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Maximizing Early Care and Education Funding. Policy Brief

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Bibliographic Details
Title: Maximizing Early Care and Education Funding. Policy Brief
Language: English
Authors: Adrienne Fischer, Heena Kuwayama, Education Commission of the States (ECS)
Source: Education Commission of the States. 2025.
Availability: Education Commission of the States. ECS Distribution Center, 700 Broadway Suite 1200, Denver, CO 80203-3460. Tel: 303-299-3692; Fax: 303-296-8332; e-mail: ecs@ecs.org; Web site: http://www.ecs.org
Peer Reviewed: N
Page Count: 11
Publication Date: 2025
Document Type: Reports - Descriptive
Education Level: Early Childhood Education
Descriptors: Early Childhood Education, Child Care, Educational Finance, Financial Support, Public Support, Federal Aid, State Aid, State Policy, Block Grants, Students with Disabilities, Federal Programs, Low Income Students, Equal Education, Tax Credits
Geographic Terms: Colorado, Florida, Oklahoma, Vermont, District of Columbia, Illinois, Kansas, California, Connecticut, Kentucky, Missouri, Louisiana, Oregon, Michigan, Arizona, Nebraska, Rhode Island
Laws, Policies and Program Identifiers: Child Care and Development Block Grants, Head Start, Individuals with Disabilities Education Act Part B, Individuals with Disabilities Education Act Part C
Abstract: Families with young children face a variety of barriers to securing convenient, affordable and high-quality child care arrangements during the years prior to kindergarten. These barriers are especially pronounced for families who cannot afford the high cost of tuition. While several public funding streams exist for pre-K and child care, the demand for care far exceeds available funding. As states look for opportunities to boost local economies, early care and education (ECE) plays an essential role to ensure that families -- and especially women -- can participate in the labor force and maximize their earnings and career opportunities. Aside from its vital economic role, ECE also prepares young children for success in school and beyond. Research shows that participating in high-quality ECE environments can significantly affect a wide range of outcomes like academic achievement, career trajectories and overall well-being. These dual purposes of ECE are vastly different but complementary, which demonstrates that investments in ECE systems serve a multifaceted public good. With growing waitlists amid high tuition and inadequate public funding, states are seeking new ways to bridge the gap. Data show a strong connection between household income and the use of paid child care, which indicates that lower income families are less likely to have access to affordable ECE options. Lowering the cost of care, providing subsidies and expanding publicly funded ECE programs can mitigate these income-related discrepancies. This Policy Brief gives an overview of public funding sources for ECE programs at the federal and state level as well as examples of state policies aimed at creating innovative solutions to boost families' access to high-quality programs and at maximizing available capacity.
Abstractor: ERIC
Entry Date: 2026
Accession Number: ED680941
Database: ERIC
Description
Abstract:Families with young children face a variety of barriers to securing convenient, affordable and high-quality child care arrangements during the years prior to kindergarten. These barriers are especially pronounced for families who cannot afford the high cost of tuition. While several public funding streams exist for pre-K and child care, the demand for care far exceeds available funding. As states look for opportunities to boost local economies, early care and education (ECE) plays an essential role to ensure that families -- and especially women -- can participate in the labor force and maximize their earnings and career opportunities. Aside from its vital economic role, ECE also prepares young children for success in school and beyond. Research shows that participating in high-quality ECE environments can significantly affect a wide range of outcomes like academic achievement, career trajectories and overall well-being. These dual purposes of ECE are vastly different but complementary, which demonstrates that investments in ECE systems serve a multifaceted public good. With growing waitlists amid high tuition and inadequate public funding, states are seeking new ways to bridge the gap. Data show a strong connection between household income and the use of paid child care, which indicates that lower income families are less likely to have access to affordable ECE options. Lowering the cost of care, providing subsidies and expanding publicly funded ECE programs can mitigate these income-related discrepancies. This Policy Brief gives an overview of public funding sources for ECE programs at the federal and state level as well as examples of state policies aimed at creating innovative solutions to boost families' access to high-quality programs and at maximizing available capacity.