In Albuquerque, New Mexico, a judge has dismissed a lawsuit challenging the state’s universal childcare initiative, allowing the widely observed program to proceed. The lawsuit, involving former Republican gubernatorial candidate Duke Rodriguez and others, questioned how Democratic Governor Michelle Lujan Grisham’s administration removed income caps and co-pays for childcare before legislative approval of funding.
Attorneys defending Lujan Grisham and the state’s childcare agency highlighted that legislators have since approved and funded the program’s expansion, making the lawsuit irrelevant. District Judge Elaine Lujan agreed, dismissing the case and allowing the state to financially support daycare for families regardless of income. The judge also noted that Rodriguez and his co-plaintiffs lacked the legal standing to file the suit.
Although the judge’s decision stands, Rodriguez’s legal team plans to file an appeal. Plaintiffs’ attorney Jacob Candelaria remarked, “Just because Lujan Grisham thinks she has a great idea doesn’t mean she gets to write and enforce the law.”
This ruling alleviates potential financial troubles for many childcare providers and families who depend on free childcare for budget planning. Lujan Grisham expressed satisfaction, stating, “Today, Second Judicial District Judge Elaine Lujan dismissed a frivolous challenge to New Mexico’s universal childcare program. This program is lawful and will continue to serve New Mexico families.”
She further asserted that the lawsuit caused unnecessary anxiety for families relying on the program. Her statement emphasized the confidence New Mexicans can have in planning their lives with universal childcare in place.
New Mexico aims to lead as the first U.S. state covering daycare expenses for all families, regardless of income, provided parents or guardians are employed, in school, or meet exemption criteria. The outcome is keenly watched nationally as states seek to lower family costs and boost public investment in childcare.
Attorney Candelaria argued that bypassing legislative input constituted “a fundamental perversion of the separation of powers” and emphasized the need to protect constitutional interests. Holly Agajanian, the governor’s chief general counsel, disagreed, stating, “We are not in a constitutional crisis.”
The governor had solidified the program into law in February, contingent upon stable state finances. New Mexico’s initiative, largely funded through oil and gas revenues, was highly generous even prior to its November expansion. It previously waived costs for families earning up to 400% of the federal poverty rate, about $132,000 annually for a family of four.
However, legislative analysts have questioned the program’s sustainability. Earlier this year, concerns arose as the state’s Early Childhood Education and Care Department began overspending soon after the November expansion. Recently, the agency proposed new regulations to support the program’s sustainability, including introducing copayments for higher-income families if oil prices drop significantly or enrollment surges unexpectedly.
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