When childcare costs skyrocket and offices reopen, women pay the price
Miya Walker, a three-year-old mother from Georgia, says the childcare costs and forced returns to the office mean that she has become a home parent.
New Mexico is the first state in the United States to guarantee free childcare for all parents starting November 1st.
Governor Michel Lejean Grisham made the announcement on September 8th. The state has already made free childcare available to families with incomes below 400% of federal poverty levels. However, starting in November, the program will be available to all parents, regardless of their income.
“By investing in universal child care, we are ensuring that families support the economy and ensure that all children have an opportunity to grow and thrive,” Lejean Grisham said in a news release.
Here are some things you need to know about the program and whether other states will follow suit.
How does free childcare work across the state?
Elizabeth Groginsky, Director of Early Childhood Education and Care, said that funding for the parenting support program will go directly to parents, not to parents.
Most parenting providers in New Mexico – 85% – are part of the program. Parents apply for assistance through the state, with specific care facilities in mind. The state sets prices based on the age of the child, care facilities and quality of care.
Centres that are not participating in the program are opted out and are likely to have higher tuition fees, Groginsky said.
How much can a family save with universal free childcare?
New Mexico families save an average of $12,000 a year through the program, according to a news release.
Childcare costs are more than that for some families. According to a Wallethub analysis, single parents in New Mexico can spend more than a third of their income on childcare. Married couples in New Mexico spend more than 11% of their income on childcare.
Infant care costs are the highest, and childcare costs usually decrease as children grow. The average cost of center-based infant care in the United States is $1,230 per month, or $14,760 per year, according to a review of the World Population, and the cost of raising infants or infants does not meet the federal definition of affordable prices in any state (less than 7% of annual household income). According to the Institute for Economic Policy, the average annual cost of infant care in New Mexico is $14,244. Childcare for a 4 year old costs $9,993 a year.
“Childcare is the cost of living,” said Lena Bilik, program manager at the Roosevelt Institute.
Does the state have enough childcare providers to support all New Mexico families?
New Mexico needs 5,000 early childhood experts to make the universal child care system work, state estimates.
Groginsky said the state doesn’t have these additional experts by November. She does not expect supply to surpass demand from this year. This is because many families now send their children to childcare facilities by paying from their pockets. However, the state is moving forward to recruiting more teachers as more families enroll in the program.
“With the birth rates in New Mexico, we hope that this universal childcare will tempt more people to raise their families, and people move here and support our workforce,” Groginsky said.
The state is partnering with employers and school districts, employing more licensed and registered housing providers with higher reimbursement rates “to reflect true cost of care,” according to a news release. Programs that promise to pay entry-level staff a minimum of $18 per hour and provide 10 hours of care per day five days a week will receive an incentive rate. The minimum wage in New Mexico is $12 per hour.
“The reality is that this is not currently a job to support families to become child care providers. That’s a big part of why there’s not enough childcare,” Bilik said. New Mexico is certainly moving in the right direction, she said, and other states and local governments have also made progress in adjusting childcare wages. In 2022, the District of Columbia established the Early Childhood Educator Salary Equity Fund, providing early childhood educators with up to $14,000 in supplemental annual payments.
The state is establishing a $12.7 million low interest rate loan fund to build, expand and renovate childcare facilities. The state’s 2027 budget calls for an additional $20 million.
Who pays for universal, non-cost childcare in New Mexico?
New Mexico began Universal Nou Cost childcare plans in 2019, when the state established its early childhood education and care department. In 2020, Lejean Grisham established the $320 million Early Childhood Education and Care Fund from surplus oil and gas revenues and federal mineral leases. Groginsky said he hoped that the funds would grow to $1 billion in 10 years. The fund already has nearly $10 billion.
The division receives annual interest from the fund ($500 million or 5% of the fund’s three-year average balance, whichever is greater). In 2022, New Mexicans will use a portion of the state land grant to fund early childhood education, providing $178.7 million in 2026.
Are other states considering universal childcare?
Julie Kashen, senior and director of women’s economic justice at the Century Foundation, said there is growing demand for free childcare nationwide. Parents and employers have been on the lookout for the child care crisis for years.
During the Covid-19 pandemic, the federal government’s American rescue plan invested more in child care than any other era in American history. The nation has tasted something that supports parenting infrastructure during that time, Kashen said, and some states are now working on building that infrastructure.
In June, Connecticut established the Early Childhood Education Fund to create a universal kindergarten by 2032. Vermont’s 2023 law expanded childcare access by providing financial support to families and minimum wage standards for childcare workers.
In Multnomah County, Oregon, 3,800 families will have access to the Universal Kindergarten Program, funded by the county’s marginal income tax during this school year. Combined with other government programs, this means that 40% of preschool seats in the county are publicly funded, according to Ryan Yambra, the county’s communications coordinator. The county expands its program every year, and by 2030 it is on track to have a universal kindergarten for all county residents (11,000 seats), Yambra said.
Other jurisdictions are also floating parenting access programs, and childcare is the best mind for many voters. Most notably, New York City candidate Zohran Mamdani runs on a platform that includes free childcare.
Can Universal Childcare become a national program?
White House officials did not answer questions asking whether the administration plans to investigate a universal, free childcare program across the country, starting today in the United States.
Recent national childcare efforts “focus on employers’ tax cuts rather than investing in American families,” Kashen said. She believes that universal free childcare “must be a national solution” rather than spreading the state through the state.
“We can do big and difficult things when we want,” she said. “When we have a will, we find a way, and I think we can do it again.”
Madeline Mitchell’s role in covering women and caregiving economy at USA Today is supported by partnership with extremely and Journalism Funding Partner. Funders do not provide editor input.
You reach Madeline with memitchell@usatoday.com and @maddiemitch_ x.
Natassia Paloma, a contributor to the El Paso Times.
