On July 22, the New Mexico Supreme Court, in a brief two page order, unanimously denied and emergency request challenging New Mexico’s first-of-its-kind in the nation universal childcare program. It was on June 12, that State District Court Judge Elaine Lujan in Albuquerque dismissed the lawsuit, prompting a direct emergency appeal to the New Mexico Supreme Court for a “writ of mandamus” or “writ of superintendent control” to order District Judge Lujan to reinstate the lawsuit.
FAILED REPUBLICAN CANDIDATES FILE LAWSUITE
It was on April 16, 2026 Republican gubernatorial candidate Duke Rodriguez along with fellow plaintiffs Steve Lanier and Zachary Anaya, filed a law suit in New Mexico’s Second Judicial District Court against Governor Michelle Lujan Grisham over the rollout of New Mexico’s “universal child care program”. (See suite number D-202-CV-2026-03721) The suit became a political flash point of contention between Democratic Governor Michelle Lujan Grisham and the Republican candidates for office who filed it. In addition to Rodriguez, the two others who filed the suit were fellow onetime Republican gubernatorial hopeful state Senator Steve Lanier and Rio Rancho businessman Zachary Anaya who lost his GOP primary bid for to a state House seat in June.
Rodriguez, Lanier, and Anaya argue in their civil suit against Governor Lujan Grisham that she created a “universal child care program” unilaterally, without a legislatively enacted statute, without a legislative appropriation of state money, and without following proper regulatory procedures. The suit asked the District Court to prohibit Lujan Grisham from further enforcement of regulations tied to the program. Attorneys representing Lujan Grisham and the state’s childcare agency responded that the New Mexico legislature during the 2026 legislature authorized and funded the program’s expansion, rendering the legal challenge moot.
On June 12, District Court Judge Elaine Lujan agreed that the legislature’s actions rendered the plaintiff lawsuit moot and dismissed the lawsuit. The dismissal allowed the state to continue footing the daycare bill for families regardless of income. Lujan Grisham applauded Judge Lujan’s ruling and said this at the time:
“Second Judicial District Judge Elaine Lujan dismissed a frivolous challenge to New Mexico’s universal childcare program. This program is lawful, and it will continue to serve New Mexico families. … New Mexicans deserved better than a lawsuit that put them through weeks of unnecessary anxiety over a program they count on. The judge’s ruling makes it clear: New Mexicans can plan their families, finances and careers with the confidence that universal childcare is here to stay.”
Judge Lujan found that Rodriguez and his co-plaintiffs lacked standing to bring the lawsuit. The three Plaintiff’s immediately appealed the dismissal directly to the New Mexico Supreme Court asking for a “writ of mandamus” or “writ of superintendent control” to order District Judge Lujan to reinstate the lawsuit. On July 22 the New Mexico Supreme Court unanimously dismissed the emergency request thereby affirming the District Court’s dismissal of the case.
REACTION TO SUPREME COURT DISMISSAL
On July 23, Governor Lujan Grisham wrote this in a statement posted to social media:
“This candidate lost in state district court, lost in the Supreme Court, and lost his bid to become the next governor of our state. … This means universal childcare in New Mexico is here to stay, and families have no more reason to fear that this life-changing program will be stripped away from them.”
Governor Lujan Grisham’s spokesman Michael Coleman said this about the Supreme Court’s ruling validating the administration’s handling of the initiative’s rollout:
“The governor appreciates the Supreme Court’s ruling on this lawsuit filed by a candidate trying to drum up free publicity for his losing campaign for governor. With this final court ruling, New Mexico families who were needlessly threatened by a mean-spirited and frivolous lawsuit can now rest assured that universal childcare is the law of the land and here to stay.”
Democratic gubernatorial nominee Deb Haaland celebrated the ruling and restated her commitment to furthering Lujan Grisham’s universal childcare program. Haaland said this in a statement:
“New Mexico Republicans and their candidates are not serious about lowering costs for families — and instead are trying to take opportunities away from them. We should be focused on strengthening and expanding cost-saving opportunities.”
Failed Republican candidate Duke Rodriguez criticized the ruling, arguing the state’s highest court disregarded the idea of having separate branches of government and allowed the executive branch to circumvent the Legislature. Rodriguez said this:
“Why have a Legislature at all? Why elect representatives? Why hold hearings? Why even debate legislation? Heck, why require votes?” he asked in an interview. “Why pretend there are separate branches of government? … Five Democrat justices can simply allow a governor to act first, bypass the Legislature, and then never explain the legal basis for permitting it?”
Former state senator Jacob Candelaria, the attorney representing Rodriguez and the two other plaintiffs in the case, expressed frustration at the Supreme Court for dismissing the appeal without a full written opinion. Although the Supreme Court justices did not publish a full written opinion in the case, all five concurred in the ruling. Candelaria said this:
“It’s a very unfortunate and undemocratic way of resolving these disputes. … The Supreme Court should do some soul-searching about how it negatively impacts views of the judiciary by acting in such a summary fashion.”
