Home-based child care serves as the backbone of America’s infant-toddler care system, representing nearly a third of all care for this age group. States like New Mexico are successfully tackling severe child care shortages by streamlining licensing, raising reimbursement rates up to $2,175 monthly, and reforming residential zoning laws.
The Bottom Line
- Nearly a third of infants and toddlers attend home-based care, making it far more prevalent than centers for this age group, which sit at 12 percent.
- New Mexico expanded its child care assistance and raised home-based infant and toddler care reimbursement rates to as much as $2,175 a month—a 58 percent increase.
- Senate Bill 96 mandates that all licensed and registered child care homes be treated as residential properties, stripping away costly and lengthy nonresidential permit hurdles.
Expanding Access Through Streamlined Licensing
When New Mexico announced its push toward no-cost universal child care, former nurse Yaneidy Gomez saw an opportunity to establish her own program in Hobbs, New Mexico. The state simplified the process significantly, allowing Gomez to apply for a license in March and pass inspection by April to welcome her first family. This swift turnaround highlights how removing bureaucratic tape empowers motivated providers to address critical regional shortages.
Home-based programs are vital for rural areas, immigrant communities, and families working nontraditional shifts, such as the oilfield jobs common in Gomez’s Cuban immigrant community. While child care centers capture only 12 percent of infants and toddlers, nearly a third of this youngest age group rely on home-based settings. Any genuine effort to close the infant-toddler care gap must reckon with this reliance.
Dismantling Financial and Zoning Barriers
Fixing the child care supply crisis does not inherently demand massive, perpetual funding streams or completely rewritten state policies. Instead, states can target the two primary roadblocks facing home-based providers: low reimbursement rates and restrictive local zoning ordinances. New Mexico tackled both head-on to build a sustainable local workforce.
The state elevated its reimbursement rates for high-quality infant and toddler home care to $2,175 a month, representing a 58 percent jump from previous figures. For a provider caring for six children, this shift secures an annual revenue exceeding $100,000, establishing a living wage that honors an historically undervalued profession. Alongside financial incentives, New Mexico enacted Senate Bill 96, which took effect on July 1. The legislation forces local governments to treat licensed and registered child care homes as residential spaces, eliminating expensive legal fees and lengthy nonresidential permit hearings.
| Reform Area | Previous Status | New Policy Impact |
|---|---|---|
| Reimbursement Rates | Significantly lower baseline rates | Up to $2,175 a month (58% increase) |
| Zoning Requirements | Lengthy nonresidential permit hearings | Treated as residential via SB 96 |
| Provider Growth | Fragmented supply pipeline | Over 70 new home-based providers licensed in a year |
Measurable Growth and Future Horizons
The combination of universal child care promises and practical administrative support has yielded immediate, tangible metrics. In the year following the state’s universal child care announcement, New Mexico licensed over 70 additional home-based providers, generating more than 700 new child care slots across communities.
Providers are utilizing this stability to scale their professional trajectories. Gomez is currently studying a structured curriculum, pursuing an associate degree in early childhood education, and aiming to elevate her program’s star rating to secure higher reimbursement tiers. Her two-year goal involves expanding her current operation into a fully licensed center. By aligning fair compensation with the actual cost of care and implementing thoughtful zoning reforms, New Mexico has forged a reproducible blueprint for stabilizing America’s early childhood infrastructure.
