Preschool Programs See Record Funding and Enrollment, but Quality Gaps Persist Across States

Record Funding and Enrollment

State-funded preschool programs have reached unprecedented levels of enrollment and investment, with more four-year-olds participating than ever before. According to the National Institute of Early Childhood Education Research’s (NIEER) annual State of Preschool: 2025 Yearbook, total state spending on preschool hit approximately $14.4 billion—a historic high. However, this growth is not uniform, sparking concerns about unequal access and quality.

National Spending Hits New High

The $14.4 billion figure marks a significant increase, but much of it is concentrated in a small number of states. California alone accounts for $4.1 billion, with New Jersey contributing $1.2 billion and New York $1 billion. Together, these three states represent 45% of all state pre-K spending. More than two dozen states also boosted their preschool budgets, directing funds toward improvements like smaller class sizes and better teacher pay—long-standing issues in early childhood education.

Disparities Across States

Despite the overall growth, the pace of investment is slowing. When adjusted for inflation, the average per-child spending increased by only $45 from the previous year—a stark contrast to the much larger increases seen in recent years. New Jersey, Oregon, and the District of Columbia lead in per-child funding, exceeding $15,000, while six other states—California, Connecticut, Delaware, Michigan, New Mexico, and Washington—spend more than $10,000 per child. Yet 17 states actually reduced per-child spending after adjusting for inflation, with some cutting budgets due to state deficits or falling enrollment. Steven Barnett, director of NIEER, emphasizes that these choices reflect priorities: “That’s a conscious decision to say we’re going to spend less.”

Quality Concerns Shadow Expansion

While access is expanding, quality remains a persistent worry. The report highlights that factors such as teacher-to-student ratios and compensation are often overlooked in the push to enroll more children. Allison Friedman-Krauss, NIEER associate research professor, warns: “We’re trying to make sure states are also thinking about quality. Right now, it’s more about access. And we don’t want them to forget about quality.”

Teacher Compensation and Ratios

Low teacher pay has long been a barrier to attracting and retaining qualified educators in preschool programs. Improved funding can help address this, but not all states are prioritizing it. Similarly, maintaining low student-to-teacher ratios is critical for effective learning, yet some programs struggle to meet recommended benchmarks.

State Priorities Determine Progress

Divergent outcomes illustrate how state-level decisions shape preschool quality. For instance, New Jersey faced a budget deficit but still invested an additional $100 million to expand universal pre-K, demonstrating a strong commitment. In contrast, other states with similar financial constraints chose to cut spending. This uneven approach creates a landscape of “haves and have-nots,” as described by experts, where a child’s access to high-quality early education depends heavily on where they live.

The report underscores that simply increasing enrollment without ensuring quality risks perpetuating disparities. As Friedman-Krauss notes, focusing solely on access can lead to programs that are not developmentally appropriate or effective. A balanced strategy is essential to truly prepare children for kindergarten and beyond.

A Call for Equitable Investment

With more than two dozen states increasing spending but many others falling behind, the need for comprehensive, quality-focused investment is clear. As the race toward universal preschool continues, states must avoid sacrificing quality for quantity. Only by prioritizing both can they ensure that all children—regardless of geography—receive the strong start they deserve.