Public hearing on cuts to CYFD’s child care assistance on Monday, July 8

SANTA FE—There is a public hearing on proposed cuts to the Children, Youth and Families Department’s Child Care Assistance program on Monday, July 8 in Santa FeCYFD’s proposed regulation changes will prevent thousands of parents who are working or in school from getting much needed child care and continue to require families to pay an unaffordable share of costs. 

The regulation would hurt hard working New Mexico families by cutting child care assistance eligibility to 160% of the Federal Poverty Level from 200%. This means fewer working families will have access to child care assistance, even though the program is one of the best work support programs available to help families exit poverty and increase financial stability.

CYFD’s proposed regulations also fail to address affordability for the child care assistance program. Unfortunately, CYFD requires low-income working families to pay an unaffordable share of their income toward copayments. The federal government has urged states to ensure affordability for child care assistance by capping the family’s share of costs at no more than 7% of their income. Under CYFD’s current copayment requirements, families often pay 10% or more. This makes it difficult for families to pay for other necessary expenses like food and housing. 

The proposed regulation and public comments on the proposed cuts can be found here: https://www.newmexicokids.org/ 

WHAT:          
Public hearing on proposed CYFD regulation that would cut eligibility to the state’s Child Care Assistance program

WHEN: 
Monday, July 8, 2019 at 11:00 am          

WHERE:          
Apodaca Hall, 1120 Paseo De Peralta, Santa Fe, NM 87502.

WHO:             
CYFD
Families who would be impacted by the proposed cuts
Other members of the public  

New Mexico has a long way to go to improve education system, charge Yazzie plaintiffs 

SANTA FE—Students still lack the basics that are necessary for a constitutionally sufficient education, charged the Yazzie plaintiffs of the landmark education lawsuit, Yazzie/Martinez v. State of New Mexico in a legal notice of case status filed with the First Judicial District Court today. 

“We know that the Public Education Department and the governor want New Mexico’s diverse student population to have the educational opportunities they need to succeed,” said Lauren Winkler, an attorney with the New Mexico Center on Law and Poverty. “Unfortunately, our legislature did not do nearly enough for our students this session. As a result, school districts have been unable to provide additional programming and supports for at-risk students like bilingual education and social services. In fact, many districts have been forced to cut basic programs like reading intervention and drop-out/truancy prevention, and they cannot meet the demand for pre-K programs.” 

Plaintiffs in the case are working with the governor and the PED on a plan to bring the state into compliance with the First Judicial District Court’s most recent February 2019 court order, which found that the state violated students’ constitutional rights to a sufficient education and ordered the state to provide educational programs, services, and funding to schools to prepare students so they are college and career ready.

The court ordered the state to take immediate action for at-risk students that face the deepest inequities and barriers to education, including low-income students, Native American and Latino students, English language learners, and students with disabilities. Judge Sarah Singleton’s initial ruling was in July 2018.

Since the court’s July 2018 decision, the Yazzie plaintiffs have worked with a broad group of educators, tribal members, community groups, and school districts to craft a platform of action necessary to transform New Mexico’s educational system to address the needs of at-risk children in compliance with the court orders. Most of the programs and funding in the platform, supported by plaintiffs, were blocked by legislative leaders and died in committees.

The New Mexico State Legislature increased education funding this past session, but school districts had to spend the bulk of the increase on a much needed raise for educators. Once districts allocated funds for the modest six percent raise, they did not have enough funding for basic educational necessities that would bring the state into compliance with the court’s ruling.

“We still have a substandard education system for our children. Our schools not only lack the basics, they lack the essential culturally relevant resources and materials, that our children need,” said Wilhelmina Yazzie, the lead plaintiff in the case who has children in the Gallup McKinley County Schools. “This is not acceptable. All our children deserve an equal opportunity to succeed. My hope is that the state will act upon the court’s ruling and make our children a priority. We cannot waste another year. Our children are the future of New Mexico, and they are sacred.” 

The notice of case status states that the Legislature’s increased funding is not sufficient to:

  • Cover basic instructional materials and technology for classrooms;
  • Ensure teaching is tailored to the unique cultural and linguistic needs of our students, including English-language learners and indigenous communities;
  • Adequately expand access to pre-K, summer school, after school programs, reading specialists, and smaller class sizes;
  • Ensure social services, counseling, health care and literacy specialists are available to all students who need them;
  • Invest in our educators to attract and retain new teachers and expand their qualifications, especially for special education, science, and bilingual education;
  • Adequately increase the transportation budget to ensure all students have the opportunity to participate in after-school and summer programs.

