New York’s Childcare Crisis: How New Mexico’s Model Could Plug the Workforce Gap

The implementation of universal childcare in New Mexico, set to begin in November 2025, has positioned the state as a national model, offering insights for New York City as it grapples with escalating childcare costs and workforce challenges. New Mexico’s program, funded by oil and gas revenues and trust funds, will provide no-cost childcare to all families regardless of income, saving an average of $12,000 annually per child. This initiative, hailed by experts as a transformative investment in family stability and economic growth, eliminates income eligibility criteria and raises reimbursement rates to cover the true cost of care for providersNew Mexico is first state in the nation to offer universal child care^[4]. By 2027, the state aims to expand childcare capacity through $12.7 million in low-interest loans for facility construction and partnerships with employers to address shortages, particularly for infant and toddler careNew Mexico is first state in the nation to offer universal child care^[4].

In contrast, New York City faces a stark childcare crisis. Approximately 445,000 families with children under five struggle with affordability, with 80% unable to cover costs. The average annual daycare expense for infants and toddlers in the city ranges from $18,000 to $26,000, exceeding 20% of the median household income of $79,713If New Mexico can figure out universal child care, so can New York …^[1]. This financial burden has contributed to a 186,000-child population decline in the city over five years, as middle- and lower-income families relocate. The economic consequences are severe: 212,000 women have exited the workforce since January 2025, reversing gains from 2023 when women’s employment reached a record 75%. Women’s labor contributes $7.6 trillion annually to U.S. GDP, underscoring the broader economic cost of childcare inequityIf New Mexico can figure out universal child care, so can New York …^[1].

New York City’s regulatory and financial barriers exacerbate the crisis. Start-up costs for childcare providers range from $10,000 to $50,000, compounded by inconsistent licensing requirements across agencies. Providers earn between $14–$28/hour, below the $25–$30/hour needed for a livable wage in the cityIf New Mexico can figure out universal child care, so can New York …^[1]. Zohran Mamdani, a mayoral candidate, has proposed subsidizing family childcare, raising teacher wages, and streamlining regulations to expand access. Advocates like Gladys Jones of ECE on the Move emphasize the need for public investment to offset delays caused by bureaucratic hurdles and costly complianceIf New Mexico can figure out universal child care, so can New York …^[1].

New Mexico’s approach offers a roadmap for New York. By removing income restrictions and prioritizing provider compensation, the state aims to attract 5,000 additional childcare professionals, addressing workforce shortages while ensuring quality care. New Mexico’s model also includes streamlined registration for informal caregivers, a strategy that could alleviate gaps in New York’s systemUniversal Child Care | Early Childhood Education & Care Department^[3]. Elliot Haspel, a child and family policy expert, advocates for separating regulations into health/safety mandates, quality standards, and less-evidenced requirements to reduce unnecessary burdensIf New Mexico can figure out universal child care, so can New York …^[1].

The political and economic case for universal childcare is compelling. In New Mexico, the program is projected to strengthen workforce participation and reduce financial strain on families, with reimbursement rates aligned to cover operational costsNew Mexico is first state in the nation to offer universal child care^[4]. New York’s leaders face pressure to act, as delayed solutions perpetuate the exodus of families and erode workforce stability. The Alliance for Quality Education has urged Governor Hochul to adopt a similar framework, emphasizing universal access as a public good essential to economic growthNew Mexico is doing universal child care, when will New York?^[2].

While New Mexico’s energy revenue provides a unique funding advantage, the core principles—public investment, equitable access, and workforce development—are replicable. New York’s challenge lies in navigating its complex regulatory landscape and prioritizing childcare as a critical infrastructure. With 186,000 fewer children in the city since 2020, the urgency for action is clear. As New Mexico demonstrates, universal childcare is not a polarizing issue but a pragmatic solution to sustain economic and social progressIf 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].