06/06/2026
A new 2026 report from Child Care Aware of America shows just how uneven state investment in child care really is.
Here are the key takeaways:
- State funding ranges from under $500 to over $5,000 per child, depending on where you live
- Washington, D.C. stands out at over $9,800 per child
- The average is around $1,500 to $1,700 per child, which is still far below what’s needed
- Some states invest nothing beyond federal minimum requirements
At the same time:
- Families pay $13,000+ per year for child care on average
- The US loses an estimated $172 billion annually due to child care-related workforce issues
The system is underfunded and inconsistent. Where a child lives plays a big role in whether they can access affordable, quality care. That creates real gaps in opportunity early in life, during a period when development is happening fastest.
The report also highlights a structural issue. Funding is fragmented across agencies and programs. That makes it harder to track spending, coordinate services, and deliver consistent support to families.
Even the highest levels of state investment in early childhood still fall below what most states spend on K–12 education. That gap raises questions about how early development is prioritized, despite strong evidence that the first years matter most.
Child care is doing a lot of heavy lifting. It supports families, enables workforce participation, and contributes to the economy. But the system behind it isn’t built to match that role.
Without more consistent and sustained public investment, the current gaps will likely continue.