“Raises for teachers and support personnel were essential to recruiting and retaining employees. Rio Rancho is still seeing its teachers exit the profession and leave for better salaries. The most important support we provide students is a highly qualified teacher, but we struggle to find staff in every field. New Mexico must offer salaries that are competitive with neighboring states,” said Sue Cleveland, superintendent of the Rio Rancho Public School District. “But after satisfying the salary mandate, insufficient funds remained for programs such as pre-K and for addressing the needs for social workers, dual-language programs, and literacy specialists. We continue to run a deficit of $800,000 for transportation, diverting funds away from the classroom. Positive gains have been made, but there is still work to be done.”

While the Legislature significantly increased funding for extended learning through the K-5 Plus and the Extended Learning programs, the vast majority of at-risk students do not have access to these programs.

By the time the laws were passed, districts had little time to consult with teachers and parents to determine whether the districts could apply for the programs. Many districts did not apply for funding because they determined that the money available would not cover the actual cost of the programs; the program requirements were too strict and inflexible; and they did not have time to determine whether they could implement the programs.

The Legislature also increased funding for pre-K for four-year-olds, but thousands of families who applied for the program still do not have access.

The Yazzie plaintiff’s Notice to the Court of Case Status in Yazzie/Martinez v. State of New Mexico can be found here: http://nmpovertylaw.org/notice-yazziemartinez-v-nm-yazzie-plaintiffs-2019-06-28/

The final ruling in Yazzie/Martinez v. State of New Mexico can be found here: http://nmpovertylaw.org/wp-content/uploads/2019/02/D-101-CV-2014-00793-Final-Judgment-and-Order-NCJ-1.pdf

Law guaranteeing basic wage protections for home care and domestic workers goes into effect today

SANTA FE—A law goes into effect today that ensures home care and domestic workers—the people who clean homes and deliver care for others—are protected by New Mexico’s minimum wage standards and other wage protections.

Under the Domestic Service in Minimum Wage Act, domestic and home care workers are now covered by New Mexico’s wage laws, and the New Mexico Department of Workforce Solutions can investigate their complaints, enforce their rights, and recover their wages and damages.

“Talking with domestic workers, we have found that this is a growing industry and many of these workers in the past didn’t have anywhere to go to when they have been the victims of wage theft,” said Hilaria Martinez, a community organizer for El CENTRO de Igualdad y Derechos.

“Our domestic worker committee has found that cases like these keep increasing, especially to women in this field and other minorities in our community,” Martinez added. “Therefore, after years of hard work and community organizing, I am glad to see this law go into effect to deter workplace exploitation for domestic workers and for them to finally be valued like any other worker in our state.”

Domestic workers have been left out of many labor protections throughout history, and typically had very few options when they were not paid.

The Domestic Service in Minimum Wage Act, sponsored by Sen. Liz Stefanics and Rep. Christine Trujillo, ended the exemptions for domestic workers from New Mexico’s wage laws—as has already been done at the federal level.

New Mexico law generally requires employers to pay employees minimum wage and overtime, keep records, and pay employees in full and on time. However, like other wage laws enacted in the 1930s, it excluded large categories of work typically performed by women and people of color from the minimum wage and other protections.

Federal law eliminated its exclusion of domestic workers years ago, but lacking state protections, New Mexicans who work in people’s homes were not protected and were subject to low or no pay and exploitative situations.

“The Domestic Service in Minimum Wage Act was a culmination of years of work, including listening sessions with caregivers. The New Mexico Legislature recognized that it’s high time to ensure all workers, including people who work hard in other people’s homes, are guaranteed fundamental labor protections just like everyone else,” said Adrienne R. Smith of New Mexico Caregivers Coalition. “Domestic workers’ historical exclusion from the federal labor laws is an ugly vestige of slavery. The federal government righted that wrong years ago. We are overjoyed that today New Mexico has finally done so as well.”

In the 2017 New Mexico legislative session, the New Mexico Caregivers Coalition successfully spearheaded Senate Joint Memorial 6 that created a statewide taskforce to recommend short-term and long-term actions to promote a stable and growing workforce to meet the needs of seniors and individuals with disabilities who rely on these services in order to live independently in their communities.

