> 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 ...

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