All Roll Calls
Yes: 62 • No: 34
New MexicoSB 2412026 Regular SessionSenateWALLET
CHILD CARE ASSISTANCE PROGRAM ACT
Sponsored By: George K. Muñoz (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
12 provisions identified: 3 benefits, 2 costs, 7 mixed.
Child care help for eligible families
The law creates New Mexico's child care assistance program, subject to funding, for resident children generally under age 13. Children under 19 qualify if they cannot care for themselves because of a physical or mental condition, or are under court supervision. Each parent or guardian living with the child must have a qualifying activity or circumstance, or an approved exemption such as incapacity. Qualifying paths include work, education, approved training or apprenticeships, TANF receipt, homelessness, youth attending school, grandparent caregiving, foster parenting, and department-approved activities; job seekers can receive up to 90 days of help. The program supports care quality and parent choice among public, private, nonprofit, for-profit, faith-based, and tribal providers.
State funding supports child care help
The law creates an early childhood education and care fund and a separate program fund for operations. Every July 1, the program fund receives the greater of $500 million or 5% of the investment fund's average year-end market value for the preceding three calendar years. During fiscal years 2026–2031, lawmakers can approve up to $700 million total in additional transfers, without reducing the investment fund below $10 billion. The department must first use federal child care funds, including required state matching and maintenance-of-effort amounts, for federally eligible children and work to maximize eligible family tax benefits. The investment fund accepts appropriations, gifts, grants, donations, and investment income; the State Investment Officer invests it under prudent-investor rules with Investment Council approval and treasurer consultation, and reports quarterly and annually by October 1.
Budget triggers can delay family help
The department must use sliding-scale monthly copayments, a waitlist, or both for the rest of the fiscal year when a trigger occurs. Triggers include enrollment exceeding projections by 3%, reported August 1, or projected recurring general fund revenue growth below the prior year's annual consumer inflation change. They also include a 12-month average change in annual consumer inflation above 3%, or average fiscal-year West Texas Intermediate oil prices below $50 per barrel. The department can identify additional triggers. A waitlist is required whenever demand exceeds available funding for the fiscal year.
Limits on families' covered care hours
For households above 600% of the federal poverty level, assistance covers only hours supported by a parent's or guardian's qualifying activity schedule. Assistance generally cannot cover hours already covered by Head Start, Early Head Start, early pre-kindergarten, or pre-kindergarten. The department can allow overlapping assistance when it finds the help is necessary. Providers cannot bill or count duplicate program hours unless that exception applies.
Child care slots, caps, and priorities
The department must serve federally eligible children ages 6–12, but limits other children in that age group to 13,000 slots. The cap does not apply through age 18 to children under court supervision or unable to care for themselves. The school-age waitlist prioritizes at-risk children and ranks families from lowest to highest income as a share of the federal poverty level. When a funding-related waitlist applies, priority also goes to children with developmental delays or disabilities, at-risk children, and children under 3 in households below 400% of the federal poverty level. Priority does not guarantee a slot, and the department must report waitlist activity twice a year to legislative oversight committees.
Family copayments with income-based limits
The department can require family copayments, but must give parents or guardians at least 90 days' notice. When the sliding scale applies, households at or below 600% of the federal poverty level pay no copayment. Above 600% through 900%, payments are capped at 3% of annual household income and 25% of the average provider rate for the child's age group. Above 900%, the caps are 7% of annual household income and 50% of that average rate; the lower applicable cap controls. The income limit covers all children in care, monthly payments cannot exceed one-twelfth of the annual income cap, and providers cannot accept extra admission or enrollment payments or donations beyond the department-paid rate for covered hours.
Child safety checks and service access
The department must make at least two unannounced compliance visits to each child care facility every year. Participating facilities must maintain training to identify at-risk children and refer them to suitable department or tribal services, including home visiting and family, infant, and toddler programs. Facilities cannot unreasonably exclude early intervention providers and must notify the department within 48 hours of any exclusion. Early intervention providers need express permission from a parent, guardian, or custodian before working with a referred child. The department must create a way for early intervention providers to report suspected abuse or neglect at facilities, and facilities must report suspected abuse or neglect involving those providers.
