This is a great way to kill a policy.
It would technically be most fair if every parent was given the same amount of money per child, period. Then they could do what they needed or wanted with it.
But doing so would not only increase the costs dramatically (by a multiple) it would give money to many parents who didn’t need it for child care.
That’s great in a hypothetical world where budgets are infinite, but in the real world they’re not. The more broadly you spread the money, the less benefit each person receives. If you extended an equal benefit to parents who were already okay with keeping their children home, it’s likely that the real outcome would be reduced benefits for everyone going to daycare. Now you’re giving checks to parents who were already doing okay at home but also diminished the childcare benefit for those who needed it, which was the goal in the beginning.
By your own argument, this policy dilutes the value New Mexico / Feds were prior giving to the poorer parents who met the means testing New Mexico used before, then, no? Because this isn't the beginning of "free" childcare in NM, they are just expanding it beyond the prior poverty-line times 'X" means testing.
Ergo per your logic "real outcome would be reduced benefits" to the poorer parents who already had subsidized childcare.
Edit: accidently switched "childcare" to "healthcare" a few times, flipped back