Record Enrollment and Spending, Uneven Quality
State-funded preschool programs have reached an all-time high in both enrollment and spending, yet experts warn that uneven quality and access are creating a two-tier system, according to a new report from the National Institute of Early Education Research (NIEER).
“If providing high-quality preschool education to all 3- and 4-year-olds were a race, some states are nearing the finish line, others have stumbled and fallen behind, and a few have yet to leave the starting line,” the report states.
Background: The State of Preschool 2025
The annual report, titled “State of Preschool: 2025 Yearbook,” breaks down spending, quality, and enrollment numbers for early childhood education across the U.S. This year’s edition found that more four-year-olds are enrolled than ever before, and total state funding hit nearly $14.4 billion.
However, that funding is heavily concentrated. California alone spent $4.1 billion, New Jersey $1.2 billion, and New York $1 billion—together accounting for 45 percent of all state pre-K spending.
Growing Inequity in Access and Investment
While overall spending rose, the pace of increase has slowed dramatically. Adjusted for inflation, states spent an average of $45 more per child this year—compared to a 16-times-larger increase last year. Twenty-eight states increased per-child funding, while 17 cut it.
“That’s a conscious decision to say we’re going to spend less,” said Steve Barnett, director of NIEER, pointing to states that reduced investment despite budget deficits. “And you have to ask if that’s what we want for our children.”
What This Means: Quality at Risk
Allison Friedman-Krauss, an associate research professor at NIEER, cautioned against focusing solely on access. “We’re trying to make sure states are also thinking about quality,” she said. “Right now, it’s more about access. And we don’t want them to forget about quality.”
Quality concerns include teacher-to-student ratios and teacher compensation, both long-standing issues. Without sustained investment, the gap between high- and low-quality programs may widen, leaving children in underfunded states at a disadvantage.
Key Data Points
- Total spending: $14.4 billion, up from previous year.
- Top spenders per child: New Jersey, Oregon, and D.C. — over $15,000.
- Other high spenders: California, Connecticut, Delaware, Michigan, New Mexico, Washington — over $10,000.
- 17 states cut spending when adjusted for inflation.
New Jersey, despite a budget deficit, invested an additional $100 million to expand preschool, illustrating that state priorities can overcome fiscal constraints. “That’s a conscious decision,” Barnett reiterated.
Read more background on the report. Jump to the implications section.