Treasurer Russell Announces Investment of $300 Million in Newly Created Early Childhood Education Endowment

07/01/2025

Treasurer Russell Announces Investment of $300 Million in Newly Created Early Childhood Education Endowment

HARTFORD, CT - State Treasurer Erick Russell today announced that $300 million from Connecticut's Fiscal Year 2025 unappropriated general fund surplus has been transferred to the newly created Early Childhood Education Endowment and fully invested in a long-term, diversified portfolio to maximize long-term growth. The transfer was completed yesterday, followed by the investment today - marking a historic milestone in the state's commitment to children and working families. The long-term goal is that the endowment will establish a sustainable source of funding for affordable, high-quality care and education for every Connecticut child from birth to age five.

"This transformative investment and first-in-the-nation initiative is going to make a meaningful difference for Connecticut families," said Treasurer Russell. "Not only will the endowment provide greater opportunities for every child in our state, it will also invest in the child care workforce - including educator wage parity and a health insurance subsidy program - and provide better options for parents, particularly those forced to choose between entering the workforce or staying home to avoid the high cost of child care."

Beginning in Fiscal Year 2028, the endowment will provide:

• Free child care for families enrolled in Early Start CT earning under $100,000 per year, and a maximum child care cost of 7% of household income for families making more than $100,000 per year.

• At least 35% of expanded spaces in early care and education programs funded by the endowment to be infant and toddler spaces - directly targeting the most underserved population in the child care system.

• Improved quality and accountability, with providers required to participate in the state's quality improvement system to further strengthen instruction, business practices, and family engagement.

"It's an honor for our office to play an important role in administering this endowment, which serves the ultimate goal of all our work - helping to improve economic opportunities for everyone in our state," added Treasurer Russell. "Connecticut is setting a national model for how to build a lasting, independent infrastructure for early childhood education. "I want to thank Governor Lamont, legislative leaders, Office of Early Childhood Commissioner Beth Bye and all of the dedicated advocates who have made this a priority."

Under the legislation establishing the endowment, the Treasurer is responsible for receipt, maintenance, administration, investment and release of funds. In addition to today's $300 million investment, the endowment will be supported by the unappropriated general fund surplus in future years. Annual drawdowns will be capped at 10%-12%, promoting growth over time while maintaining long-term sustainability. As a permanent, independent investment vehicle dedicated to child care and early childhood education, the endowment is shielded from annual budget uncertainty.

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About the Office of the Treasurer

The Office of the Treasurer is charged with safeguarding Connecticut's financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state's fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut's social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit: Connecticut Office of the Treasurer Erick Russell.

Contact: Brett Cody
[email protected] | (959) 529-2468