NCSL - National Conference of State Legislatures
01/23/2026 | Press release | Distributed by Public on 01/23/2026 12:00
Early Childhood Has Momentum: 2025 Legislative Trends
Key Takeaways
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States accelerated efforts to strengthen early childhood systems.
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Employer-focused incentives-like tax credits and cost-sharing-emerged as key strategies for legislatures to boost child care access.
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Infant- and toddler-focused legislation gained momentum, particularly around paid leave and early intervention.
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Legislators are taking action to improve the lives of young children and their families at a rapid pace. In 2025, legislatures in all 50 states, Washington, D.C., and Guam introduced almost 1,900 bills related to early childhood and passed 326 of them. That is the largest number of early childhood-related bills passed since 2019.
As the child care crisis continues to intensify, states are taking a wide variety of policy actions to address the issue. Some states have directly infused general revenue funds to support child care, while others are enticing the business community to contribute to the cost of child care through cost-sharing models or employer tax credits. Other states are looking to support the child care workforce through wage increases, health insurance and retirement savings accounts.
This brief highlights key trends in enacted legislation in states throughout the country. It is not a complete list of early childhood bills, and it excludes technical changes and routine budget appropriations. For a full list of early childhood bills tracked by NCSL, refer to our database of early childhood legislation.
| Bill Category | # of Enacted Bills | # of States and Territories |
|
Child care subsidies and quality |
149 |
41 |
|
Prenatal, infants and toddlers |
86 |
30 |
|
Early childhood governance |
54 |
27 |
|
Early care and education workforce |
34 |
25 |
|
Prekindergarten and school readiness |
24 |
17 |
|
Early childhood financing |
24 |
19 |
|
Home visiting |
8 |
7 |
|
Other |
3 |
3 |
The table includes bills enacted as of Dec. 4, 2025.
FINDING 1: The child care crisis continues to drive legislation.
Lawmakers are working to address the ongoing crisis in child care. In 2025, legislators in 41 states and territories enacted 149 pieces of legislation regarding child care, the highest number of enacted bills since 2019. Legislators focused on increasing access to affordable care, ensuring the health and safety of children in care, and making it easier to operate child care establishments in the provider's home.
With affordability of child care being a top concern, lawmakers took a range of actions to ease financial burdens for families. For example, legislators in Alaska (SB 95) capped copays at 7% of household income for families receiving a child care subsidy. Georgia (HB 136) expanded its child and dependent care tax credit from 30% of the federal tax credit to 50%. Starting in 2028, Connecticut (SB 1) families with a gross annual income below $100,000 who enroll their children in programs funded by the Early Childhood Education Endowment will pay nothing for child care. The cost for those earning more than $100,000 will be capped at 7% of annual income.
Efforts are also underway to support family child care providers, an essential component of a mixed-delivery system of child care. The latest Office of Child Care data shows that 15% of children receive care from family home providers. Florida (SB 738) created abbreviated inspection plans for family day care homes that have been licensed for at least two years and have had no major violations in prior years. Maine (HB 937) now permits child care providers to operate without an outdoor space if there is a public outdoor space within reasonable distance of the provider. Oklahoma (HB 1847) prohibited local governments from enacting stricter fire or safety requirements for child care homes than what is required by the International Building Code.
FINDING 2: States enacted twice the number of bills on child care workforce benefits and compensation.
According to the Federal Reserve Bank of Chicago, early childhood educators are some of the lowest paid professionals in the economy and receive few benefits. This contributes to high turnover and instability in the industry, and it undermines infants' and toddlers' need for consistent and secure caregiving. Although states enacted fewer early childhood workforce-related bills in 2025 than 2024, the number of bills focused on early childhood workers' compensation and benefits doubled.
In response, Maine (SB 763) established the Salary Sustainability Program for Child Care Professionals, which offers state funding for salary supplements based on classroom education and experience. Pennsylvania (HB 416) created the Child Care Staff Recruitment and Retention Program, providing annual payments to recruit and retain early childhood professionals.
