Introduction and summary
This report contains a correction.
Families across the country struggle to make ends meet in the face of rising costs for basic goods and services, including high child care costs. Child care is unaffordable in every state in the nation.1 Even with both parents working, as is the case for more than two-thirds of the nation’s children, the cost of child care can eat up the take-home pay of most families.2 In 2024, dual-income households could expect to pay as much as 10 percent of their income on child care costs, while single-earner households could expect to pay as much as one-third.3 Moreover, America’s broken child care market forces providers to perform an impossible balancing act—setting prices that can keep their doors open without raising them so high as to drive parents away.4 Too often, early educators—undervalued as they are—feel the squeeze of that math and continue to subsidize the cost of child care with low pay, few benefits, and high-stress working conditions.5
Unfortunately, the Trump administration’s actions this year have made matters worse. Early childhood programs face increased uncertainty at the federal level. Since taking office, the administration has:
- Frozen large amounts of government funding, including Head Start funds,6 and has taken steps toward eliminating the program altogether7
- Terminated staff from the Office of Child Care and the Office of Head Start8
- Pressured House Republicans to pass a budget resolution that directs Congress to cut $330 billion from the Committee on Education and Workforce,9 which oversees federal early care and education programs such as Head Start, the Child Care and Development Block Grant (CCDBG), and the Preschool Development Grant Birth through Five (PDG B-5) program
Learn more about the Head Start program
Now more than ever, it is critically important that governors and state legislators protect and invest in their state’s early childhood systems to ensure the continuity of services for children and families. State officials must continue to make the investments needed to improve their state systems and expand access to services. At the same time, they must make the case to their federal representatives to preserve federal programs such as Head Start, the CCDBG, and PDG B-5.
Early child care and education is a priority for state governors
For most of the nation’s governors, early child care and education is a priority of their administrations. Center for American Progress analysis of 2025 State of the State addresses (48 speeches delivered at the time of this publication) finds that nearly two-thirds—63 percent—of all governors highlighted child care, pre-kindergarten, and/or early education in their speeches. Eight governors referenced child care, preschool, early education, and other key terms in their speeches; 27 mentioned just child care or early education; and 11 remarked about pre-K or preschool. Notably, 12 of these governors represent the Republican party, while 18 are Democrats, showcasing that early learning opportunities for the nation’s youth remain a bipartisan issue affecting voters across the political spectrum.*
What governors are saying about early care and education
Below are excerpts from a selection of State of the State addresses from 2025 included in CAP’s analysis.
Gov. Michelle Lujan Grisham (D-NM): “Free childcare. Free PreK. Free school meals. Free college. Child Tax Credits. Working Families Tax Credits. We’re delivering on fundamental financial security, and helping working families make ends meet right now. … We all know that a comprehensive, high-quality education can set the trajectory for success – today, and more importantly for decades to come.”
- “[B]ecause of our investment in free childcare, more than 30,000 New Mexico children are now getting the support that they and their parents need to succeed in their education and careers. We’re close to realizing truly universal child care in New Mexico.”
- “This profound promise is why we’re still working to deliver truly universal free childcare for all. In New Mexico, the cost of childcare is out of reach for most families, with many spending $3,000 per month––or more––to enroll just two children. That’s more than rent or a house payment for many, and it’s shattering household budgets.”
- “For $205 million more, we can make that promise real for every New Mexico family. Let’s become the first state in America to give every child the start they deserve, with universal access to high quality childcare today and for the future.”
- “[W]e established a first in the nation constitutional right to childcare, universal pre-K, and then free college for any resident who wants it. It’s an unprecedented commitment to New Mexico’s young people that will pay dividends for generations to come.”10
Gov. Bill Lee (R-TN): “If we really want to create an environment for families to thrive, we have to find innovative ways to make childcare more accessible and more affordable.”
- “That’s why, this year, we are proposing an additional $11 million investment in the Boys and Girls Club – one of our premier childcare providers – to serve 7,500 low-income kids across Tennessee, with hopefully more to come.”
