A New Mexico judge on Thursday rejected a lawsuit alleging that state leaders circumvented the public rulemaking process when implementing the new universal childcare program late last year.
Attorney and former state lawmaker Jacob Candelaria filed the suit in April on behalf of three Republicans. They include Duke Rodriguez, who ran for governor in the June 2 primary; and Zac Anaya, who ran for the state House of Representatives. Current state Sen. Steve Lanier (R-Aztec) also is a plaintiff in the case. All alleged that Gov. Michelle Lujan Grisham’s administration had run afoul of an old New Mexico Supreme Court decision in which Rodriguez, who at the time led Gov. Gary Johnson’s state Human Services Department, was accused of implementing a state program “without seeking legislative approval.”
Lujan Grisham first announced the universal childcare program last September and said it would save families about $12,000 per child annually. The program opened up to all New Mexico families on Nov. 1, 2025, and a new law — Senate Bill 241, which established criteria for when certain families are subject to co-payments — went into effect in May.
Candelaria spent much of his time before a judge Thursday arguing that the state Early Childhood Education and Care Department improperly implemented the program without doing the necessary rulemaking and public hearings that typically accompany substantial shifts in state policy.
Holly Agajanian, Lujan Grisham’s chief general counsel, countered that the Legislature had long given the department authority to increase eligibility for childcare assistance from the state and that the governor’s signing of SB 241 was a clear indicator of legislative support. She told a judge that the lawsuit was an attempt to get a court of law “to referee” a policy disagreement.
Second Judicial District Judge Elaine P. Lujan ruled Thursday afternoon that the case was moot, in large part because SB241 signaled clear legislative support and guidance for the childcare program.
Candelaria said he planned to appeal the case to the New Mexico Supreme Court.
“District courts get it wrong all the time,” he told reporters after the hearing, referring to a court ruling earlier this year that temporarily knocked an incumbent state lawmaker seeking reelection off the ballot before the state Supreme Court later reversed the lower court’s decision. “The judge, respectfully, made a huge mistake today.”
After the ruling, Holly Agajanian, Lujan Grisham’s chief general counsel, told Source NM that the decision was a “victory for the universal childcare program.”
“This was a political disagreement wrapped in a constitutional argument and the judge saw through that,” she said.
In a statement, Lujan Grisham’s Communications Director Michael Coleman said the lawsuit “caused New Mexico’s working families undue worry about their access to the program. With the judge’s ruling today, they can rest assured that universal childcare is here to stay.”
Lujan Grisham in a statement on social media praised the judge for dismissing “a frivolous challenge to New Mexico’s universal childcare program.”
“New Mexicans deserved better than a lawsuit that put them through weeks of unnecessary anxiety over a program they count on,” she wrote. “The judge’s ruling makes it clear: New Mexicans can plan their families, finances and careers with the confidence that universal childcare is here to stay.”
