Key Takeaways
- • Connecticut Governor Ned Lamont announced an additional investment of approximately $320 million into the Early Childhood Education Endowment, following the fiscal year 2027 state budget bill he signed into law the prior week.
- • The endowment, established in 2025 under Public Act 25-93, follows an initial $300 million investment last year, bringing total capitalization to roughly $620 million.
- • Up to 12% of fiscal year 2027 annual endowment expenditures may fund workforce, quality improvement, provider sustainability, and facilities initiatives.
- • Beginning July 2027, eligible families enrolled in Early Start CT state-funded child care with household income up to $100,000 will receive care at no cost; contributions above that threshold are capped at 7% of household income.
- • The FY2027 budget also includes a $10 million health insurance subsidy for the early childhood workforce.
Summary
Governor Ned Lamont announced that his administration is making an additional investment of approximately $320 million into Connecticut's Early Childhood Education Endowment, a permanent funding source established in 2025 through Public Act 25-93. The investment results from the fiscal year 2027 state budget bill the governor signed into law the previous week. Combined with the initial $300 million investment made last year, the state's total commitment to the endowment is approximately $620 million, which the administration says positions Connecticut as a national leader in sustainable early childhood funding.
The endowment was created to address longstanding challenges in the state's child care sector, including the high cost of care, limited access to available child care spaces, workforce recruitment and retention difficulties, and the need for stable, predictable funding. According to the governor's office, over time the endowment is expected to help create thousands of additional child care spaces, make early childhood education more affordable, support competitive educator compensation, strengthen program quality, and expand access in communities with the greatest need.
Consistent with Public Act 25-93, up to 12% of annual endowment expenditures in fiscal year 2027 may be directed toward workforce initiatives, quality improvement, provider business operations and sustainability, facilities construction and renovation, and other system-building strategies. Separately, the FY2027 budget includes a $10 million investment in a health insurance subsidy for the early childhood workforce.
Beginning in July 2027, eligible families enrolled in state-funded child care through the Early Start CT program with annual household incomes up to $100,000 are expected to receive care at no cost. Family contributions for households above that threshold will be capped at no more than 7% of household income. The endowment is overseen by an advisory board tasked with ensuring investments advance affordability, access, quality, workforce stability, and long-term sustainability. Connecticut Early Childhood Commissioner Elena Trueworthy said the endowment reflects a long-term strategy that benefits both families and the state's economy.
The endowment was created to address longstanding challenges in the state's child care sector, including the high cost of care, limited access to available child care spaces, workforce recruitment and retention difficulties, and the need for stable, predictable funding. According to the governor's office, over time the endowment is expected to help create thousands of additional child care spaces, make early childhood education more affordable, support competitive educator compensation, strengthen program quality, and expand access in communities with the greatest need.
Consistent with Public Act 25-93, up to 12% of annual endowment expenditures in fiscal year 2027 may be directed toward workforce initiatives, quality improvement, provider business operations and sustainability, facilities construction and renovation, and other system-building strategies. Separately, the FY2027 budget includes a $10 million investment in a health insurance subsidy for the early childhood workforce.
Beginning in July 2027, eligible families enrolled in state-funded child care through the Early Start CT program with annual household incomes up to $100,000 are expected to receive care at no cost. Family contributions for households above that threshold will be capped at no more than 7% of household income. The endowment is overseen by an advisory board tasked with ensuring investments advance affordability, access, quality, workforce stability, and long-term sustainability. Connecticut Early Childhood Commissioner Elena Trueworthy said the endowment reflects a long-term strategy that benefits both families and the state's economy.
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