- “[T]his year, we will propose a better approach to the Smart Steps Child Care Program by easing the benefits cliff and covering more middle and low-income working families.”
- “[T]o reduce turnover in the workforce, we will provide more childcare workers with more pay by expanding eligibility in Tennessee’s existing WAGES program, allowing for more daycare spots and greater access for families in need.”
- “All of this – plus our work to streamline childcare facility licensing and permitting – will lead to tens of thousands of new daycare spots across rural and urban Tennessee, and in turn, create one of the most family-friendly workforces in the nation.11
If we really want to create an environment for families to thrive, we have to find innovative ways to make child care more accessible and more affordable.
Tennessee Gov. Bill Lee
Gov. Kathy Hochul (D-NY): “We’re going to dedicate 110 million dollars to build new child care centers, renovate existing ones, and expand options for families and communities all over New York. And we will establish a corps of substitute child care professionals so someone’s always on call.”
- “This year I want to support our families even more by tripling the maximum benefit to 1000 dollars for babies and kids up to the age of four. And in 2026 we’ll boost the credit for school-age children to 500 dollars. For parents, it means more food on the table and more supplies in the backpacks of 2.7 million children.”
- “[I]t makes good economic sense. Every dollar invested in the child tax credit will generate a dollar and 25 cents in economic activity. That’s spent in local stores, helping our local businesses.”
- “There is another driver of costs for families we need to confront: child care. Daycare can cost over 21,000 dollars a year. Think about it: that’s 155 percent higher than a public college tuition. It’s like paying a second rent for so many families.”
- “And I know how hard it is to make life work without childcare because I lived it. When my kids were young I had to leave my job because I couldn’t find accessible, affordable daycare. Everything I had worked for was derailed. I didn’t know how I’d get my career back on track. And I know that so many moms across New York can tell the same story.”12
Gov. Katie Hobbs (D-AZ): “When I travel across the state and speak to parents, I hear one thing time and again: child care costs are out of control.”
- “On average, an Arizona family pays nearly 15 thousand dollars per year for child care. That’s more than students pay for in-state tuition to our public universities.”
- “More than 75,000 Arizona children – 1 in 4 – have parents who need childcare, but can’t access it. And every year, child care disruptions cost our state billions of dollars in economic activity.”
- “I understand these challenges intimately. That’s why I am putting forward the Working Families Child Care Act to lower the cost of caring for your kids by two-thirds. Through partnerships with employers, we can make life easier for families who are struggling with the high cost of raising a child. Hardworking families will win. Employers will win. And, most importantly, our kids will be better off because they have the care they need to learn, play, and thrive.”13
Gov. Mike Kehoe (R-MO): “My administration is committed to timely payments for the child care providers who partner with the state to provide care.”
- “We know delays in payments from the state have made it difficult for providers to even stay open. So, starting in fiscal year 2026, providers will receive payments from the state at the beginning of the month and we will pay on enrollment – just like private pay. We will not allow late payments, or technology issues to put these small businesses at risk of not being able to provide for families in need of child care.”
- “We are also including $10 million in this year’s budget to offer grant funding opportunities to support partnerships between employers, community partners, and the child care industry to make more child care slots available for Missouri families.”
- “As many of you have heard me say before, a strong early childhood system is necessary for a prosperous economy. We know that when investing in our children, we are not only preparing them to be ready for school and to be successful later in life; we are also helping the workforce today.”
- “Together, we will secure a better environment for providers to thrive, and Missouri’s children to be set up for success.”14
Gov. Jared Polis (D-CO): “Last year, thanks to … voters, the first class of universal preschool saved families an average of $6,100, springboarding Colorado from 27th to 7th in the nation for preschool enrollment.”
- “Beyond the family savings and learning benefits, new research shows that universal preschool drives economic mobility.”
- “On average, parents who enroll their kids in universal preschool earn 20% more than parents without access to universal preschool, and long-term studies show the kids will do better too when they grow up.”15
Gov. Tony Evers (D-WI): “We have to make child care more affordable and accessible. This is as much about doing what is best for our kids as it is doing what is best for parents in our workforce and our economy, too.”
