New Mexico garnered a wave of attention when Gov. Michelle Lujan Grisham announced in September that all of the state’s families would be eligible for child care assistance. “Child care is essential to family stability, workforce participation, and New Mexico’s future prosperity,” she said at the time.

In March 2026, requirements for the program shifted. Families earning up to 600 percent of the federal poverty line are now eligible for free child care without copays, the equivalent of a four-person family earning $198,000 annually. Copays beyond that threshold are also contingent on if the price of oil decreases. Participating families can choose from a wide range of options, including center-based care, home-based providers, before- and after-school care, and faith-based centers. On average, the universal program is expected to save participating families $12,000 a year. (Private providers still have the option to not serve families receiving child care assistance and continue to charge tuition.)

What has received less attention outside New Mexico, however, is the state’s attempt to fairly compensate the long underappreciated and underpaid early childhood workforce.

Because the state is now in charge of early education through the universal program, it has also stepped into the role of being responsible for child care wages. It has had to decide questions such as how to weigh experience against education in child care wages, how to financially incentivize centers to adopt rigorous measures of quality and a whole host of issues that have typically been left to the market.