New Mexico’s New Free Childcare Model Could Be The Start Of A New Trend

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Steph Bazzle

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Every year, parents across the United States do the math. Can they afford for both parents to work, or will the cost of childcare completely negate (or even outweigh) the second income?

In New Mexico, thanks to a promise from Governor Michelle Lujan Grisham, free childcare will now be available to all families, making it easier for households to maintain two incomes and stay financially stable as prices continue to rise.

Could this be the beginning of a shift that could help families across the nation?

The New Mexico Promise

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Thanks to the Child Care and Development Fund, a federal grant, there are programs in every state to help low-income families access free childcare. States can set their own eligibility requirements, like income level and work requirements.

The programs are an immense benefit to families, but the limitations can be daunting. For example, a program may require that both parents work at least 32 hours per week. If one parent’s hours are reduced to 28 per week, they may lose eligibility, but they may still need childcare. Worse, due to a lack of funding, there are often long waitlists, and families who qualify may never receive aid.

Governor Lujan Grisham is following the will of the voters. According to Source NM, they cast ballots in 2022 for a constitutional amendment that would expand childcare access, and she’s tapping into a state fund to do so.

The program also addresses shortages of childcare providers by offering low-interest loans to local governments and schools to create new facilities or expand current ones.

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Policymakers foresee additional benefits to the state, including corporations recognizing it as a good location to set up business and feeling certain that their employees will have reliable childcare and the freedom to balance work and family.

Not Everyone Is Happy

There are still critics of the program, and those chiming in on the governor’s official announcement on social media to complain fall primarily into two categories.

Many are simply angry with the use of the word “free” and disagree with the notion of taxpayers supporting childcare for others, despite the promised benefits to not only families but also communities and the state as a whole. The best counter to this complaint is the 2022 vote, in which the majority of NM voters agreed to have their tax dollars used this way.

Others are more broadly unhappy with more accessible childcare, arguing that young kids belong at home with their parents. It should be noted that there is no indication that childcare would become compulsory, and that other social safety net programs to help support single-income families are still available in the state.

There are also still parents with questions, such as whether the program would cover paying a grandmother to care for her own grandkids, and how it might affect custody/child support agreements in which a noncustodial parent has been ordered to pay half of the childcare costs. Although no clear guidance has been released yet, the policy does recognize licensed home daycares, which may be a workable path for family care. Custody and child support questions, as always, should be taken to one’s attorney or other legal advisor.

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Could This Begin A Ripple Effect?

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New Mexico is the first state to take steps to ensure that childcare is accessible for every family. Still, it doesn’t have to be the last, especially if the positive effects are as clear and widespread as policymakers predict.

If New Mexico experiences a boom in industry and social mobility, other states may follow its lead.

There are already other states working to expand their childcare programs to various degrees, according to American Progress. For instance, Vermont is expanding subsidies so that families up to 575% of the federal poverty level (FPL) qualify. (The FPL is recalculated annually and varies by household size; it’s currently $37,650 for a family of 5.) North Dakota and New York have eliminated copayments for childcare for families earning up to 100% of the FPL, and New York has expanded subsidies to those earning up to 300% of the FPL.

With families literally going into debt to pay for groceries, this is undoubtedly a welcome change for many struggling households.

What Should You Look For In Your State?

If you need assistance with childcare costs, your first stop should be childcare.gov. You can also contact your local social services department to inquire about the specific programs available in your state.

Even if your current income level is outside the range for full childcare coverage, it’s worth a call. There may still be subsidies or other forms of support available. You may also be eligible for programs like Head Start or a local pre-K program. In many school districts, pre-k programs for 3- and 4-year-olds can be needs-based, so reaching out early is a good plan. Be prepared to be honest about your child’s needs. (Language delays and income level are just two factors that may be taken into account.)

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If you find that your state’s programs don’t fit your needs or aren’t being funded to the degree necessary to support you and your fellow parents, consider reaching out to your elected officials. Please send an email or call your state’s senators and representatives and let them know what their constituents need.