We’ve just passed a groundbreaking New Mexico initiative. It is now the first state in the U.S. to offer free childcare to families making below 400% of the federal poverty level, about $124,000 for a family of four. This major policy move aims to address the state’s highest in the nation child well-being ranking. It seeks to raise tens of thousands of other families above the poverty line. When Governor Michelle Lujan Grisham announced her candidacy in late 2016, she projected a vision for improving the state’s child welfare system. Since then, she has been integral to continuing to advance this ground-shifting effort.
In 2019, Lujan Grisham further pursued accessible childcare, opening the first door by creating the Early Childhood Education and Care Department. She appointed Elizabeth Groginsky its head, knowing her excellent record at spearheading early childhood policies in Washington D.C. Groginsky’s leadership has driven New Mexico to be a powerful partner in the national initiative to reduce the unmanageable costs of childcare across New Mexico and the United States. Alarmingly, the U.S. is ranked 40th out of 41 high-income countries for childcare policies.
In 2020, New Mexico faced an existential crisis. A shocking 27.4% of its childcare providers, nearly all women of color, were having economic challenges and were living in poverty. The recently concluded legislative session provided a record 21.6% or $170 million increase for education programs. Including early childhood education in this investment greatly improves the state’s future. The state prioritized childcare, directing millions of dollars toward the industry. They lifted entry-level wages for childcare providers to $15 an hour and increased eligibility for free childcare services.
By 2024, the percentage of childcare providers living in poverty had dropped to 16%, indicating a positive trend towards economic stability for those who provide essential care services. The establishment of the Early Childhood Trust Fund, initiated by Lujan Grisham’s support in 2020, further solidified New Mexico’s commitment to early childhood education. This fund is seeded with an advance appropriation of $300 million. It uses up annual budget surpluses, primarily from oil and gas revenue, to fund long-term investments in childcare and early education.
In 2022, an inspiring three-quarters of New Mexican voters stood up in support and voted to approve the constitutional amendment. This amendment makes explicit that 1.25% of the fund goes specifically towards supporting early childhood programs. This widespread backing reflects a collective recognition of the importance of investing in early childhood education as a means of fostering future economic growth and stability.
“This is a big investment that we know is going to pay off.” – Elizabeth Groginsky
The impact of these administration initiatives goes far beyond short-term fiscal relief. Evidence shows that each dollar spent on quality birth-to-five interventions for low-income children can generate a remarkable 13% ROI. It’s a big return, thanks to better academic achievement, healthier children, increased child access to jobs, an economic boom and decreased expenditures on healthcare and crime.
Groginsky highlighted just how important this – often invisible – investment in human capital is. He pointed out that the importance of the decision equals that of investment in the state’s infrastructure. We’re thrilled that the governor’s administration understands how key accessible childcare is for families and the broader workforce.
“We had somewhat of a national reckoning about the fact that we don’t have a workforce if we don’t have childcare.” – Hailey Heinz
The pandemic exacerbated challenges that already existed in an underfunded childcare sector, making many Americans reconsider the system’s critical role. Advocates like Heinz highlight that this moment has catalyzed policymakers to recognize childcare not just as a familial issue but as a vital component of economic infrastructure.
Gabrielle Uballez, a dynamic, committed local activist, illustrated the bittersweet reality of living in New Mexico. She spoke with pride about the challenges while welcoming the opportunities that the state provides. She pressed for benefits gained from state investments to be enjoyed by families first instead of benefitting industries exclusively.
“Take advantage of that so that kids and families are benefiting – not the oil and gas industry by itself, and not corporations by itself.” – Gabrielle Uballez
Local resident Lisset Sanchez is personally attuned to this feeling. She’s seen how far these initiatives can go to profoundly impact lives for decades, sometimes even generations to come.
“Being able to work for free or go to school for free, that can make a big difference in your life and your children’s – everybody’s – life.” – Lisset Sanchez
Even with these improvements in place, some are still carefully optimistic about what the long-term will yield. Heinz noted that despite positive changes at the start, continued action over the long term is required.
“What New Mexico is trying to do here is play a very long game.” – Hailey Heinz
She recognized worries that constituents will become frustrated if outcomes aren’t seen quickly. At the same time, she pointed to a few successes, like lessening the financial burden on families as one of the biggest successes.
“However, the thing New Mexico has done that’s fairly tremendous, I think, is around families not having to have as much money going out.” – Hailey Heinz