Policy Strategies
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Strategy & Location |
Strategy Type(s) | Year | Funding Amount | Funding Source | Features at a Glance | |
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Early Childhood Educator Workforce Salary Supplement System
Maine
In September 2021, at the direction of Governor Janet Mills, the Maine Department of Health and Human Services (DHHS) implemented stipends for child care workers using federal relief funding. In October 2022, following the passage of a state budget provision championed by Governor Mills, DHHS continued the $200 per worker per month stipends.
In November 2023, Governor Mills announced a third round of wage stipend increases, funded through the biennial budget. This historic budget doubled state funding for the stipends to $30 million annually. The new monthly stipends, effective as of November 2023, increased to $275 for the first tier of child care workers, $415 for the second tier, and $625 for the third tier, with the tiers based on education and experience. DHHS will also issue an extra $100 per month to child care workers in the third tier to compensate for the additional amount they are owed retroactive to the start of the state fiscal year.
learn more: Early Childhood Educator Workforce Salary Supplement System
Sources:
Office of Governor Janet T. Mills. (2024, January 5). Mills Administration Issues Pay Increases to Child Care Workers.
Office of Governor Janet T. Mills. (2023, July 11). Governor Mills Signs Historic Budget Into Law.
Maine Revised Statutes, Title 22, Chapter 1052-A, Section 3737-A. (2025).
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2021, 2022, 2023 | $30 million annually |
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Tiered stipends for child care workers that are intended to help qualified professionals remain in the industry and support providers in retaining staff
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In September 2021, at the direction of Governor Janet Mills, the Maine Department of Health and Human Services (DHHS) implemented stipends for child care workers using federal relief funding. In October 2022, following the passage of a state budget provision championed by Governor Mills, DHHS continued the $200 per worker per month stipends.
In November 2023, Governor Mills announced a third round of wage stipend increases, funded through the biennial budget. This historic budget doubled state funding for the stipends to $30 million annually. The new monthly stipends, effective as of November 2023, increased to $275 for the first tier of child care workers, $415 for the second tier, and $625 for the third tier, with the tiers based on education and experience. DHHS will also issue an extra $100 per month to child care workers in the third tier to compensate for the additional amount they are owed retroactive to the start of the state fiscal year.
learn more: Early Childhood Educator Workforce Salary Supplement System
Sources:
Office of Governor Janet T. Mills. (2024, January 5). Mills Administration Issues Pay Increases to Child Care Workers.
Office of Governor Janet T. Mills. (2023, July 11). Governor Mills Signs Historic Budget Into Law.
Maine Revised Statutes, Title 22, Chapter 1052-A, Section 3737-A. (2025).
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Early Childhood Professional Learning
Illinois
Early Childhood Professional Learning (ECPL) provides free professional learning and resources to support Illinois State Board of Education-funded programs in implementing evidence-based practices to improve outcomes for young children and their families. It offers workshops, webinars, technical assistance, and coaching for professionals working with children from birth to 5 years old. It is funded by the Early Childhood Block Grant and Illinois State Board of Education. Illinois also offers other resources to its early education workforce, including individualized coaching.
Learn more: Illinois Early Education Professional Development and Resources
Sources:
Illinois State Board of Education. (n.d.). Illinois Early Education Professional Development and Resources.
Illinois State Board of Education. (n.d.). Early Childhood Professional Development.
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Includes coaching, training, and an online component
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Early Childhood Professional Learning (ECPL) provides free professional learning and resources to support Illinois State Board of Education-funded programs in implementing evidence-based practices to improve outcomes for young children and their families. It offers workshops, webinars, technical assistance, and coaching for professionals working with children from birth to 5 years old. It is funded by the Early Childhood Block Grant and Illinois State Board of Education. Illinois also offers other resources to its early education workforce, including individualized coaching.
Learn more: Illinois Early Education Professional Development and Resources
Sources:
Illinois State Board of Education. (n.d.). Illinois Early Education Professional Development and Resources.
Illinois State Board of Education. (n.d.). Early Childhood Professional Development.
