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New Mexico will become the first state to offer free universal child care next week

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Parents in New Mexico will no longer have to pay for child care starting next week, regardless of their income, making the Land of Enchantment the first state in the nation to offer free universal child care.

New Mexico Gov. Michelle Lujan Grisham, who championed the new initiative, told CBS News it would save families an average of $12,000 a year.

“In 41 states in America, your child care payment is more than your mortgage payment,” she said.

Santa Fe teachers Hannah Mierley and Nathan Herzog know that math all too well. They pay more than $14,000 a year in child care for their toddler, Atticus.

“It is all of the leftover budget that we have,” Herzog told CBS News.

“It’s second to our mortgage,” Mierley added.

The state’s child care plan will be paid for by New Mexico’s oil and gas revenues.

“All sectors of our economy are overperforming,” Lujan Grisham said. “You can’t stay that course unless you have a robust early childhood and child care setting.” 

Nationwide, about 67% of women with children under 5 are in the labor force, according to the U.S. Department of Labor, a number that’s declined over the past few years. 

The New Mexico program goes beyond covering the cost. It’s also expanding who can provide care by recruiting and licensing more registered home providers, including qualified family members, to meet demand.

The program will also set up a $12.7 million low-interest loan fund to pay for construction, expansion and renovation of child care facilities, with another $20 million requested for 2027, the governor said in a statement last month.  

Asked what she would say to those who criticize the program as a Democratic handout, Lujan Grisham responded: “I say it’s a Democrat that’s got twice the national average in economic output. This is about investing in mothers and fathers, being able to go back to the workforce.”

For Mierley and Herzog, it’s a chance to think beyond their next paycheck.

“It gives us some relief,” Mierley said.

“It’s the first time that we can really start thinking about, ‘How do I prepare for Atticus’ future,'” Herzog added.

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