According to the Center for the Study of Child Care Employment, rates of early educators without health insurance exceed the national average. The center also notes that when employers offer retirement benefits, uptake is typically low because employees often can't afford to participate.
Recognizing that comprehensive benefits can help stabilize the workforce, some states enacted policies in 2025 aimed at providing retirement and health benefits for early childhood educators. Maryland (HB 859) enacted legislation allowing child care providers that receive more than two-thirds of their funding from government sources to participate in the state's Employee and Retiree Health and Welfare Benefits Program. Additionally, the state is now required to help child care professionals access health insurance through Medicaid or the state exchange. In Arkansas (SB 148), early childhood educators were granted eligibility to participate in the Arkansas Teacher Retirement System.
States also continued to make it easier for early childhood educators to afford child care for their own children. Oklahoma (HB 2778) created a three-year pilot program where eligible child care professionals who earn under $60,000 and have total gross household income under $120,000 can have their income exempted from determining their child care cost. Rhode Island (HB 5076) extended its pilot program an additional three years, and Texas (HB 462) passed legislation to prioritize child care workers on wait lists for subsidized care.
FINDING 3: Policymakers are prioritizing newborns, infants and toddlers.
In 2025, many states took a closer look at the needs of young children and their parents. At least 30 states passed legislation related to children birth to age 3. This growing legislative attention reflects a broader trend of policymakers prioritizing the important developmental needs of newborns, infants and toddlers through targeted policies and supports.
Some states enacted legislation expanding or clarifying paid family leave eligibility for certain subsets of the population. Arkansas (HB 1017) authorized paid maternity leave for public school employees in the case of a birth, adoption or initial foster replacement.Colorado (SB 144) will now provide up to 12 additional weeks of paid family leave for individuals with a newborn who is receiving care in a neonatal intensive care unit.
Additionally, 11 states worked to increase access to early intervention services. Texas (HB 2310) will develop a strategic plan to expand early learning opportunities for young children, including improving collaboration between early intervention providers and early childhood special education programs. Illinois (HB 3327) will now require hospitals to provide information on the state's early intervention program to any parent or legal guardian whose child is admitted to the neonatal intensive care unit.
For additional legislation related to maternal and child health, visit NCSL's Maternal and Child Health Legislative Database.
FINDING 4: States incentivize employers to contribute to child care costs.
Lack of child care has far-reaching consequences for employees, employers and the overall economy. When working parents have access to high-quality child care, they experience greater productivity, job growth and increased earnings. A 2024 Boston Consulting Group study found that companies offering child care benefits saw returns on their investment as high as 425%. Conversely, a 2023 report from ReadyNation estimates that the lack of child care costs the U.S. economy $122 billion annually.
To encourage businesses to help their employees find and afford child care, states are offering a variety of tax cuts for employers that contribute to child care for their employees. Utah (HB 106) allows for employers to receive a 20% nonrefundable tax credit for any expenses toward the construction or renovation of existing child care facilities and a 10% nonrefundable tax credit for any additional qualified child care expense. North Dakota (SB 2282) now allows for qualified employers to receive an income tax credit equal to 50% of the employer's aggregate contributions to their employee's child care costs.
Several states have adopted cost-sharing models through which employers, employees and the state split child care costs for eligible workers. These programs mainly help low- to middle-income parents who do not qualify for subsidies but cannot afford child care. Michigan was the first to do so in 2021. In 2025, Missouri (HB 5) and Ohio (HB 96) established similar programs through their budgeting processes.
A Look Ahead
The need to address the child care crisis will continue to propel legislation in 2026. NCSL expects policymakers to continue prioritizing innovative solutions aimed at expanding access, improving affordability and strengthening the quality of child care for families. To support their work, NCSL has convened a bipartisan work group of legislators with deep backgrounds in early childhood issues to develop child care policy recommendations and guidance for state legislatures. The work group's report will be released in 2026.
NCSL - National Conference of State Legislatures published this content on January 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on January 23, 2026 at 18:00 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]