- “Child care is too darn expensive. … I was proud last year to sign a bipartisan bill to expand our child and dependent care credit. That bill goes into effect this year, so parents and families, be sure to look out for that when you file your taxes.”
- “Over 110,000 Wisconsin taxpayers will see an average benefit of over $650 per filer, totaling nearly $73 million this year alone. That’s great news for Wisconsin’s working families.”16
Gov. Joe Lombardo (R-NV): “Together, we also made major new commitments to state-funded Pre-K through building out additional capacity for our youngest learners.”
- “By modernizing incentives, we are ensuring that industries that create high-quality jobs, advance clean energy, and address essential needs like healthcare and childcare are encouraged and rewarded.”
- “Targeted tax credits for childcare facilities, for example, help working families but also support businesses in building a stronger, more inclusive workforce.”17
Gov. Ned Lamont (D-CT): “[W]e have freed up hundreds of millions of dollars in our budget to expand access to affordable childcare, affordable healthcare, and expanded education opportunities. And we are just getting started.”
- “We are upgrading our social service centers to be opportunity centers, where you can sign up for Medicaid and food assistance, and also free childcare and job training.”
- “Education Committee: Let’s build on the blue ribbon childcare commission. Let’s make a down payment on affordable, accessible early child care for all of our families.”18
Gov. Andy Beshear (D-KY): “[W]e must enact universal pre-K for all 4-year-olds. Pre-K provides proven, lifelong gains. … Universal pre-K is also the single most impactful policy that can boost our workforce.”
- “Many parents are ready to get back to work, but the high cost, and in some places, total absence of child care makes that simply impossible.”
- “Universal pre-K will strengthen our education system; it’ll grow our workforce; and it’ll boost the entire economy. It’s time to make this a reality for our kids.”19
Gov. Maura T. Healey (D-MA): “We were the only state to fully replace federal [child care] support that went away, with a $1.5 billion investment.”
- “We not only saved our system, but affordable childcare is growing in Massachusetts.”
- “Today 36,000 more children are getting care; and their parents can go to work and support their families.”20
Gov. Phil Murphy (D-NJ): “[W]e will save every parent money by offering them a free, safe, and enriching environment to leave their child during the workday, whether it be full-day K or universal pre-K.”
- “When I first ran for this office, I set the goal of putting New Jersey on a path to free, universal pre-K. … And let’s remember that this is not just an educational investment — it is an economic investment.”21
Gov. Wes Moore (D-MD): “We have preserved record investments in child care – because parents shouldn’t have to choose between a good-paying job and knowing their child is safe.”
- “Together, we have provided child care to 16,000 additional Maryland children.”22
We have preserved record investments in child care – because parents shouldn’t have to choose between a good-paying job and knowing their child is safe.
Maryland Gov. Wes Moore
Gov. Glenn Youngkin (R-VA): “I urge you to support the efforts to maximize this historic investment with commonsense reforms that will take 7,000 birth-to-five year old children off the waitlist, and tackle child care deserts with funding to renovate existing facilities with local partners.”
- “An integral part of supporting those families is child care. The work that we did last year to support working mothers and fathers…to transform child care in Virginia was nation leading.”23
Gov. Kelly Armstrong (R-ND): “We can continue to work on short-term and long-term solutions to our workforce, child care and housing challenges. … The legislature has invested heavily in housing, day care, workforce attraction and retention.”24
Gov. Mike Dunleavy (R-AK): “I see opportunities to make Alaska a more affordable place to live whether it’s housing, childcare, food, or energy.”25
A closer look at what’s happening in three states
Blue and red and states alike face the immediate need to address the child care and early learning crisis—a challenge that affects the workforce, state economies, and children’s learning and development. The three governors highlighted below represent both Democratic and Republican state leadership who showcased child care and early education in their State of the State addresses, underscored their commitment to the child care sector, and pledged to improve administration, ease issues with affordability and accessibility, and invest in the early care and education workforce.
