In February 2026, the New Mexico Legislature passed Senate Bill 241, the Child Care Assistance Program Act, establishing universal access to child care for families across the state, regardless of income. The law builds on earlier expansions to the state’s Child Care Assistance Program, including a 2021 increase in eligibility from 200% to 400% of the federal poverty level (FPL) and a 2022 policy that temporarily eliminated copays for families up to 400% FPL.
SB 241 authorizes roughly $700 million in multi‑year investments between 2026 and 2031, with copay adjustments allowed only under specific economic stress conditions, such as high inflation or declining oil revenues. The program is funded primarily by New Mexico’s oil‑and‑gas‑driven permanent funds, especially the Early Childhood Education and Care Fund and increased distributions from the Land Grant Permanent Fund, and supports a mixed‑delivery system that includes public, private, nonprofit, for‑profit, and faith‑based providers (within constitutional limits on religious use of state funds).
Sources:
New Mexico Early Childhood Education and Care Department. (n.d.). Universal Child Care.
Office of the Governor Michelle Lujan Grisham. (2021, July 1). N.M. dramatically expands Child Care Assistance.
Office of the Governor Michelle Lujan Grisham. (2026, March 10). Governor Lujan Grisham signs nation’s first universal child care law – New Mexico is a national model for early childhood care and education.
S.B. 241, 57th New Mexico Legislative Assembly. (2026).
Connections to Key Early Learning Study at Harvard (ELS@H) Findings:
The early education workforce is the foundation upon which all daily work and any expansion and quality improvement efforts rest. Research suggests that states and cities should invest in the workforce across all early education setting types, focusing on enhancing educators’ professional learning, compensation, and workplace conditions.
Findings from the Early Learning Study at Harvard (ELS@H) show:
- Early educators play a critical role in supporting the well-being of young children and families across setting types.
- Yet their pay, benefits, and other professional supports are often inadequate in light of the job demands and their cost of living