New Mexico judge to hear challenge to universal childcare program

A New Mexico judge is set to hear arguments regarding a legal challenge to the state's universal childcare program, which aims to eliminate daycare costs for all working families. The lawsuit, filed by former Republican gubernatorial candidate Duke Rodriguez and other plaintiffs, contends that Governor Michelle Lujan Grisham's administration unlawfully removed income caps and co-pays without legislative approval.

Rodriguez stated that the action was "executive overreach" and that the program was launched unlawfully. However, the state's childcare agency disputes this, asserting in court filings that lawmakers have since "expressly authorized" and funded the program's expansion, rendering the lawsuit moot. Governor Lujan Grisham signed legislation in February that enshrines the program into law, provided state finances remain healthy.

District Judge Elaine Lujan will consider the arguments, and her ruling could potentially pause the program, impacting thousands of New Mexico families and businesses. Ilene Harding, who operates seven daycare centers in the Albuquerque area, noted that the program's expansion has provided stability and streamlined billing for her centers.

New Mexico's program, largely funded by oil and gas revenue, was already generous before its November expansion, waiving costs for families earning up to 400% of the federal poverty rate, approximately $132,000 annually for a family of four. Legislative analysts have previously raised concerns about the program's long-term sustainability, noting that the state's Early Childhood Education and Care Department began overspending shortly after the November launch, though the agency attributed this to faster-than-expected enrollment growth.