Funding and Policies: Securing the Future of Early Education

At EveryChild California, we know that early childhood education is more than a stepping stone—it is the very foundation of a child’s lifelong journey of learning, growth, and opportunity. But the strength of that foundation depends on two critical elements: sustainable public funding and sound, equity-driven policy.

This week, the California Assembly and Senate released their joint budget spending agreement for 2024–2025, signaling strong momentum toward a more balanced and forward-thinking investment in our state’s early care and education system. While negotiations with the Governor’s office are still underway, this legislative budget framework shows meaningful signs of progress—and affirms that our collective advocacy is making a difference.

What the Budget Agreement Means for Early Education

The legislative version of the budget includes critical provisions that reflect the priorities of early educators, families, and advocates across the state, such as:

• ✅ Single Rate Structure Based on Cost of Care: The budget directs the Department of Social Services to adopt a single reimbursement rate structure, based on the actual cost of providing care, and mandates that contractors be paid based on enrollment, not attendance. The plan requires full implementation and reporting of the automation process by 2026.
• ✅ Reimbursement Adjustments and COLA: Suspends the statutory COLA for all child care and preschool programs for 2025-26, redirecting the $29.5 million to the single rate system. The COLA is restored in 2026-27,  under the new cost of care rate model starting in 2026. Maintains existing rates, backfilling expiring federal funds.
• ✅ Moderated Cuts to Emergency Bridge Programs: The Legislature dialed back proposed budget reductions, limiting cuts to:
  • $9 million in Family Urgent Response System (FURS) funding
  • $30 million in Emergency Child Care Bridge services
• ✅ New Child Care Slots Added: An additional $150 million has been allocated to create over 12,000 new child care slots statewide. This includes 6,770 new voucher spaces, 2,500 new general child care spaces, and 2,800 new preschool spaces. Extends the deadline for the administration to add a total of 200,000 by 2028.

This progress is the direct result of unified, strategic advocacy—and proof that when our community shows up, lawmakers listen.

Why Funding Still Matters

Every dollar invested in early education pays dividends for generations. With adequate and consistent funding, child care providers can:

• Hire and retain qualified, passionate educators
• Maintain low child-to-adult ratios
• Provide developmentally appropriate materials and safe learning environments
• Support the holistic needs of children and families

Underfunded systems, by contrast, result in high staff turnover, limited access, and inequitable learning outcomes. Quality early education requires quality investment.

Policy: The Blueprint for Impact

Funding alone isn't enough. It must be guided by policies that prioritize equity, support accountability, and meet the real needs of today’s educators and families. Policies that recognize enrollment over attendance, reduce administrative burdens, and elevate the educator voice are what make funding work.

As California enters a new phase of system reform—through rate restructuring, alternative methodology planning, and expanded universal pre-K access—our policies must evolve alongside our values. They must reflect the realities of our workforce, the diversity of our families, and the need for consistency in care.

The Road Ahead

While the Legislature’s budget agreement is a step in the right direction, the work is far from over. The next few weeks are critical as final negotiations take place. EveryChild California will continue monitoring developments, engaging with partners, and sharing opportunities for you to take action.

Because the future of early education doesn’t rest on policy alone—it rests on all of us.

Let’s keep going. Let’s keep showing up. Together, we can secure the investments and protections our children, families, and educators deserve.

Stay informed on the latest budget updates and calls to action at:
www.everychildca.org/legislative-resources

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