“There is nothing more important than taking care of New Mexico’s children, elderly, and family members with disabilities,” said Alicia Saenz a member of El CENTRO de Igualdad y Derechos. “It is invisible work and historically, our work has not been given the value it deserves. I am proud to provide these services to my community. The implementation of this law today is a step in the right direction to give domestic workers the respect and dignity they deserve.”

“This law was the result of people doing some of the toughest jobs—like caring for others’ loved ones—coming from around the state, sharing their stories, and speaking up for fairness,” said Stephanie Welch, supervising attorney at the New Mexico Center on Law and Poverty. “Domestic and home care workers are now entitled to the state minimum wage and can file a claim with DWS when they are not properly paid.”  

###


The New Mexico Caregivers Coalition advocates for direct care workers’ education, training, benefits, wages and professional development so they may better serve people who are elderly and those with disabilities.

El CENTRO de Igualdad y Derechos is a grassroots, Latino immigrant-led organization based in Central New Mexico that works with Latino immigrant communities and allies to defend, strengthen, and advance the rights of our community.

The New Mexico Center on Law and Poverty is dedicated to advancing economic and social justice through education, advocacy, and litigation. We work with low-income New Mexicans to improve living conditions, increase opportunities, and protect the rights of people living in poverty.

Stop Trump’s attack on immigrant families!

The Trump administration is proposing a new rule that would force immigrant families to decide between living together and separating to avoid eviction from housing. 

In May, the U.S. Department of Housing and Urban Development proposed a new rule that would prevent “mixed status” families from living in public housing together or receiving Section 8 housing vouchers. Mixed status families consist of family members who are both eligible and ineligible to receive public housing assistance based on their immigration status.

Under current rules, ineligible family members can live in the same household with their family, but the amount of HUD assistance is based upon the number of eligible family members. None of the public housing assistance pays for an ineligible family member’s share of rent.

The Trump administration’s proposed rule is a blanket attack on all immigrant families who need housing assistance. A person can have lawful immigration status, but still not be eligible for housing assistance. Examples of immigrants with legal status who do not qualify for public housing assistance include immigrants with student or work visas as well as survivors of serious crimes who are granted U-visas.

Please tell the Trump administration to abandon this harsh and unfair rule!

HUD’s own analysis states that over 55,000 children who are U.S. citizens or green card holders could be evicted from their family homes under the proposed policy. 

It would also force tens of thousands of housing providers to collect documents from residents “proving” their citizenship. This requirement will impact over nine million U.S. citizens and 120,000 elderly immigrants. Many of these tenants, especially the elderly and those who have disabilities, face serious obstacles accessing required documentation.

Tell the Trump administration to keep families together in New Mexico and the nation by submitting your public comment by July 9, 2019!

Below is some content to include in your comment. To maximize its impact, make sure your comment has at least one third original text. You can submit your comment here: https://www.regulations.gov/docket?D=HUD-2019-0044

Sample content for your public comment:

  • Families will face the decision of either breaking up in order to receive housing assistance or forgoing assistance and facing homelessness in order to stay to together.
  • Mixed status families will be evicted within 18 months of the implementation of the new rule or sooner.
  • HUD’s statistics show that the proposed rule will evict as many as 25,000 immigrant families including 55,000 children who are eligible for housing assistance.
  • Over 9 million United States citizens and 120,000 elderly immigrants must provide further documentation of eligibility in order to continue receiving housing assistance. Many of these individuals will face serious obstacles accessing the required documentation.
  • The proposed rule will actually cost more to provide housing assistance to fewer people. Millions of families struggle to find affordable housing; however, blaming immigrants will not solve this problem. Since existing law requires that subsides are prorated to only assist eligible immigrants or citizens in a household, the new rule will merely shift housing assistance benefits to other eligible individuals. HUDs own analysis admits that the policy will cost approximately $200 million dollars and will result in reduced quality and quantity of assisted housing.
  • The policy will result in significant administrative costs and burdens. It will require housing providers to verify documentation that was not previously required from millions of residents. Additionally, it will force housing authorities to develop new policies to determine which families can continue to receive housing assistance.

ACTION ALERT: Tell CYFD not to cut child care assistance!

