Governor Signs Universal Child Care Law, Will Fraud Happen?

On March 10th, 2026, Governor Michelle Lujan Grisham signed universal child care into law, making New Mexico the first state in the nation to guarantee no-cost child care for all. 

According to her office, it sets young children up for success and helps make life more affordable for families.  

“All parents who need child care can now get it,” said Governor Lujan Grisham. “When parents are guaranteed no-cost child care, they can improve their family’s quality of life, fully engage in the workforce and contribute to our state’s economy. Families shouldn’t have to choose between paying rent or paying for child care, and as of today, they no longer will.” 

The governor signed the bills flanked by her favorite lawmakers, families, and children enrolled at Santa Fe’s Garcia Street Club School — the oldest preschool in northern New Mexico and the second oldest in the state, having served Santa Fe families since 1945.   

“I thank every legislator who sponsored these bills or voted to move them across the finish line to my desk,” Governor Lujan Grisham said. “Their support and hard work will make a profound difference in the lives of New Mexico families.”  

The bill did not have any specifics about how the State of New Mexico would combat any potential fraud which could occur coinciding with this new law. We reached out to the Governor’s office a week ago about the issues about this. They did not return our e-mail.

“I think fraud could be a very serious issue with this program. For starters, New Mexico’s program has zero copays and is 100% free. Minnesota has copays and was only for 150% of the federal poverty level. Perhaps even worse than the financial fraud is the concern about whether this program will be monitored in terms of the children and their well being. Home based programs will have relatives and other people in and out of the house and that presents a serious concern in terms of pedophiles and others who might do real harm to the children coming in and out of the home/child care facility,” said Paul Gessing, President of the Rio Grande Foundation, a government watchdog group.

Senate Bill 241, the Universal Child Care bill, was sponsored by Senators Michael Padilla, George Muñoz, Linda Trujillo, and Bobby Gonzales. House SponSerratoude Rep. Doreen Gallegos. Senate Bill 96, the child care zoning bill, was sponsored by Senators Heather Berghmans and Linda Trujillo, and Rep. Linda Serrato. 

SB 241, the Universal Child Care bill ensures that families across New Mexico can access affordable childcare regardless of their income. Since its launch on November 1, 2025, an additional 12,666 families and 16,706 children have enrolled statewide, and 63 new childcare providers have registered for business in New Mexico. Notably, more than half of the new enrollees were already eligible for assistance under prior programs. As a result, approximately 30,000 families and 44,000 children are expected to receive free childcare this year.  

SB 241 establishes the statutory foundation for universal child care in New Mexico, allowing the legislature to appropriate up to $700 million between 2026 and 2031 from the Early Childhood Education and Care Fund provided that the fund remains above $10 billion. New Mexico’s FY 2027 budget includes a $160 million increase for child care assistance for a total child care budget of $606 million, plus an additional $30 million, over three years, to support the early childhood wage scale and career ladder.  

The legislation also provides fiscal safeguards: if inflation spikes or oil revenues decline, the program can adjust co-pay structures to ensure sustainability of the program. 

We will be monitoring the shenanigans associated with the potential fallout closely.