SANTA FE, N.M. – A top state early childhood official sued after she said leaders retaliated when she raised concerns about an $83 million child care budget shortfall.
The lawsuit filed in Santa Fe County earlier this week names Early Childhood Education and Care Department Chief Financial Officer Carmel Pacheco Aragon.
Pacheco Aragon claims she was retaliated against earlier this month after she raised concerns about a “deficit for the ECECD child care assitance program…$83 million for fiscal year 2026.”
She claims that earlier this year she found the Universal Child Care Program did not have enough money to pay child care providers and alerted state officials.
In the lawsuit, Pacheco Aragon alleges she told department leaders, including Secretary Elizabeth Groginsky, that “formal written approval was required before transferring available balances…to cover June 2026 child care provider payments.”
Earlier this month, the department placed Pacheco Aragon on administrative leave.
She claims leaders were “targeting Ms. Pacheco-Aragon over an email that allegedly showed Plaintiff blind-copied an external party…” Pacheco Aragon said after she raised her concerns and shared them with a third party by email.
Pacheco Aragon asks the court to reinstate her to her job and award damages.
KOB 4 reached out to the governor’s office about the lawsuit and had not heard back.
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