Children’s rightsFoster Care
Transforming New Mexico’s Child Welfare System into a Trauma-Informed System of Care
Every child entering the New Mexico child welfare system has experienced the trauma of separation from a caregiver. These children are highly likely to have experienced complex trauma, given their exposure to multiple, persistent sources of adversity, violence, and loss. Yet New Mexico fails to allocate its resources to develop a trauma-informed system of care.
In September 2018, Public Counsel, Disability Rights New Mexico, Stanford Law School Mills Legal Clinic, Munger, Tolles & Olson LLP, Freedman Boyd Hollander Goldberg Urias & Ward, P.A., Martinez, Hart, Thompson & Sanchez, P.C., the Law Firm of Alexander D. Crecca, PC, and the Law Office of Ryan J. Villa filed a federal lawsuit against New Mexico’s Children, Youth and Families Department (CYFD) and the Health Care Authority (HCA, formerly the Human Services Department) to hold them accountable to children in foster care. The complaint alleged systemic and structural failures resulting in harm to children in foster care and their families, including:
- Lack of a system to ensure stable placements for children in safe and supportive home environments, resulting in children cycling through inappropriate and overly restrictive placements that lack the support and capacity to meet the individual needs of children.
- Lack of a functioning system to meet the medical, mental health, and behavioral health needs of children in state custody, resulting in denial of access to necessary services including medical, mental health, and behavioral health screenings and services to which children in foster care are entitled.
- Failure to implement trauma-sensitive practices to address the needs of children in foster care who are impacted by complex trauma, including child abuse, abandonment or neglect, and separation from their birth families and caregivers.
- Lack of capacity within the child welfare system to provide necessary support and training to children in foster care, resource families, and relatives due to understaffing, insufficient behavioral health services and expertise in-house, and failure to properly train and support staff.
Following months of negotiations, the Parties executed a Final Settlement Agreement (FSA) on March 17, 2020. In reaching this agreement, CYFD and HCA acknowledged their commitment to the development of a trauma-informed system of care that meets the needs of New Mexico’s diverse children and youth and their families.
Since 2023, the Parties have engaged in mediation and arbitration to advance the State’s compliance with the FSA, particularly in the areas of workforce caseloads, recruitment of resource families, timely well-child visits, and accurate and accessible data.
A team of lawyers from Public Counsel, Disability Rights New Mexico, Native American Disability Law Center, and Pegasus Legal Services for Children continue to monitor the implementation of the FSA from the Plaintiffs’ perspective.
Additional information about the FSA and implementation process can be found at www.kevinssettlement.com.
Court
U.S. District Court for the District of New Mexico
Status
In Arbitration
Case No.
1:18-cv-00896
Filed
09/22/2018
Public Counsel Legal Team
our Co-Counsel
Case Developments
RULING
03/02/2026
Parties Agree to and Arbitrator Issues Stipulated Third Remedial Order
In lieu of a hearing on the State’s compliance with Remedial Order Nos. 1 and 2, the State and the Plaintiffs came together and successfully negotiated the terms of the next remedial phase of this case, Remedial Order No. 3, which the Arbitrator approved and ordered. Plaintiffs negotiated Remedial Order No. 3 with the understanding that it would benefit children for the Parties to agree to the next steps the State must take in 2026 to come into compliance with the Kevin S. FSA.
ORDER
08/18/2025
Arbitrator Issues Second Remedial Order
Following a hearing and submissions by the parties and Co-Neutrals regarding the State’s compliance with Remedial Order No. 1, the Arbitrator issued Remedial Order No. 2, directing the State to take additional steps to comply with the FSA, the Corrective Action Plan (CAP), and Remedial Order No. 1.
ORDER
01/21/2025
Arbitrator Issues Decision and Remedial Order
After eight days of arbitration hearings in November 2024, the Arbitrator concluded that the State failed to meet the FSA’s performance standard in the following four areas: CYFD Workforce Caseloads; Resource Family Recruitment; Well-Child Checks; and Data Submissions. The Arbitrator found that the “children in the custody of CYFD are subject to irreparable harm arising from the State’s failure to comply with the Kevin S. Agreement. That harm arises directly from (1) excessive caseloads for CYFD caseworkers and the persistent failure of the State to hire and retain an adequate number of case workers; (2) a failure by the State to develop and maintain an adequate supply of foster homes leading to the State sending children without justification to be housed in congregate settings, including CYFD offices; and (3) children being deprived of their right to timely medical checks that, if performed, would identify medical and behavioral conditions for which the State has a legal obligation to provide treatment.” In a Remedial Order, the Arbitrator directed the State to take specific actions around the four issue areas to advance compliance with the FSA.
FILING
05/20/2024
Plaintiffs File Arbitration Notice
The Co-Neutrals investigated the State’s performance implementing the 2023 CAP and found that the State failed to keep its promises. Consequently, Plaintiffs initiated arbitration to seek specific performance of the CAP.
order
06/30/2023
Corrective Action Plan Executed
After engaging in mediation from March to June 2023, the Parties executed a CAP that set forth commitments by CYFD and HCA to come into compliance with the FSA and to ensure that children in state custody are able to benefit from the commitments outlined in the FSA. The CAP includes the State’s commitments regarding CYFD’s workforce caseload, recruitment and retention of family-based placements, ending the use of out-of-state placements, review of critical incidents, access to real-time data, and the development of an integrated system of care for children in state custody.
