News Page

Main Content

New Mexico becomes the first U.S. state to offer free child care to all residents

CNBC's profile
Original Story by CNBC
November 1, 2025
New Mexico becomes the first U.S. state to offer free child care to all residents

Context:

New Mexico has become the first U.S. state to provide free child care to all residents, aiming to improve its economy and address its low rankings in education and child welfare. Families can access state vouchers for child care regardless of income, a policy that follows the establishment of the Early Childhood Education and Care Department in 2019. While the initiative could alleviate financial burdens for many, it requires creating 14,000 additional child care slots and hiring 5,000 educators. Funded mainly by the state's oil and gas revenue, this move is seen as pivotal for supporting families and enhancing educational outcomes, despite some criticism regarding its equity and capacity. Looking ahead, New Mexico's success may influence other states considering similar programs.

Dive Deeper:

  • The new program allows families in New Mexico to receive state vouchers for both public and private child care without regard to income, significantly expanding access since the establishment of the Early Childhood Education and Care Department in 2019.

  • Approximately 18% of New Mexicans currently live below the poverty line, highlighting the need for economic support measures like universal child care, which researchers assert can improve educational outcomes for low-income families.

  • To fully implement universal child care, New Mexico needs to create nearly 14,000 new child care slots and recruit 5,000 additional educators to meet demand, indicating a significant workforce challenge ahead.

  • The state is allocating $12.7 million towards a low-interest loan fund aimed at constructing and expanding child care facilities, alongside increasing reimbursement rates to ensure competitive wages for child care providers.

  • Critics, including Republican lawmakers, argue that offering free child care to wealthier families is unjust, advocating instead for tax credits to encourage parents to stay home with their children, while also questioning the program's ability to meet demand.

Latest News

Related Stories