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Early Childhood Workforce Wage Stipend Program
Milwaukee, Wisconsin
In November 2022, using $5.1 million in American Rescue Plan Act (ARPA) funding, Milwaukee created a stipend program for early childhood professionals employed in the city’s child care programs. The Milwaukee Succeeds Early Childhood Coalition initially advocated for the program, which was then facilitated by the Wisconsin Early Childhood Association.
All Milwaukee early education professionals in direct caregiving roles and employed in group or family child care programs licensed by the Wisconsin Department of Children and Families were eligible for an annual stipend of $1,500, distributed in three installments over the course of a calendar year. The program wrapped up in early 2025.
In 2023, the wage stipend program reached over 1,900 educators in Milwaukee.
learn more: early childhood workforce wage stipend program
Sources:
Milwaukee Succeeds. (2022, November). Early Educator Wage Stipend Launches in Milwaukee.
Milwaukee Succeeds. (2023, February). First Round of Early Educator Stipends Awarded.
White, A. (2022). An Equitable Recovery Starts With Early Childhood: How Cities Are Leveraging ARPA SLFRF to Support Young Children and Families. National League of Cities.
City of Milwaukee City Clerk Communications Center. (2022, December 1). Applications now being accepted for Early Childhood Workforce Stipend Program.
Wisconsin Early Childhood Association. (n.d.). City of Milwaukee Early Childhood Workforce Stipend Program.
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2022 | $5.1 million |
American Rescue Plan Act (ARPA)
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All Milwaukee early education professionals in direct caregiving roles and employed in group or family child care programs licensed by the Wisconsin Department of Children and Families were eligible for an annual stipend of $1,500
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In November 2022, using $5.1 million in American Rescue Plan Act (ARPA) funding, Milwaukee created a stipend program for early childhood professionals employed in the city’s child care programs. The Milwaukee Succeeds Early Childhood Coalition initially advocated for the program, which was then facilitated by the Wisconsin Early Childhood Association.
All Milwaukee early education professionals in direct caregiving roles and employed in group or family child care programs licensed by the Wisconsin Department of Children and Families were eligible for an annual stipend of $1,500, distributed in three installments over the course of a calendar year. The program wrapped up in early 2025.
In 2023, the wage stipend program reached over 1,900 educators in Milwaukee.
learn more: early childhood workforce wage stipend program
Sources:
Milwaukee Succeeds. (2022, November). Early Educator Wage Stipend Launches in Milwaukee.
Milwaukee Succeeds. (2023, February). First Round of Early Educator Stipends Awarded.
White, A. (2022). An Equitable Recovery Starts With Early Childhood: How Cities Are Leveraging ARPA SLFRF to Support Young Children and Families. National League of Cities.
City of Milwaukee City Clerk Communications Center. (2022, December 1). Applications now being accepted for Early Childhood Workforce Stipend Program.
Wisconsin Early Childhood Association. (n.d.). City of Milwaukee Early Childhood Workforce Stipend Program.
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Early Educator Pandemic Retention Bonuses
Rhode Island
Rhode Island’s Early Educator Pandemic Retention Bonuses were issued to eligible employees in 2022 using $18.7 million in funding from the American Rescue Plan Act (ARPA) State Fiscal Recovery Fund (SFRF). This program invested in early educators by offering bonuses to direct care staff employed at Rhode Island Department of Human Services – licensed child care programs.
In spring 2022, the state’s Pandemic Relief Office authorized additional funds from the ARPA SFRF to extend this grant program for FY23 and FY24. Eligible educators received up to $3,000 annually, issued as four quarterly bonuses.
learn more: early educator pandemic retention bonuses
Sources:
Rhode Island Department of Human Services. (2024, June 3). Early Educator Pandemic Retention Bonus Program Overview.
Rhode Island Department of Human Services. (2024, June 3). Frequently Asked Questions.
Rhode Island Children's Cabinet. (n.d.). Funding Opportunities.
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2022 | $18.7 million |
American Rescue Plan Act (ARPA) State Fiscal Recovery Fund (SFRF)
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Program invested in early educators by offering bonuses to direct care staff employed at licensed child care programs across the state
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Rhode Island’s Early Educator Pandemic Retention Bonuses were issued to eligible employees in 2022 using $18.7 million in funding from the American Rescue Plan Act (ARPA) State Fiscal Recovery Fund (SFRF). This program invested in early educators by offering bonuses to direct care staff employed at Rhode Island Department of Human Services – licensed child care programs.
