Preschool Enrollment and Funding Hit Records, but Quality Gaps Persist Across States

Record Investment in Early Education

State-funded preschool programs have reached an unprecedented milestone: more four-year-olds are enrolled than ever before, and total spending has climbed to an all-time high of nearly $14.4 billion. However, experts warn that this surge in investment does not guarantee quality, leaving a fragmented landscape where children's access to high-quality early learning depends heavily on where they live. The latest findings from the National Institute for Early Education Research (NIEER) in its State of Preschool: 2025 Yearbook reveal a mixed picture of progress and persistent challenges.

Uneven Progress Across States

According to NIEER, the expansion of preschool programs resembles a race where some states are sprinting ahead while others lag behind or have yet to start. Allison Friedman-Krauss, an associate research professor at NIEER, emphasizes the need to balance access with quality: “We’re trying to make sure states are also thinking about quality. Right now, it’s more about access. And we don’t want them to forget about quality.”

Where the Money Is Going

The bulk of the $14.4 billion in state preschool funding is concentrated in a handful of states. California alone accounted for $4.1 billion, followed by New Jersey ($1.2 billion) and New York ($1 billion). Together, these three states represent 45% of all state pre-K spending. More than two dozen states increased their preschool budgets, often directing funds toward improving teacher-to-student ratios and boosting teacher compensation—a longstanding concern in the field.

On a per-child basis, New Jersey, Oregon, and the District of Columbia each provided over $15,000 in state funding per enrolled preschooler. Six other states—California, Connecticut, Delaware, Michigan, New Mexico, and Washington—spent more than $10,000 per child. Overall, 28 states increased per-child spending after adjusting for inflation, compared to the previous year.

Some States Fall Behind

Despite the overall increase, the rate of investment is slowing. Adjusted for inflation, states spent an average of $45 more per child in 2024–2025 than in 2023–2024—a modest increase compared to the previous year’s jump, which was 16 times larger. Seventeen states actually spent less per child (inflation-adjusted) than the prior year. Researchers attribute these declines to state budget deficits and falling enrollment in some regions.

Quality Concerns Amid Expansion

While enrollment numbers are climbing, the quality of programs varies widely. NIEER’s report highlights that simply increasing funding does not automatically improve classroom environments, curricula, or teacher qualifications. Experts stress that without deliberate attention to quality indicators—such as class size, teacher training, and developmentally appropriate practices—the expansion could create a system of “haves and have-nots.” Children in well-funded states may receive enriching early education, while those in underfunded areas face lower-quality options.

Teacher compensation remains a critical issue. Low pay in the early childhood sector often leads to high turnover, which disrupts children’s learning and development. Some states are using new funds to raise salaries, but many programs still struggle to attract and retain qualified educators.

State Priorities and Budget Challenges

The variation in spending reflects different state priorities and fiscal realities. For instance, New Jersey faced a budget deficit yet chose to invest an additional $100 million in expanding preschool for all. Steve Barnett, director of NIEER, sees this as a conscious decision: “That’s a conscious decision to say we’re going to spend less. And you have to ask if that’s the right choice.” He argues that states can find ways to prioritize early education even amid tight budgets.

Conversely, some states have reduced preschool funding as part of broader austerity measures. This disparity means that a child’s access to high-quality preschool often depends on their state of residence, raising equity concerns. Researchers call for a more balanced approach that combines sustained investment with quality standards.

Looking Ahead: The Need for Quality-First Growth

The record enrollment and funding levels are encouraging, but experts urge policymakers to focus on quality as well as access. As Friedman-Krauss notes, forgetting about quality risks undermining the very benefits that preschool is supposed to deliver—improved school readiness, social-emotional development, and long-term academic success. States that lead in both investment and quality can serve as models, while those falling behind must reconsider their priorities.

Ultimately, the NIEER report serves as both a celebration of progress and a cautionary tale. Without deliberate attention to quality, the current expansion may widen the gap between advantaged and disadvantaged children. Ensuring that every 3- and 4-year-old has access to a high-quality preschool experience remains a goal that requires continued effort, smart spending, and a commitment to equity.