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New Mexico launched universal free child care. Will other states take note?

Emma Hinchliffe
By
Emma Hinchliffe
Emma Hinchliffe
Most Powerful Women Editor
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Emma Hinchliffe
By
Emma Hinchliffe
Emma Hinchliffe
Most Powerful Women Editor
Down Arrow Button Icon
November 4, 2025, 11:59 AM ET
New Mexico Gov. Michelle Lujan Grisham debuted free, universal childcare in the state on Nov. 1.
New Mexico Gov. Michelle Lujan Grisham debuted free, universal childcare in the state on Nov. 1. JP Yim/Getty Images for New York Hilton Midtown

What does it take to make child care free? New Mexico is finding out. The state on Saturday became the first to offer universal, no-cost childcare, for which all families are eligible.

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The program is launching under New Mexico’s Democratic Gov. Michelle Lujan Grisham. When the state announced its program—which had supported families with incomes up to 400% of the poverty line—was going universal, the governor explained why she believed child care was so crucial. “Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity,” she said in a September press release. “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.”

Lower down in this release are some of the nuts and bolts of what this will take. Namely:

– An additional 5,000 child care providers throughout the state

– 14,000 more child care slots

– Increasing reimbursement rates for childcare providers who participate in the program

– A $12.7 million low-interest loan fund to construct and expand child care facilities

To reach those benchmarks, the state is debuting an incentive system. Child care programs that commit to paying entry-level staff at least $18 per hour and offer 10 hours of care, five days a week, will receive a higher rate. Families pay through a voucher system.

It’s a big commitment. But for New Mexico’s governor, it’s also a political win. Helping families afford care for their kids was a promise made in 2019, when New Mexico created its Early Childhood Education and Care Department.

New Mexico typically ranks either last or close to it among states in other benchmarks for child well-being—like education. Investing in child care makes a statement that the state is committed to changing that, starting with kids’ earliest years. And though child care is one of the most broken systems in the U.S., perhaps it’s easier for a state to start from scratch and expand access to care rather than overhaul a complex, statewide public school system.

Other states and cities have started experimenting with or proposing free child care; it’s a pillar of Zohran Mamdani’s race for mayor in New York City today. But New Mexico is the first state to go universal. If the state’s program is successful, it will reinforce what we already know: access to affordable child care is a policy problem that requires government intervention, not for-profit business ideas—as much as well-meaning founders have tried over the years. Even states that already have stronger outcomes for child welfare will have something to learn from watching this program. And if New Mexico can pull it off, the rest of the country might take note.

Emma Hinchliffe
emma.Hinchliffe@coins2day.com

The Most Powerful Women Daily newsletter is Coins2Day’s daily briefing for and about the women leading the business world. Subscribe here.

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PARTING WORDS

"The truth is I’ve had one really good idea my entire career. That’s it. And I just keep doing it and doing it and doing it again. Each time I do it, though, it broadens."

— Sassy  and Jane  editor Jane Pratt. She has a memoir on the way—one that she says will truly tell all about the media industry. 

This is the web version of MPW Daily, a daily newsletter for and about the world’s most powerful women. Sign up to get it delivered free to your inbox.
About the Author
Emma Hinchliffe
By Emma HinchliffeMost Powerful Women Editor
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Emma Hinchliffe is Coins2Day’s Most Powerful Women editor, overseeing editorial for the longstanding franchise. As a senior writer at Coins2Day, Emma has covered women in business and gender-lens news across business, politics, and culture. She is the lead author of the Most Powerful Women Daily newsletter (formerly the Broadsheet), Coins2Day’s daily missive for and about the women leading the business world.

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