New Mexico’s promise of free childcare comes with a fiscal escape hatch

An ambitious universal childcare program aimed at fully footing the bill for working families across New Mexico is being enshrined into law, with state legislators making good on promises by Democratic Gov. Michelle Lujan Grisham to make the state the first in the nation to offer such a program to families of all income levels. As parents across the nation grapple with crippling daycare bills that threaten to keep them at home and out of the workforce, political leaders from New York to San Francisco have been angling to expand access to free and subsidized care. The political stakes are high as the potential for budget uncertainties and fraud looms large. California has opted to eliminate copayments for some families, while Washington and Oregon cap what families pay. In Vermont, a payroll tax on employers funds childcare subsidies. In New Mexico, the plan relies heavily on the financial windfall from oil and gas production—including earnings from a recently minted $10 billion trust fund for early childhood education. It's a delicate balance for a progressive governor who initially set out to rein in the industry. “I think you're going to see more states look for ways to do it,” the governor said. “It's really a workforce engine, while paying real respect to the affordability crisis that families have.” Lujan Grisham wraps up her tenure next year, and state lawmakers, wary of unchecked spending, opted during the legislative session to take a cautious approach. They're leaving the door open to copayments if public finances deteriorate. That's a compromise Lujan Grisham had to make. The New Mexico legislation allows the state to create a waitlist when demand for assistance outpaces available slots. It's an effort to prioritize access for children in vulnerable circumstances—ranging from extreme poverty to disabilities and those at risk of developmental delays. It's also a response to concerns that the rapid expansion of child care subsidies to all income brackets may squeeze out slots for low-income families. Attendance from low-income families declined as assistance expanded to higher income brackets, according to a review by legislative analysts. This article was provided by The Associated Press.