In spring 2022, the state’s Pandemic Relief Office authorized additional funds from the ARPA SFRF to extend this grant program for FY23 and FY24. Eligible educators received up to $3,000 annually, issued as four quarterly bonuses.
learn more: early educator pandemic retention bonuses
Sources:
Rhode Island Department of Human Services. (2024, June 3). Early Educator Pandemic Retention Bonus Program Overview.
Rhode Island Department of Human Services. (2024, June 3). Frequently Asked Questions.
Rhode Island Children's Cabinet. (n.d.). Funding Opportunities.
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Early Learning Capacity Grants
Burlington, Vermont
Since 2018, through the City of Burlington’s Early Learning Initiative (ELI) Capacity Grant Program, child care providers have been eligible for grant funding for construction and capital improvements to public or commercial buildings so that they can serve more infants and toddlers.
The ELI grants fund projects that increase the availability of high-quality infant and toddler child care slots for children from Burlington families of all income levels. From 2018 to 2022, the Capacity Grant program awarded $785,000 to help create three new child care centers, support construction and capital improvements, and stabilize 166 enrolled spots at high-quality child care centers.
The ELI has increased access to high-quality child care for low-income Burlington children by providing scholarships and creating additional spots in high-quality childcare programs in Burlington for children from birth to three years old. The Capacity Grants are a component of that effort, focused on increasing the number of infant and toddler child care slots available in the City of Burlington.
The ELI was founded in 2017 to help all Burlingtonians access high-quality, affordable child care, specifically for infants and toddlers. ELI achieves this by (1) giving direct financial support to families in need through the First Steps Scholarship, and (2) supporting childcare centers in individual and organizational learning.
LEARN MORE: BURLINGTON EARLY LEARNING INITIATIVE
Sources:
City of Burlington Early Learning Initiative. (n.d.). Programs for Child Care Providers.
City of Burlington Early Learning Initiative. (2021). Capacity Grant Application.
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2018 | $785,000.00 |
City of Burlington
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Ongoing funding
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Since 2018, through the City of Burlington’s Early Learning Initiative (ELI) Capacity Grant Program, child care providers have been eligible for grant funding for construction and capital improvements to public or commercial buildings so that they can serve more infants and toddlers.
The ELI grants fund projects that increase the availability of high-quality infant and toddler child care slots for children from Burlington families of all income levels. From 2018 to 2022, the Capacity Grant program awarded $785,000 to help create three new child care centers, support construction and capital improvements, and stabilize 166 enrolled spots at high-quality child care centers.
The ELI has increased access to high-quality child care for low-income Burlington children by providing scholarships and creating additional spots in high-quality childcare programs in Burlington for children from birth to three years old. The Capacity Grants are a component of that effort, focused on increasing the number of infant and toddler child care slots available in the City of Burlington.
The ELI was founded in 2017 to help all Burlingtonians access high-quality, affordable child care, specifically for infants and toddlers. ELI achieves this by (1) giving direct financial support to families in need through the First Steps Scholarship, and (2) supporting childcare centers in individual and organizational learning.
LEARN MORE: BURLINGTON EARLY LEARNING INITIATIVE
Sources:
City of Burlington Early Learning Initiative. (n.d.). Programs for Child Care Providers.
City of Burlington Early Learning Initiative. (2021). Capacity Grant Application.
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Early Learning Facilities Program
Washington
The Early Learning Facilities program in Washington State offers $15 million in annual funding opportunities to support the expansion, remodeling, purchase, or construction of early learning facilities for children from low-income households. Eligible applicants include nonprofits, public entities, K-12 schools and districts, tribes, and for-profit businesses. Funding consists of competitive grants, direct appropriations from the State Legislature, and a grant and loan program. Grants are provided only for capital projects, such as acquisition, design, engineering, construction management, construction, and capitalized equipment costs. The State Legislature established the program via RCW 43.31.565 to 43.31.583. Direct appropriation projects receive awards through the capital budget.
