New Mexico is set to become the first U.S. state to offer universal child care. Starting in November, it will offer free care to all families regardless of their income.

New Mexico already has the most expansive child care assistance in the country. Since 2021, it’s offered free care to most households.

Right now, the cutoff is about $128,000 a year for a family of four. But footing the bill for everyone else will make a difference, said Jessica Brown, an economist at the University of South Carolina.

“I mean, even for middle- and high-income families, child care is expensive,” she said. “It takes up a huge fraction of people’s budgets, sometimes as much or even more than a mortgage.”

Universal free care could boost demand for child care in New Mexico, which could make it easier for centers to stay in business, Brown said. “OK. This is great, as long as people can still find slots for their kids,” said Brown.

The state’s existing program has boosted the number of slots by about 7%, according to research from the University of New Mexico. But the state’s program is paid for with surplus revenue from its oil and gas holdings. Brown said that makes it difficult for other states to replicate.