All families need access to affordable child care so they can make a living and pursue future career opportunities. But in a move that will prevent parents who are working or in school from getting much needed child care, the Children, Youth and Families Department proposed this week to cut eligibility to New Mexico’s Child Care Assistance Program and to continue to require families to pay an unaffordable share of costs. Without access to affordable child care, families will be forced to either go without child care or forego education or employment opportunities.

The regulation will hurt hard working New Mexico families by:

  • Cutting eligibility to 160% FPL from 200%. This means less families will have access to child care assistance, even though they are low income.  
  • Requiring low-income families to pay an unaffordable share of costs. Federal guidance found that child care costs over 7% are not affordable for working families. CYFD’s proposal requires families to pay more than 10% of their income towards child care and higher, depending on the size of a family.

Please tell CYFD to make child care accessible and affordable for New Mexican families!

Speak out at the public hearing:
Monday, July 8, 2019 at 11:00 a.m.
Apodaca Hall, 1120 Paseo De Peralta, Santa Fe, NM 87502.

Submit written public comment no later than July 8, 2019 at 11:00 a.m.

  • By email to: CYFD-ECS-PublicComment@state.nm.us with the subject line “8.15.2 NMAC Public Comment” or
  • By mail to: Kimberly Brown, Child Care Services Bureau, CYFD, P.O. Drawer 5160, Santa Fe, NM 87502-5160.  

Sample content for public comment on cuts to child care assistance. 

Slashing eligibility for child care assistance harms New Mexico’s families!
Families need reliable and safe child care so that they can make a living and pursue future career opportunities. Without child care assistance, families are often unable to afford appropriate child care and are faced with the difficult choice of either resorting to lower quality care or foregoing education or work opportunities. CYFD raised eligibility to 200% of the federal poverty level in November of 2018 and enrollment has not increased. CYFD should seek supplemental funding from the legislature before cutting the eligibility level.

CYFD’s copayments are unaffordable!
According to CYFD data, just a third of eligible families participate in the program. Federal law requires CYFD to make co-payments affordable for families. Federal guidance recommends that co-payments be no higher than 7% of a family’s income. CYFD has not set a cap on copayments, and parents often pay much more than 10% of their income on child care, including families living in deep poverty. CYFD data from FY2017, shows a 66% drop in participation in the program once families are charged a copay, beginning with incomes as low as 25% to 50% of the FPL. Parents who cannot afford the copayment often have to reduce their work hours or seek alternative and often unreliable care. Families should not have to choose between paying for childcare or other basic necessities like food and clothing. New Mexico’s kids deserve better!

Proposed cuts to child care assistance will force parents to give up employment and educational opportunities

Eligible families sued department last year over arbitrary denials of assistance

SANTA FE—In a move that will prevent families from getting much needed child care, the State of New Mexico proposes to cut eligibility to child care assistance available to parents who are working or in school. A regulation released yesterday, would reduce families’ eligibility to incomes of 160% and lower of the federal poverty level. Currently, families with incomes up to 200% of the FPL qualify for assistance. The regulation also provides some information used to determine family copays, which continue to be unaffordable according to federal standards.

The proposed rule will reduce the number of families eligible for child care assistance and continue to burden parents with unaffordable copays that force them to go without child care and forego education or employment opportunities. Children, Youth and Families Department data from FY2017, shows a 66% drop in participation in the program once families are charged a copay, beginning with incomes as low as 25% to 50% of the FPL. According to CYFD data, just a third of eligible families participate in the program.

“We urge CYFD to change this proposed regulation so that more, not fewer, families have access to the child care they desperately need. We know that CYFD wants to increase opportunities for New Mexico’s families. One clear way to do that is to help hard-working parents keep their jobs and stay in school by providing help with the exorbitant costs of child care. Unfortunately, too few families qualify, and those who do must come up with copays that are so high that many are forced to leave the program and give up on careers and their education or resort to unreliable and unlicensed care,” said Maria Griego, supervising attorney at the New Mexico Center on Law and Poverty.

Griego added, “We are concerned that the state is cutting benefits when enrollment has decreased. We need safeguards that ensure child care copayments are actually affordable so families can benefit from the program. This means adequate funding at the legislature that is based on the economic reality facing New Mexico families. The state should seek supplemental funding to prevent cuts right now.”

