Governor Lujan Grisham signs nation’s first universal child care law – New Mexico is a national model for early childhood care and education 

SANTA FE – Governor Michelle Lujan Grisham today signed universal child care into law, making New Mexico the first state in the nation to guarantee no-cost child care that sets young children up for success and helps make life more affordable for families.

The governor also signed legislation removing local zoning and homeowner association barriers to child care expansion in the state. The two new laws mark the culmination of a “cradle to career” education plan Lujan Grisham launched during her first year in office. Today, New Mexico is the only state in the nation to offer its residents tuition-free college and no-cost universal child care.

“All parents who need child care can now get it,” said Governor Lujan Grisham. “When parents are guaranteed no-cost child care, they can improve their family’s quality of life, fully engage in the workforce and contribute to our state’s economy. Families shouldn’t have to choose between paying rent or paying for child care, and as of today, they no longer will.”

The governor signed the bills flanked by lawmakers, families and children enrolled at Santa Fe’s Garcia Street Club School — the oldest preschool in northern New Mexico and the second oldest in the state, having served Santa Fe families since 1945. “I thank every legislator who sponsored these bills or voted to move them across the finish line to my desk,” Governor Lujan Grisham said. “Their support and hard work will make a profound difference in the lives of New Mexico families.”

Senate Bill 241 — the Universal Child Care bill — was sponsored by Senators Michael Padilla, George Muñoz, Linda Trujillo and Bobby Gonzales. House sponsors include Rep. Doreen Gallegos. Senate Bill 96 — the child care zoning bill — was sponsored by Senators Heather Berghmans and Linda Trujillo and Rep. Linda Serrato.

SB 241, the Universal Child Care bill, guarantees that families across New Mexico can access affordable care regardless of income. Since the program’s launch on Nov. 1, 2025, an additional 12,666 families and 16,706 children have enrolled statewide, and 63 new child care providers have registered for business in New Mexico. More than half of new enrollees were already income-eligible under prior assistance programs. About 30,000 families and 44,000 children are on track to receive free child care this year.
SB 241 establishes the statutory foundation for universal child care in New Mexico, allowing the legislature to appropriate up to $700 million between 2026 and 2031 from the Early Childhood Education and Care Fund provided that the fund remains above $10 billion. New Mexico’s FY 2027 budget includes a $160 million increase for child care assistance for a total child care budget of $606 million, plus an additional $30 million, over three years, to support the early childhood wage scale and career ladder.
The legislation also provides fiscal safeguards: if inflation spikes or oil revenues decline, the program can adjust co-pay structures to ensure sustainability of the program.

In addition to the bills signed on Tuesday, the Lujan Grisham administration and the New Mexico Legislature have invested in improving the wages and benefits of child care professionals, leading to the nation’s steepest increase in child care wages and 64% growth in the numbers of professionals working in child care.

SB 96, the Regulated Child Care Zoning Requirements Act, clears the path for more child care providers by prohibiting local governments and HOAs from imposing restrictions on child care homes and centers.

Child care costs rank among the largest household expenses for working families nationally, averaging more than $13,000 per child per year in many states. New Mexico is making child care free for families who need it, backed by a statutory framework that other states can model as affordability remains a pressing national challenge.

“New Mexico is the first state in the nation to offer universal, no-cost child care, but my hope is that we won’t be the last,” Governor Lujan Grisham said. “I encourage other states to consider our model, and New Mexico is ready to assist in helping others turn the vision into reality for families across the nation.”