New Mexico Gives Retired Grandparents Free Child Care

When 70-year-old grandparents suddenly find themselves raising toddlers again, finding affordable child care becomes nearly impossible. New Mexico just changed that with a policy that recognizes the reality facing thousands of families across the state.

The state's new universal child care program includes a game-changing detail: grandparents with legal custody no longer need to be working or in school to qualify for free care. For families living on fixed incomes and facing unexpected parenting duties, this shifts everything.

New Mexico has the highest rate of grandparent caregivers in the nation. Between 2021 and 2023, about 8% of children in the state were living with grandparents or other relatives, more than double the national average of 3%.

Many of these grandparents stepped in during family crises, often with little warning. The state's substance abuse challenges have intensified this need, with New Mexico ranking first in alcohol-related deaths and sixth in drug overdose deaths in 2021.

The old system locked them out. Most states tie child care subsidies to employment, leaving retired caregivers ineligible even as they struggle with costs exceeding $13,000 per year. About one in three grandparents raising grandchildren in New Mexico lives at or below the poverty line.

"We wanted grandparents to see that we see them and that we recognize they are doing hero's work," said Elizabeth Groginsky, the state's cabinet secretary for early childhood education.

The Ripple Effect

The impact reached beyond policy papers within weeks. Before the program launched, about 916 children in grandparent-led households received assistance. In just the first three weeks, 61 additional families were approved.

Child care provider Barbara Tedrow said she used to waive tuition for grandparents who couldn't afford care. "They were older, and they weren't working. They were in their 70s taking care of a two-year-old," she said. "There was no way they could afford the tuition."

For children who have already experienced trauma, consistent care makes a profound difference. Tedrow emphasizes that grandparents need help connecting kids with peers and stable routines. "I'm 70. I don't know where to go find two-year-olds for my granddaughter to play with," one grandmother told her.

Grandparents say what they need most is flexibility and respite. Not necessarily full-day care every day, but reliable breaks from the exhausting physical and emotional demands of raising young children while managing their own health challenges.

The state now faces the challenge of building enough capacity to meet demand, with plans for 55 new child care centers and over 1,000 additional home-based providers. New Mexico is offering low-interest loans, raising reimbursement rates, and reducing barriers to make it happen.

For the first time, grandparents stepping into parenting roles don't have to choose between giving kids the care they need and managing their own limited resources.