New Mexico's Universal Childcare Is More Than a Policy—It's a Blueprint for America's Economic Future
By Vanessa Jupe, CEO of Leva
As a mom and the founder of Leva, I've spent years immersed in the daily realities of working parents. I’ve spoken with countless mothers who have had to leave the workforce simply because the cost of childcare, which averages over $10,000 per child per year in the U.S., made their careers financially unviable.*
This isn't a personal failing; it's a systemic one.
That's why New Mexico's recent move to make childcare a constitutional right is such a monumental step forward. By amending its constitution, the state has guaranteed access to early childhood education and care for all families, a first-in-the-nation initiative funded by its oil and gas revenues.
This is the kind of systemic solution that changes everything.
Freedom, Not Just Savings
For families in New Mexico, this new law is life-altering. The state now offers free or significantly subsidized childcare for nearly all residents, saving the average family with two young children up to $15,000 annually.
But the real value here isn't just the dollar amount. It's the freedom it provides.
At Leva, we help companies build support systems for their employees, and we know that the "mental load" of juggling childcare logistics is a massive barrier to professional growth. New Mexico's law lifts that burden, giving parents the freedom to:
Re-enter the workforce: It removes the financial penalty that forces many parents, predominantly women, to choose between a career and their family.
Pursue new opportunities: Parents can now afford to take a new job, start a business, or go back to school, knowing their children are in a safe, enriching environment.
Achieve financial stability: This policy directly increases household disposable income, allowing families to save, invest, and contribute more to their local economies.
The Economic Imperative: Why Every State Should Be Watching
This isn't just a social program; it's a powerful economic driver. Opponents often cite cost as a barrier, but the data show that universal childcare is an investment with a significant return.
A 2023 study by the National Bureau of Economic Research (NBER) found that for every dollar invested in high-quality early childhood education, the return to the public can be as high as $4 to $9 in terms of increased tax revenue, reduced healthcare costs, and lower crime rates.
Here's how a national rollout, modeled on New Mexico's success, would benefit the U.S. economy:
Strengthens the Labor Force: In the U.S., nearly 2 million parents of children aged 5 and under were forced to leave their jobs due to childcare issues. Providing universal access could bring a significant portion of them back into the workforce, directly addressing labor shortages.
Boosts GDP: A report from the Committee for Economic Development estimates that a nationwide investment in childcare could increase the U.S. GDP by $2 trillion over the next decade.
Benefits businesses directly: For employers, universal childcare supports access to top talent and increasing profitability. U.S. businesses lose an average of $1,640 per working parent each year to absenteeism, turnover, and hiring costs tied to childcare struggles. Altogether, the economy bleeds $122 billion annually from these disruptions. Every month, 1.2 to 1.5 million workers (90% of them women) are forced to cut hours or miss work due to childcare challenges. Universal childcare prevents these gaps, giving companies stable, diverse, and highly skilled talent pipelines.
Fosters Future Success: High-quality early education is proven to improve a child's cognitive and social-emotional skills, leading to higher graduation rates and lifetime earnings. This isn't an expense; it's an investment in our future workforce.
A Call to Action for a Stronger Nation
New Mexico has provided the blueprint. They've shown that it's possible to treat childcare not as a private burden for families to solve alone, but as critical public infrastructure—just like roads, schools, and libraries.
It's time for business leaders and policymakers across the country to recognize this reality. Investing in our children and supporting our working parents isn't just the right thing to do; it's the smartest economic decision we can make.
Let's champion this cause and build a future where every family in America has the opportunity to thrive.
About the Author
Vanessa Jupe is the CEO and Founder of Leva, a platform dedicated to providing comprehensive parental support and resources for working families and their employers. As a mother and a leader in the employee benefits space, she is a passionate advocate for systemic changes that support the modern workforce.
