New Mexico’s Free Childcare Lifts 120,000 Out of Poverty
New Mexico’s groundbreaking initiative to provide free childcare to most families, funded by a combination of pandemic relief, the Early Childhood Trust Fund, and a portion of the Land Grant Permanent Fund, has dramatically impacted families and early childhood educators. This program, expanding eligibility to families earning up to 400% of the federal poverty level, has significantly reduced poverty rates and improved child wellbeing, even amidst historically low median household incomes. Simultaneously increasing wages for childcare workers has lifted many out of poverty, creating a positive ripple effect across the state’s economy. While long-term impacts are still unfolding, early results indicate a substantial return on investment in human capital.