Learn More: Early Learning Facilities Program
Sources:Washington State Department of Commerce. (2021). ELF Direct Appropriations #2 Program Guidelines.State Government of Washington. (2021). Substitute House Bill 1080.
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2021 | $15 million annually |
State Dedicated Funding Stream
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Ongoing funding
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The Early Learning Facilities program in Washington State offers $15 million in annual funding opportunities to support the expansion, remodeling, purchase, or construction of early learning facilities for children from low-income households. Eligible applicants include nonprofits, public entities, K-12 schools and districts, tribes, and for-profit businesses. Funding consists of competitive grants, direct appropriations from the State Legislature, and a grant and loan program. Grants are provided only for capital projects, such as acquisition, design, engineering, construction management, construction, and capitalized equipment costs. The State Legislature established the program via RCW 43.31.565 to 43.31.583. Direct appropriation projects receive awards through the capital budget.
Learn More: Early Learning Facilities Program
Sources:Washington State Department of Commerce. (2021). ELF Direct Appropriations #2 Program Guidelines.State Government of Washington. (2021). Substitute House Bill 1080.
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Early Learning Infrastructure Support Program
Providence, Rhode Island
In July 2023, the City of Providence, in partnership with the Local Initiatives Support Corporation (LISC), distributed grants through the Early Learning Infrastructure Support Program to early learning facilities and family child care providers to help them plan space renovations, conduct assessments of overall suitability of spaces, and proceed with capital building improvements.
Funded by both the American Rescue Plan Act and the city's general operating budget, the program enables providers to address urgent health and safety issues, expand their physical capacity, or come into compliance with licensing regulations.
In the program's first year, 24 child care centers—including 16 home-based providers and 8 center-based providers— received a total of $1 million in total grants. The Early Learning Infrastructure Support Program will run for two years.
Learn more: early learning infrastructure support program
Sources:
City of Providence. (2023). Mayor Smiley, LISC Awards 24 Early Child Care Providers Over One Million Dollars in Infrastructure Grants.
Providence Business News. (2023). Providence awards $1M in Early Learning Infrastructure Support Program grants.
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2023 | $1 million |
CCDBG COVID Relief Allocations – CARES, CRRSE, ARPA (CCDF & Stabilization)
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Ongoing funding
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In July 2023, the City of Providence, in partnership with the Local Initiatives Support Corporation (LISC), distributed grants through the Early Learning Infrastructure Support Program to early learning facilities and family child care providers to help them plan space renovations, conduct assessments of overall suitability of spaces, and proceed with capital building improvements.
Funded by both the American Rescue Plan Act and the city's general operating budget, the program enables providers to address urgent health and safety issues, expand their physical capacity, or come into compliance with licensing regulations.
In the program's first year, 24 child care centers—including 16 home-based providers and 8 center-based providers— received a total of $1 million in total grants. The Early Learning Infrastructure Support Program will run for two years.
Learn more: early learning infrastructure support program
Sources:
City of Providence. (2023). Mayor Smiley, LISC Awards 24 Early Child Care Providers Over One Million Dollars in Infrastructure Grants.
Providence Business News. (2023). Providence awards $1M in Early Learning Infrastructure Support Program grants.
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Early Learning Quality Networks Program
Harris County, TX, Texas
In 2023, leaders in Harris County allocated $16.4 million in Local Fiscal Recovery Funds from the American Rescue Plan Act (ARPA) to launch the Early Learning Quality Networks (ELQN) program. ELQN aims to elevate community voices, foster local solutions, and strengthen local leadership and capacity. Overseen by Harris County’s Early Childhood Initiatives Team, ELQN funded through 2026.
ELQN empowers four Local Network Organizations (LNOs) in five targeted Harris County communities to develop and implement Child Care Quality Action Plans (CCQAPs) tailored to their needs. Through this community-driven approach, ELQN encourages parents, child care providers, and other local stakeholders to identify challenges and opportunities related to early care and education, ensuring that each action plan reflects the unique needs of the community it serves. The program is supported by a Network Support Hub, Children at Risk, and four local partner organizations: Harris County Public Library, VN Teamwork, East Harris County Empowerment Council, and the YMCA of Greater Houston. These organizations work closely with the targeted communities by forming advisory committees to gather insights on local child care conditions, design Child Care Quality Action Plans, and mobilize resources to implement these strategies effectively.
