The New Mexico Children, Youth, and Families Department (CYFD) was created as a cabinet department in 1992. It is a state agency of New Mexico responsible for child protective services and juvenile justice services. The Protective Services Division investigates reports of child abuse and neglect and has the authority to take custody of children from their abusive parents. CYFD has faced years of scrutiny and litigation over issues with child placements, mental health care, and dangerous situations involving the care of children placed in its custody. On January 29, 2025, it was reported that CYFD is once again facing scrutiny after a court-appointed arbiter ruled that the agency had failed to meet the terms of a settlement agreement designed to improve the state’s foster care system. This ruling comes in response to a class action lawsuit filed on behalf of hundreds of foster children who, due to systemic failures, found themselves homeless or without proper care. (See Postscript below for more on class action lawsuit.) New Mexico legislators have tried repeatedly to reform the department by increasing outside oversight of the agency. Governor Michelle Lujan Grisham for her part has opposed all past efforts to increase outside oversight. Instead, she ordered the creation of a new advisory council and office of innovation within CYFD.
THREE BILLS PASS HOUSE UNANIMOUSLY
On March 4, the New Mexico House of Representatives voted unanimously, reflecting overwhelming bi-partisan support, to approve three bills dealing with the Children, Youth, and Families Department (CYFD). Lawmakers say the structural changes are needed amid ongoing CYFD staffing issues and a worsening state rate of repeat child mistreatment.
Following is a brief explanation of the legislation:
House Bill 5 would create an independent Office of the Child Advocate (OCA) to oversee child welfare in New Mexico. As an impartial public official, the Child Advocate would receive and investigate complaints related to children’s services at CYFD and state agencies, ensure their resolution, and inform the public, legislature, and Governor about opportunities for improvement.
The OCA would also review CYFD’s policies and procedures, provide children and families with information about their rights, operate a toll-free hotline to receive complaints, and compile and report independent data, among other duties. The bill is sponsored by Rep. Michelle Paulene Abeyta (D-To’hajiilee), House Speaker Javier Martínez (D-Albuquerque), House Majority Leader Reena Szczepanski (D-Santa Fe), and House Majority Whip Dayan Hochman-Vigil (D-Albuquerque).
The Child Advocate would be appointed for a six-year term by a selection committee composed of bipartisan representatives of the New Mexico House and Senate, the Governor’s office, the Attorney General, and the Supreme Court. Candidates would be selected based on their qualifications in law, psychology, social work, or family therapy. The Office of Child Advocate would be independent and autonomous, but would be administratively attached to the New Mexico Department of Justice. This would allow the Office of the Child Advocate to pursue all available remedies to protect the health and safety of New Mexico’s children.
House Bill 203 would require CYFD workers to retain and back up all electronic records. It would help in particular cases where a child is harmed. This bill requires that CYFD employees only use their department-issued phones and computers for official work purposes to ensure that all electronic records are backed up. This is to ensure that any complaints in the CYFD system never get lost, particularly in cases where children are at risk of being harmed. This measure is sponsored by Reps. Meredith Dixon (D-Albuquerque) and Sarah Silva (D-Las Cruces).
House Bill 205 This bill would establish a nominating committee to vet applications for the CYFD secretary position. It would also provide care for newborns who are born substance-exposed. The bill would strengthen plans of care for substance-exposed newborns moving responsibility for the CARA (Comprehensive Addiction and Recovery Act) program from CYFD to the Healthcare Authority, and create a nominating committee to vet CYFD Cabinet Secretary candidates. HB 205 is sponsored by Reps. Meredith Dixon, Eleanor Chávez (D-Albuquerque), Rebecca Dow (R-Truth or Consequences), House Minority Leader Gail Armstrong (R-Magdalena), and Senator Linda Trujillo (D-Santa Fe).
REACTION TO PASSAGE
Speaker of the House Javier Martinez had this to say about passage of the legislation:
“When CYFD fails, New Mexico’s children pay the price. These failures also worsen the cycles of poverty, trauma, and substance use that contribute to crime in our communities. Our goal is to give this critical state agency all the tools and resources it needs to succeed, while also providing necessary oversight to hold them accountable for doing right by our kids.”
Rep. Michelle Paulene Abeyta (D-To’hajiilee), said this about passage of House Bill 205:
“Growing up, most of us were lucky enough to have trusted adults to speak up for us and help shape our growth and development. Children in state custody may not have anyone in their corner advocating for their needs, and that’s why we need this office – to be a voice for children in the care of CYFD.”
Representative Dixon had this to say about passage of House Bill 205:
“The children and families of New Mexico deserve transparency and accountability from CYFD. By providing proper medical oversight for at-risk newborns, ensuring adequate records and evidence are maintained, and improving the vetting process for agency leadership, we can better protect our most vulnerable children and start rebuilding public trust in CYFD.”
