By Sandy Trowbridge, Grants Development Associate
Childcare and early learning grant programs broadly aim to promote positive child development while strengthening parents’ workforce participation and economic security. In the United States, services for children from birth to age five are delivered through a mix of federal, state, and privately funded programs. Federal funding represents the largest share of public investment, with approximately $31 billion allocated annually, compared to about $13 billion in state spending on similar programs, with additional foundation funding varying significantly by region and year. While program models and requirements vary, common funding priorities include expanding access to affordable, high-quality care; strengthening the early childhood workforce; promoting parental choice; improving program quality; supporting systems building and cross-sector coordination; strengthening transitions between early learning and K–12 systems; and promoting positive child development outcomes. The sections below provide an overview of the major childcare and early learning funding streams across federal, state, and local levels.
Federal Funding
The Child Care and Development Block Grant (CCDBG), administered by the U.S. Department of Health and Human Services, is a formula-based block grant program that provides states, territories, and Tribal entities with funding to operate childcare subsidy programs for low-income families with children under age 13 and to support childcare quality improvement initiatives. A substantial share of CCDBG funding is used to provide childcare subsidies (typically delivered through voucher-based systems) that enable families to choose from among eligible providers. The program also includes a required set-aside for quality improvement activities, which states may administer directly or through contracts with qualified entities.
The Preschool Development Grant Birth through Five (PDG B-5), administered jointly by the U.S. Department of Health and Human Services and the U.S. Department of Education, is a competitive grant program awarded to states to strengthen and better coordinate early childhood systems serving children from birth through age five. An initial Planning Grant (typically one year) supports statewide needs assessments and strategic planning to improve system alignment, expand access, strengthen transitions across learning settings, and enhance overall program quality. States may then apply for a Renewal Grant (typically three years) to implement the strategies identified during the planning phase. States are encouraged to use a portion of grant funds to award subgrants aligned with their PDG B-5 strategic priorities.
The Individuals with Disabilities Education Act (IDEA), administered by the U.S. Department of Education, provides formula-based funding to states to support early intervention and special education services for young children with disabilities. IDEA Part C funds early intervention services for infants and toddlers from birth through age three, while IDEA Part B, Section 619, supports special education services for children ages three to five. States pass these funds through to local entities to deliver services. Under Part C, this often occurs through contracts, grants, or interagency agreements with early intervention providers and partner agencies. Under Part B, funds are typically sub-granted by formula to local education agencies, which are then responsible for ensuring the provision of special education services.
The Maternal, Infant, and Early Childhood Home Visiting (MIECHV) program, administered by the U.S. Department of Health and Human Services, provides formula-based funding to states, territories, and Tribal entities to support voluntary, evidence-based home visiting services for pregnant women and families with young children. States are required to conduct statewide needs assessments, implement federally approved evidence-based models, and meet performance benchmarks. Funds are typically passed through to local implementing agencies, which are often selected through competitive processes, to deliver services aligned with identified community needs.
Temporary Assistance for Needy Families (TANF), administered by the U.S. Department of Health and Human Services, is a formula-based block grant that provides states with broad discretion to fund a range of activities aligned with its statutory purposes, including promoting work and supporting family stability. States may use TANF funds to support childcare and early learning initiatives through multiple mechanisms, including direct services, contracts with providers, and interagency transfers—most commonly to the Child Care and Development Block Grant (CCDBG). Funding structures, allowable uses, and the extent of TANF investment in early childhood services vary across states.
Head Start, Early Head Start, and Early Head Start–Child Care Partnerships (EHS-CCP), administered by the U.S. Department of Health and Human Services, represents one of the largest federal early childhood funding programs that awards competitive grants directly to local entities rather than to states. Public or private organizations may apply for funding to deliver comprehensive early childhood services (including early learning, health, nutrition, and family support). Early Head Start serves pregnant women and children from birth to age three, while Head Start serves children ages three through five. Through Early Head Start–Child Care Partnerships (EHS-CCP), Early Head Start grantees partner with center- and home-based childcare providers (often those serving children receiving childcare subsidies) to expand access to infant and toddler care and support providers in meeting Head Start standards while delivering comprehensive, wraparound services.
