An Uneven Start 2026
Where Child Care Funding Falls Short—And Why It Matters
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Our nation remains an uneven patchwork when it comes to early childhood care:
Looking at total FY 2026 state investments in child care and preschool (including federally required matching and maintenance of effort funds) states are investing less than $500 per child under age 5 to more than $5,000 per child. Washington, DC is an outlier, investing over $9,800 per child. On top of this, families across the country continue to shoulder outsized costs to cover child care. Robust, equitable investment in child care ignites opportunity for families, communities, and the workforce to thrive.
Download An Uneven Start 2026
In order to better understand the current state-by-state funding landscape, Child Care Aware® of America conducted a study of Fiscal Year 2026 state child care and preschool funding, focusing on investments from state general funds above federally required matching and maintenance of effort (MOE) funds.
The report’s central finding is clear: America’s early childhood system gives children an Uneven Start because of stark state-by-state funding disparities.
Register for the Uneven Start 2026 Webinar
Wednesday, April 15 | 3:00 - 4:00PM ET
Many states fall short on child care and preschool investments—does yours? Join our webinar to see how your state measures up. Results from Child Care Aware® of America’s new study examining state FY 2026 child care and preschool funding in 44 states and Washington, D.C., will be presented.
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The Findings
Several key findings emerged across the states:
1.
Children, families, and communities across America remain on an uneven playing field when it comes to state child care and preschool funding.
Looking at total state investments in child care and preschool in FY 2026 (state general funds plus expected federal match and MOE, among the states who responded), funding ranged from less than $500 per child to more than $5,000 per child. Washington, D.C., was an outlier, investing over $9,800 per child. The average across all states with data for FY 2026 was $1,575.
2.
Year-over-year, some states are increasing funding for child care and preschool.
Total per child investments in child care and preschool increased from FY 2025 to
FY 2026 in most states that had data for both years. The average increased to about
$1,700 per child birth to age 5 in FY 2026, from about $1,400 in FY 2025. Twenty-six
states and Washington, D.C. had data on their investments (state general funds plus
expected federal match and MOE) for both fiscal years. Funding increased across the
two years in 20 of these states and Washington, D.C. Per child average funding also
increased across the 26 states.
3.
States are still coming up short for young children.
While total state investments in child care or preschool vary widely from state to state, the
highest per child state child care and/ or preschool investment in FY 2026 (California, $5,994) is lower than all but seven states’ per child state K-12 investment in FY 2023. Birth to age 5 is a period of rapid, intense brain development, creating an unparalleled opportunity for learning and growth. Underspending during this critical window means missing a vital chance to
support and strengthen children’s long-term development and success.
4.
Tracking and reporting state child care and preschool funding remain challenging, due to fragmented governance and funding streams. This reduces transparency and accountability.
Funding for child care and preschool is often spread across multiple state agencies or departments.Further, states often blend and layer funding from state and federal sources
to piece together their child care systems. This complexity makes it difficult to describe funding and programs simply and advocate for increased investment.
What We Recommend
-
Increase Investments:
States should significantly boost child care and preschool funding and strengthen their child care systems by reducing family costs, supporting the workforce, and expanding the supply of quality programs. -
Improve Transparency:
Policymakers should streamline and align funding data across agencies so stakeholders can clearly understand current investments and identify opportunities for improvement. -
Strengthen Coordination:
States should restructure or better coordinate the agencies overseeing child care and preschool to create more efficient, unified systems that better serve children and families.
What We Learned
Download the What We Learned and Recommend fact sheet.
Would you like to request specific information, datasets, or other support on this resource? Please complete this form and someone from our Research team will contact you directly.
