Pinnacle Gazette

New Mexico Judge Dismisses Lawsuit Against Universal Child Care Program

Governor Lujan Grisham celebrates ruling as opponents vow to appeal to state Supreme Court

Category: Politics

A New Mexico judge dismissed a lawsuit challenging the state’s universal child care program on June 11, 2026, affirming Governor Michelle Lujan Grisham's legal authority to implement the initiative. The ruling allows the program to continue serving families across the state without interruption.

The lawsuit was filed in April 2026 by former Republican gubernatorial candidate Duke Rodriguez and two other plaintiffs, who argued that the governor’s administration acted unlawfully by launching the program before it was codified by legislation. Judge Elaine Lujan of the Second Judicial District ruled that the case was moot, noting that a new law, Senate Bill 241, had taken effect since the lawsuit was filed, which provided clear legislative support for the program.

Key facts

  • Judge Elaine P. Lujan dismissed the lawsuit on June 11, 2026.
  • The universal child care program was announced in September 2025.
  • The program allows all working families to access no-cost child care, regardless of income.
  • Senate Bill 241, establishing co-payment criteria, took effect on May 20, 2026.

In her ruling, Judge Lujan sided with the governor’s office, which maintained that changing eligibility requirements for child care assistance was within their authority. "Not once in any of this legislative history can we see the legislature saying, ‘Hey, pump the brakes,’" said Holly Agajanian, attorney for the Governor’s Office, during the court hearing. She argued that the plaintiffs were attempting to challenge a policy decision rather than a legal one.

The universal child care program, which began accepting applications on November 1, 2025, is touted as a first-of-its-kind initiative in the United States, aiming to provide no-cost child care to all working families, saving them approximately $12,000 per child annually. The program has seen a substantial increase in participation, with enrollment rising from 32,861 children in September 2025 to 45,996 by April 2026.

Rodriguez and his co-plaintiffs claimed that the Early Childhood Education and Care Department had overstepped its authority by implementing the program without following the required public rulemaking process. Jacob Candelaria, the attorney representing the plaintiffs, stated, "The case doesn’t end here," indicating plans to appeal the ruling to the New Mexico Supreme Court. He expressed confidence that the Supreme Court would overturn the district court's decision, citing a recent case where the Supreme Court reversed a lower court ruling.

In response to the ruling, Governor Lujan Grisham issued a statement emphasizing the importance of the program for New Mexico families. "This program is lawful, and it will continue to serve New Mexico families," she said, calling the lawsuit a "frivolous challenge" that caused unnecessary anxiety for families relying on the program. She added, "New Mexicans can plan their families, finances and careers with the confidence that universal child care is here to stay."

The contextual background

The universal child care program was introduced by Governor Lujan Grisham as part of her administration's broader efforts to improve access to early childhood education and support working families. The program's launch was met with enthusiasm from many advocacy groups and families, who welcomed the financial relief it provided.

Following the program's announcement, the New Mexico legislature approved Senate Bill 241, which established criteria for co-payments and set financial safeguards for the program. This legislation, which took effect on May 20, 2026, authorized up to $700 million to be drawn from an early childhood trust fund over the next five years to support the initiative.

Supporters of the program argue that it addresses a pressing need for affordable child care in New Mexico, where many families struggle with the high costs associated with child care services. Critics, including Rodriguez and his co-plaintiffs, have raised concerns about potential overspending and the long-term sustainability of the program, particularly in light of the state's existing budget challenges.

What's next

With the judge's dismissal of the lawsuit, the universal child care program will continue to operate as intended, providing no-cost child care to eligible families. The plaintiffs, led by Candelaria, are preparing to appeal the decision to the state Supreme Court, which could take several months to resolve. Candelaria expressed optimism that the higher court would recognize the constitutional issues at stake.

As the appeal process moves forward, the future of the universal child care program remains a focal point in New Mexico's political discourse, particularly with the upcoming gubernatorial election. Current Republican nominee Gregg Hull has voiced skepticism about the program's sustainability, questioning its long-term viability and potential for fraud, whereas Democratic nominee Deb Haaland has pledged to continue supporting and enhancing the initiative.

In the meantime, the Lujan Grisham administration faces the challenge of increasing the availability of child care slots statewide, as demand continues to rise. Legislative Finance Committee data suggests that spending on the child care assistance program may exceed revenues by tens of millions of dollars in the current fiscal year, raising concerns about the program's financial stability.

As the appeal to the New Mexico Supreme Court is prepared, the stakes remain high for both supporters and opponents of the universal child care program, which has become a defining issue in the state’s political arena.