New Mexico to be first US state to make childcare free
The US state of New Mexico will be the first in the country to provide free childcare to its residents, regardless of income, Gov. Michelle Lujan Grisham announced. The measure is expected to save $12,000 per child annually.
The state has already been working towards lowering the cost of childcare since 2019 when it launched the Early Childhood Education and Care Department, and also when it began expanding eligibility for universal childcare. This new change removes income eligibility requirements from its childcare assistance programme and waives all family copayments.
“Child care is essential to family stability, workforce participation and New Mexico’s future prosperity,” the governor said in her announcement. “By investing in universal child care, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive.”
The US allocates federal funding to states to lower childcare costs for low-income families. But eligibility for funding is very limited. Most families in New Mexico pay an average of £13,000 annually and in other states, it can be even higher.
Without a federal universal childcare system, many states are working to building their own systems and New Mexico has been a leader on that front for a few years.
This latest measure also comes with improvements for childcare facilities and the potential for payment rises for staff. The state plans to establish a $13 million loan fund to build and expand facilities, launch a recruitment campaign for home-based providers, and incentivise programmes to pay a minimum of $18 per hour for staff.
It plans to create 55 new childcare centres and 1,120 home-based options.
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