Full Breakdown
Judge Dismisses Lawsuit, Keeping New Mexico Universal Childcare Intact
6/13/2026, 1:42:22 AM
Background & Legislative Foundations
In the fall Governor Michelle Lujan Grisham unveiled a universal childcare plan that provides no-cost daycare to all working families, regardless of income. The initiative was codified in a February bill, took effect May 20, and authorizes up to $700 million from the Early Childhood Trust Fund over five years. The law removes income caps, extending eligibility to families earning up to 400 % of the federal poverty level.
Key Players and Legal Arguments
Former GOP gubernatorial candidate Duke Rodriguez and co-plaintiff Zac Anaya, represented by former state senator Jacob Candelaria, sued, claiming the Early Childhood Education and Care Department exceeded its authority by implementing the program before legislative appropriation. The state, defended by Governor Lujan Grisham and chief counsel Holly Agajanian, argued the program was subsequently authorized by the legislature and that the suit merely reflects a policy dispute.
Timeline of the Lawsuit
- Fall (last year): Gov. Lujan Grisham announces universal childcare.
- February: Legislature passes enabling bill.
- May 20: Law takes effect.
- March 10: Plaintiffs file suit.
- March 12: Judge Elaine Lujan dismisses case, citing lack of standing.
Program Reach and Financial Scope
Enrollment rose from 32,861 children in September to 45,996 by April. Funding, largely from oil and gas revenue, may overspend state revenues by tens of millions in the fiscal year ending June 30. Officials have proposed regulations, including possible co-payments for higher-income families if enrollment exceeds projections or oil prices fall.
Political and Policy Implications
New Mexico’s universal model is the nation’s first, attracting interest from policymakers in New York, California and beyond. The issue features in the current gubernatorial race: Republican nominee Gregg Hull praised the concept but warned of sustainability and fraud risks, while Democrat Deb Haaland pledged to expand the program.
Official Statements & Responses
Gov. Lujan Grisham called the lawsuit frivolous and affirmed the program’s legality, saying families can now plan with confidence. Judge Elaine Lujan ruled the plaintiffs lacked standing. State lawyers emphasized that legislators approved the agency’s funding and eligibility changes, framing the case as a policy dispute.
Criticism & Opposition
Rodriguez and Candelaria denounced the program as judicial activism and a breach of separation of powers. Hull warned of long-term fiscal strain and potential fraud, urging safeguards.
Verbatim Quotes
- “Just because (Lujan Grisham) thinks she has a great idea doesn’t mean she gets to write the law and enforce the law,” — Jacob Candelaria, attorney for plaintiffs
- “This program is lawful, and it will continue to serve New Mexico families,” — Michelle Lujan Grisham, Governor of New Mexico
- “We are not in a constitutional crisis,” — Holly Agajanian, Governor’s chief general counsel
- “Republican gubernatorial nominee Gregg Hull has described the program as “great in concept,” while questioning its long-term sustainability and potential for fraud.” — Gregg Hull, Republican gubernatorial nominee
What’s Next
Candelaria plans to appeal to the New Mexico Supreme Court. The Early Childhood Education and Care Department will likely adopt the proposed co-payment and enrollment-cap regulations later this year.
