Jan 7, 2026

Latest Update on Federal Funding for Child Care Assistance

While child care funding remains a topic in the news, ECECD is committed to keeping the early childhood community informed.

Visit the Early Childhood Education and Care Department Newsroom here .

January 7, 2026

Child Care Assistance Federal Funding Update

While child care remains a topic in the news, we want to keep you informed about recent developments with federal funding for the Child Care Assistance program.

What happened: On Monday, January 5, 2026, after close of business, the federal Office of Child Care sent states updated guidance about monthly reporting requirements under the Child Care Development Fund (CCDF). Please see ACF - Office of Child Care Bulletin .

What this means for you: The guidance asks for some additional details in our monthly reports to the federal government. The good news is that this information is already part of what we submit, so there will be no disruption to Child Care Assistance payments . Providers, you will not need to submit any new paperwork or information to receive your payments.

What else is happening: Also on Monday, the U.S. Department of Health and Human Services proposed rescinding certain CCDF policies that were put in place in 2024. See: HHS to Close Biden-Era Loophole That Let States Pay Child Care Providers Without Counting Attendance | HHS.gov . These proposed changes are in a 30-day public comment period. Based on what we know right now, we do not expect these proposals to affect child care operations, programs, or payments in New Mexico.

What's next: We are closely watching these developments and will keep you updated every step of the way. Child care is essential to New Mexico's children and families, and we are committed to supporting the provider community and families of young children through any changes ahead.

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