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New Mexico Turns Oil Into Child Care. Why Can’t Maryland Do the Same?

Illustration depicting an oil pump next to a silhouette of New Mexico and a child, with the text "New Mexico turns oil into child care. Why can't Maryland do the same?"

New Mexico, one of the nation’s most energy-rich states, has quietly pulled off something Democrats in Maryland only dream about: “universal, free child care” without raising a single tax. How? By leveraging the state’s booming oil and gas revenues instead of squeezing already-overburdened families and businesses.

How New Mexico Did It

Back in 2020, New Mexico established the Early Childhood Trust Fund, seeded with $320 million from oil and gas royalties, production taxes, and lease bonuses. Thanks to the state’s position atop the Permian Basin—the single largest energy boom in America—the fund has swelled to over $10 billion by 2025.

This year, Gov. Michelle Lujan Grisham announced that starting November 1, child care would be free for all families with kids ages 0–5. No income tests. No copays. No bureaucratic games. Just coverage—funded entirely by oil money.

The numbers are staggering:

  • $11.3 billion in oil and gas revenues in FY2024.
  • $120 million more per year for child care on top of the existing $463 million budget.
  • A push to raise provider wages to $18/hour, plus $13 million in loans to expand facilities.

For working parents, that’s up to $12,000 a year in savings per child—life-changing money that helps keep people in the workforce.

Maryland’s Untapped Potential

Now contrast that with Maryland.

Western Maryland sits on more than a billion tons of coal reserves and extensive deposits of natural gas in the Marcellus Shale. A 2014 study estimated natural gas development could bring 3,600 jobs to Garrett and Allegany counties and billions in royalties and tax revenue.

Instead, what did Annapolis do? In 2017, lawmakers banned fracking outright. In 2025, when a bill to reverse the ban surfaced, Democrats killed it before it even reached the floor. Maryland imports most of its energy, pays some of the highest power bills in the region, and tells struggling rural counties to get used to “green jobs” that never quite materialize.

Meanwhile, coal mines that once sustained thousands are down to about 745 workers. Sixteen coal plants have been shuttered since 2012. The last big plant, Brandon Shores, will limp along until 2029 for grid stability—but Annapolis has already written its obituary.

If Maryland followed New Mexico’s example, royalties from its natural resources could bankroll universal child care, infrastructure, or even tax relief. Instead, ideology keeps billions locked underground while families pay more and get less.

The Global Hypocrisy: China’s Coal Surge

Here’s the kicker. While Maryland pats itself on the back for banning fossil fuel development, China is building coal plants at breakneck speed. In 2024 alone, Beijing started construction on nearly 95 gigawatts of new coal capacity—roughly the equivalent of one large plant every 1–2 days.

China now runs more than 1,100 coal plants, four times more than any other country. They call it “energy security.” In Maryland, we call it “climate leadership” to shut down what little we have left. The result? We handicap ourselves while the world’s largest polluter races ahead.

Pragmatism vs. Ideology

The lesson from New Mexico isn’t that Democrats suddenly fell in love with fossil fuels. It’s that they recognized a rare opportunity: use an energy windfall to fund progressive goals without punishing taxpayers. It’s called pragmatism.

Maryland Democrats, by contrast, seem content to cling to ideology. They could unlock billions for universal programs tomorrow, but that would mean admitting fossil fuels still have value. So instead, families face spiking bills, rural counties decay, and Annapolis blames “climate justice” for every broken promise.

If Democrats in Maryland truly cared about helping working families, they’d follow the New Mexico model: tap the resources we have, reinvest the proceeds in children and communities, and stop pretending ideology can heat homes or pay for day care.


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About Michael Phillips

Michael Phillips is a journalist, editor, creator, IT consultant, and father. He writes about politics, family-court reform, and civil rights.

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