LEARN MORE: EARLY LEARNING QUality networks program
Sources:
Harris County Public Library. (2023, October 20). Harris County Commissioners Court Boosts Early Learning Initiatives with Child Care Quality Improvement Grants.
Children at Risk. (2024, November 22). Harris County Early Learning Quality Network (ELQN) Announces Next Project Phase to Invest in Early Learning Environments.
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2023 | $16.4 million |
American Rescue Plan Act (ARPA)
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ELQN empowers four Local Network Organizations (LNOs) in five targeted communities to develop and implement Child Care Quality Action Plans (CCQAPs) tailored to their needs
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In 2023, leaders in Harris County allocated $16.4 million in Local Fiscal Recovery Funds from the American Rescue Plan Act (ARPA) to launch the Early Learning Quality Networks (ELQN) program. ELQN aims to elevate community voices, foster local solutions, and strengthen local leadership and capacity. Overseen by Harris County’s Early Childhood Initiatives Team, ELQN funded through 2026.
ELQN empowers four Local Network Organizations (LNOs) in five targeted Harris County communities to develop and implement Child Care Quality Action Plans (CCQAPs) tailored to their needs. Through this community-driven approach, ELQN encourages parents, child care providers, and other local stakeholders to identify challenges and opportunities related to early care and education, ensuring that each action plan reflects the unique needs of the community it serves. The program is supported by a Network Support Hub, Children at Risk, and four local partner organizations: Harris County Public Library, VN Teamwork, East Harris County Empowerment Council, and the YMCA of Greater Houston. These organizations work closely with the targeted communities by forming advisory committees to gather insights on local child care conditions, design Child Care Quality Action Plans, and mobilize resources to implement these strategies effectively.
LEARN MORE: EARLY LEARNING QUality networks program
Sources:
Harris County Public Library. (2023, October 20). Harris County Commissioners Court Boosts Early Learning Initiatives with Child Care Quality Improvement Grants.
Children at Risk. (2024, November 22). Harris County Early Learning Quality Network (ELQN) Announces Next Project Phase to Invest in Early Learning Environments.
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Early Reach Program
Harris County, TX, Texas
In 2022, Harris County launched the Brighter Futures for Harris County Kids Initiative, a comprehensive effort to enhance the well-being of young and vulnerable residents through an $84 million investment of ARPA funds. The initiative includes five programs for children ages zero to three, including the Early Reach Program.
Early Reach aims to establish 1,000 new high-quality childcare slots, using a $26 million budget allocated from ARPA funds. This pilot program, which will run for 2-4 years with the potential to be continued by the Harris County Commissioners, targets children aged 0-4 in high-need areas.
learn more: early reach program
Sources:
Defender Network News Service. (2022). Brighter Futures for Harris County Kids Initiative launched.
Gordon, M. (2023). Affordable day care is hard to find. A new Harris County program could help fix that. Houston Landing.
Early Reach.(n.d.). What is Early REACH (Raising Educational Access for Children in Harris County)?
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2022 | $84 million |
Initiative aims to establish 1,000 new high-quality childcare slots using $26 million budget allocated from ARPA funds
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In 2022, Harris County launched the Brighter Futures for Harris County Kids Initiative, a comprehensive effort to enhance the well-being of young and vulnerable residents through an $84 million investment of ARPA funds. The initiative includes five programs for children ages zero to three, including the Early Reach Program.
Early Reach aims to establish 1,000 new high-quality childcare slots, using a $26 million budget allocated from ARPA funds. This pilot program, which will run for 2-4 years with the potential to be continued by the Harris County Commissioners, targets children aged 0-4 in high-need areas.
learn more: early reach program
Sources:
Defender Network News Service. (2022). Brighter Futures for Harris County Kids Initiative launched.
Gordon, M. (2023). Affordable day care is hard to find. A new Harris County program could help fix that. Houston Landing.
Early Reach.(n.d.). What is Early REACH (Raising Educational Access for Children in Harris County)?
