Page 8

Page 8 | December 9, 2025 Health and Human Services: Childcare Assistance Assistance to Needy Families (TANF), (2) families living at or below 100 percent of the FPL, (3) clients transitioning off TANF, (4a) families living at or below 200 percent of the FPL, (4b) families living at or below 400 percent of the FPL, (4c) families above 400 percent FPL, and (5) children involved with the Children, Youth and Families Department. The above prioritization is issued if there are financial issues and not every child can be covered by Childcare Assistance. However, ECECD could consider instituting the tiered eligibility system. Arizona, Arkansas, Indiana, and Virginia have all instituted waiting lists for childcare assistance, which has helped to ensure that families are served based on prioritization and not on a first-come-first-serve basis.

Co-Pays. Co-pays have intermittently been required since the program’s inception. According to federal guidance, co-pays should be no more than 7 percent of a family’s income. Additionally, ECECD’s regulations state that no family living below 185 percent of the FPL should pay a co-pay. However, this regulation was waived between September 2020 and July 2021. On July 2023, families at or below 200 percent FPL were no longer required to provide co-pays. Additionally, with universal expansion in November 2025, ECECD also announced that all co-pays would be waived regardless of income level. Co-pays reduce the level of stress on government revenues. The Legislature could consider reinstating co-pays at a rate above the median income in New Mexico, at a sliding rate. This would allow for an estimated savings of $11.4 million annually— potentially allowing for an expansion in the number of children served if that money was put back into the childcare system.

GRO Pilot: Worker Wages. ECECD believes teacher pay is essential and linked to quality. Notably, New Mexico childcare teacher wages rank lower nationally than ratings for New Mexico administrator wages. In U.S. Census data, administrator wages are ranked second in the country, while childcare workers’ wages are ranked 15th. This disparity was first noted in LFC’s 2019 Early Childhood Accountability Report. At that time, New Mexico ranked 35th out of all states (and Washington D.C. and Puerto Rico) for childcare workers’ wages. Rankings improved significantly duing this time period, as did wages. In FY24, ECECD received a $15 million total government results and opportunity (GRO) fund appropriation to “pilot a wage and career ladder for infant and toddler early educators in classrooms with children whose families are enrolled in childcare assistance and to fund a study of the program.”

According to the 2019 LFC evaluation, Childcare Assistance Effectiveness, Vermont had the ninth highest childcare worker wages in the country. One potential reason for higher wages could be part of their quality rating system, which focuses on provider wages. Vermont has a five-level quality rating system based on points. To be a 5 five star provider, the programs needs to obtain a total of 12 to 14 points out of a possible 17 spread over six categories. Licensed programs can earn three points if the median adjusted pay for all employees is at least 85 percent of the state’s livable wage. ECECD could consider implementing a similar system and recently, in rule, implemented mandatory wage increases.

Average Salaries and Comparative National Rank of New Mexico’s Early Childhood Workforce Childcare Worker Avg. salary $35,261.20 National Rank 2019 35 National rank 2024 15 Childcare Administrators Avg. salary $97,739.20 National rank 2024 2 Source: 2024 Occupational Employment and Wage Statistics Data