The Child Care Access Means Parents in School (CCAMPIS) program, administered by the U.S. Department of Education, is a competitive grant program that awards funding directly to institutions of higher education. CCAMPIS supports childcare services for low-income student parents, defined as those eligible to receive Pell Grants. Institutions may use funds to provide campus-based or community-based childcare services, either directly or through contracts with eligible providers.
With the exception of Head Start and CCAMPIS, most federal early childhood funding is allocated to states rather than directly to local entities. State agencies then distribute these funds through a combination of subgrants, contracts, and interagency agreements, with significant variation in structures, timelines, and award sizes across states. As a result, local entities typically access federal childcare and early learning funding indirectly by monitoring and responding to opportunities issued by their respective state lead agencies (such as their departments of education, health and human services, workforce development, or similar).
State and Local Funding
In addition to federal pass-through funding, many states and localities administer funding streams that can further support early childhood initiatives (often derived from voter-approved revenues, dedicated taxes on certain sectors, or settlement funds). These funding sources are typically managed outside of traditional federal early childhood programs and are often shaped by state or local priorities. For example, First 5 California (funded through tobacco tax revenues) supports a statewide network of county commissions that invest in early childhood systems at the local level. County First 5 agencies typically issue competitive funding opportunities focused on building needed services and support for young children and families in the region. Similarly, programs such as the Fund for a Resilient Nevada (funded through opioid settlement dollars), supports a broad range of behavioral health and family support strategies, with some funds supporting efforts to expand access to childcare and related services for families engaged in treatment and recovery. Together, these examples highlight how states and localities may braid funding from diverse sources to address early childhood needs. For grantseekers, this underscores the importance of looking beyond traditional education and human services agencies to identify nontraditional funding opportunities aligned with their early care and learning needs.
Foundation Funding
In addition to public funding streams, foundation support plays an important complementary role in the early childhood funding ecosystem. National funders such as the W.K. Kellogg Foundation and the Caplan Foundation for Early Childhood invest in early childhood care and education systems, with funding priorities often focused on equity, family engagement, and systems-level improvement. Beyond national funders, a wide range of local and regional foundations provide geographically targeted grants aligned with local needs. For grantseekers, identifying and engaging with local and regional foundation funders can be an effective strategy to supplement public funding stream
Accessing Childcare and Early Learning Grant Funding
Accessing childcare and early learning grant funding requires a proactive and strategic approach, particularly given the extent to which federal resources flow through state intermediaries. A key step is consistently tracking state-administered pass-through funding by monitoring your relevant state agencies (such as your departments of education, health and human services, and workforce development) for open grant solicitations, while also subscribing to relevant state agency listservs and funding newsletters to ensure you stay abreast of funding opportunities as they are released. Consider also using tools such as Google Alerts to help identify more nontraditional funding streams aligned with your project needs (such as the funding derived from taxes and settlement funds discussed above, often administered through less obvious agencies).
Equally important is intentionally building and sustaining relationships with state and local actors involved in funding design and implementation, including state agency administrators, intermediary organizations, local and regional foundation funders, and other community-based partners. Strong partnerships can significantly enhance your competitive positioning, particularly when aligned with entities such as local school districts, childcare resource and referral (CCR&R) agencies, workforce development boards, and other organizations engaged in coordinated early childhood systems work. Take time to intentionally build your network and explore opportunities to partner with local entities in your area doing similar work.
Finally, establishing visibility and credibility within the childcare and early learning field is also essential. This can include participating in cross-sector working groups and professional associations, presenting at industry events, maintaining an active and informative online presence, and publishing data-driven insights and program outcomes. Over time, these intentional efforts help build a network of trusted relationships that help ensure that you are both made aware of funding opportunities as they are released, as well as ensure that you are well-positioned to establish strong proposal partnerships that will make your grant applications all the more competitive.