New Mexico’s promise of free child care comes with a fiscal escape hatch - AP News
AP News
February 19, 2026
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New Mexico’s ambitious plan to provide free child care for children under five comes with a significant caveat: a fiscal escape hatch that could limit access if funding falls short. The state’s universal child care program, designed to ease the financial burden on working parents, is set to cover 100% of eligible families by 2024. However, a little-known clause in the law allows providers to reduce services or even close if they face financial difficulties due to low enrollment or other unforeseen challenges.
The program, which aims to serve approximately 80,000 children annually, is part of Governor Michelle Grisham’s broader initiative to support working families and boost economic stability. Parents earning up to $137,000 per year would qualify for free care under the scheme, with providers receiving state subsidies based on a sliding scale tied to family income. While this represents a major expansion of early childhood education in New Mexico, the fiscal escape hatch raises concerns about accessibility and sustainability.
Critics argue that the clause could undermine the program’s effectiveness by leaving vulnerable families without reliable child care options. Advocacy groups warn that providers may face pressure to cut costs or reduce services during lean years, potentially forcing some facilities to close their doors. This could disproportionately affect low-income communities, where access to affordable child care is already limited.
Despite these challenges, supporters of the program emphasize its potential to transform lives by enabling parents to enter
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Originally published on AP News on 2/19/2026