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

The new law allocates about $700 million over five years to expand child care access for all income levels and includes measures to prevent fraud and protect funding.

  • During the legislative session that ended Thursday, New Mexico enacted a law to provide universal child care, expanding eligibility to about 25,000 more children, with implementation cautious and funded by oil-and-gas revenue.
  • Amid national pressure to ease childcare costs, lawmakers cited a plan relying on oil-and-gas revenue and a $10 billion early childhood trust to fund expansion.
  • The law gives the early education agency oversight tools, tying annual reporting to copayments with 90-days notice, and allows waitlists when demand exceeds slots.
  • Families who were just above former cutoffs say Marianna Eanone's household paid $1,000 monthly for licensed home daycare and now feel relief, despite capacity shortages across New Mexico.
  • Legislators emphasized fiscal and fraud risks, citing U.S. prosecutors' Minnesota fraud allegations, and said guardrails were added to prevent unchecked spending, as the governor made compromises.
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New Mexico’s promise of free child care comes with a fiscal escape hatch

An ambitious program to provide free universal child care to working families in New Mexico is being enshrined into law.

·United States
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Source New Mexico broke the news in on Wednesday, February 18, 2026.
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