Candelaria also criticized many of his former legislature colleagues for approving the Lujan Grisham administration’s childcare initiative, despite concerns about its long-term price tag. He predicted future governors would use the Supreme Court decision to exercise broad executive powers without legislative approval and said “That should terrify everybody.”
Candelaria also said plaintiffs in the case will continue with their appeal of the initial lower court ruling to the state Court of Appeals.
Links to quoted or relied upon news sources are here:
https://www.koat.com/article/new-mexico-universal-childcare-lawsuit-dismissed/71571575
ENACTMENT OF UNIVERSAL CHILD CARE
It was in the fall of 2925 that Governor Michelle Lujan Grisham announced the Universal Childcare program making New Mexico the first state to offer no-cost childcare to all working families, regardless of their income levels. Before the initiative took effect in November, the state had offered childcare assistance to families making up to 400% of the federal poverty level or $132,000 per year for a family of four.
New Mexico’s program, which is financed in large part with revenue from oil and gas production in the state, was among the nation’s most generous before November’s expansion, waiving costs for families making up to 400% of the federal poverty rate or roughly $132,000 per year for a family of four. Legislative analysts raised questions about the sustainability of New Mexico’s expanded program, noting the state’s Early Childhood Education and Care Department (ECECD) started overspending just weeks into the November launch of the program.
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 the only state in the nation to offer its residents tuition-free college and no-cost universal child care.
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 November 1, 2025, an additional 12,666 families and 16,706 children have enrolled statewide with 63 new childcare providers registering to do 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 childcare this year. According to Early Childhood Education and Care Department Secretary Elizabeth Groginsky more than 60 new childcare providers around the state have had their applications approved.
The Universal Child Care Act (SB 241) establishes the statutory foundation for universal childcare 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 childcare assistance for a total childcare 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 for “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 childcare providers by prohibiting local governments and homeowners associations (HOA’s) from imposing restrictions on childcare 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 childcare homes in residential areas. The Governor said she hoped to knock down barriers to where childcare facilities can go.
GOVERNOR’S STATEMENT
During the bill signing, and in a statement issued, Gov. Michelle Lujan Grisham described the Universal Childcare 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.”
EARLY CHILDHOOD EDUCATION AND CARE DEPARTMENT REPORT
On December 9, 2025, the Early Childhood Education and Care Department (ECECD) released its “Child Care Assistance” report that analyzed data prepared by Legislative Finance Committee (LFC) staff for the 2025 Early Childhood Accountability Report. The report incorporated data trends observed since the announcement of universal childcare.
In the review, ECECD’s analysis confirmed that childcare supply and workforce are growing, especially for infant and toddlers, enrollment increases are sustainable, and the quality of care will continue to increase as it has throughout the history of the child care assistance program.
The Early Childhood Education and Care Department (ECECD) “Child Care Assistance Report” made the following key findings:
- RAPID EXPANSION HAS ALREADY OCCURRED. Significantly more children were made eligible in 2022 when the eligibility cap was raised to 400% of the federal poverty level (FPL) than in the launch of universal child care on November 1, 2025. The true accounting of children likely to participate in UCC is substantially less than projected by LFC staff.
- LOW-INCOME FAMILIES ARE ACCESSING CARE. New Mexico’s investments in the child care system benefit families across the income spectrum, including the lowest income families. Fifty-four percent of the families who have enrolled in child care assistance since November 1 have incomes below the previous eligibility cap.
- INCREASING NUMBER OF INFANTS AND TODDLERS BEING SERVED. Before Universal Child Care, infants and toddlers made up 29 percent of the caseload; under Universal eligibility, they account for 39 percent of new enrollments since November 1.
- CHILDCARE CAPACITY IS GROWING. Licensed childcare capacity has grown nearly 20% since 2019 and continues to increase. New capacity is in the pipeline through a variety of supply building strategies, including improved rates for child care providers and deployment of the Child Care Revolving Loan Fund.
- WORKFORCE CAPACITY IS GROWING. From 2019 to 2024, New Mexico’s child care workforce grew by 64 percent, even as the national child care workforce declined by 7.4 percent, according to the Cradle to Career Policy Institute (CCPI). New Mexico’s relative growth was the fourth highest in the nation.
QUALITY IS A KEY ELEMENT OF UNIVERSAL CHILD CARE
“Quality is a key element of Universal Child Care. Approximately 64% of children under age five who received child care assistance were served in 5-star licensed programs in fall 2025. This percentage has trended up over time. It averaged 62% in Fiscal Year 2025 Universal Child Care Brief Updated April 15, 2026. This version supersedes all prior versions. Universal Child Care Brief – April 15, 2026 2 (FY25), which is up from 58% in FY24 and 53 percent in FY23.”
SERVING LOW-INCOME FAMILIES REMAINS A CORE PRIORITY
“Serving Low-Income Families Remains a Core Priority Serving low-income and at-risk families is a priority of ECECD’s child care assistance program. From inception, the program has prioritized low-income families, children with disabilities, and teen parents. Recent changes to the child care assistance regulations removed barriers for additional at-risk populations to receive assistance … [including] grandparents raising grandchildren, families experiencing homelessness or Child Protective Services involvement, and families with babies born substance exposed are no longer required to meet activity requirements to receive assistance.”
