Kentucky legislators recently met with representatives from New Mexico to learn about the state’s universal childcare initiative, which provides free childcare for all families, regardless of income.
Elizabeth Groginsky, New Mexico’s first cabinet secretary for the Early Childhood Education and Care Department, explained that the program initially relied on oil and gas revenues. However, Governor Michelle Lujan Grisham later diversified its funding sources.
“In her second year in office, she worked with the chair of the Senate Finance Committee to create the Early Childhood Trust Fund. It started with $300 million and has now grown to nearly $10 billion. We receive interest from that corpus—5% of the fund or $500 million, whichever is greater,” Groginsky said.
She added that the state also uses a portion of the land grant permanent fund.
To support childcare providers, New Mexico offers low-interest loans for building, expanding, and renovating facilities. Programs that pay entry-level employees at least $18 per hour and provide 10 hours of daily care, five days a week, qualify for higher incentive rates. The state reimburses childcare centers based on the cost of care, covering benefits like two weeks of paid sick leave and two weeks of paid vacation for staff.
New Mexico has provided half-day pre-K since 2005, but Groginsky said more needed to be done to improve outcomes for families.
“Unfortunately, we’re known for ranking 50th in areas we don’t want to be—like child well-being, nutrition, and poverty. The governor and legislature wanted to take bold action to give children and families a stronger start,” she said.
The universal childcare program, launched on November 1, is expected to save families about $12,000 per child each year.
According to the Annie E. Casey Foundation, Kentucky currently ranks 36th in child well-being.
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