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As millions across the United States grapple with the uncertainties of a government shutdown, one state is stepping up with a groundbreaking initiative. New Mexico has distinguished itself by becoming the first state in the country to provide free child care to all its residents, irrespective of their income levels. This innovative program promises to relieve families of substantial financial burdens.
Having officially commenced on November 1, the program is the culmination of efforts that began back in 2019. New Mexico officials have outlined its dual objectives: to enhance the financial security of families and to boost educational opportunities for young children.
Initially, the initiative catered to families earning up to 400% of the federal poverty threshold, but it has now been expanded to include every family in the state. The program is sustained through a combination of state and federal funding, making this ambitious expansion possible.
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The state anticipates annual savings of $12,000 per child, which is close to the national average cost of child care. It could also provide another option for parents who have left the workforce in droves to care for their children.
More than 400,000 women left the workforce in the first half of 2025, many citing child care costs as a reason. Officials say universal child care will benefit families who may struggle to afford it.
“Just like other countries where there’s universal child care, we know that when child care is taken off the plate of all families, whether they’re working families, they’re low-income, they’re middle class, that relieves families to be able to invest in going back to school, to buying houses, to changing careers,” Rep. Melanie Stansbury told partner The Hill.
No other state offers universal child care, though New Mexico’s program is modeled after a similar program in Washington, D.C. New York City Mayor-elect Zohran Mamdani’s campaign floated the idea.