The State of Preschool: Record Funding but Persistent Quality Gaps

State-funded preschool programs have reached historic levels of enrollment and investment, yet experts warn that quality variations across the nation risk creating an uneven educational landscape. A recent annual report from the National Institute of Early Education Research (NIEER) highlights both progress and persistent challenges. Below, we explore key questions about these trends and what they mean for children, families, and policymakers.

What does the latest NIEER report reveal about preschool enrollment and spending?

The 2025 edition of NIEER's 'State of Preschool: 2025 Yearbook' reports an all-time high for both enrollment and state spending on pre-K for four-year-olds. Total funding reached nearly $14.4 billion, marking a significant increase from previous years. However, this surge is largely driven by a few states: California alone contributed $4.1 billion, while New Jersey and New York added $1.2 billion and $1 billion respectively. These three states account for 45% of all state pre-K funding. Despite the record figures, the rate of spending growth is slowing dramatically. Adjusted for inflation, the average per-child increase was only $45—16 times smaller than last year's increase. This uneven investment underscores that while some states are racing ahead, others are falling behind.

Why are quality concerns still a major issue despite increased funding?

Although funding has reached new heights, quality remains a critical blind spot. Allison Friedman-Krauss, an associate research professor at NIEER, cautions that the current focus is on access, but quality cannot be ignored. Quality measures include teacher-to-student ratios, teacher compensation (a long-standing concern), and curriculum standards. Many states have used additional funds to improve these areas, but improvements vary widely. The report emphasizes that high-quality preschool is essential to closing achievement gaps; otherwise, the system risks creating 'haves' and 'have-nots' based on geography. For example, states like New Jersey invest heavily in quality, while others spend significantly less per child. As Barnett, NIEER's director, notes, funding decisions reflect state priorities, and quality must be a deliberate goal.

Which states are leading and which are lagging in preschool investment?

Leading states include New Jersey, Oregon, and the District of Columbia, which each provide over $15,000 per child enrolled. Six other states—California, Connecticut, Delaware, Michigan, New Mexico, and Washington—spend more than $10,000 per child. In total, 28 states increased per-child funding (adjusted for inflation) compared to the previous year. On the flip side, 17 states actually spent less on preschool in 2024-2025 than in 2023-2024, after accounting for inflation. These cutbacks are often linked to state budget deficits and declining enrollment. However, New Jersey bucked the trend by investing an additional $100 million despite a deficit, illustrating that political will plays a major role. The wide range in per-child spending—from over $15,000 to cuts of hundreds of dollars—highlights a fragmented system where a child's preschool experience depends heavily on their state of residence.

What factors are driving some states to reduce preschool funding?

Researchers attribute funding declines in 17 states to two main factors: overall state budget deficits and falling enrollment numbers across many preschool programs. When states face fiscal pressure, early education is often vulnerable to cuts. Yet, as the case of New Jersey shows, deficits do not automatically mean reduced preschool investment. That state chose to prioritize pre-K expansion with an extra $100 million. NIEER director Steve Barnett argues that these are conscious policy decisions: 'That’s a conscious decision to say we’re going to spend less. And you have to ask if that is the right priority.' This suggests that while economic constraints are real, they do not fully explain the variance. Some states may deprioritize early childhood education even when resources are available, leading to a patchwork of opportunities.

How does this report help parents and policymakers understand preschool quality?

The NIEER report serves as a critical tool for evaluating whether states are not just expanding access but also maintaining standards. It provides detailed annual data on spending, enrollment, and quality benchmarks such as teacher qualifications, class sizes, and curriculum requirements. For parents, this means they can see how their state compares and advocate for improvements. For policymakers, the report highlights that high-quality preschool requires sustained investment in both infrastructure and human capital—especially teacher pay and training. The researchers stress that without attention to quality, even well-funded programs can fail to deliver lasting benefits. As Friedman-Krauss puts it, 'We don't want them to forget about quality.' The report's findings encourage a balanced approach: growing enrollment is a step forward, but it must be coupled with deliberate quality measures to ensure all children have a strong start.

What is the overall message for the future of state-funded preschool?

The overarching takeaway from the 2025 Yearbook is that the United States is at a crossroads in early childhood education. Record enrollment and funding demonstrate that many states are committed to expanding pre-K, but the slowing rate of investment and persistent quality gaps threaten to undermine progress. The report underscores that a child's access to quality preschool should not be a lottery determined by zip code. To create a truly equitable system, states must not only increase funding but also target it toward research-based practices like smaller class sizes, well-compensated teachers, and developmentally appropriate curricula. The report calls for a shift from a narrow focus on access to a broader commitment to excellence. As NIEER's data shows, a handful of states are nearing the finish line of universal, high-quality pre-K, but many have stumbled—and a few have not even started. The question remains whether the nation will choose to invest wisely and equitably, or allow a two-tiered system to become permanent.