SANTA FE, N.M. — As millions of voters cast their ballots in the ongoing election, many are focused on rising living costs, with child care being a top concern for families.
In Santa Fe, Maggie Wright-Oviedo and her husband, JJ Oviedo, enjoy the benefits of a state program initiated during the pandemic recovery. They currently pay nothing for child care for their two young children, baby Patricio and toddler Uriel.
“Without this program, we would be struggling a lot,” said Wright-Oviedo, 41, who works as a home-care nurse and a prison outreach worker. Her husband, JJ, 42, juggles multiple jobs, including working on a family ranch, cleaning rugs, and pursuing music. “This is the key for us,” she emphasized.
The program represents a significant achievement for Democratic Governor Michelle Lujan Grisham, who campaigned on the issue in 2018 and was re-elected in 2022. Both presidential campaigns are now eyeing similar initiatives for families nationwide.
Vice President Kamala Harris has proposed capping child care costs at 7% of families’ incomes and offering an expanded child tax credit of up to $6,000 for newborns. In contrast, former President Donald Trump has suggested that increased tariffs could cover child care costs, a claim that many economists view skeptically.
While New Mexico’s program is still new, experts believe its early success and bipartisan support illustrate the potential impact of government subsidies for young families. Two years ago, 70% of voters approved a constitutional amendment that allocates 1.25% of the state’s Land Grant Permanent Fund toward early childhood and public school education. This fund, established in 1912, is financed by taxes on revenue from nonrenewable resources, primarily oil and gas.
The program now channels over $150 million from fossil fuel producers into child care subsidies. Families earning up to 400% of the federal poverty level, or about $124,000 annually, qualify for free child care, and any existing copays are waived. With New Mexico’s median household income at approximately $62,000, more than 30,000 families are benefiting.
Elizabeth Groginsky, New Mexico’s inaugural secretary of the Early Childhood Education and Care Department, noted that the program is helping the state’s economy. “It enables parents to join or remain in the workforce, pursue education, and achieve financial stability,” she said, adding that workforce participation among mothers of young children has significantly increased since the funding began.
According to Labor Department estimates, child care costs for middle-class U.S. households typically range from 8% to 19% of earnings per child, exceeding the federally recommended 7% cap. In 2023, families paid an average of $11,600 for child care, representing 10% of a median-income married couple’s earnings and 32% for a median-income single parent.
Wright-Oviedo explained that without state support, her family would be spending $2,600 a month on child care, taking up at least half of their take-home pay. “When I found out the ballot measure passed, I cried. It was such a relief,” she recalled.
Although her family still lives paycheck to paycheck, they have started to reduce their student loan debt and recently purchased a reliable car. They hope to build their own home soon after renting from a relative.
While relieved about child care costs, Wright-Oviedo continues to support Harris, particularly for her health care proposals, which include forgiving medical debt, expanding at-home care, and lowering drug prices.
Wright-Oviedo mentioned that she is entering the “sandwich generation,” responsible for both young children and aging parents. As elder care costs rise, this demographic is seen as vital for electoral success. “Our loving moms are in their late 70s,” she noted, highlighting the challenges of juggling care for toddlers and elderly parents.
Experts caution that New Mexico’s model may not be easily replicated elsewhere. Taryn Morrissey, a public policy professor at American University, emphasized the unique nature of the state’s endowment and the financial challenges other states face. While some states are using their own funds to support child care subsidies, expanding eligibility and reimbursement rates can be costly.
New Mexico’s program has also made permanent a pay increase for daycare workers, initially funded by temporary federal aid during the pandemic. Entry-level workers now earn at least $15 an hour, with lead teachers earning $20 — a roughly 30% increase, according to the governor’s office.
Deyanira Contreras, director of Kids Campus Santa Fe, noted that many teachers previously had to work second jobs. Now, with better pay, they can focus on education. Randy Orona-Torres, a lead pre-K teacher at Kids Campus, shared that he used to pick up shifts at McDonald’s but now earns an additional $7 per hour and is receiving funding for his bachelor’s degree in early childhood education. “Teaching doesn’t feel like a struggle anymore,” he said.
Contreras pointed out that early childhood educators now earn more than public school teachers in New Mexico. Those with bachelor’s degrees can earn $59,000 annually, while those with master’s degrees can make $65,000.
“People used to think early childhood educators were just babysitters, but now we are receiving the recognition we deserve,” Orona-Torres stated. “We’re educators, too.”
Related Topics: