A judge in New Mexico has dismissed a lawsuit challenging the state’s universal childcare program. This decision allows the program, considered ambitious and closely watched, to continue. The lawsuit was filed by Duke Rodriguez, a former Republican gubernatorial candidate, and other plaintiffs. They questioned the process used by Democratic Gov. Michelle Lujan Grisham’s administration, which removed an income cap and co-pays for childcare assistance before the legislature approved funding.

The attorneys for Lujan Grisham and the state’s childcare agency argued that the legislature has since authorized and funded the program’s expansion. This, they claimed, made the lawsuit irrelevant. District Judge Elaine Lujan agreed with this perspective, dismissing the lawsuit. As a result, the state will continue to cover daycare costs for families regardless of income. The judge also found that the plaintiffs lacked the standing needed to bring the lawsuit.

Rodriguez’s legal team has indicated plans to appeal the decision. Jacob Candelaria, attorney for the plaintiffs, commented, “Just because Lujan Grisham thinks she has a great idea doesn’t mean she gets to write the law and enforce the law.” The ruling prevents financial concerns for many childcare businesses and families who rely on free childcare as part of their household budgeting.

Governor Lujan Grisham responded positively to the ruling. “Today, Second Judicial District Judge Elaine Lujan dismissed a frivolous challenge to New Mexico’s universal child care program. This program is lawful and will continue to serve New Mexico families,” she stated on Facebook. She voiced that New Mexicans deserve certainty in their ability to plan finances and careers, free from worry over childcare support.

The program positions New Mexico as the first state in the U.S. to cover daycare costs for all families, providing parents or guardians work, study, or qualify for an exemption. This initiative is being watched across the nation as a potential model for reducing family costs and increasing public investment in childcare.

During the court hearing, Candelaria argued that the governor’s actions bypassed legislative input, which he called “a fundamental perversion of the separation of powers.” In contrast, Holly Agajanian, the governor’s chief general counsel, maintained that the lawsuit represented a policy dispute rather than a constitutional crisis.

Lujan Grisham cemented the program into law in February, contingent on the state’s financial health. New Mexico’s program, significantly funded by oil and gas revenue, was previously considered generous, waiving costs for families earning up to 400% of the federal poverty rate, approximately $132,000 for a family of four.

Legislative analysts have questioned the sustainability of the expanded program. They noted that the state’s Early Childhood Education and Care Department began overspending shortly after the expansion in November. In response, the agency proposed regulations to ensure sustainability, including potential copayments for higher-income families during financial downturns or unexpected increases in program enrollment.