A New Mexico judge is set to consider arguments Thursday in a legal challenge to the state's universal childcare program, an initiative designed to remove daycare expenses for all working families.
The lawsuit, filed by former Republican gubernatorial candidate Duke Rodriguez and other plaintiffs, contends that the administration of Democratic Gov. Michelle Lujan Grisham unlawfully eliminated an income cap and co-pays for childcare assistance. The plaintiffs argue this action bypassed legislative approval and funding authorization.
"This is executive overreach. The program was launched unlawfully," Rodriguez stated. He maintains that the governor's administration acted without proper legislative consent.
However, the state's childcare agency disputes these claims. In court filings, the agency asserts that lawmakers have since "expressly authorized" and funded the program's expansion, rendering the lawsuit moot. Governor Lujan Grisham signed legislation in February that enshrines the program into law, contingent on the state's financial health.
District Judge Elaine Lujan could issue a ruling on Thursday regarding whether the lawsuit can proceed. A halt to the program could impact thousands of New Mexico families by reinstating daycare payments and could create challenges for businesses.
Ilene Harding, who operates seven daycare centers in the Albuquerque area, noted that the program's expansion has led to increased enrollment and simplified billing processes. "We’ve always been financially solvent, but it’s given us stability," Harding said.
The legal challenge surfaces as New Mexico seeks to establish itself as the first U.S. state to cover daycare expenses for all working families, irrespective of income. The state's program, largely funded by oil and gas revenue, was already one of the most generous in the nation before its recent expansion. Previously, it waived costs for families earning up to 400% of the federal poverty rate, approximately $132,000 annually for a family of four.
Questions regarding the long-term sustainability of the expanded program have been raised by legislative analysts. Earlier this year, they noted that the state's Early Childhood Education and Care Department began exceeding its allocated budget shortly after the program's November launch.
The state agency acknowledged that enrollment growth surpassed projections, contributing to higher costs, but maintained that it was not over budget.