It goes without saying that parenting is hard. Being a working parent, however, might just feel downright impossible sometimes. People do it, though, and for those who do, we can’t emphasize enough just how impressive that is. In fact, a lot of parents in the U.S. are working parents: as of 2024, the U.S. Census Bureau reported that the labor force participation rate for all mothers with children under 18 was 74 percent; for fathers, it was 93.5 percent. Even as the number of working parents remains high, the task of being a working parent doesn’t get any easier. Employers can offer certain benefits to help alleviate some of the stress on working parents, but this comes with its own limitations. Cost, accessibility, finding which benefits actually help as opposed to the ones that don’t—these are all barriers faced by employers when it comes to finding ways to support working parents.
At Payday HCM, we’re familiar with both the stress of being a working parent as well as the need to offer or find employers who offer benefits that can help alleviate the stress of being a working parent. We have plenty of clients who ask us questions regarding benefits that can help working parents achieve a better work-life balance, including things like remote work options and child care resources. Of course, child care reimbursement is, perhaps, the cream of the crop when it comes to these benefits, but it’s something that may be out of reach for most employers. Starting November 1, 2025, New Mexico aims to alleviate a significant portion of the burden on employers and employees regarding child care.
So, in this article, we’ll be going over the recently expanded universal child care benefits in New Mexico and how the expansion of these benefits affects employers. We’ll start by going over the universal child care program, detailing its origins and eventual growth into what it will be starting on November 1, 2025. Then, we’ll cover the role employers play when it comes to NM’s universal child care benefits. Finally, we’ll go over some tips for how businesses can plan for the upcoming changes to NM’s universal child care program. By the end of this article, you’ll have a better understanding of NM’s universal child care benefits and how they can benefit both your business and your employees.
In this article, you will learn:
- Child Care Assistance in New Mexico
- NM Employers and Universal Child Care
- Tips for Employers Regarding NM Universal Child Care
Child Care Assistance in New Mexico
Firstly, before we dive into the role employers play in New Mexico’s universal child care program and what they need to know, we’ll go over the current child care assistance program and how it will change starting in November.
NM Child Care Assistance
In 2019, New Mexico Governor Michelle Lujan Grisham and the New Mexico Legislature created the NM Early Childhood Education and Care Department. The creation of this department consolidated oversight of all early childhood programs and services under the Early Childhood Education and Care Department.
The department includes bureaus like the Family Nutrition Bureau and the Child Care Services Bureau. The department and its bureaus oversee the organization of a variety of different programs, including NM’s child care assistance program. The Child Care Services Bureau also oversees the Regulatory Oversight Unit, which ensures licensed child care providers are providing safe and adequate care.
How Child Care Assistance in NM Works
Currently, the ECECD provides child care assistance to families with incomes at or below 400 percent of the federal poverty level. Since May 1, 2022, the ECECD has also provided waivers for copayments on child care assistance for any families that qualify for the program. The Child Care Services Bureau pays child care providers directly for those with child care assistance.
Those eligible for assistance include any parent, legal guardian, or grandparent who is currently working, searching for work, in school, or in a job training program with a child whose age is between 6 weeks and 13 years (or 19 years old for children with special needs). To apply for child care assistance, those eligible will need to fill out an application and supply certain supporting documents, including:
- Proof of income for any parent or guardian in the home.
- School schedule for any parent or guardian in the home.
- Verification of birth for all children in the household.
- Applicant photo identification.
- Proof of NM residency.
NM Employers and Universal Child Care
Now that we understand how the child care assistance program works, we can dive deeper into how it will change with the implementation of universal child care and how this affects employers.
How Will Universal Child Care in NM Work?
Starting on November 1, 2025, the ECECD will remove the income requirement from its child care assistance program and retain the waived family co-payments, meaning all New Mexicans will have access to child care assistance. The ECECD estimates this will save families around $12,000 in child care costs.
The ECECD and the New Mexico government are also establishing a $12.7 million low-interest fund to construct, expand, and renovate child care facilities. Currently, it is unclear how or if the expanded access will change the application process aside from the removal of income verification.
How Does Universal Child Care in NM Affect Businesses?
For businesses looking at the possible effects that the soon-to-be universal child care program will have, the first spot to look would typically be at how the program is funded. Currently, New Mexico’s child care program is funded by the Early Childhood Trust Fund as well as a portion of the Land Grant Permanent Fund and the federal Child Care Development Fund.
An additional ongoing cost of $120 million will also be budgeted to the ECECD with the introduction of the program; however, this amount will need to be approved by the New Mexico Legislature, according to the Washington Post. The state funds, according to High Country News, are largely made up of funds made from fossil fuels.
For child care vendors, the initial system for the ECECD reimbursing providers for the cost of a child’s specific care typically wouldn’t fully cover the cost for the business. Since 2021, however, the state has used a subsidy rate based on the actual cost of child care by performing a study on the cost of care. Governor Michelle Lujan Grisham reiterated the state’s intentions of providing reimbursement to child care providers based on the actual cost of care.
Tips for Employers Regarding NM Universal Child Care
Now that we have a clearer picture of what universal child care will look like in New Mexico and how it might impact businesses, we’ll share some tips on how businesses can prepare for the changes starting November 1.
How Can Businesses Prepare for Universal Child Care in NM?
With the information we have at the time of writing this article, the expansion of NM’s child care program to become more universal won’t have a large impact on businesses directly (unless you are a child care provider). Rather, much of the impact will be felt by working parents, regardless of whether you’re a business owner with children or an employee at a company with children.
This means businesses can take steps to inform their employees about the upcoming changes and share what information we currently have available. This communication can take the form of a company-wide email or a company meeting. It’s also best to ensure your HR department is equipped with the knowledge to answer any questions employees may have regarding the program.
Benefits That Help Working Parents
Ultimately, though, as helpful as the universal child care program has the potential to be for working parents within your organization, it doesn’t fully encompass all the different benefits that can help working parents retain a better work-life balance. The new program gives businesses an opportunity to reassess their benefits package and find potential places for improvement.
The child care program only covers children aged between 6 weeks and 13 years, or 18 years for children with special needs. This means that for new parents, things like paid family leave and hybrid work options can provide new parents with the time they need to care for their new child. Working parents with older children can also benefit from things like hybrid work options or flexible scheduling in order to account for all the unexpected things parenting has to offer.
Adopting a Universal Understanding of Universal Child Care
It’s safe to say that being a working parent isn’t exactly an easy task. While juggling your personal life and work life is something that everyone has to work on, working parents have to balance work with taking care of another human being. It’s not easy, and, unfortunately, working while raising a child can be extremely stressful, leading to adverse effects for both the child and their job. Striking that balance between work and personal life isn’t easy, and, for employers, it may not always be clear what kinds of things you can do to help your employees achieve that balance. With the information provided in this article, though, you’ll have the information you need not only to stay prepared for the latest legislative changes, but also to keep your employees informed on all the things that can help them balance parenting and working.
A good benefits package can mean the difference between hiring and retaining top talent and struggling to attract and retain people within your organization. Not only that, but a good benefits package can boost company morale, ensuring your employees’ needs are met on all fronts. But what kinds of things can a bad benefits package lead to? How do I know if it’s time for my business to take a closer look at its benefits offerings? Check out our article on the five problems of a weak benefits package and find your solution.
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