New Mexico becomes the first U.S. state to offer free child care to all residents – CNBC

New Mexico’s Universal Child Care Program: A Report on Sustainable Development Goal Alignment

Program Overview

The state of New Mexico has initiated a universal child care program, becoming the first state in the U.S. to offer such services free of charge to all resident families, irrespective of income level. The program provides state-funded vouchers applicable to both public and private child care facilities for children up to the age of 13. This initiative represents a significant public investment aimed at enhancing economic stability, educational outcomes, and overall child welfare, directly aligning with several United Nations Sustainable Development Goals (SDGs).

Alignment with Sustainable Development Goals (SDGs)

SDG 1: No Poverty & SDG 10: Reduced Inequalities

The program is a direct intervention to combat poverty and reduce systemic inequalities within the state, where nearly 18% of the population lives below the poverty line.

• Financial Relief: By eliminating child care costs, which can amount to significant savings (e.g., an estimated $12,000 annually for one family cited), the program frees up household income for other essential needs, such as housing and utilities.
• Universal Access: The policy’s universal nature ensures that all families, regardless of their economic standing, have equal access to child care, thereby reducing the disparity in opportunities for both parents and children.
• Economic Empowerment: It enables parents to enter or remain in the workforce, pursue higher education, and improve their long-term financial stability, contributing to lifting families out of poverty.

SDG 4: Quality Education

New Mexico has historically ranked last among U.S. states in education and child well-being. The universal child care initiative is a foundational strategy to improve these metrics by focusing on early childhood development.

• Early Childhood Education: The program expands access to quality early childhood education, which research indicates is critical for improving long-term educational outcomes, particularly for children from low-income backgrounds.
• Addressing Educational Gaps: By providing a supportive learning environment from an early age, the initiative aims to better prepare children for elementary school and address the state’s below-average reading proficiency levels.

SDG 8: Decent Work and Economic Growth

The initiative serves as a key economic driver for the state by supporting the workforce and investing in the child care sector itself.

• Workforce Participation: Free child care removes a major barrier to employment, particularly for women, allowing for a more robust and inclusive labor force.
• Sector Development: The state is actively working to professionalize the child care industry by incentivizing higher wages. Providers that pay entry-level staff a minimum of $18 per hour—significantly above the state’s $12 minimum wage—receive increased reimbursement rates.
• Job Creation: The expansion of services necessitates the recruitment of an estimated 5,000 new educators, creating new employment opportunities.

Implementation and Challenges

Program Implementation Strategy

The state has outlined a multi-faceted approach to ensure the program’s success, funded primarily by revenue from its oil and gas sector.

1. Infrastructure Investment: A $12.7 million low-interest loan fund has been established to finance the construction and expansion of child care facilities.
2. Workforce Incentives: Higher reimbursement rates are being offered to providers to encourage competitive wages and staff retention.
3. Governance: The program is managed by the Early Childhood Education and Care Department, which was created in 2019 to centralize and advance early childhood initiatives.

Identified Challenges

Despite its ambitious goals, the program faces several significant hurdles.

• Capacity and Workforce Shortages: A substantial gap exists between current capacity and projected demand. The state needs to create nearly 14,000 new child care slots and recruit 5,000 qualified educators to achieve a fully universal system.
• Political Opposition: Critics argue that public funds should not subsidize child care for wealthier families and that the state should instead provide tax credits to encourage at-home parenting.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty – The article explicitly states that a primary goal of the free child care program is to “continue to lift New Mexico out of poverty.” It highlights that nearly 18% of the state’s residents live below the poverty line.
• SDG 4: Quality Education – The program is designed to improve education levels, which are ranked “the worst in the country.” It focuses on early childhood education and care, which research shows “lifts education outcomes.”
• SDG 5: Gender Equality – While not explicitly mentioned, universal child care is a key enabler of gender equality. It allows parents, particularly women who often bear a disproportionate share of child-rearing responsibilities, to enter or remain in the workforce. The article mentions the program supports families, allowing them “to work, to go to college.”
• SDG 8: Decent Work and Economic Growth – The initiative is described as a bid to “boost its economy.” It enables parents to work and creates new jobs by aiming to “recruit 5,000 educators” and increasing their wages, contributing to decent work.
• SDG 10: Reduced Inequalities – The program is universal, meaning “families, regardless of income, can receive state vouchers.” This directly addresses inequality by providing a crucial service to all residents, removing income as a barrier to access.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.
   • The article connects the program directly to this target by quoting the governor, who said child care is “the backbone of creating a system of support for families that allows them to… continue to lift New Mexico out of poverty.” The savings for families, such as the “$12,000 a year” mentioned, directly reduces financial strain.
2. Target 4.2: By 2030, ensure that all girls and boys have access to quality early childhood development, care and pre-primary education so that they are ready for primary education.
   • This is the central theme of the article. New Mexico’s program offers “free universal child care” to improve child welfare and education outcomes, which are currently ranked last in the nation. The state aims to create “nearly 14,000 more child care slots” to ensure access for all.
3. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
   • The program supports this target in two ways. First, it enables parents to work, boosting the labor force. Second, it aims to create “decent work” by recruiting 5,000 educators and “increasing reimbursement rates to providers that pay entry-level staff a minimum of $18 per hour,” which is significantly above the state’s minimum wage.
4. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
   • The program’s universal design, offering free child care to “families, regardless of income,” directly promotes economic inclusion and reduces inequality. It removes a significant financial barrier that previously excluded families who earned just above the income cap for assistance.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For Target 1.2 (No Poverty):
   • Indicator Mentioned: The poverty rate. The article provides a baseline: “Nearly 18% of New Mexicans live below the poverty line.” Progress can be measured by a reduction in this percentage.
   • Indicator Implied: Household savings on child care costs. The article gives a specific example of a family expecting to save “$12,000 a year,” which is a measurable impact on family finances.
2. For Target 4.2 (Quality Education):
   • Indicator Mentioned: The number of available child care slots. The state has a clear goal to “create nearly 14,000 more child care slots.”
   • Indicator Implied: Enrollment rates in early childhood education programs. The long waiting lists mentioned by a center director imply that tracking the number of children enrolled will be a key metric of success.
   • Indicator Mentioned: National rankings on education and child well-being. The article notes that the Annie E. Casey Foundation has “ranked New Mexico last among states in both education and child well-being.” Improvement in these rankings would be a long-term indicator of the program’s success.
3. For Target 8.5 (Decent Work and Economic Growth):
   • Indicator Mentioned: Number of new jobs created in the child care sector. The state aims to “recruit 5,000 educators.”
   • Indicator Mentioned: Wage levels for child care workers. The state is incentivizing providers to pay “a minimum of $18 per hour,” which can be tracked against the state minimum wage of $12.
   • Indicator Implied: Labor force participation rate. The program’s goal to allow parents “to work, to go to college” implies that an increase in the employment rate, particularly for parents of young children, would be a key measure of economic impact.
4. For Target 10.2 (Reduced Inequalities):
   • Indicator Mentioned: The universal nature of the program. The key indicator is that access is provided “regardless of income,” which can be measured by tracking the participation rates across all income brackets to ensure equitable uptake.

4. Summary Table of SDGs, Targets, and Indicators

Source: cnbc.com