SB241 Codifies Universal Child Care, Establishes Transparency and Accountability Framework for Nation’s Only State-Funded Universal Child Care Program
(Santa Fe, NM) — The New Mexico Senate today passed Senate Bill 241, the Child Care Assistance Program Act, legislation that codifies the state’s groundbreaking Universal Child Care program into law. The bill, sponsored by Senators George Muñoz, Linda Trujillo, Michael Padilla, Roberto “Bobby” Gonzales, and Representative Doreen Gallegos, establishes a comprehensive framework to ensure the long-term sustainability of New Mexico’s child care assistance program while implementing critical transparency and accountability measures.
New Mexico is currently the only state in the nation to offer Universal Child Care, providing child care assistance regardless of income to parents and caregivers who work, attend school, participate in approved job training programs, or are searching for work. Grandparents raising their grandchildren do not have to meet these work requirements.
“This historic legislation protects and strengthens New Mexico’s investment in our children and families for generations to come,” said Senator George Muñoz, lead sponsor of SB241. “By codifying Universal Child Care in statute, we are ensuring that working families, students, and job seekers across our state have access to quality, affordable child care. This is not just about supporting parents, it’s about investing in New Mexicans.”
To support long-term sustainability, SB241 authorizes the Legislature to appropriate up to $1 billion from the Early Childhood Education and Care Fund between fiscal years 2026 and 2031, in addition to any other appropriation or distribution. The bill includes a clear fiscal guardrail: appropriations may not reduce the Trust Fund balance below $10 billion.
The legislation enhances child care quality through a tiered quality rating reimbursement rate system that reflects the true cost of delivering quality care. These rates incentivize providers to recruit and retain well-credentialed and compensated early childhood professionals. The bill also:
- Strengthens requirements around professional development, services, and coordination for children at-risk of developmental delays and disabilities
- Ensures the integrity and accountability of the Child Care Assistance Program through internal controls, unannounced inspection visits, compliance reviews, and reporting mechanisms
- Promotes parental choice by allowing parents to select care through a mixed-delivery system that includes public, private, nonprofit, for-profit, and faith-based providers
SB241 strengthens transparency requirements for child care businesses receiving public funds by requiring annual reports to the Early Childhood Education and Care Department that include:
- Basic business and ownership information
- All investments comprising a 10% equity stake or greater
- Details of all non-state sources of funding and investment
The legislation also increases legislative oversight by requiring the Department to submit annual implementation reports to the Legislative Health and Human Services Committee and Legislative Finance Committee, including program costs, participation data, updates to the cost estimation model and payment rates, and the distribution of child care assistance across the state by income, race/ethnicity, and quality rating tier.
The bill requires the Department to implement copayments and/or waitlists if certain economic conditions occur, and prioritizes children with developmental delays or disabilities, at-risk children, and children birth to age three in households below 400% of the federal poverty level if waitlists are enacted.
New Mexico’s unique position as the only state in the nation to offer Universal Child Care is expected to attract professionals in critical industries, including health care, education, and public safety, growing the state’s tax base and strengthening local economies. The program has far-reaching economic impacts, strengthens workforce participation, and supports the healthy development of young children.
The Child Care Assistance Program Act now goes to the House of Representatives for consideration.
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