Many families and businesses struggle to access affordable childcare, with costs in our state among the highest in the nation. Childcare remains one of the largest household expenses, and over 40% of families cannot make ends meet. Early investments in children from birth to age five yield the highest economic returns, yet the current early childhood system is underfunded, overburdened, and unable to meet families’ needs.
In 2025, state leadership established the Early Childhood Education Endowment with a $300 million initial investment and a commitment to deposit all future unallocated surplus funds. It took years including the establishment of a Blue Ribbon Commission on Early Childhood Education two years ago and a lot of work with legislators across the state to build the momentum to make early childhood education a priority. This Endowment will:
Provide free childcare for families earning under $100,000 and cap costs at 7% of income for higher earners in state-funded spaces starting in 2027 (compared to 16–27% currently).
Fund 16,000 additional state-funded spaces to reach universal pre-K by 2032.
Also starting in 2027, early educators in state-funded centers, most of whom are women and women of color, will receive wages on par with K–12 teachers. Plus, all early childhood educators no matter where they work will receive access to a health insurance subsidy to support their health and well-being.
Support facility upgrades and new centers with technical assistance for providers accessing $80 million in bonding.
Develop a centralized digital portal to streamline family access, applications, and enrollment.
The Early Childhood Education Endowment is a transformational idea that starts to meet the needs both now and in the future of our kids, families, educators, and businesses. This is more than a policy. It’s a lifeline for families who are doing everything they can and still feel like they are falling short because of a system that wasn’t built with them in mind. Thousands of families will finally be able to afford care. Educators will receive the respect and pay they’ve long deserved. Businesses can fill more of their open jobs and retain the great employees they already have.
Impact or how it will be measured:
The Treasurer’s Office manages the Endowment with oversight from an Advisory Board. Public Act 25-93 mandates:
Five-year impact analyses and annual reports to the Advisory Board.
Allocation of 35% of new care spaces for infants and toddlers starting in 2027.
Monitoring wage parity implementation.
Annual public hearings for families to share feedback.
These measures ensure accountability and inform evidence-based decisions during implementation.