CYFD agreed to issue regulations that detail eligibility requirements for the Child Care Assistance Program following a lawsuit filed by Organizers in the Land of Enchantment (OLÉ) and families represented by the New Mexico Center on Law and Poverty. The lawsuit, Torres v. Jacobson, argued that the department illegally reduced eligibility and determined the amount of child care assistance without going through the public regulatory process required by law.

After the lawsuit was filed, CYFD immediately increased eligibility to 200% of the federal poverty level, which it now proposes to cut.

“When CYFD extended the eligibility requirements, it opened the doors for more parents out there struggling to find childcare and now they are looking to close that door again,” said Brian Gelepsie, OLÉ member. “The state is messing with families’ livelihoods when families have to decide between paying for childcare or having a roof over their heads. Our parents and children deserve better.”

The proposed Child Care Assistance Program regulation:

  • Cuts eligibility to 160% FPL—even though enrollment in the program is dropping.
  • Sets child care copayments at unaffordable levels and fails to explain the details of how copayments are calculated. For example, the department applies a 10% increase to base copayments for every case, but this is not in regulation.
  • Does not clearly articulate how CYFD calculates income to determine eligibility or how the application process works.
  • Does not require applications and eligibility documents to be in languages other than English.

A public hearing on the rule is scheduled to take place in Santa Fe on July 8, 2019.

Sick Leave Ordinance Introduced at the Bernalillo County Commission

Low-wage workers, community leaders applaud first great step to building a stronger economy by ensuring our workers are healthy

Albuquerque, N.M.– During a packed meeting Tuesday night, the Bernalillo County Commission introduced a proposed paid sick leave ordinance for Bernalillo County —a step supporters of the ordinance say will support families succeed in building thriving communities.

Bernalillo County Commissioner Maggie Hart-Stebbins introduced the Bernalillo County Paid Sick Leave Ordinance as a way to alleviate the challenges working families face when forced to choose between losing a day’s pay or going to work sick because of the need to care for themselves or for their loved ones.

The proposed ordinance does the following:

  • The ordinance applies to any worker employed at least 56 hours per year at a business with two or more employees, the county, or a nonprofit with two or more employees in Bernalillo County.
  • It allows workers to accrue one hour of paid sick time for every 30 hours worked.
    • Employers are not required to provide more than a total of 56 hours per year.
    • Paid sick leave can be used starting on the 90th calendar day after they are hired.
    • Allows up to 56 hours of unused sick time carry over into the next year
  • Allows employers who currently have a PTO policy that exceeds the minimal requirements of this ordinance to continue with their current policy.

The following conditions exempt a business from providing paid sick leave:

  • Businesses or employers with only one employee
  • New business startups that obtain an exemption for their first year of business
  • And family-owned and operated businesses that employ only family members

“The introduction of a possible paid sick leave program in Bernalillo County makes sense because a strong economy begins with every worker in our community having the ability to care for their health and well being,” said Maggie Hart-Stebbins, Bernalillo County Commissioner. “Everyone gets sick and everyone should be able to take time to care for themselves or their families. Providing earned sick days protects the economic stability of working families and the public health across our community.”

According to a study by the University of New Mexico Bureau of Business and Economic Research, in the city of Albuquerque alone, 36% of private-sector workers have no paid sick leave and that 90% of those with household incomes less than $15,000 presently do not have paid sick leave.

The following are reactions from low-wage workers and community organizations from across bernalillo County who are in support of the ‘Paid Sick Leave’ ordinance:

“Family stability comes in a variety of ways: good public education, good paying jobs, and a support system to get us through unpredictable life moments, said Trae Buffin, member of OLÉ. “Paid Sick Leave is about putting our New Mexican families’ needs first and providing them the support they need to build thriving communities.”

“Unfortunately not every family or worker has a strong support system to go through sickness, family emergencies, or even protecting their own lives and those of their children,” said Mary Ann Maestas, Member, NM Working Families Party. “Today’s introduced proposal will alleviate this challenge by allowing workers to accrue paid time that can be used to care for those “life moments” while not losing a day pay or even their jobs.”

“Families shouldn’t have to worry about shattering their family budget and getting buried under healthcare costs because they can’t afford to lose a day’s pay,” said Hilda Gomez, low-wage worker and member of El CENTRO de Igualdad y Derechos. “Having paid sick leave ensures we take care of the most integral part of our state economy: OUR WORKERS! Because when our workers are ok, our economy is ok, and we increase our opportunity to make our state thrive.”

