MLG’s “free” childcare program is ALREADY running a $60 million deficit

RGF fully expects the taxpayer-funded childcare scheme cooked up by Gov. Lujan Grisham and Democrats in the Legislature to become a nightmare on numerous fronts, but today’s post is on the financial aspect. Check out this document which was produced by the Legislative Finance Committee. Specifically, the part on page 2 about “Early Childhood” where it states the following:

“Projections for the Early Childhood Education and Care Department childcare assistance program show the department will likely overspend the program’s revenues in FY26 by an estimated $60 million if no cost containment efforts are put in to place before the end of the year.”

In other words, the program is already running a $60 million deficit for the current fiscal year (FY 2026) which ends on June 30.

Since the program was instituted by the Gov. on November 1 (without legislative approval) and only approved by the Legislature in the recently-completed 30-day session, what does this all mean? It means that “free” childcare is going to be incredibly expensive and that cost will be borne by New Mexico’s taxpayers in one way or another. And, more than likely, some future governor will have to make changes to the program to make it less-than-universal.