A New Mexico judge is scheduled Thursday to hear arguments in a lawsuit challenging the state’s expanded child care assistance program, which seeks to eliminate day care costs for all working families.
The lawsuit, filed by former Republican gubernatorial candidate Duke Rodriguez and other plaintiffs, argues that Democratic Gov. Michelle Lujan Grisham’s administration improperly removed an income cap and co-pays for child care assistance before the Legislature could consider or fund the changes.
“This is executive overreach. The program was launched unlawfully,” said Rodriguez, who lost his party’s nomination in New Mexico’s recent primary.
In court filings, the state Early Childhood Education and Care Department said lawmakers have since “expressly authorized” and funded the expansion, making the lawsuit moot. Lujan Grisham signed legislation in February that placed the program into state law as long as finances remain stable.
District Judge Elaine Lujan could rule Thursday on whether the case may proceed.
A pause in the program could require thousands of families to resume day care payments and could affect businesses.
Policymakers in states including New York and California are watching efforts to reduce family costs and increase public investment in child care.
The program is funded largely by New Mexico oil and gas revenue. Before the November expansion, it waived costs for families earning up to 400% of the federal poverty rate, or about $132,000 a year for a family of four.
Earlier this year, legislative analysts questioned whether the expanded program could be sustained, saying the Early Childhood Education and Care Department began overspending within weeks of the November launch. The agency said enrollment rose faster than expected, increasing costs, but disputed that it was over budget.