The proposed ‘paid sick leave’ ordinance is expected to be voted on June 25, 2019.

Court hearing on HSD compliance with orders to remove barriers to food and medical assistance next Thursday

LAS CRUCES—On Thursday at 10:30 a.m., in U.S. District Court in Las Cruces, Judge Kenneth Gonzales will hear an update on the New Mexico Human Services Department’s compliance with multiple court orders to remove barriers to food and medical assistance for eligible families.

At the hearing, the New Mexico Center on Law and Poverty will provide information about a statistically significant review of food and medical assistance cases conducted between September 2018 to February 2019. Both the court appointed Special Master and the plaintiffs, represented by the Center, found that New Mexicans are still not getting the food and medical assistance they need because HSD continues to violate the law.

According to an extensive review by the Center of HSD client cases, HSD made errors in 202 out of 288 cases—an error rate of 70%. These errors led to 109 households of the 288 cases reviewed losing food or medical assistance, sometimes both. The Special Master validated nearly all these findings. The review found that HSD continues to illegally deny food and medical assistance in the following ways:

  • HSD illegally denies food and medical assistance to families who fail to provide unnecessary paperwork.
  • HSD’s own quality assurance team failed to find the vast majority of the errors found by the Center and the Special Master.
  • HSD does not consistently apply eligibility policy and application procedures.
  • HSD does not accurately inform families about their eligibility and what is needed to process their case.
  • HSD’s management team lacks expertise to administer food and medical programs in accordance with federal law.
  • HSD’s IT system requires changes to accurately process applications for benefits.

In September 2016, Judge Gonzales held former HSD Secretary Brent Earnest in contempt for failing to remove barriers to assistance for eligible families. The court appointed a Special Master to monitor and make recommendations to the department. In April 2018, the judge set a series of deadlines for HSD compliance with court ordered reforms.

The New Mexico Center on Law and Poverty report on it’s case review can be found here: http://nmpovertylaw.org/nmclp-report-on-hsd-case-review-2019-02-25-redacted/

The Gonzales v. Earnest joint status report can be found here: http://nmpovertylaw.org/doc-873-joint-status-report-2019-05-01/

WHAT:
U.S District Court status conference on HSD compliance with court orders in Deborah Hatten Gonzales v. Brent Earnest, No. 88-385 KG/CG

WHEN:
Thursday, May 16, 2019 at 10:30 a.m.

WHERE:
United States Courthouse
4th Floor, North Tower, Mimbres Courtroom
100 N. Church Street
Las Cruces, New Mexico 88001

WHO:
New Mexico Center on Law and Poverty attorneys
Court Appointed Special Master Lawrence M. Parker
HSD Secretary and Attorneys

ACTION ALERT: Stop the Trump administration from allowing predatory lenders to target low-income families

The federal Consumer Financial Protection Bureau was created to protect people from predatory lending practices. However, under the Trump administration, the CFPB is now proposing to gut important consumer protections from the 2017 Payday Loan Rule, putting the interests of unscrupulous lenders over our families.

Please tell the Trump administration not to repeal regulations that protect low-income borrowers!  

In 2017, after conducting extensive research on storefront loans and payday lending, the CFPB finalized regulations to protect people from some of the worst predatory lending practices. The 2017 Payday Rule, scheduled to go into effect this August, mandates that lenders assess a borrower’s ability to repay a loan as a condition of making high cost title and payday loans.

Trump’s CFPB is proposing to revoke this protection that requires lenders to only provide loans that can be repaid, prioritizing the profits of payday and car title lenders over the consumers the agency was created to protect.

The storefront lending industry is built on making loans that borrowers cannot afford to repay. Payday lenders encourage borrowers to rollover their loans and take on more debt when they cannot make payments.

The debt trap is still common in New Mexico even though the state no longer permits short term loans. Instead, in our state lenders trap families in longer term debt at rates as high as 175% APR. Many payday lenders are national corporations that do business in New Mexico.

The 2017 Payday Rule should be implemented as it was originally written.

Protect the rights of consumers to fair loans by submitting your public comment! 

Information on submitting your comments and suggested content is below. 

Submit your comment here: https://www.federalregister.gov/documents/2019/02/14/2019-01906/payday-vehicle-title-and-certain-high-cost-installment-loans’

The deadline is May 15, 2019. 

