Could Missouri Create a Child Care Trust Fund Like New Mexico?
Across the country, states are exploring ways to make child care more accessible and reliable, and New Mexico is leading the way. The state now offers free child care for all families, removing income requirements and copayments, which is expected to save families around $12,000 per child each year. This program, backed by a 2022 constitutional amendment, dedicates a portion of New Mexico’s $10 billion Land Grant Permanent Fund to early childhood programs, helping increase provider wages, expand child care slots, and give children a stronger start.
Missouri families face some of the highest child care costs in the country, averaging about $10,000 per year for one child, which raises an important question: could Missouri create a Child Care Trust Fund like New Mexico and provide the same level of stability for families and providers?
Can Missouri Fix Child Care Funding with a Trust Fund Model?
Making child care affordable and accessible has been a long-standing challenge in Missouri. Federal programs and state-level subsidies provide some support, but they often don’t cover the full cost, leaving families to pay thousands of dollars each year and providers struggling with low wages.
To address this, Missouri could consider establishing a Child Care Trust Fund, modeled after New Mexico’s. By dedicating state resources to early childhood programs, such a fund could strengthen child care subsidies, improve provider pay, and expand access, helping make child care truly affordable for families across the state.
To understand how a Child Care Trust Fund could work in Missouri, let’s have a look at how New Mexico designed and implemented its program, creating a stable system that benefits families, providers, and children alike.
How New Mexico Built a Child Care System That Works
Governor Michelle Lujan Grisham took a bold step: free universal child care for every family, removing income requirements and copayments. What started as a program for families within certain income limits has now become a statewide model that reimagines what child care can provide, and a strong foundation for children’s development.
At the heart of this initiative, Voters approved a constitutional amendment dedicating part of New Mexico’s Land Grant Permanent Fund to early childhood education. This ensures child care providers are supported and the focus stays on quality rather than scrambling for short-term funding.
From the above scenario, it’s clearly shown that New Mexico’s model showcases it’s possible to create a child care system that works for everyone. For Missouri it offers a glimpse of what could be possible with a Child Care Trust Fund, transforming an ongoing challenge into a sustainable solution.
Steps Missouri Can Take to Secure Affordable Child Care
Missouri has the opportunity to follow New Mexico’s lead, but success would require specific policy changes and dedicated funding sources.
With a Child Care Trust Fund that could provide steady, long-term funding for early childhood programs can replace the uncertainty of unpredictable budgets.
But how could the state make this a reality? One approach could be setting aside a portion of an existing fund or creating a dedicated revenue stream specifically for child care, ensuring stability for years to come.
What else could make a real difference for families and providers?
- Increasing child care subsidies would ease the financial strain on households juggling work and family responsibilities.
- Improving pay and benefits for providers would attract skilled educators and keep them in the field, strengthening the early childhood workforce.
- Expanding access to high-quality programs, especially in underserved communities, would give every child a fair chance to learn, grow, and thrive.
Successful implementation requires collaboration between multiple stakeholders.. Policymakers, early childhood experts, advocacy groups, and community organizations all need to come together to design a fund that actually works for Missouri.
By paying attention to what families and providers really need, the state can make the system fairer, and sustainable.
Conclusion
At Child Care Aware of Missouri, we see every day how much families, providers, and communities rely on affordable, high-quality child care. New Mexico’s bold initiative shows what’s possible when a state invests in long-term, stable funding. Missouri faces its own challenges, but a Child Care Trust Fund could be the solution that brings stability, fairness, and opportunity to families and providers alike.
By dedicating resources, improving provider support, and strengthening subsidies, Missouri can create a system that provides every child with a strong start, every provider with a sustainable livelihood, and every family with a little more peace of mind.
