New Mexico Judge Dismisses Lawsuit Challenging Universal Child Care Program

A New Mexico judge has dismissed a lawsuit challenging the state’s universal childcare program, allowing the expanded benefit to continue for families across the state. The case was brought by former Republican gubernatorial candidate Duke Rodriguez and other plaintiffs, who argued that Democratic Gov. Michelle Lujan Grisham’s administration overstepped by removing income caps and co-pays for childcare assistance before lawmakers had formally approved the change. State attorneys countered that the Legislature later authorized and funded the expansion, making the dispute moot.

Second Judicial District Judge Elaine Lujan agreed with the state, ruling that the lawsuit should be thrown out and that Rodriguez and his co-plaintiffs lacked standing to sue. The decision protects New Mexico’s universal childcare rollout from an immediate legal threat and avoids possible disruption for families and daycare providers that have already adjusted to the program.

Plaintiffs’ attorney Jacob Candelaria said after the hearing that his clients plan to appeal. He argued that the governor cannot create and enforce law on her own, framing the case as a separation-of-powers issue rather than a policy disagreement. On the state’s side, Holly Agajanian, chief general counsel for the governor, said the lawsuit was an attempt to force the courts to settle a political fight over the merits of universal childcare.

Governor Lujan Grisham praised the ruling, saying the lawsuit was frivolous and that the program is lawful and will continue serving New Mexico families. She said the decision gives residents confidence that they can plan their families, finances and careers knowing universal childcare will remain available.

New Mexico has become a national test case for publicly funded childcare. The state is seeking to become the first in the U.S. to cover daycare costs for all families regardless of income, as long as parents or guardians are working, in school or qualify for an exemption. The policy has attracted attention from states including New York and California, where leaders are looking for ways to reduce childcare costs and expand access.

The program was already one of the country’s most generous before its November expansion. It had waived costs for families earning up to 400% of the federal poverty level, or about $132,000 a year for a family of four. In February, Lujan Grisham signed legislation that put the program into law, so long as state finances remain healthy.

Still, questions remain about the long-term cost of the initiative. Legislative analysts have warned that the state’s childcare agency began overspending only weeks after the expanded program launched. This week, the agency proposed new rules to improve sustainability, including possible copayments for higher-income families if oil prices fall sharply or enrollment grows faster than expected.

For now, the court ruling means New Mexico’s universal childcare system remains in place, with the state continuing to cover daycare bills for eligible families while policymakers weigh how to keep the ambitious program financially stable.