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New Mexico is the first state in America to guarantee free child care to every parent, starting Nov. 1.

Gov. Michelle Lujan Grisham made the announcement on Sept. 8. The state already had free child care available to families with incomes at or below 400% of the federal poverty level. But starting in November, the program will be available to all parents, regardless of income.

"By investing in universal child care, we are giving families financial relief, supporting our economy, and ensuring that every child has the opportunity to grow and thrive," Lujan Grisham said in a news release.

Here's what to know about the program, and if other states will follow suit.

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How does statewide free child care work?

Child care assistance program funds go directly to child care providers, not parents, said New Mexico Early Childhood Education and Care Department Secretary Elizabeth Groginsky.

Most child care providers in New Mexico − 85% − are part of the program. A parent applies for assistance through the state, with a specific care facility in mind. The state sets rates based on the age of the child, the care facility and the quality of care.

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Who's paying for New Mexico's universal no-cost child care?

New Mexico started planning for universal no-cost child care in 2019, when the state founded the Early Childhood Education and Care Department. In 2020, Lujan Grisham created the Early Childhood Education and Care Fund with $320 million from surplus oil and gas revenues and federal mineral leasing. The hope was for that fund to grow to $1 billion in 10 years, Groginsky said. The fund already has almost $10 billion.

The department gets yearly interest payments from that fund ($500 million or 5% of the fund’s three-year average balance, whichever is greater), and in 2022, New Mexicans voted to use a portion of the state's Land Grant Permanent Fund to fund early childhood education, providing the department an additional $178.7 million in fiscal year 2026. Next fiscal year, the department will receive $197.6 million.

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Could universal child care become a national program?

White House officials did not respond to a question from USA TODAY asking if the administration has made any plans to look into a national universal free child care program.

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