Photo: Gautam Arora | Unsplash
Three years ago, New Mexico became the first state in the nation to offer free childcare to a majority of families. The United States has no federal, universal childcare – and ranks 40th on a Unicef ranking of 41 high-income countries’ childcare policies, while maintaining some of the highest childcare costs in the world. Expanding on pandemic-era assistance, New Mexico made childcare free for families earning up to 400% of the federal poverty level, or about $124,000 for a family of four. That meant about half of New Mexican children now qualified. In one of the poorest states in the nation, where the median household income is half that and childcare costs for two children could take up 80% of a family’s income, the impact was powerful. The state, which had long ranked worst in the nation for child wellbeing, saw its poverty rate begin to fall. As the state simultaneously raised wages for childcare workers, and became the first to base its subsidy reimbursement rates on the actual cost of providing such care, early childhood educators were also raised out of poverty. In 2020, 27.4% of childcare providers – often women of color – were living in poverty. By 2024, that number had fallen to 16%. “This is a big investment that we know is going to pay off,” said Elizabeth Groginsky, cabinet secretary of New Mexico’s nascent early childhood education and care department.
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