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Expanding Child Care Subsidies: Impacts of Increasing New Mexico's Income Eligibility Threshold

Description:

The State of New Mexico (NM) has undertaken unprecedent expansions in income eligibility for child care subsidies in the past two years. In August 2021, NM expanded the income eligibility threshold for child care subsidies to be the broadest ever in the United States. Using funds from the American Rescue Plan, the state increased initial eligibility thresholds from 200% of the federal poverty level to 350%, the highest income eligibility ever for subsidies in the U.S. On April 28th, 2022, NM announced an additional historic expansion: that beginning May 1, 2022, all families enrolled in the state's subsidy program, the Childcare Assistance Program, will no longer owe copays for child care services, thus making child care cost-free for thousands of families within the state. While this subsidy expansion is designed to support the dual Child Care Development Fund goals of encouraging parental employment and improving the quality of care for all children, the impacts of these policy changes on families are unknown. (author abstract)

Resource Type:
Administration for Children and Families/OPRE Projects
Principal Investigator(s):
Contact(s):
Country:
United States
State(s)/Territories/Tribal Nation(s):
New Mexico

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