A New Mexico judge is considering arguments in a lawsuit challenging the state's universal childcare program, which eliminated daycare costs for all working families. This was reported by Qazaqyia.kz citing Associated Press.
The hearing is scheduled for Thursday. The lawsuit, filed by former Republican gubernatorial candidate Duke Rodriguez and other plaintiffs, challenges the process used by Democratic Gov. Michelle Lujan Grisham's administration to eliminate an income cap and co-pays for childcare assistance without legislative input.
"This is executive overreach. The program was launched unlawfully," said Rodriguez, who lost his party's nomination in New Mexico's recent primary.
The state's childcare agency disputes this, arguing in court filings that lawmakers have since "expressly authorized" and funded the expansion, rendering the lawsuit moot. Lujan Grisham signed legislation in February enshrining the program into law, provided state finances remain healthy.
District Judge Elaine Lujan could issue a ruling Thursday on whether the lawsuit can proceed. A potential pause to the program would put thousands of New Mexican families back on the hook for daycare payments and create a headache for businesses.
Ilene Harding, who runs seven daycare centers in the Albuquerque area, said the expansion has boosted enrollment and streamlined billing. "We've always been financially solvent, but it's given us stability," Harding said.
New Mexico looks to cement its place as the first U.S. state to cover all working families' daycare bills regardless of income. The program is financed largely by revenue from oil and gas production. Before November's expansion, it was among the nation's most generous, waiving costs for families making up to 400% of the federal poverty rate, or roughly $132,000 per year for a family of four.
Legislative analysts have raised questions about sustainability, noting that the state Early Childhood Education and Care Department started overspending weeks after the November launch. The agency acknowledged enrollment grew faster than expected but disputed being over budget.