Gov. signs universal child care bill into law, vows program will be 'sea change' for families

SANTA FE — Concerns about the program’s long-term price tag may still linger, but backers of New Mexico’s first-of-its-kind universal child care program were all smiles on Tuesday.

Gov. Michelle Lujan Grisham signed what she described as a “monumental” child care assistance bill that enshrines in state law an initiative her administration launched last year, while also implementing financial guardrails in case economic conditions worsen.

“I really wanted something that would create a sea change for families and children in New Mexico,” the governor said during a bill-signing ceremony at one of Santa Fe’s oldest child care centers.

Since New Mexico launched its universal child care program in November by removing income limits for receiving state-subsidized child care, more than 16,700 additional children have been signed up for the program, Lujan Grisham said.

In addition, more than 60 new child care providers around the state have also had their applications approved, said state Early Childhood Education and Care Secretary Elizabeth Groginsky.

“Other states are calling and following our lead,” Groginsky said during Tuesday’s bill-signing ceremony.

But the cost to provide state-subsidized child care isn’t cheap — and could increase in future years.

The bill signed Tuesday, Senate Bill 241, allows up to $700 million to be taken from an early childhood trust fund over the next five years to help pay for universal child care. That trust fund was created in 2020 and has seen its value soar from $300 million at creation to nearly $11 billion due to record-setting oil production levels in New Mexico.

Meanwhile, there is also $60 million in state funds earmarked for wage increases for early childhood workers in a separate budget bill that’s still awaiting Lujan Grisham’s signature.

Lawmakers initially expressed skepticism about the governor’s request for additional dollars to pay for the initiative in the run-up to this year’s 30-day session, but ultimately provided at least a temporary funding stream.

Lujan Grisham expressed confidence the program would remain sustainable even after she leaves office at the end of the year.

“It may seem a little Pollyannish to say I’m not worried, but I have leaders in both chambers … who have seen the largest economic growth in our permanent funds and our trust funds ever,” the governor said, referring to legislators gathered for Tuesday’s event. “If there was ever a group of policymakers that I believe would stay the course and figure it out for New Mexicans, you’re looking at them right now.”

“The future is bright,” Lujan Grisham then added.

As for the guardrails built into the bill, they include potential co-pays for higher-income families and child care waitlists. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices.

A new selling point for New Mexico?

Supporters of the universal child care initiative say it’s already making New Mexico more attractive to out-of-state companies — and the working parents they employ.

Julia Wise, a Santa Fe resident and mother of two young children, said state-subsidized child care allowed her to leave her previous job and launch an energy technology start-up company.

“This bill gave my husband and I the confidence to do that,” Wise said during Tuesday’s bill-signing event.

Sen. Linda Trujillo, D-Santa Fe, said the expansion of the state’s child care assistance program could eventually lead to a reduced need for intervention services for older children in the state.

New Mexico currently has one of the nation’s highest rates of children with adverse childhood experiences, or ACEs. A recent legislative report found that 86% of juvenile offenders in New Mexico who are committed to state-run facilities had four or such traumatic experiences.

“This is a real huge investment in our children,” Trujillo said.

However, most Republican lawmakers opposed the universal child care bill during this year’s session due to philosophical disagreements and concerns about the program’s cost.

Just four House Republicans and only one Senate Republican — former Democrat Gabriel Ramos of Silver City — supported the legislation. The only Democrat in either legislative chamber to vote against the bill was Rep. Joseph Sanchez of Alcalde.

Bill-signing deadline looming

The signing of the universal child care bill came on the governor’s penultimate day to act on legislation passed by lawmakers during the 30-day session that ended Feb. 19.

She also signed three other bills Tuesday, including a measure intended to ensure home-based daycares are not blocked from opening by local zoning requirements. 

In all, the governor has now signed 65 of the 74 bills sent to her desk. She has not vetoed any bills approved this year.

However, several high-profile measures remain in limbo as the Wednesday bill-signing deadline approaches, including a $11.1 billion budget bill and a tax package featuring a $10,000 tax credit for physicians.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.