Here’s What Happens When Democrats Make Childcare ‘Free’
A “universal” childcare program in New Mexico pushed by Democrats faces exploding costs and maxed-out capacity.
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The headwinds for the program come a year after the state enacted a comprehensive program set to provide “free” childcare to all state residents. As costs already exceed early estimates, many people looking to become involved in the program have found there are no options open for their kids, The Washington Post reported on Monday.
New Mexico Governor Michelle Lujan Grisham, a potential Democrat presidential nominee in 2028, described the program as “building a rocket ship as we fly it.” The program, rolled out in November 2025 with a budget of $450 million, is projected to cost taxpayers up to $850 million in the next year, to the New Mexico Legislative Finance Committee.
“No one said it was an inexpensive enterprise, and likely it shouldn’t be,” Grisham told the Post. “It should be something that invests in child well-being and development, and that’s what we’re doing.”
On top of skyrocketing costs, supply of childcare slots has not kept pace with demand. Many looking to enroll in the program are finding themselves on long wait lists with providers that have had no capacity for years. There are currently thousands of parents waiting for openings.
“Families there are still calling around and finding no openings,” said Sara Mickelson, a former official with New Mexico’s Early Childhood Education and Care Department.
Republicans have criticized the childcare program as “nannies for millionaires” since there are no income limits on who can be involved in the program.
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“If you’re making that kind of money, you really don’t need this,” said state Republican Rep. Mark Duncan, referring to families with six-figure incomes who now qualify for the program. “Are we keeping kids who really need it out because they didn’t get there first? That’s my concern.”
During debate on the measure, Republicans raised concerns about how the program could quickly become bloated and extremely expensive.
“I’m concerned about what years four and five look like,” Republican state Senator Nicole Tobiassen said. “It’s volatile and I don’t know that it’s responsible.”
The embattled program has faced other controversies as well, including a lawsuit from the former chief financial officer of the New Mexico Early Childhood Education and Care Department accusing officials of punishing her for speaking up about the program’s expensive costs. That former official said that the program caused an $83 million budget shortfall.
So-called “free” daycare programs have been poorly implemented in other states as well, with one recent report from the New York Post exposing how New York City had shelled out almost $100 million to rent empty preschool classrooms. Those classrooms were meant to be used in the Big Apple’s universal preschool program.
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