Free Universal Childcare Is Becoming a Reality in One State

by Wakisha Newton, (she/her)

New Mexico is proving that consistently working towards what families need to thrive can bring change.

Since 2019, New Mexico has been making great strides to improve statewide childcare. Their Early Childhood Education & Care Department (ECECD) was established to create a more equitable and efficient childcare system. Since 2020, the state has financed this system using revenue from oil and gas leases. Fast forward to 2025, for the first time anywhere in the US, childcare for children up to 5 years of age will be free to parents in New Mexico. Governor Grisham has announced historic plans to provide childcare to all families, no matter their income. Lawmakers are still discussing rules for the program before approving the funding, but they are ready for next steps.

So, what does this mean for families in New Mexico—and, hopefully soon, for families across the country? In a recent press release from the Governor’s office, it is estimated that families would save $12,000 annually per child. Parents in New Mexico will have more money to spend on essentials such as housing, gas, and groceries. They might also have the freedom to cut back on the hours they work and can opt to spend more quality time with their family. It means parents will also be able to choose the childcare program that best fits the needs of their children and prioritize quality of care rather than the program they can afford. It means families would no longer have to worry about having to go to work just to pay daycare fees. It means teachers would see wage increases to support their own families and receive additional training.

Economies flourish when children receive consistent education and care, and parents are able to work as a result of this reliable, affordable childcare. According to the First Five Years Fund, childcare issues cost the economy close to $122 billion a year. This historic move in New Mexico brings hope to the childcare industry and signals that change is possible in the states, and at the federal level.

I’m excited to see this policy go into effect. A program like this would have made a big difference for me and my husband. Even with two incomes, the cost of childcare was a serious hardship for us. Choosing to not work or not use childcare was not an option, and so we had to find a way. Free childcare could have saved us $10,000 each year to put towards household expenses or even saving to buy our first home.

I hope that other states will one day soon follow New Mexico’s lead. States making early education and childcare priorities will only help children and families thrive. And that benefits us all.