To maximize its impact, make sure at least a third of your comment is original text; otherwise, the CFPB might not consider it a valid comment. It is most important to note how high cost loans are harmful in our state, even if your comment is very brief. 

Content to consider in your comment: 

The 2017 CFPB Payday Rule is vital in stopping the debt trap of payday lending.

  • Requiring payday and car title lenders to assess whether customers can afford to pay loans back before entering into a contract is a commonsense foundation of responsible lending.
  • Payday lenders will stop at nothing to prevent this reasonable requirement because they want to perpetuate their business model that is driven by trapping people in longterm debt. 
  • The CFPB says that repealing the Payday Rule will be a “benefit” to payday lenders, but it will directly harm consumers who are stuck with unaffordable loans.
  • Rescinding the 2017 Payday Rule ignores extensive public comment and a wealth of research on the dangers of unregulated payday borrowing conducted by the CFPB itself.
  • The debt burden of payday loans forces families to choose between paying their bills or face ever-growing fees including overdraft fees, closed bank accounts, and even bankruptcy.
  • For car title loan borrowers, there is a huge risk that a family will lose their vehicle – frequently a low-income household’s sole means of getting to work, school, or medical appointments.

The proposal will hurt low-income borrowers.

  • In name, payday loans are not allowed in New Mexico. In reality, longer term installment loan products have taken their place, extracting just as many resources from cash-strapped families regardless of what they can afford.
  • Most storefront lenders in New Mexico operate in multiple states. Allowing the 2017 Final Rule to go into effect as planned will create a norm for the storefront lending industry that will help New Mexicans who take out loans from multi-state lenders and could support the development of similar consumer protections in New Mexico state law.

The CFPB should both implement the 2017 Payday Rule, and also study the impact of similar protections on longer-term loans to protect consumers across the country from predatory debt trap practices.

Court orders CYFD to lawfully manage Child Care Assistance Program

Department increased eligibility levels after families sued last year

SANTA FE—Working families will have increased access to much needed child care assistance as a result of a court order approving an agreement between working families and the New Mexico Children, Youth and Families Department. The order, entered by the First Judicial District Court in Santa Fe yesterday, mandates that CYFD will follow the law in managing New Mexico’s Childcare Assistance Program.

“Every family deserves access to quality child care while parents are at work or in school,” said Maria Griego, supervising attorney at the New Mexico Center on Law and Poverty. “Only a third of eligible families in New Mexico currently access child care assistance because the application process and eligibility requirements are inconsistent and confusing. The settlement is a critical opportunity for CYFD to improve the well-being of children. We look forward to working with this administration to fix long standing barriers.”

Several families and OLÉ, represented by the New Mexico Center on Law and Poverty, sued the department in September 2018, charging that CYFD illegally established a policy of denying child care assistance to families with incomes over 150% of the federal poverty level—a yearly income of $31,170 for a family of three—without publishing a regulation or going through the required public comment and hearing process. The lawsuit also argued that CYFD illegally failed to provide adequate notice to families about their child care benefits or establish a regulation that explains how CYFD determines the share of costs the family has to pay.

After the lawsuit, CYFD immediately increased eligibility for child care assistance to families with incomes up to 200% of the federal poverty level.

The court order requires CYFD to:

  • Maintain the current eligibility level until or unless CYFD lawfully passes regulations with public comment with a different eligibility level;
  • Put into regulation child care assistance eligibility requirements, including how CYFD calculates the amount of costs shared by parents;
  • Revise notices and forms that families receive or fill out in the application process;
  • Revise the manual CYFD workers use to determine eligibility for assistance;
  • Post eligibility information and application rights in all CYFD offices.

“We know that the earliest years in children’s lives are the most important in their development and lay the foundation for all that is to come,” said Traeshaun Buffin a community organizer at OLÉ. “The astronomical costs of child care prevent tens of thousands of New Mexican families with children from accessing meaningful work and educational opportunities. We’re so pleased that CYFD has agreed to stop denying eligible families the child care assistance they need and to adopt standards with public input to make the program affordable and predictable.”

The court order can be found here: http://nmpovertylaw.org/9-order-torres_2019_05_06/

The Torres v. Jacobson complaint can be found here: http://nmpovertylaw.org/torres-v-jacobson-first-amended-complaint-with-exhibits/