Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
In the United States, the official entrance age to pre-primary education is 3. One year of pre-primary education is granted in legal frameworks. Compulsory pre-primary education is not granted in legal frameworks. The net enrolment rate for pre-primary for both sexes was 61.24 in 2022.
Governance
The responsibility for financing, allocating, and overseeing education budgets for pre-primary education in the United States is highly fragmented. The funding of pre-primary education programmes draws upon various sources, including local, state, federal, and private funds.
Federal Level
At the federal level, the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Education (DOE) share responsibilities for administering federal funding for pre-primary and early childhood education programmes (which will be detailed in the following sections of this profile). The Department of Health and Human Services (HHS) oversees funds distributed through Head Start and the Child Care Development Block Grant (CCDBG). The Department of Education (DOE) oversees funds administered through Title I, Part A and Part B-619 of the 2004 Individuals with Disabilities Act (IDEA). The Preschool Development Grant Birth through Five (PDG B-5) programme, which was established in 2015 through the Every Student Succeeds Act (ESSA), is jointly overseen by both HHS and DOE.
State Level
Individual states have responsibility and control over their pre-primary education systems. As of 2024, 45 states have allocated funds for preschool education. State education departments are responsible for allocating pre-primary education budgets, which vary widely by state. A comprehensive list of state-funded pre-primary education programmes and state spending on pre-primary education programmes for 2024 can be found here.
Tuition-free status
One year of pre-primary education is granted in legal frameworks.
1. Education resources to subnational governments
Federal Level
Federal funding for pre-primary education is provided to states through three main programmes: the Preschool Development Grant Birth through Five (PDG B-5) programme, Individuals With Disabilities Act (IDEA) Part B-619, and the Child Care Development Block Grant (CCDBG), as outlined below.
Preschool Development Grant Birth Through 5 (PDG-B5)
A significant portion of federal funding for pre-primary education is provided to states through the Preschool Development Grant Birth through Five (PDG B-5) programme, which was established in 2015 through the Every Student Succeeds Act (ESSA). Funding for PDG B-5 is administered by the Department of Health and Human Services (HHS) through the Administration for Children and Families. The programme is jointly administered by HHS and the DOE.
Individuals With Disabilities Act (IDEA) Part B-619
Part B-619 of the 2004 Individuals With Disabilities Act (IDEA) provides funding for states’ preschool special education services for children ages 3–5 with special needs that meet the Part B eligibility criteria, which focus on children’s physical, cognitive, speech and language, psychosocial, and self-help skills. Services required under IDEA Part B vary by child disability and are determined locally. Children may attend a general education programme or a programme specifically for children with disabilities.
Child Care Development Block Grant (CCDBG)
The Child Care Development Block Grant (CCDBG) is the primary federal funding source that supports state child care programmes for children from birth to age 12, with the goals of enabling parents to work and promoting children’s development. Administered by the Office of Child Care within the HHS, CCDBG funds flow to states, which then provide support largely through childcare subsidies or vouchers that families can use at approved private or public providers of their choice. States also have the option to use a portion of funds for contracted child development or preschool programmes. Under the Child Care and Development Block Grant Act of 1990, states retain significant flexibility in setting standards and programme rules, though they must dedicate at least 9% of their allocations to quality improvement activities.
State Level
State funding allocations to pre-primary education programmes are primarily made directly to local education agencies, school districts, or through grants to qualified providers based on specific state-level funding formulas or matching grant requirements.
2. Education resources to institutions
Federal Level
At the federal level, funds are distributed to LEAs for Head Start and Title I, Part A, as outlined below.
Head Start
Head Start is a federally funded early education programme for preschool-aged children from low-income families, including children with disabilities. It offers comprehensive services in education, health, nutrition, and family engagement, and connects families to social supports. Programmes must follow Head Start Performance Standards and ensure at least 10% of enrolled children have special needs. Eligibility includes families below the federal poverty line, those receiving TANF, and children in foster care or experiencing homelessness. The Office of Head Start funds and monitors local grantees.
Title 1, Part A
Title I, Part A funds are federal grants to Local Education Agencies (LEAs) designed to support the education of disadvantaged student. They may be used to fund preschool programmes in districts or schools that meet programme eligibility. These funds can support direct preschool instruction, salaries for early childhood staff, and other early learning services such as family engagement or professional development. Eligibility for preschool support under Title I typically prioritizes children most at risk of academic failure, including those from low-income backgrounds or with additional risk factors.
State Level
Most direct operational subsidies for public pre-primary institutions in the US are delivered through state-managed funding systems. States use a variety of mechanisms, such as dedicated pre-primary budget lines, inclusion in K-12 school funding formulas, or special grants to LEAs and community-based providers. As part of their funding formulas, some states allocate additional funds to students serving low-income children, English learners, or students with other risk factors to promote equity. Maryland’s formula, for example, provides county boards of education with categorical aid based on the number of low-income students and requires the board to fund pre-primary education for all four-year-olds who meet the criteria for the federal free- and reduced-price lunch programme. Other states, including Maine, Nebraska and Oklahoma, provide a per-child rate for pre-primary education and supplement that with categorical aid for designated groups, such as English learners and economically disadvantaged students.
3. Education resources to students and families
Federal Level
The Child and Dependent Care Expenses tax credit is a federal income tax credit designed to help working families offset the costs of child care or care for a dependent. The tax credit may be used to cover the cost of pre-primary education. For the 2025 tax year, eligible families may claim 20% to 35% of qualifying care expenses, up to USD 3,000 for one child, and up to USD 6,000 for two or more. The percentage decreases as income increases, meaning lower-income families receive a larger credit. The credit is non-refundable.
State Level
The Child Care Development Block Grant (CCDBG) (outlined in the previous section of this profile), while allocated federal funding, is administered at the state level. CCDBG funds flow to states, which then provide support largely through childcare subsidies or vouchers that families can use at approved private or public providers of their choice.
4. Social policies and family support programmes
Federal Level
The Temporary Assistance to Needy Families (TANF) programme helps families with children experiencing low-income achieve economic security and stability. States receive block grants to design and operate programmes that accomplish the TANF programme goals. Each state, territory, and tribe has its own monthly cash assistance programme funded through TANF details may be found on the Administration for Children and Families website. Examples are provided in the next section.
State Level
Each state, territory, and tribe has its own monthly cash assistance programme funded through TANF. These include, for example, the California Work Opportunity and Responsibility to Kids (CalWORKs) and Refugee Cash Assistance (RCA) programmes in California, the Family Assistance programme in New York State, and the Temporary Cash Assistance (TCA) in Florida.