House Minority Leader Gail Armstrong, R-Magdalena said lawmakers have unsuccessfully tried to enact structural changes to CYFD during previous legislative sessions and she said this:
“It’s been needed for so many years.”
Despite widespread support in the New Mexico House, Governor Michelle Lujan Grisham and CYFD Cabinet Secretary Teresa Casados do not agree with the legislature that there is a need for reforms to the department. CYFD Cabinet Secretary Teresa Casados said this after passage of the legislation:
“New Mexico’s most vulnerable children and the dedicated CYFD professionals who work tirelessly to protect and support them rely on us to advocate for legislation that strengthens our child welfare system. Unfortunately, these three bills fall short of that goal. I’m hopeful the Senate will listen to the experts’ concerns and give us equal opportunity to share our perspective in [Senate] committee.”
A Lujan Grisham spokesman said it’s premature to discuss which bills might be vetoed.
https://www.koat.com/article/three-cyfd-reform-bills-pass-state-house-unanimously/64044342
COMMENTARY AND ANALYSIS
The three approved bills still must win approval in the Senate before the 60-day session ends March 22 in order to land on the governor’s desk.
Democrats have a commanding 43-26 majority in the House and a 26-16 majority in the Senate. If there was ever a realistic chance for the New Mexico Legislature to enact major reform measures for the Children, Youth, and Families Department, 2025 is the year to do it.
The New Mexico Senate needs to move rapidly and enact all three bills with a unanimous bipartisan vote to send a clear message to Governor Michelle Lujan that any veto will swiftly be overridden and this year is the year to enact reform of the CYFD department.
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POSTSCRIPT
On January 29, 2025, it was reported that CYFD is once again facing scrutiny after a court-appointed arbiter ruled that the agency had failed to meet the terms of a settlement agreement designed to improve the state’s foster care system. This ruling comes in response to a class action lawsuit filed on behalf of hundreds of foster children who, due to systemic failures, found themselves homeless or without proper care.
CLASS ACTION LAWSUITE
In 2020, under Gov. Michelle Lujan Grisham, the CYFD and the Human Services Department settled a class action lawsuit known as the Kevin S. Settlement. The lawsuit detailed the agency’s failure to protect children from homelessness, abuse and inadequate care. As part of the settlement, the CYFD agreed to implement hundreds of reforms aimed at ensuring children in foster care receive proper placement, education and health care.
After an eight-day arbitration hearing, an independent arbiter released a scathing report concluding that the CYFD had violated its agreement, subjecting children to “irreparable harm.” The report outlined several key failures, including:
- CYFD did not increase its number of caseworkers and even implemented a hiring freeze.
- Workloads remained unmanageable, with supervisors still handling active cases.
- The agency failed to maintain an adequate supply of foster homes.
CYFD Cabinet Secretary Teresa Casados acknowledged the arbiter’s findings and admitted the agency had not met the expectations outlined in the settlement. Casados said this:
“There was not [anything in the report] that I disagreed with. …I believe the department is making every effort it can to meet those requirements. I also believe it’s not in the time frame that people want to see.”
Casados cited several challenges that have hindered progress, including setbacks due to the COVID-19 pandemic and legislative funding restrictions that prevented the agency from allocating resources as needed. Casados explained it this way:
“A lot of the funding we receive comes with very specific language that ties our hands in what we can do with it. .. [Despite challenges] we’re making progress at the department. … Of course, it’s not at the speed that everybody would like to see, but as they say, slow and steady.”
The arbiter has given the CYFD an April deadline to secure proper funding and implement the necessary changes. Additionally, the arbiter wants to hear from independent consultants about whether the CYFD should have an ombudsman to oversee the department’s reforms.
In the past five years, the CYFD has paid over $27 million to settle civil rights claims. If the agency fails to comply with the arbiter’s orders, the lawsuit could be refiled, potentially leading to even higher costs for taxpayers.
$3.9 MILLION SHORTFALL
The state’s Risk Management Division recently reported a $3.9 million shortfall in its settlement fund, with child welfare cases playing a heavy role. In 2024, CYFD settled for $18 million across 12 settlements, according to a Source NM review of the settlement data available on the state’s portal. The settlements ended lawsuits alleging the department’s responsibility for the deaths or severe injuries of children in state custody, from years ago.
Links to quoted or relied upon news sources are here:
https://www.koat.com/article/new-mexico-cyfd-scrutiny-report/63606534
https://www.abqjournal.com/news/article_acc00a32-f083-11ef-8e09-c75d84d3e97f.html
https://sourcenm.com/2025/02/19/child-welfare-reform-experts-oppose-nm-cyfd-commission-plan/