ALBUQUERQUE, N.M. — A New Mexico judge heard arguments Thursday in a challenge to the state’s fledgling universal childcare program, an ambitious and closely watched effort to eliminate daycare costs for families.
A lawsuit brought by former Republican gubernatorial candidate Duke Rodriguez and other plaintiffs challenges the process used by Democratic Gov. Michelle Lujan Grisham’s administration to eliminate an income cap and copays for childcare assistance before the Legislature had a chance to weigh in or approve funding.
Rodriguez, who lost his party’s nomination in New Mexico’s recent primary, called it “executive overreach.”
Jacob Candelaria, an attorney representing Rodriguez and the other plaintiffs, told Judge Elaine Lujan that the administration announced the program’s expansion first and later asked for the Democratic-controlled legislature to “rubber stamp” the policy.
“This is a fundamental perversion of the separation of powers,” Candelaria said, asking the judge to protect the “constitutional interests” of New Mexicans by allowing the lawsuit to proceed.
The state’s childcare agency argued in court filings that lawmakers have “expressly authorized” and funded the expansion, rendering the lawsuit moot. Lujan Grisham signed legislation in February enshrining the program into law, provided state finances remain healthy.
The judge could issue a ruling Thursday on whether the lawsuit can proceed. A potential pause on the program would put thousands of New Mexican families back on the hook for daycare payments and create a headache for businesses.
Ilene Harding, who runs seven daycare centers in the Albuquerque area, said the expansion has boosted enrollment and streamlined billing.
“We’ve always been financially solvent, but it’s given us stability,” Harding said.
The challenge comes as New Mexico looks to cement its place as the first U.S. state to cover daycare bills for all families regardless of income, provided parents or legal guardians are working, in school or qualify for an exemption. The stakes extend nationwide as policymakers from New York to California look for models to reduce costs for families and expand public investment in childcare.
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 already have raised questions about the sustainability of New Mexico’s expanded program, noting earlier this year that the state’s Early Childhood Education and Care Department started overspending just weeks into the November launch.
This week, the state agency proposed new regulations aimed at shoring up the program’s sustainability. Potential guardrails include copayments for higher-income families in the event of a significant drop in oil prices or enrollment in free childcare surging beyond state projections.
