SANTA FE – Gov. Michelle Lujan Grisham on Thursday announced the state of New Mexico will dramatically
expand its Child Care Assistance Program, doubling eligibility for families from 200 percent of the federal
poverty level to as much as 400 percent, a move targeted at supporting tens of thousands more families in need
all across the state — as well as helping more working families stabilize their financial situations, and
potentially be able to return to work, as the COVID-19 pandemic winds down.
The state also announced that New Mexico has used a cutting-edge cost estimation model to set new child care
subsidy rates paid to providers – the first state in the nation to do so. The new rates, effective immediately, will
increase subsidy payments to providers in all settings. These across-the-board increases will allow child care
businesses to better support the true costs of providing high-quality education and care to New Mexico’s
children. This move will help child care providers improve quality and expand offerings and, as a result,
enhance choices for parents and families seeking a full range of high-quality child care services.