The first five years of childhood are critical to a child's development. During this time, children's socio-emotional and educational foundations develop. Considering this, access to high-quality child care is crucial. Unfortunately, the high cost of child care, which in New Mexico costs on average $11,000 a year for an infant, is a significant barrier for many families. (1) When families do not have access to child care, parents may miss work to provide the care themselves, resulting in income loss and benefits. Mothers especially face the weight of not having child care. Women who cannot access child care are less likely to participate in the workforce, resulting in less earnings and a setback in career advancement. (2) Unaffordable or inaccessible child care also affects employers and the economy. A recent study revealed that the infant-toddler child care crisis costs the country $122 billion in lost earnings, productivity, and revenue yearly. (3) 

In 2022, New Mexico became the first state in the nation to make child care free for almost all families by expanding income eligibility for the child care assistance program. (4) Child care assistance subsidies help low-income families pay for infant, toddler, preschooler, and before-and-after school-age care for children between 6 weeks and 13 years. Federal block grants and state appropriations fund subsidies. (5) Before 2022, only families making at or below 200% of the federal poverty level – or $60,000 for a family of four, could use this assistance. Now, the state has eliminated co-pays for all families making at or below 400% of the federal poverty level- or $120,000 a year for a family of four. (6) Although this increases the number of families who potentially qualify for child care assistance, many barriers remain, such as families’ ability to provide evidence of eligibility and a lack of child care providers in their communities. (7) It also remains to be seen how long New Mexico can support the higher subsidy eligibility threshold, financially and infrastructurally, as federal support decreases. (8)

Our analysis indicates a 64% increase in the number of children receiving subsidies since 2016, likely due in no small part to groups like the Success Partnership’s ECE Coalition and other stakeholders across the state who advocate for increased expansion of the subsidy program. Data shows that only 3,608 children under 13 received subsidies in 2016. During the COVID-19 pandemic, enrollment hit an all-time low of 2,657; currently, 5,915 children are enrolled. (9) While most child care assistance recipients are still from families earning below 200% of the federal poverty level, families from higher income thresholds are starting to receive subsidies.