New York’s Struggle with Childcare: Could New Mexico’s Approach Help Bridge the Labor Shortage?

New Mexico is set to launch a universal childcare program in November 2025, making it a leader among states and providing valuable lessons for New York City as it faces rising childcare expenses and staffing shortages. Supported by revenues from oil, gas, and trust funds, New Mexico’s initiative will guarantee free childcare to all families, no matter their income, with families saving about $12,000 per child each year. Experts have praised this policy as a groundbreaking move for family security and economic development, as it removes income-based eligibility and increases provider payments to reflect actual costs New Mexico is first state in the nation to offer universal child care [ 4 ]. By 2027, the state plans to increase capacity by offering $12.7 million in low-interest loans for building new facilities and by working with employers to address shortages, especially for care of infants and toddlers New Mexico is first state in the nation to offer universal child care [ 4 ].

Meanwhile, New York City is grappling with a severe childcare shortage. Nearly 445,000 families with young children under age five struggle to afford care, and 80% cannot meet these costs. Daycare fees for infants and toddlers in New York City average between $18,000 and $26,000 annually—over 20% of the city’s median household income of $79,713 If New Mexico can figure out universal child care, so can New York … [ 1 ]. The financial stress has led to a drop of 186,000 children in the city’s population over five years, as many families with moderate or lower incomes move away. The impact on the workforce is significant: since January 2025, 212,000 women have left their jobs, undoing the record female employment levels reached in 2023. With women’s work contributing $7.6 trillion a year to the national economy, this highlights the wide-reaching effects of childcare inequality If New Mexico can figure out universal child care, so can New York … [ 1 ].

Regulatory and financial challenges are making New York City’s childcare crisis worse. Starting a childcare business costs between $10,000 and $50,000, and inconsistent licensing rules add to the difficulty. Providers are paid $14 to $28 per hour—less than the estimated $25 to $30 per hour needed for a decent standard of living in the city If New Mexico can figure out universal child care, so can New York … [ 1 ]. Mayoral hopeful Zohran Mamdani has suggested increasing public support for family childcare, raising teacher pay, and simplifying regulations to widen access. Advocates like Gladys Jones from ECE on the Move stress the importance of government funding to address delays caused by red tape and high compliance costs If New Mexico can figure out universal child care, so can New York … [ 1 ].

New Mexico’s strategy could serve as a blueprint for New York. By abolishing income qualifications and boosting pay for providers, the state intends to recruit 5,000 more childcare workers, tackling staff shortages and ensuring high-quality care. The model also streamlines the registration process for informal caregivers, a measure that could help close service gaps in New York Universal Child Care | Early Childhood Education & Care Department [ 3 ]. Policy expert Elliot Haspel recommends splitting regulations into health and safety requirements, quality measures, and less-supported mandates to cut down on unnecessary obstacles If New Mexico can figure out universal child care, so can New York … [ 1 ].

There is a strong economic and political argument for implementing universal childcare. In New Mexico, the program is expected to boost workforce participation and ease the financial load on families by setting reimbursement rates that match providers’ real expenses New Mexico is first state in the nation to offer universal child care [ 4 ]. Leaders in New York are under mounting pressure, as ongoing inaction fuels the departure of families and disrupts workforce stability. The Alliance for Quality Education has called on Governor Hochul to follow New Mexico’s example, stressing that universal childcare is a public benefit vital for economic growth New Mexico is doing universal child care, when will New York? [ 2 ].

Although New Mexico benefits from unique energy revenues, its focus on public investment, fair access, and workforce expansion could be adapted elsewhere. New York’s main hurdle is its complicated regulatory system and the need to treat childcare as essential infrastructure. With the city losing 186,000 children since 2020, the call for reform is urgent. New Mexico shows that universal childcare is not a divisive issue, but a practical approach to supporting economic and social advancement If New Mexico can figure out universal child care, so can New York … [ 1 ] New Mexico is first state in the nation to offer universal child care [ 4 ].