On March 10, 2026, Governor Michelle Lujan Grisham signed into law the Universal Child Care Act 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 taken together mark the culmination of a “cradle to career” education plan Lujan Grisham launched during her first year in office. New Mexico is now the only state in the nation to offer its residents tuition-free college and no-cost universal child care. 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.
SENATE BILL 241 (THE UNIVERSAL CHILD CARE ACT)
Senate Bill 241 known as the Universal Child Care Act 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. According to Early Childhood Education and Care Secretary Elizabeth Groginsky more than 60 new child care providers around the state have also had their applications approved
The Universal Child Care Act (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. Specifically, if inflation spikes or oil revenues decline, the program can adjust co-pay structures to ensure sustainability of the program. As for the guardrails built into the bill, they include potential co-pays for higher-income families and child care waitlists. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices.
Senate Bill 241 contains certain “triggers” that would allow co-pays to be charged to higher-income families and childcare wait lists to be implemented. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices. The co-pays would only apply to working families, making more than 600% of the federal poverty level. That amount is currently $198,000 per year for a family of four.
The built-in “triggers” to Senate Bill 241 are as follows:
- Allowing co-pays for higher-income families and child care wait lists.
- A state early childhood agency would be required to take certain steps if any of four different conditions occur.
- Those conditions are higher-than-expected child care enrollment, less than $50 per barrel oil prices, higher than 3% inflation and state revenue growth lagging behind inflation.
- Under any of those scenarios, the agency would either have to enact a waiting list or charge co-pays for working families making more than 600% of the federal poverty level. That amount is currently $198,000 per year for a family of four.
Childcare 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.
Lawmakers initially expressed skepticism about the governor’s request for additional dollars to pay for the initiative in the run-up to this year’s 30-day session, but ultimately provided at least a temporary funding stream.
Lujan Grisham expressed confidence the program would remain sustainable even after she leaves office at the end of the year.
Senate Bill 241 was sponsored by Senators Michael Padilla, George Muñoz, Linda Trujillo and Bobby Gonzales. House sponsors include Rep. Doreen Gallegos. The only Democrat in either legislative chamber to vote against the bill was Rep. Joseph Sanchez of Alcalde. Four House Republicans and only one Senate Republican supported the legislation.
SENATE BILL 96 (THE REGULATED CHILD CARE ZONING REQUIREMENTS ACT)
SB 96 clears the path for more child care providers by prohibiting local governments and home owners associations (HOA’s) from imposing restrictions on child care homes and centers. The bill is intended to ensure home-based daycares are not blocked from opening by local zoning requirements. SB 96 will ease zoning restrictions on regulated child care homes in residential areas. The Governor said she hoped to knock down barriers to where child care facilities can go.
GOVERNOR’S STATEMENT
During the bill signing, and in a statement issued, Gov. Michelle Lujan Grisham described the Universal Child care act as a “monumental” and said this:
“I really wanted something that would create a sea change for families and children in New Mexico. … New Mexico is [now] the first state in the nation to offer universal, no-cost child care. … [My] hope is that we won’t be the last. 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. … All parents who need child care can now get it. … 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. … I thank every legislator who sponsored these bills or voted to move them across the finish line to my desk. … Their support and hard work will make a profound difference in the lives of New Mexico families.”
COMMENTARY AND ANALYSIS
There is no doubt that the two most defining issues of the 2026 New Mexico legislative session are medical malpractice reform and free universal childcare to New Mexico families, regardless of income. Both measures have now been signed into law and will be the final defining and enduring legacy of Governor Michell Lujan Grisham.
In all, the governor has now signed 66 of the 74 bills sent to her desk. She has not vetoed any bills approved this year. As of March 11, there are several high-profile measures that remain to be signed including the $11.1 billion budget bill and a tax package featuring a $10,000 tax credit for physicians.
Links to quoted or relied upon news sources are here:
https://www.kob.com/new-mexico/governor-michelle-lujan-grisham-signs-universal-child-care-into-law/
https://www.koat.com/article/new-mexico-no-cost-child-care-law/70702925
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