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ECE Apprenticeship Program
Pennsylvania
In 2017, Pennsylvania established the Early Childhood Education Apprenticeship Program, a career pathway that combines college coursework, coaching, and on-the-job learning assessments. Participants can transition from a Child Development Assistant certification to receive an associate degree and/or a bachelor's degree in Early Childhood Education while working in an early childhood classroom. Each apprentice works with a peer coach who provides onsite coaching and mentorship. The program is funded through the 1199c Training & Upgrading Fund. Employers can support apprentices through a combination of credit-bearing on-the-job learning, classroom instruction, mentorship, and credit for prior learning, and employers are expected to provide incremental wage increases as apprentices advance in their training.
Learn More: The Pennsylvania Key
Sources:
The Pennsylvania Key. (n.d.). Early Childhood Education Apprenticeship.
National Center on Early Childhood Development, Teaching, and Learning. (n.d.). The Pennsylvania ECE apprenticeship program.
Child Trends. (2019). Spotlight on Pennsylvania’s Early Childhood Education Apprenticeship Program.
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2017 |
CCDBG Non-COVID Funds
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State-funded program
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In 2017, Pennsylvania established the Early Childhood Education Apprenticeship Program, a career pathway that combines college coursework, coaching, and on-the-job learning assessments. Participants can transition from a Child Development Assistant certification to receive an associate degree and/or a bachelor's degree in Early Childhood Education while working in an early childhood classroom. Each apprentice works with a peer coach who provides onsite coaching and mentorship. The program is funded through the 1199c Training & Upgrading Fund. Employers can support apprentices through a combination of credit-bearing on-the-job learning, classroom instruction, mentorship, and credit for prior learning, and employers are expected to provide incremental wage increases as apprentices advance in their training.
Learn More: The Pennsylvania Key
Sources:
The Pennsylvania Key. (n.d.). Early Childhood Education Apprenticeship.
National Center on Early Childhood Development, Teaching, and Learning. (n.d.). The Pennsylvania ECE apprenticeship program.
Child Trends. (2019). Spotlight on Pennsylvania’s Early Childhood Education Apprenticeship Program.
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Education Legacy Trust Account and Capital Gains Tax
Washington
Created in 2005, the Education Legacy Trust Account (ELTA) supports educational priorities in Washington state, including early learning and child care. ELTA originally prioritized K-12 schools and access to higher education, but Washington’s legislature added early learning and child care as temporary allowable uses in the 2015-17, 2017-19, and 2019-21 Biennia, before permanently adding these uses through the Fair Start for Kids Act in 2021.
ELTA was originally funded by estate and cigarette taxes but is now funded by a 7% excise tax on capital gains over $262,000 (that is, gains generated from the sale or exchange of long-term capital assets). This tax was authorized by the state legislature in 2021 and went into effect in 2022. The revenue it generates — which came to just under $900 million in 2023, the first year of collection — is distributed through ELTA according to a formula set by statute. It includes a $386 million appropriation to the state’s Department of Children, Youth, and Families (DCYF) in the 2023-25 budget.
DCYF’s ELTA appropriation supports early learning by funding portions of the Fair Start for Kids Act that were previously funded by federal stimulus dollars. This includes funding for the Working Connections Child Care and the Early Childhood Education and Assistance Program (ECEAP), the state’s child care subsidy programs. The funds are allocated for expanding income eligibility and reducing family copayments for Working Connections, increasing child care provider rates, enhancing the rate for infants, and covering other costs to DCYF for implementing the Fair Start for Kids Act.
The capital gains tax has survived notable pushback, including a 2022 lawsuit challenging the tax’s constitutionality brought before the Washington State Supreme Court. It also survived a 2024 ballot initiative to repeal it, spearheaded by hedge fund manager Brian Heywood.
learn more: education legacy trust account and capital gains tax
Sources:
Washington State Budget and Policy Center. (n.d.). Washington state’s capital gains tax boosts investments in kids from Omak to Ocean Shores.
Start Early Washington. (2024, July 24). The Education Legacy Trust Account, Capital Gains and Early Learning in Washington State.
Washington State Department of Revenue. (2024, January 17). Capital Gains Excise Tax generates $896 million for education, school construction.
Blanford, Stephan. (2022, March 24). Big Win for Washington Kids and Families! Court Upholds Capital Gains Tax. Children's Alliance.
