As we enter 2025, we find ourselves at a pivotal moment for the policies shaping early childhood education (ECE). At Children’s Equity Fund (CEF), we envision an America where all families have access to quality, affordable child care. Achieving this vision is no small feat, especially as the sector grapples with many challenges.
Still, as Congress and state legislatures convene this month, we are seeing dozens of new and returning proposals to support families’ child care needs coming from both parties. With many states advancing innovative solutions and the potential for cross-partisan action at the federal level, we think that progress toward the child care options that families deserve is within reach.
From Crisis to Solutions
It’s clear that the child care system is in crisis. According to a 2022 survey by ReadyNation, half of parents struggle to find child care that is quality or affordable and their struggle costs $122 billion in lost earnings, productivity, and revenue each year. Yet even while many families cannot afford the cost of care, providers across the country like this one in Pennsylvania, are struggling to recruit, compensate, and retain qualified staff. In other states, like Virginia, thousands of children languish on waitlists for subsidized child care.
Despite these challenges, we draw inspiration from innovative solutions emerging across the country. In Vermont, the continued implementation of Act 76 is providing thousands of Vermont families access to more affordable child care options. In Virginia, which will elect a new governor and, very likely, new early childhood champions from both parties in 2025, advocates and policymakers are poised to build on the progress they made in 2024 and address child care waitlists and shortages. In Virginia’s state legislature, advocates are making strides to address parent demand, implement stable financing, and incentivize innovation inside the early childhood education sector.
A critical component of addressing these challenges is ensuring equity in compensation for early childhood educators. Nationally, early childhood educators earn a median wage of just $13 per hour — a figure that underscores not only the inequities facing these workers but also the broader consequences for families seeking quality care. Models like the District of Columbia’s Early Childhood Educator Pay Equity Fund demonstrate the transformative potential of aligning educator pay more closely with their public school counterparts. Efforts like these not only help retain qualified staff but also create stronger foundations for delivering high-quality education to young learners. Policymakers and advocates across the country are also taking note of these successes, which offer a promising path forward for other states and localities navigating similar struggles.
Federal Action and the Way Forward
CEF supports these and other state-based solutions that allow more families to access affordable and quality child care, but we recognize that states cannot get to the ideal child care system alone. Transforming the child care system requires both state innovation and federal leadership. We are heartened by signs that Congressional leaders in both parties and the Administration are calling for policies that benefit families and begin to address child care needs.
Importantly, Congress will debate the future of the Child Tax Credit (CTC), which is currently set to expire at the end of 2025. Vice President Vance has called for increasing the CTC to $5,000 per child, which is one of many strong proposals put forward by Republicans and Democrats. At CEF, we strongly support a larger and more refundable Child Tax Credit as part of the federal tax bill. Even though tax credits alone will not create the ideal child care system, families with young children need this critical financial support, which can be used to offset child care costs. We must use this bi-partisan momentum to enhance the CTC as part of the broader tax bill, recognizing it is a vital step toward a more comprehensive system that fairly compensates caregiving.
Looking Ahead
What we hope to see in 2025 and beyond are policies that support both families and educators. Parents deserve the freedom to pursue care options that best meet their needs, and educators deserve livable wages that honor the dignity and importance of their work.
Achieving these goals will require a shared commitment to bold and innovative solutions. In the coming weeks, CEF will profile our commitment to state and federal policy that advances the WeVision Early Ed Policy Essentials, a resource developed by our sister organization, the Bainum Family Foundation. These Policy Essentials outline actionable steps to create a stronger, more equitable early education system, focusing on key areas like compensation, accessibility, and workforce support.
We’ll be diving deeper into this tool in an upcoming blog post, but for now, we encourage policymakers, advocates, and educators to explore how these principles can guide progress at the local, state, and national levels.
The road ahead will not be easy, but progress is possible. By investing in solutions that strengthen families, stabilize the early childhood workforce, and advance equity, we can ensure that every child has the opportunity to thrive.
Together, let’s make 2025 a year of action, innovation, and impact for early childhood education.