Filing
06/15/2022
Memorandum of Understanding Reached
The Parties set forth a plan for CYFD and HCA to improve compliance with Appendices B and C of the FSA, which concern use of the least restrictive and appropriate placements, as well as the Indian Child Welfare Act. The Memorandum of Understanding also aimed to increase and improve communication between the State and Plaintiffs regarding progress on implementation targets and target outcomes in these areas.
SETTLEMENT
03/17/2020
Settlement Reached
Following months of negotiations, the Parties executed an FSA with the goal of implementing a system of care that utilizes collaborative decision-making to coordinate delivery of care to children in state custody in a trauma-responsive manner. The FSA includes the appointment of Kevin Ryan and Judith Meltzer as Co-Neutrals with the authority to validate performance and to audit progress toward achievement of the implementation targets and target outcomes.
Filing
09/22/2018
Plaintiffs File Complaint
Fourteen young people in foster care and two nonprofit organizations filed a class action lawsuit against the CYFD and HCA challenging their persistent failure to fulfill its state and federal legal obligations to children in state custody. The Complaint asserted the State’s actions violate the Substantive Due Process Clause of the Fourteenth Amendment; Section 504 of the Rehabilitation Act; the Americans with Disabilities Act; Early and Periodic Screening, Diagnostic and Treatment Services Provisions of the Medicaid Act; the Reasonable Promptness Provision of the Medicaid Act; and the Indian Child Welfare Act.
Press Releases
Press Release
03/02/26
Advocates Secure Remedial Order in Fight to Reform New Mexico’s Foster Care System
Learn MorePress Release
01/24/25
Media
- Albuquerque Journal, From discord to agreement, progress reported at CYFD, 3/8/26
- Taos News, State, plaintiffs reach agreement on child welfare system case goals, 3/4/26
- Searchlight New Mexico, New Mexico comes to agreement with plaintiffs on child welfare system case goals, 3/3/26
- KUNM, State agencies report improvement in child welfare, but experts have yet to validate those findings, 12/5/25
- Santa Fe New Mexican, CYFD makes some gains but unlikely to meet recruitment goals, 12/1/25
- Santa Fe New Mexican, CYFD plans to open new group home for foster children in Las Cruces, 10/21/25
- KANW, Child welfare reform experts oppose NM lawmakers’ CYFD plan Governor says legislation poses ‘serious risks’ to child welfare reform efforts, 8/21/25
- Santa Fe New Mexican, Arbitrator in Kevin S. case again finds New Mexico has failed to improve care of children, 8/19/25
- Albuquerque Journal, Child welfare experts ‘frustrated’ over stalled reforms in New Mexico, 7/5/25
- KUNM-FM (Albuquerque, NM), TUES: Is the National Weather Service New Mexico prepared for a Texas-level emergency?, 7/8/25
- Albuquerque Journal, Experts say CYFD reform proposal would likely hurt, not help, 2/19/25
- Source New Mexico, New Mexico has struggled for decades to give vulnerable youth adequate resources, 2/12/25
- KUNM-FM, State faces new deadlines to fulfill the terms of key child welfare settlement, 2/10/25
- KUNM–FM, Kevin S. lawsuit kids still waiting for state to make the changes outlined in case settlement, 2/3/25
- KUNM, New Mexico has struggled for decades to give vulnerable youth adequate resources, 1/31/25
- KOAT, CYFD under fire for failing to uphold foster care reforms, 1/29/25
- KOB4, CYFD not in compliance with lawsuit on child welfare reform, 1/24/25
- Albuquerque Journal, CYFD violated reform agreement, says arbitrator, 1/22/25
- KUNM, CYFD Secretary says agency is working to address lack of foster care placements, 1/22/25
- Santa Fe New Mexican, Lawyer skewers CYFD chief over lack of progress, 11/23/24
- Albuquerque Journal, CYFD chief in the hot seat at end of reform hearing, 11/23/24
- Santa Fe New Mexican, Lawmakers question if CYFD task force went far enough, 11/19/24
- Santa Fe New Mexican, State says it has made progress on wellness checks for kids in CYFD custody, 11/19/24
- Albuquerque Journal, CYFD still struggles with staffing “crisis,” too few foster homes, experts say, 11/17/24
- Santa Fe New Mexican, Report: CYFD fell far short on lawsuit settlement targets, 11/15/24
- Santa Fe New Mexican, New Mexico still sending some high-needs children out of state, doctor says, 11/12/24
- Albuquerque Journal, CYFD on the defensive during arbitration hearing, 11/10/24
- Santa Fe New Mexican, LFC director called as witness in Kevin S. arbitration, 11/8/24
- Santa Fe New Mexican, New Mexico failed to meet deadlines on commitments in child welfare suit, filings say, 8/31/24
- LA Times, How many foster kids are homeless in L.A. County? Nobody knows, 8/19/24
- EdSource, It is impossible to know how many Los Angeles foster youth are homeless, 8/19/24
- The New York Times, “New Mexico Agrees to Revamp Its ‘Broken’ Foster Care System”, 3/26/20
- The NM Political Report, “CYFD part of ‘groundbreaking’ collaborative settlement”, 3/26/20
- Associated Press, “New Mexico reaches settlement with foster youth, advocates”, 3/26/20
- Santa Fe New Mexican, “Two New Mexico agencies settle lawsuit over foster child care”, 3/26/20
- Turtle Talk, “Kevin S. Settlement Agreement Involving New Mexico Child Welfare and Includes ICWA”, 3/26/20
- Searchlight New Mexico, “Settling for more”, 3/27/20
- Youth Today, “Native American Children Protected in Groundbreaking Foster Care Settlement”, 5/8/20