INCOME DISTRIBUTION FOR THE NEWLY ENROLLED
“Since Universal Child Care regulations have been in place, 9,390 new families have applied for assistance and been determined eligible. Of those families, 44.8 percent had incomes under 400% FPL and therefore were already eligible for child care assistance. This suggests that the framing of child care assistance as a universal program and the publicity surrounding the announcement may have helped boost awareness across the income spectrum and reduced stigma that may have been associated with the program. Of the 4,206 previously eligible families who have joined the program since November 1, 2,506 had incomes below 200% FPL, and more than half of those (1,316) had incomes below 100% FPL.”
INCREASING NUMBER OF INFANTS AND TODDLERS BEING SERVED
“Increasing the number of infants and toddlers being served in infant and toddler care has been an ongoing critical priority. This age group requires more intensive and expensive caregiving than older children, which puts it in shorter supply and higher demand for working families who need quality, safe, and reliable care for their very young children. ECECD estimates that following the launch of the Universal Child Care program on November 1, the number of infants and toddlers eligible for child care assistance increased by 4,863, to a total of 38,966.”
The link to review the entire and unedited ECECD “Child Care Assistance” Report is here:
Click to access Universal-Child-Care-Brief_41526.pdf
COMMENTARY AND ANALYSIS
The New Mexico Supreme Court’s denial of the relief sought by the Plaintiff’s challenging the State’s Universal Child Care makes it more likely than not that the New Mexico Court of Appeals will also sustain District Court Judge Elaine Lujan’s decision to throw it out and dismiss the Plaintiff’s case. Simply put, District Judge Lujan’s dismissal of the case was correct and there was no abuse of discretion. Her decision was on sound legal ground when she found that the actions of the New Legislature and the enactment of the Universal Child Care Act and the funding of the program provided rendered the Plaintiff’s lawsuit “moot”. There was no abuse of discretion by Judge Lujan that required the New Mexico Supreme Court to reinstate the case thereby affirming the lower court.
It is extremely disappointing that Plaintiff’s attorney, and former State Senator Jacob Candelaria, would say this:
“It’s a very unfortunate and undemocratic way of resolving these disputes. … The Supreme Court should do some soul-searching about how it negatively impacts views of the judiciary by acting in such a summary fashion.”
Candelaria, as an experience trial attorney and former New Mexico legislator, knows better. Simply put, the Supreme Court did its job. The Court’s are not a “democratic way of resolving disputes”, but rather are responsible for reviewing the merits and facts of cases and applying the law in a fair and impartial manner. There was no abuse of discretion by District Court Judge Elaine Lujan with her dismissal of the case that required the extraordinarily remedy of asking the Supreme Court for a “writ of mandamus” or “writ of superintendent control” to order District Judge Lujan to reinstate the lawsuit.
TWO MAJOR CRITICISMS OF NEW MEXICO’S UNIVERSAL CHILDCARE
The two major criticisms of New Mexico’s universal childcare is that it is not sustainable because of the sure cost of the program and that free childcare should not be offered to families that can easily afford to pay those expenses themselves. The Universal Child Care Act address both concerns.
The sustainability issue was resolved, at least for now, with the Universal Child Care Act establishing the statutory foundation for universal childcare in New Mexico. The legislature appropriated 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 childcare assistance for a total childcare budget of $606 million, plus an additional $30 million, over three years, to support the early childhood wage scale and career ladder.
The Universal Child Care Act has built in triggers requiring co-pays for higher-income families. 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 childcare waitlists.
UNIVERSAL CHILD CARE BECOMES ISSUE IN GOVERNOR’S RACE
The universal childcare initiative is already emerging as an issue in this year’s race for governor, as Lujan Grisham is term-limited and will step down at the end of the year.
Democratic nominee Deb Haaland has embraced the program, saying it provides cost savings for New Mexico parents. Haaland said this in a statement after the Supreme Court ruling:
“As governor, I’ll continue to protect universal childcare and keep building an economy where working families can succeed because when we invest in our kids, we invest in the future of New Mexico. ”
Republican candidate for Governor Gregg Hull described the program as “great in concept” but raised questions about its long-term sustainability and potential for fraud. Hull has yet to elaborate in any detail his plans for the program and if he intends to scrap it in whole or in part and simply presumes fraud will occur without elaborating on what safeguards can be put in place to prevent fraud.
There is no doubt that free universal childcare for all New Mexico families is the defining accomplishment for Governor Michell Lujan Grisham. There is little doubt that the program will give an economic boost to all New Mexico working families and their children. All too often, New Mexico families must decide if both parents need to go to work simply to make ends meet and be forced to pay for childcare in order to get ahead. The question is if universal childcare will endure or if a Republican Governor Gregg Hull will simply decide to scrap the program out of fear of fraud and distain for social programs that help working families make ends meet and get ahead.
POSTSCRIPT
The link to a related Dinelli News and Commentary article is here: