Record Preschool Funding Masks Growing Quality Gap, Report Warns
State preschool funding hits record $14.4B, but quality lags. Experts warn of growing divide as 17 states cut spending per child.
Enrollment Surges, But Experts Sound Alarm on Uneven Access
State-funded preschool programs now serve more four-year-olds than ever before, with total funding reaching an all-time high of nearly $14.4 billion. Yet a new report from the National Institute of Early Education Research warns that the rush to expand access is leaving quality behind, creating a 'system of haves and have-nots' across the country.
“If providing high-quality preschool education to all 3- and 4-year-olds were a race, some states are nearing the finish line, others have stumbled and fallen behind, and a few have yet to leave the starting line,” the State of Preschool: 2025 Yearbook states.
Quality Concerns Persist Despite Record Spending
The report found that while states collectively increased spending by $45 per child (adjusted for inflation), the rate of growth is slowing dramatically. Last year's per-child increase was 16 times larger than this year's. “We're trying to make sure states are also thinking about quality,” said Allison Friedman-Krauss, an associate research professor at NIEER. “Right now, it's more about access. And we don't want them to forget about quality.”
Only a handful of states are driving the spending boom. California alone allocated $4.1 billion, while New Jersey and New York spent $1.2 billion and $1 billion respectively—together accounting for 45% of all state pre-K funding. Meanwhile, 17 states cut spending per child (adjusted for inflation) compared to the previous year.
Funding Disparities Highlight State Priorities
New Jersey, Oregon, and the District of Columbia each invested more than $15,000 per enrolled preschooler. Six other states—California, Connecticut, Delaware, Michigan, New Mexico, and Washington—spent over $10,000 per child. But many states lag far behind, and researchers attribute some cuts to budget deficits and falling enrollment.
Yet deficits don't always lead to cuts. New Jersey, despite a budget shortfall, added $100 million to expand preschool programs. “That's a conscious decision to say we're going to spend less,” said Steve Barnett, NIEER's director, referring to states that reduced funding. “And you have to ask if that's the right priority for our children's future.”
Background
The annual State of Preschool report tracks enrollment, spending, and quality standards for state-funded pre-K programs across the U.S. This year's edition found that more four-year-olds are enrolled than ever, yet quality benchmarks—such as teacher-to-student ratios and teacher compensation—remain inconsistent. The report highlights a growing divide: wealthy states can afford high-quality programs, while others struggle to maintain even basic access.
Historically, state pre-K funding has increased steadily, but the pace of growth has slowed since the peak spending spike in 2023-2024. Researchers warn that inflation-adjusted cuts in 17 states could widen the gap between well-funded programs and under-resourced ones.
What This Means
The findings underscore a critical tension in early childhood education: expanding enrollment without ensuring quality risks creating a two-tier system where some children benefit from enriching preschool experiences while others get little more than daycare. Experts argue that without sustained, equitable investment, the long-term benefits of pre-K—improved school readiness, higher graduation rates, and reduced achievement gaps—may be lost for the most vulnerable children.
“This is a call to action for state policymakers,” Friedman-Krauss said. “We cannot let the quest for universal access eclipse the need for programs that actually prepare children for kindergarten.” The report urges states to prioritize teacher salaries, smaller class sizes, and curriculum standards as they continue to expand preschool offerings.