New Mexico
Land Grant Permanent Fund
In 2025, New Mexico became the first state to launch a universal child care program for guaranteed no-cost child care to every family. Funding comes from the Permanent Fund, which in New Mexico’s constitution allows the state to invest revenues derived from the extraction of oil and gas. In 2024, the Permanent Fund was valued at more than $30 billion. For years the Fund had supported K-12 education, yet early childhood education was not included. The Fund now includes support for universal child care, as well as raising wages and creating a career pathway for child care workers.
New Mexico's state ranking for child well-being
%
Children under five living in poverty in New Mexico
%
Fourth graders in New Mexico reading at or above reading proficiency
Challenges
Gathering Legislative Support
For over a decade, amendment proposals to use the Land Grant Permanent Fund to pay for child care lacked support in the Senate, with strong opposition from one Senate leader.
Persuading Congress
Advocates needed congressional approval after the election to ratify the amendment onto the constitution – had to do more campaigning to persuade Congress members
Difficulties After Universal Child Care was Implemented
Organizations continue to advocate for workforce expansion, infrastructure development, and equitable access – the work did not end once universal child care was implemented
Getting Families In
Uptake of childcare has historically been lower than the number of eligible children, possibly due to preferences for informal familial care or lack of awareness about the new program
Getting to Action
- Power-building electoral strategy – early efforts focused on public education, grassroots organizing, and legislative advocacy
- Strategic electoral approach allowed coalition of advocates to unseat key opponents in the primaries and elect key supporters, the resulting shift in political power allowed for the legislature to approve a constitutional amendment on early childhood funding
- Identifying sustainable funding – advocates found a viable funding source in the Land Grant Permanent Fund, allowing financing for universal child care
- Long-term coalition and grassroots organizing – coalition building and grassroots organizing created powerful base of support
- Framing and narrative strategies – clear, accessible messaging framed child care around immediate economic needs, not abstract policy ideas. Narratives delivered by trusted community members built wide support for the cause
| 2020 | Excess revenue from mineral, oil, and gas allowed for the creation of the Early Childhood Education and Care fund, providing a one-time investment of $300 million for child care |
| 2021 | COVID relief funds helped expand child care eligibility to families making 400% of the federal poverty level (previously limited to families making 200% of poverty level) |
| 2022 | State government increased the wages of child care workers making less than $16 per hour |
| 2022 | Constitutional amendment goes into effect. Creates an annual payment of an additional 1.25% of the Land Grant Permanent Fund's year-end value into the Early Childhood Education and Care Fund. (The Land Grant Permanent Fund allows the state to save revenues from the extraction of natural resources.) |
| FY 2023 | Portions of the Land Grant Permanent Fund create an additional $126 million toward the Early Childhood Education and Care Fund |
| 2025 | Governor Lujan Grisham issues executive order to allow universal child care |
| FY 2026 | Distributions from the Early Childhood Education and Care Fund expand to about $500 million because of increasing oil and gas revenue, as well as growing market investments. (Initial disbursement was $20 in FY 2022) |
| 2026 | Executive order for universal child care becomes law. State could spend $700 million for child care programs over the next five years. $60 of this amount would go toward raising the wages and increasing the career pathways of child care workers. |
Results
- Lifting the income cap for child care made an additional 25,000 children eligible for child care
- Supply of licensed child care slots has increased steadily since the pandemic (increased 20% since 2019 and continues to increase)
- Child care workforce increased by 64% from 2019 to 2024, even as the national child care workforce decreased by 7.4%
- 64% of children under 5 years old were in 5-star licensed programs in the fall of 2025, this statistic was previously 58% in FY24 and 53% FY23
- Families between 100 and 200% of the federal poverty level have had pronounced levels of participation in childcare assistance, increasing by 71% over pre-COVID levels
- More than 6,200 families applied for child care assistance once the state made it universal. Of these applicants around two-thirds were families above 400% of the federal poverty level, suggesting that messaging around universal child care helped increase visibility of the program and reduced any stigmas surrounding child care
- Over nine times more infants and toddlers became eligible for child care expansion after it became universal due to an increased capacity to serve younger children
- Wages for child care workers have increased by 65% between 2019 and 2024
- Reimbursements are available for providers that meet required pay minimums for their employees
- More students are enrolling in early childhood studies or related programs in higher education (increased by 25% between the 2020-21 and 2024-25 school years), suggesting a growing future workforce
More students are enrolling in early childhood studies or related programs in higher education (increased by 25% between the 2020-21 and 2024-25 school years), suggesting a growing future workforce.
Keys to Success
Transformative changes occur when policy, organizing, electoral, and narrative strategies align over time
Funding sources are important, but not enough without political will
Long-term investment in grassroots power and leadership from impacted communities yield durable victories
