New Mexico, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.
State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.
Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.
Young Children in Low-Income Households: Declining
Approximately 49 percent (97,000) of the state’s children 0-8 live in households below 200 percent FPL (2022). This number represents a decrease from 57 percent (131,000) in 2017.1
Racial Disparity Among Young Children Living in Low-Income Households: High
Black, Hispanic/Latino, and Native children aged 0-8 are significantly more likely to be living in households below 200% FPL than are Asian and non-Hispanic White children.2
State General Fund Appropriations: Growing
In April of 2025, New Mexico’s governor signed the state budget for fiscal 2026. The budget totals $10.84 billion in recurring general fund spending, a 5.9 percent increase over fiscal 2025 levels. The legislature also passed $2.8 billion in nonrecurring spending and fund transfers including funding for supplemental appropriations, information technology, and transportation projects. The fund transfers include transfers to the government results and opportunity expendable trust and its program fund for multiyear appropriations to pilot a range of initiatives. The enacted budget is based on recurring general fund revenues of $13.63 billion in fiscal 2026, an increase of 2.7 percent from fiscal 2025. The state’s general fund reserves are estimated at $3.5 billion, which is 32.3 percent of recurring expenditures and includes $2.3 billion in the Tax Stabilization Reserve Fund, which is the state’s rainy-day fund.3
Largest Revenue Sources (After Federal Transfers):4
New Mexico uses all major state and local taxes. New Mexico’s per capita general sales tax revenue is relatively high in part because it taxes nearly all services while most other state exempt at least some services from tax. Charges are public payments connected with a specific government service, such as tuition paid to a state university, payments to a public hospital, or highway tolls.
State Budget Rules:4
New Mexico uses an annual budget. The legislature is not required to pass a balanced budget, nor is the governor required to sign one, and deficits may be carried over into the following year. However, the governor must submit a balanced budget, and own-source revenue and allowed borrowing must meet or exceed expenditures. New Mexico does not have any other tax and expenditure limits. The state also does not limit either authorized debt or debt service.
Permanent State Funding Streams Dedicated to Early Childhood: Yes
The New Mexico Early Childhood Trust Fund annually distributes $500 million that is dedicated to prenatal-to-five services and the state’s Early Childhood Education and Care Department.
A constitutional amendment also mandates a Land Grant Permanent Fund Distribution for Early Childhood Education. The distribution is equal to 1.25 percent of the total value of the fund and must be dedicated to early childhood education (60 percent of the allocation) and public education (40 percent of the allocation). The early childhood education distribution totals roughly $100 million annually.5
Political Alignment: Aligned Democrat
During the 2025 session, the state’s Senate and House were both Democratic controlled. The state’s Governor was also a Democrat.6
Types of Ballot Measures Available: Three
Key State Policy Advocacy Organizations Include:
Early Childhood Policy Advocacy Multi-State Initiatives Include:8
Highlights from the state’s early childhood policy advocacy community include:9
A piece of landmark legislation—the Early Childhood Education and Care Fund Transfer Increase (HB 71)—increases the minimum annual distribution from the Early Childhood Trust Fund from $250 million to $500 million, or 5%, whichever is greater. The increased distribution from HB 71 is expected to add $202 million to early childhood education funding in fiscal year 2026, without affecting the fund’s long-term sustainability. This will ensure continued access to essential programs, such as Home Visiting, Family Infant Toddler (FIT), Child Care Assistance, New Mexico pre-k, Tribal partnerships, and quality initiatives. The legislature’s appropriation bill, HB 2, increased funding for child care, pre-k, home visiting, and early intervention, partly through the increased distribution.
Advocates won passage of the Doula Credentialing and Access Act (HB 214), which establishes a voluntary credentialing process for doulas who want to enroll as Medicaid providers so that their services are accessible to those who may otherwise not have access to this key support in prenatal and birth care. Doula care is proven to reduce unnecessary C-sections, improve maternal and infant health outcomes, and lower postpartum depression. By reimbursing doula care through Medicaid, the state is investing in a healthier future for families and sustainable livelihoods for birthworkers, especially in communities that have been historically excluded and underserved.
The passage of HB 252 establishes a three-year pilot program to provide support to kinship caregivers in five to seven counties in the state with 50 participants chosen in each county. Program participants will receive cash payments and be connected to case management assistance, legal assistance, mental health support and respite care. Approximately 36,000 New Mexico children were being raised by grandparents or other next of kin in 2023—an increase from about 30,000 in 2017.
Advocates and policymakers also begun to prepare for an uncertain future for Medicaid by funding the state’s healthcare affordability fund, which strives to lower healthcare costs for all New Mexicans. The state took steps to address the possible federal impacts with the creation of a Medicaid Trust Fund, which can be used to support the state Medicaid program if there are cuts at the federal level—a proposed $880 million over the span of a decade.
The Alliance’s lead ally in New Mexico, New Mexico Voices for Children, is a nonpartisan, statewide advocacy organization that works to create systems-level sustainable change to improve the lives of New Mexico’s children in three key areas: family economic security, access to high-quality, cradle-to-career education, and health care and healthy communities.
New Mexico Voices for Children is working to advance early childhood policies in several areas:
Child Care
Child Care Workforce
Infant & Child Health
Family Economic Security
Click here for more information on advocates’ policy agenda.
A coalition of New Mexico advocates recently launched the New Mexico Guaranteed Income Pilot Program for Immigrant Families, an 18-month initiative to address poverty and economic security. The program’s evaluations are showing participating families reporting increases in housing and job security, as well as improved education outcomes for their children.
NOTES:
1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.
2 National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.
3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2026.
4 Urban Institute, State Fiscal Briefs, April 2025.
5 Alliance for Early Success, State Examples of Dedicated Funding Streams, 2025
6 National Conference of State Legislatures, 2025 State & Legislative Partisan Composition, January 31, 2025.
7 Ballotpedia, Ballot Measures by State, Kids Count Data Center, 2025.
8 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.
9 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2025.