Kansas
Gov. Laura Kelly (D-KS): “Research is clear that a child’s experiences from birth to age five determine the trajectory of his or her entire life, from social/emotional development to academic achievement to career success.”26
Earlier this year, Gov. Kelly and a group of bipartisan state legislators proposed streamlining the state’s early childhood programs under one entity: the Office of Early Childhood. Gov. Kelly describes the new proposed office as “a one-stop-shop for young families, for child care providers, and for businesses to access early childhood services.”27 This proposal aligns with a trend across states to consolidate governance structures. Recent CAP research has found that consolidating early childhood governance can highlight early childhood as a priority for state offices, improve coordination of services, and build a more cohesive system for families, educators, and providers.28 Kansas currently has no consolidated governance structure, and the administration of early childhood programs is scattered across various state agencies.
In her address, Gov. Kelly discussed the difficulties of a fragmented system: “Right now, early childhood services are siloed in four different state agencies. If a family is searching for care for a newborn, that family must navigate among three different agencies to figure out which program is the right fit. If a child care center wants to get off the ground, it must work with one state agency to get licensed.”29 This proposal comes after Gov. Kelly has invested in child care throughout her tenure. As mentioned in her address, Kansas is on track to add more child care capacity in the next two years than it has in the past 15 years.
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Iowa
Gov. Kim Reynolds (R-IO): “Over the last four years, we’ve increased childcare capacity by almost 27,000 slots. … [T]wo years ago, we created a pilot that provides free childcare to childcare workers. It’s been successful at decreasing the staff turnover.”30
In her address, Gov. Reynolds proposed establishing an “Early Childhood Continuum of Care” program that would provide three-year grants for preschool programs and child care providers that come together to integrate services. The funds for this new program could be used to cover the cost of transportation for children to and from school and child care—or for a preschool teacher at a local child care center or a child care worker at a local school. Since Gov. Reynolds delivered her address, the Iowa House Health and Human Services Committee and the Iowa Senate Education Committee passed a bill creating a continuum of care for the state’s preschool students.31 This proposed program builds on Iowa’s previous investment in child care and its preschool program; Iowa is ranked fifth in the country for 4-year-old preschool access.32
Pennsylvania
Gov. Josh Shapiro (D-PA): “Our families have $136 million back in their pockets because we made childcare more affordable. … Too many young parents are forced to exit the workforce because they can’t find affordable childcare.”33
In his address, Gov. Shapiro highlighted the gains Pennsylvania has made over the past two years to make child care more affordable by expanding tax credits for families and creating a new credit for businesses to contribute to employees’ child care costs. However, despite the improvements made in affordability, Gov. Shapiro highlighted the state’s child care workforce shortages: Pennsylvania has 3,000 unfilled jobs in child care that, if filled, could serve 25,000 more children.34 To build child care supply while acknowledging the sector’s low wages, Gov. Shapiro announced during his address a $55 million proposal to give Pennsylvania child care workers at least $1,000 in recruitment and retention bonuses.
Conclusion
The crisis in the early education sector has not subsided: Prices remain too high for families to afford, early educators are paid too little, and providers face impending closures, exacerbating the existing shortage of care. As the federal government wages internal battles over funding and continuing essential early education programs, Americans could face a future where they will have to rely solely on states to step in and dedicate resources and personnel to ensure children have access to high-quality care options.
It is promising that child care and early learning continue to be a priority for most governors, transcending political parties. As state policymakers carry out their 2025 legislative agendas, they can help realize those gubernatorial priorities and take action to improve the sustainability of the early education profession, increase the supply of care options, and make child care and early learning more affordable and accessible for families.
Acknowledgments
The authors would like to thank Allie Schneider and Erin Grant for their insights, thorough fact-checking, and support in the development of this report.
*Correction, April 22, 2025: This report has been updated to include the content in Delaware Gov. Matt Meyer’s State of the State address.