Family paperwork rules with temporary access
Applicants must document eligibility, earned and unearned income, and New Mexico residence using a current driver's license or other approved proof. Federal residency rules apply to federally eligible applicants. The department can temporarily presume eligibility before receiving all documents, with proof of the child's residence and parentage or guardianship. This temporary access cannot last longer than federal rules allow for an initial application. Applications and later eligibility reviews must follow applicable federal rules.
Registered providers face repair funding limits
Registered, unlicensed child care providers cannot receive state or program funds for capital improvements, maintenance, or repairs. The department must create a pathway for these providers to obtain a license. The law does not set that pathway's steps, cost, or timing.
Provider disclosures and checks on misuse
The department must maintain controls that protect program money and keep assistance running. Suspected intentional misuse by a facility must go to local law enforcement and the district attorney or Attorney General, then to the State Auditor for investigation. Providers must report annually on participation, care hours, staff roles, qualifications, pay, and benefits; ownership reports due July 1 must include ownership structure, owners holding at least 10% equity, significant debts or liens, and recent ownership changes. Providers must report ownership changes within 60 days after closing. Children's Cabinet agencies must share needed program data, and the department must report annually by September 1, starting in 2026, on costs, rates, participation, assistance by eligibility, income and race within tiers, and facility reports.
Emergency transfers can use childhood funds
Lawmakers can move early childhood fund money to the general fund only to avoid an unconstitutional budget deficit. General fund balances, revenues, and authorized transfers must first be insufficient to cover that fiscal year's approved spending. Transfers must first exhaust the appropriation contingency fund, general fund operating reserve, tax stabilization reserve, and tobacco settlement permanent fund. Any childhood-fund transfer is limited to the amount needed for that year's approved spending, leaving less money in the early childhood fund.
Provider payments support wages and training
Subject to available money, the department sets provider rates using a federally compliant cost model, stakeholder input, and quality tiers. Rates must cover tier requirements and adequate staff wages, account for facility type, child age, full-time, part-time, and wrap-around care, and include higher rates for nontraditional hours. The department can offer enhanced monthly rates averaging no more than 10% above standard rates. Rules must set the pay-and-benefits share, wage scale, and career ladder, with prompt notice to lawmakers; participating facilities must also meet department training and certification pathways. Rates must receive federally required updates, and facilities cannot use child care assistance money to replace state school-formula, instructional, or general education funding.
Sponsors & Cosponsors
Sponsor
George K. Muñoz
Democratic • Senate
Cosponsors
Angel M. Charley
Democratic • Senate
Doreen Y. Gallegos
Democratic • House
Linda M. Trujillo
Democratic • Senate
Michael Padilla
Democratic • Senate
Mimi Stewart
Democratic • Senate
Peter Wirth
Democratic • Senate
Roberto "Bobby" J. Gonzales
Democratic • Senate
Roll Call Votes
House vote • 2/17/2026
Final House Vote
Yes: 37 • No: 19
Senate vote • 2/12/2026
Final Senate Vote
Yes: 25 • No: 15
Actions Timeline
Signed by Governor - Chapter 63 - Mar. 10
3/10/2026SenateSenate has concurred with House Amendments
2/18/2026SenatePassed in the House of Representatives - Y:37 N:19
2/17/2026HouseHAFC: Reported by committee with Do Pass recommendation with amendment(s)
2/17/2026HouseSent to HAFC - Referrals: HAFC
2/13/2026SenatePassed in the Senate - Y:25 N:15
2/12/2026SenateSenate Floor Amendment
2/12/2026SenateSFC: Reported by committee with Do Not Pass but with a Do Pass recommendation on Committee Substitution
2/11/2026SenateSEC: Reported by committee with Do Pass recommendation
2/6/2026SenateSCC: Reported by committee to fall within the purview of a 30 day session
2/5/2026SenateSent to SCC - Referrals: SCC/SEC/SFC
2/3/2026Senate
Bill Text
Final Version
3/10/2026
HAFC Committee Report 2/17/26
2/17/2026
Senate Floor Amendment 1 2/12/26
2/12/2026
SFC Committee Report 2/11/26
2/11/2026
SFC Committee Substitute 2/11/26
2/11/2026
SEC Committee Report 2/06/26
2/6/2026
SCC Committee Report 2/05/26
2/5/2026
Introduced
2/3/2026