2026 Updates to New Mexico’s Child Care Assistance Policies
New Mexico universal child care is currently in effect, and the state has removed the old income cap for the Child Care Assistance program. Families in Farmington, Aztec, and nearby Four Corners communities can apply through the state and use approved assistance at Kiddie Kamp Daycare.
New Mexico universal child care means most families can now access no-cost child care through the expanded New Mexico Child Care Assistance program. If you live in Farmington, Aztec, or nearby Four Corners communities, this update can significantly reduce your child care costs while giving you more flexibility in choosing a licensed provider like Kiddie Kamp Daycare. Kiddie Kamp accepts the New Mexico Child Care Assistance program at both locations.
What Changed: New Mexico’s Universal Child Care Law
Key takeaway: New Mexico universal child care is now law, removing income limits and expanding no-cost care statewide.
New Mexico universal child care officially became law on March 10, 2026, when Governor Michelle Lujan Grisham signed SB 241 into law, making New Mexico the first state to guarantee no-cost child care regardless of family income. The change started operationally on November 1, 2025, through Early Childhood Education and Care Department rules, then SB 241 put the funding and structure into law.
The old 400% federal poverty level cap, about $128,600 for a family of four, was removed. New families also have zero co-pays. For most families, the expansion eliminates child care costs that previously averaged more than $12,000 per child per year.
Who Qualifies Under the New Program
Key Takeaway: There is no longer an income cap for eligible families using licensed child care in New Mexico.
All New Mexico families with children eligible for licensed child care now qualify, regardless of income. Parents still need to meet the program’s work, school, or job training rules. The ECECD states that child care assistance is available regardless of immigration status, with state funds covering children who do not have federally eligible citizenship status. You can review official eligibility details through the Early Childhood Education and Care Department.
Kiddie Kamp accepts no-cost child care assistance at its Farmington and Aztec locations, so families approved through the state can use their benefits here.
What This Means for Families Currently Using Child Care Assistance
Families already enrolled in New Mexico child care assistance do not need to reapply just because the income cap changed. Families who were previously over the limit can now submit a new application.
Since the universal expansion launched on November 1, 2025, enrollment has grown steadily. As of July 2026, more than 47,000 children statewide are receiving child care assistance through the program.
How New Mexico Is Funding Universal Child Care
Universal child care is funded through the Early Childhood Education and Care Fund. SB 241 allows the state to draw up to $700 million between 2026 and 2031, as long as the fund stays above $10 billion.
This funding does not add a new tax for families. The law also includes a backstop: if oil revenue drops or inflation rises, the state can adjust co-pay rules for families above 600% of the federal poverty level.
What This Means for Kiddie Kamp Families
Kiddie Kamp has accepted child care assistance for years, before the universal expansion. Families can use assistance at Kiddie Kamp locations serving infants, toddlers, preschoolers, pre-K children, after-school students, and summer day camp kids.
That helps families with more than one child keep care in one familiar place. Kiddie Kamp is NAC 5 Star Accredited, and both Farmington and Aztec families can ask staff for help during enrollment. See child care assistance details, all our programs, or our preschool program.
Where Things Stand Today
Key Takeaway: The universal child care program’s legal standing is settled. The only lawsuit challenging it was dismissed at every level, and the program continues to operate statewide with no interruptions.
A lawsuit filed on April 16, 2026, by former Republican gubernatorial candidate Duke Rodriguez challenged the legality of the ECECD rules that launched universal child care before the Legislature passed SB 241. Rodriguez argued the governor overstepped her authority by implementing the program through rulemaking before lawmakers approved the funding.
The case was resolved at every level:
- On June 12, 2026, Second Judicial District Court Judge Elaine Lujan dismissed the lawsuit, ruling that the Legislature’s passage and funding of SB 241 rendered the legal challenge moot.
- On July 23, 2026, the New Mexico Supreme Court unanimously denied the plaintiffs’ appeal. All five justices concurred.
SB 241 took effect on May 20, 2026, formally codifying the program’s authority and funding structure through 2031. Universal child care is now both operational policy and settled law. Families do not need to take any action related to the former lawsuit.
How to Apply or Update Your Enrollment
New families can apply through the state’s portal or ask Kiddie Kamp staff to walk through the child care assistance process during enrollment. Existing assistance families do not need to take action to keep current benefits.
For local help, contact Kiddie Kamp through our contact page, call Farmington at 505-325-9667, or call Aztec at 505-334-8268.
Frequently Asked Questions
Does New Mexico offer free universal child care?
Yes. New Mexico is the first state in the U.S. to offer no-cost child care to families regardless of income. The program took operational effect on November 1, 2025, and Governor Michelle Lujan Grisham signed SB 241 on March 10, 2026.
Who qualifies for the New Mexico Child Care Assistance program?
All New Mexico families with children in licensed child care now qualify, regardless of income. Parents must still be working, in school, or in job training. There is no longer an income cap. The ECECD states assistance is available regardless of immigration status, with state funds covering children without federally eligible citizenship.
When did universal child care take effect in New Mexico?
New Mexico’s universal child care program took operational effect on November 1, 2025. SB 241 was signed into law on March 10, 2026, formally setting the program’s funding structure for the next five years.
Is there a co-pay for child care under the new law?
No, families enrolling under the universal expansion currently pay no co-pay. SB 241 does include a fiscal safeguard that could allow co-pays for families above 600% of the federal poverty level if oil revenues decline or inflation spikes.
How do I enroll my child in Kiddie Kamp using state assistance?
Contact Kiddie Kamp and staff can help you start the application through New Mexico’s Family Services Portal. Kiddie Kamp accepts New Mexico Child Care Assistance at Farmington and Aztec locations for children ages 6 weeks through 12 years across all programs.
Kiddie Kamp is enrolling now under New Mexico universal child care at both Farmington and Aztec locations. Call Farmington at 505-325-9667, call Aztec at 505-334-8268, or contact Kiddie Kamp for help getting started. Our team will walk you through the application process step by step.