Washington State Legislature. (2024). Chapter 82.87: Capital Gains Tax.
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2021 | $386 million in 2023-2025 budget |
State Dedicated Funding Stream
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Revenue from capital gains tax supports early learning by expanding income eligibility and reducing family copayments, increasing child care provider rates, enhancing the rate for infants, and covering other costs for implementing the Fair Start for Kids Act
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Created in 2005, the Education Legacy Trust Account (ELTA) supports educational priorities in Washington state, including early learning and child care. ELTA originally prioritized K-12 schools and access to higher education, but Washington’s legislature added early learning and child care as temporary allowable uses in the 2015-17, 2017-19, and 2019-21 Biennia, before permanently adding these uses through the Fair Start for Kids Act in 2021.
ELTA was originally funded by estate and cigarette taxes but is now funded by a 7% excise tax on capital gains over $262,000 (that is, gains generated from the sale or exchange of long-term capital assets). This tax was authorized by the state legislature in 2021 and went into effect in 2022. The revenue it generates — which came to just under $900 million in 2023, the first year of collection — is distributed through ELTA according to a formula set by statute. It includes a $386 million appropriation to the state’s Department of Children, Youth, and Families (DCYF) in the 2023-25 budget.
DCYF’s ELTA appropriation supports early learning by funding portions of the Fair Start for Kids Act that were previously funded by federal stimulus dollars. This includes funding for the Working Connections Child Care and the Early Childhood Education and Assistance Program (ECEAP), the state’s child care subsidy programs. The funds are allocated for expanding income eligibility and reducing family copayments for Working Connections, increasing child care provider rates, enhancing the rate for infants, and covering other costs to DCYF for implementing the Fair Start for Kids Act.
The capital gains tax has survived notable pushback, including a 2022 lawsuit challenging the tax’s constitutionality brought before the Washington State Supreme Court. It also survived a 2024 ballot initiative to repeal it, spearheaded by hedge fund manager Brian Heywood.
learn more: education legacy trust account and capital gains tax
Sources:
Washington State Budget and Policy Center. (n.d.). Washington state’s capital gains tax boosts investments in kids from Omak to Ocean Shores.
Start Early Washington. (2024, July 24). The Education Legacy Trust Account, Capital Gains and Early Learning in Washington State.
Washington State Department of Revenue. (2024, January 17). Capital Gains Excise Tax generates $896 million for education, school construction.
Blanford, Stephan. (2022, March 24). Big Win for Washington Kids and Families! Court Upholds Capital Gains Tax. Children's Alliance.
Washington State Legislature. (2024). Chapter 82.87: Capital Gains Tax.
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Empower to Educate
Minnesota
Created in 2022 with funding from the Minnesota Department of Human Services, Empower to Educate is a workforce development program offering financial support, free training options, job skills training, job placement support, and connections to mentorship opportunities. Participants can also receive ongoing support from a local Workforce Advisor. Empower to Educate provides one-on-one, individualized support to each participant. Workforce Advisors can help participants navigate the early education system for individual coursework, complete the Child Development Associate (CDA) Credential, and make connections to college-level courses and T.E.A.C.H. scholarship opportunities.
Learn more: Child Care Aware Minnesota
Sources:
Child Care Aware Minnesota. (2022). Empower to Educate is Launched.
Child Care Aware Minnesota. (n.d.). Professional Development.
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2022 |
Includes training, financial support, job placement support, and mentorship
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Created in 2022 with funding from the Minnesota Department of Human Services, Empower to Educate is a workforce development program offering financial support, free training options, job skills training, job placement support, and connections to mentorship opportunities. Participants can also receive ongoing support from a local Workforce Advisor. Empower to Educate provides one-on-one, individualized support to each participant. Workforce Advisors can help participants navigate the early education system for individual coursework, complete the Child Development Associate (CDA) Credential, and make connections to college-level courses and T.E.A.C.H. scholarship opportunities.
Learn more: Child Care Aware Minnesota
Sources:
Child Care Aware Minnesota. (2022). Empower to Educate is Launched.
Child Care Aware Minnesota. (n.d.). Professional Development.
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