New Mexico’s free universal child care program launches next month, funded by oil and gas revenues—a rare example of a state using energy sector profits to support working families rather than federal dependency.
At a Glance
- New Mexico becomes the first state to offer free universal child care starting in November 2025, regardless of family income.
- The program saves families an average of $12,000 annually, addressing child care costs that exceed mortgage payments in 41 states.
- Funded entirely through New Mexico’s oil and gas revenues, demonstrating fiscal responsibility without federal bailouts.
- The initiative expands the child care workforce by recruiting and licensing more registered home providers, including qualified family members.
A Market-Driven Solution to Child Care Affordability
New Mexico’s approach to child care differs fundamentally from typical progressive spending schemes. Rather than expanding federal programs or raising taxes, Governor Michelle Lujan Grisham’s administration leveraged the state’s thriving energy sector—which outperforms the national average—to fund this initiative.
The program allocates $12.7 million for the construction and renovation of child care facilities, with an additional $20 million requested for 2027. This model demonstrates that conservative fiscal management and pro-energy policies can generate resources for legitimate state priorities without burdening taxpayers.
New Mexico is set to become the first state in the nation to offer free universal childcare — regardless of income. CBS News’ @JanetShamlian has more on how the program works. pic.twitter.com/OAlohRA6YU
— CBS Evening News (@CBSEveningNews) October 29, 2025
Addressing Real Economic Hardship for Working Families
The child care cost crisis is undeniably real. In 41 states, annual child care expenses exceed mortgage payments, forcing working parents into impossible financial choices. Santa Fe teachers Hannah Mierley and Nathan Herzog pay over $14,000 yearly for their toddler’s care—consuming their entire discretionary budget.
New Mexico’s program directly alleviates this burden by saving families an average of $12,000 annually. For working parents, particularly mothers re-entering the workforce, this creates genuine economic relief and allows families to plan for their children’s futures rather than living paycheck to paycheck.
Expanding Private Child Care Options Through Deregulation
Rather than creating a government-run monopoly, New Mexico’s program strategically expands the child care workforce by recruiting and licensing more registered home providers, including qualified family members.
This approach respects parental choice and family autonomy while increasing supply through market mechanisms.
By removing barriers to entry for in-home providers, the state encourages entrepreneurship and preserves the family-centered care model that many parents prefer. This contrasts sharply with top-down government solutions that often reduce consumer options and quality.
New Mexico has embraced universality in their free childcare system, becoming the first state with it, and providing about $12,000 a year per kid in free care after deciding they want to eliminate the cliff effect and stigma of means-testing, and in doing so, maximize employment. pic.twitter.com/pkN6PWuTQG
— Scott Santens (@scottsantens) September 10, 2025
Energy Independence Funding Long-Term Solutions
New Mexico’s decision to fund child care through oil and gas revenues underscores a conservative principle: energy independence generates wealth that benefits citizens. Rather than apologizing for fossil fuel production or strangling the industry through regulation, the state channels energy sector prosperity directly to working families.
This model proves that pro-energy policies and support for working Americans are not mutually exclusive. It also demonstrates fiscal prudence—using surplus revenues from a thriving sector rather than expanding government debt or taxation.
