WASHINGTON, DC (July 29, 2025)— The FY 2026 budget passed yesterday by the DC Council fails to fully fund critical early care and education programs. The underinvestment in working families and young children will leave many families without access to child care and many early educators without fair pay.
Initially, the DC Council showed support for early learning programs by adding $19 million to the District’s fiscal year 2026 budget before the first budget vote on July 14th for Child Care Subsidies and the Early Childhood Educator Pay Equity Fund. This was an attempt to close significant funding gaps included in the Mayor’s proposed budget that would have resulted in cuts to each program. However, during final votes yesterday, the DC Council pulled back some of those funds after the Chief Financial Officer blocked access to new revenue, cutting $7 million from the initial $19 million in additional funds approved during the first vote. Overall, the Under 3 DC Coalition estimates this level of funding leaves the subsidy program with a roughly $35 million funding gap to continue serving currently enrolled families and a $8 million gap to guarantee fair pay for early educators.
Under 3 DC Coalition Director Martine Sadarangani Gordon said, “For years, DC has led the country in early learning, supporting working families with access to child care, and equitably compensating early educators. This budget takes us backward, and both families and early educators will suffer.”
Under 3 DC estimates at minimum 500 children, but likely many more, currently participating in the child care subsidy program could face challenges retaining their subsidy due to funding cuts, and enrollment for new children in the program will be severely restricted in the coming year, even as demand for the program has risen significantly. This, combined with potential decreases in early educator pay due to inadequate funding for the Pay Equity Fund will harm young children’s early learning and development and parents’ ability to find affordable and quality child care so that they can work.
Under 3 DC appreciates funding included in the fiscal year 2026 budget to support families with young children, including for early childhood health programs and home visiting, yet is concerned over struggles families will face due to insufficient funding of early childhood programs overall. We remain committed to working with leaders to design and implement equitable and sustainable early childhood programs that allow families to be successful and remain in the District.