other states and cities have started experimenting with or proposing free child care; it’s a pillar of Zohran Mamdani’s
race for mayor in New York City today. But New Mexico is the first state to go universal. If the state’s program is successful, it will reinforce what we already know: access to affordable child care is a
policy problem that requires government intervention, not for-profit business ideas—as much as well-meaning founders have tried over the years. Even states that already have stronger outcomes for child welfare will have something to learn from watching this program. And if New Mexico can pull it off, the rest of the country might take note.
Emma Hinchliffeemma.hinchliffe@fortune.comThe Most Powerful Women Daily newsletter is Fortune’
s daily briefing for and about the women leading the business world. Subscribe here. Read and share today’s online edition here.
