STATE OF PLAY: Appropriations

Each year, Congress determines funding levels for all federal defense and non-defense discretionary programs, including those that support the care and education of children from birth through age five. Traditionally, subcommittees within the House and Senate Appropriations Committees develop their own legislation that sets funding levels for the programs within their jurisdiction, which is then taken up by the full Appropriations Committees, and later the full legislative body, before a negotiation process between the two chambers of Congress and ultimately the president’s signature.

WHERE WE ARE

HOUSE: On September 2, 2025, the House Labor, Health and Human Services, Education, and Related Agencies Appropriations Committee marked up its FY2026 budget proposal, including funding for child care and early learning programs. The bill proposed:

• Child Care and Development Block Grant (CCDBG): Level funding at $8.746 billion;
• Head Start: Level funding at $12.272 billion;
•  Preschool Development Grants Birth through Five (PDG B-5): Eliminated.

This mirrors the proposal put forward in May 2026 from the White House.

SENATE: The Senate has proposed more robust funding for child care and early learning programs. In July 2025, Senate Appropriators set the overall Labor-HHS spending number for FY2026 at $197 billion, which includes a $170 million increase for early learning programs over fiscal year 2025, including:

• CCDBG: $8.83 billion – an $85 million increase over fiscal year 2025. 
• Head Start: $12.36 billion, an $85 million increase over fiscal year 2025. 
• PDG B-5: $315 million, level with FY25.

WHAT WE’RE WATCHING

Hill watchers are keeping an eye on three things in the coming months.

1.      End of the 2025 Fiscal Year. The federal fiscal year ends on September 30^th. On that date, Congress must either pass a funding bill, pass a Continuing Resolution (which keeps the government funded for a specific amount of time), or funding lapses and we have a government shutdown..

2.      A potential rescissions package. Congress and the White House have the authority to rescind funding previously appropriated by Congress. Rumored rescissions packages have raised tensions on the Hill as lawmakers navigate  the FY26 appropriations process.

3.      A potential government shut down. Hill watchers are keeping an eye on negotiations between Democrats and Republicans, the House and Senate, and Congress and the White House, all of which could have a serious impact on the September 30 funding deadline and the threat of a government shutdown on October 1.

We’ll keep you informed as we know more! And in the meantime, here are a few resources for a deeper dive:

• STATEMENT: FFYF Executive Director Sarah Rittling on House Markup of FY26 Funding Levels for Child Care and Early Learning Programs.
• Funding for Key Early Learning Programs:  A chart with FY2026 funding specifics, including FY24/25 funding levels, White House asks, the child care community’s ask, and the House and Senate appropriators asks. 
•  FY26 Early Learning and Child Care Appropriations Letters: Dear Colleague letters from Republicans and Democrats with funding asks for child care and early learning programs.
• ABCs of Federal Early Learning and Child Care Funding Streams: An overview of how child care and early learning programs work together.