Preschool Expansion: Record Funding but Persistent Quality Gaps
In recent years, state-funded preschool programs have reached historic highs in both enrollment and spending. However, experts warn that significant disparities in quality and access threaten to create a system of educational haves and have-nots. A comprehensive report from the National Institute of Early Childhood Education (NIEER) highlights these trends, revealing that while some states are making remarkable progress, others have stalled or fallen behind. Below, we explore the key findings and implications.
What are the main findings of the 2025 State of Preschool Yearbook?
The annual report from NIEER, titled State of Preschool: 2025 Yearbook, reveals that state spending on pre-K programs hit an all-time high of nearly $14.4 billion, with enrollment of four-year-olds also reaching record levels. However, the report emphasizes that quality remains a critical concern. Allison Friedman-Krauss, an associate research professor at NIEER, warns that while states are focusing on expanding access, they must not overlook the importance of high-quality programming. The report finds that spending increases are not evenly distributed, and many programs still fall short on key quality benchmarks such as teacher-to-student ratios and teacher compensation.
How does preschool spending and enrollment vary across states?
The distribution of preschool funding is highly uneven. Three states—California, New Jersey, and New York—account for nearly half (45%) of all state pre-K spending, with California alone investing $4.1 billion. While more than two dozen states increased their preschool budgets, the rate of growth has slowed dramatically. Adjusted for inflation, the average per-child spending increase was just $45 for the 2024-2025 year, compared to a much larger increase the previous year. Seventeen states actually decreased spending when adjusted for inflation, often due to budget deficits or declining enrollment. However, not all states followed this pattern; New Jersey, despite a budget deficit, added $100 million to expand preschool access.
Why are experts concerned about preschool quality despite increased funding?
Although total funding has reached unprecedented levels, experts like NIEER director Steve Barnett caution that the focus on access can overshadow quality. Many states still struggle with inadequate teacher compensation, poor teacher-to-student ratios, and lack of comprehensive learning standards. The report notes that while some states invest over $15,000 per child (e.g., New Jersey, Oregon, and D.C.), others spend far less, leading to wide variations in classroom quality. This creates a risk that children in underfunded states receive a subpar early education, reinforcing inequality from the start. The concern is that simply enrolling more children without ensuring program quality may not yield the long-term benefits that high-quality pre-K is known to provide.
Which states are leading in preschool funding per child?
Several states stand out for their substantial per-child investment. New Jersey, Oregon, and the District of Columbia each allocate more than $15,000 per enrolled preschooler. Six additional states—California, Connecticut, Delaware, Michigan, New Mexico, and Washington—spend over $10,000 per child. These high-spending states often have well-established programs that meet or exceed quality standards. In contrast, many states spend far less, and the gap between the highest and lowest spenders continues to widen. The report emphasizes that per-child funding is a key indicator of program quality, as it directly affects resources for staff, materials, and facilities.
How does the rate of spending increase compare to previous years?
While overall spending rose, the pace of increase slowed sharply. Adjusted for inflation, the average per-child spending hike was only $45 for the 2024-2025 school year—16 times smaller than the increase seen in the prior year. This deceleration suggests that many states are leveling off or cutting back after a period of rapid expansion. Researchers attribute the slowdown to state budget deficits and falling enrollment in some areas. However, they argue that the slowdown is not inevitable; states that prioritize early education, like New Jersey, continue to invest even during fiscal challenges. The data indicate that political will and policy priorities play a crucial role in sustaining funding growth.
Why did some states reduce preschool spending and is it linked to budget deficits?
Seventeen states cut per-child preschool spending (adjusted for inflation) from the previous year. The NIEER report links these cuts to overall state budget deficits and declining enrollment. However, the relationship is not straightforward. For example, New Jersey faced a significant budget shortfall yet increased preschool funding by $100 million, prioritizing expansion. Steve Barnett argues that such decisions reflect state values rather than economic necessity. He warns that cutting pre-K funding can have long-term negative consequences, as high-quality early education yields substantial returns in later academic and life outcomes. The report urges states to view preschool as an investment rather than an expense.
What is the significance of the 'haves and have-nots' issue in preschool access?
The phrase, used in the NIEER report, underscores the growing divide between states that provide high-quality, well-funded pre-K and those that do not. While some states are nearing universal access with strong programs, others have barely started. This disparity means that a child's zip code largely determines their access to quality early learning, perpetuating cycles of inequality. Experts worry that without federal or interstate coordination, the gap will widen. The report calls for states to not only increase funding but also adopt rigorous quality standards, ensure adequate teacher training and pay, and target resources to underserved communities. Only then can the promise of preschool benefit all children equally.