As budget negotiations continue in the Virginia General Assembly, early care and education (ECE) remains a priority with significant investments proposed in both the House and Senate budgets. While differences remain between the two chambers, both have put forward amendments aimed at addressing the urgent need for quality, affordable child care and preschool. 
 
Expanding Access to Meet Demand 

One of the biggest investments in early care and education is the effort to expand access. With more than 10,000 children currently on waitlists for publicly funded early care and education programs, both budget proposals include measures to increase the number of available slots. 
 
The House budget proposes repurposing $3 million in unused Virginia Preschool Initiative (VPI) funds to reduce the waitlist for the Child Care Subsidy Program, which would add an estimated 318 new slots. 
The Senate budget includes adjustments that, when combined with the governor’s introduced budget, could create between 6,900 and 7,700 new slots next year. 
 
Additionally, both chambers support a $25 million employer cost-share pilot program that would provide subsidies for early care and education through public-private partnerships. This initiative is designed to help working parents access reliable care while supporting businesses in attracting and retaining employees. 
 
Supporting Stability and Affordability for Families 
The budget proposals also include measures aimed at ensuring families can afford early care and education: 
– The House proposes lowering family copayments for subsidies to 5% of household income for fiscal year 2026 (down from the originally proposed 7%). 
– Both budgets maintain the cap on the local composite index (LCI) for the Virginia Preschool Initiative, ensuring continued funding stability for localities. 
– The Senate budget proposes removing the pause on enrolling school-aged children in the Child Care Subsidy Program, which was included in the governor’s introduced budget. 
 
Investing in Infrastructure and Innovation 
Recognizing the need for long-term solutions, the budget proposals include efforts to expand and strengthen the early care and education system: 
 
$15 million in capital funds is allocated to increase the supply of quality early learning spaces, particularly in child care deserts. 
A Small Family Day Home Provider Incentive Pilot Program ($800,000) is included in the House budget to support small home-based providers in obtaining licensure and training. 
 
The Road Ahead 
While these investments are promising, the final budget has yet to be determined. The House and Senate will need to reconcile their differences, and advocates must continue pushing to ensure strong funding for early care and education remains a priority. 
 
We will continue monitoring the budget negotiations and advocating for policies that support children, families, and early educators. Now is the time to make sure lawmakers hear from families and providers about the importance of these investments. 
 
Stay tuned for updates as we get closer to a final budget agreement! 

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