State funding varies widely — and still falls short for young children
Arlington, VA – For families with young children, access to child care still depends heavily on where they live. A new report from Child Care Aware® of America (CCAoA), An Uneven Start 2026: Where Child Care Funding Falls Short—And Why It Matters, examines fiscal year 2026 state funding for child care and preschool across 44 states and Washington, DC. The findings reveal a clear divide: while some states are making strong investments in child care and preschool, others invest little or nothing beyond what is required to draw down federal dollars.
“Where you live should not determine whether child care is within reach for your family,” said Susan Gale Perry, CEO of Child Care Aware® of America. “But this report shows that it still does. States are making very different choices about how much to invest in young children—and those choices matter for families, providers, and communities.”
The Divide in Investment
State investments in child care and preschool vary dramatically, from less than $500 per child under age 5 in some states to more than $5,000 in others. Washington, D.C., stands out with an investment of nearly $10,000 per child, highlighting how significantly different funding levels are nationally.
Some states are doing the bare minimum, while others are even moving backwards. Seven states (Arkansas, Idaho, Missouri, Nevada, Rhode Island, West Virginia, and Wyoming) fail to invest in child care beyond what is required to draw down federal dollars. In addition, six states (Florida, Kansas, Kentucky, North Carolina, New Hampshire and Rhode Island) decreased their state investment from FY25 to FY26.
Even among higher-investing states, funding for children from birth to age five continues to lag far behind K–12 education spending, despite strong evidence that early childhood is a critical period for development and long-term economic returns.
Signs of Progress
Many states are beginning to increase investments in child care and preschool. Across 26 states, average per-child investment rose from approximately $1,400 in FY 2025 to about $1,700 in FY 2026.
While increased funding alone does not guarantee lower prices or greater access, it gives states more ability to strengthen the child care system and expand support for more families.
The Bottom Line: State Policy Choices Matter
More consistent and coordinated action, alongside increased investments, will be essential to ensure that families are not struggling to afford care simply because of where they live. Closing these gaps will require sustained state leadership and a commitment to building child care systems that work for all communities.
Please reach out to Jennifer Santisi at news@usa.childcareware.org for a copy of the full report.
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About Child Care Aware® of America
Child Care Aware® of America (CCAoA) is the only national organization with an on-the-ground network that supports every part of the child care system. We know what is needed to make child care work for children, families, providers, and communities. Every day our network is working to turn a patchwork of resources into a system that helps families work, supports children’s healthy development and learning, and keeps our economy growing. Learn more at www.ChildCareAware.org.