New Mexico Lawmakers Propose $80M for Childcare Compromise

Plan includes co-pay for high-earning families to help fund universal access.

Published on Feb. 4, 2026

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New Mexico lawmakers have reached a compromise on expanding universal childcare, proposing an $80 million boost with $60 million for wage increases. However, the plan also includes a new co-pay for the wealthiest families earning above 400% of the federal poverty line, around 4-5% of their income.

Why it matters

The compromise aims to balance the need for affordable, accessible childcare with fiscal sustainability, as lawmakers initially resisted Gov. Lujan Grisham's $160 million annual request. The co-pay for high earners is seen as a fair way to help fund the program, though the governor opposes any co-pays.

The details

Lawmakers are backing an $80 million boost for universal childcare, with $60 million for wage increases. However, they are also suggesting a new co-pay for the wealthiest New Mexicans, around 4-5% of income for families earning above 400% of the federal poverty line (about $128,000 annually for a family of four in 2025). This was a key point of emphasis for some committee members who felt it was both fair and financially sustainable.

  • In 2025, the co-pay would apply to families earning above 400% of the federal poverty line.

The players

Michelle Lujan Grisham

The Governor of New Mexico who initially requested $160 million annually to expand childcare assistance to all families, regardless of income.

Nathan Small

The Democratic chair of the New Mexico House Appropriations & Finance Committee, who said the co-pay for high-income families was a significant point of emphasis for committee members.

New Mexico Voices for Children

An advocacy group that is not necessarily opposed to the co-pay plan and appreciates lawmakers' efforts to find a compromise.

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What they’re saying

“This was a significant sort of point of emphasis for a number of committee members who said, for those families who are in those highest income brackets, some amount of co-pay was both fair and also most financially sustainable.”

— Nathan Small, Chair, House Appropriations & Finance Committee (kob.com)

“She does not support co-pays when we have enough money to fund the initiative this year.”

— Spokesperson for Gov. Lujan Grisham (kob.com)

“We're encouraged that the House has really taken a big step toward funding that expansion of access for, really, slots for children.”

— Jacob Vigil, New Mexico Voices for Children (kob.com)

What’s next

Once approved, the budget bill will proceed to the New Mexico Senate for consideration.

The takeaway

The proposed compromise on universal childcare funding in New Mexico aims to balance the need for affordable access with fiscal sustainability, though the governor opposes any co-pays. The plan reflects lawmakers' efforts to find a middle ground that expands childcare while sharing costs with higher-income families.