Head Start and Child Care Programs Secure $170 Million Increase in FY2026

Congress delivered a $170 million combined funding increase for the nation's two largest early childhood programs when President Trump signed the FY2026 spending package on February 3. The Child Care and Development Block Grant rises to $8.831 billion, up $85 million, while Head Start climbs to $12.357 billion with a matching $85 million boost. Preschool Development Grants Birth through Five holds steady at $315 million.

The House approved the five-bill package on a narrow 217-214 vote.

Stability After Years of Uncertainty

For Head Start grantees and child care providers who have operated under continuing resolutions and funding cliffs for the better part of two years, the increase is modest in dollar terms but significant in what it signals: Congress views early childhood as a category worth protecting even in a constrained fiscal environment.

"These investments ensure families and providers can plan ahead, maintain programs, and give children the consistent, high-quality care they need," said Sarah Rittling, Executive Director of the First Five Years Fund.

The CCDBG increase flows through state agencies, which administer child care subsidies and set provider reimbursement rates. The additional $85 million is unlikely to close the gap between what states need and what they receive — only about one in six eligible families currently receives CCDBG assistance — but it prevents the erosion that a flat-funded year would bring.

What Providers and Grantees Should Do Now

Head Start grantees should review their renewal timelines with regional offices. The $85 million increase may translate to cost-of-living adjustments, expanded enrollment slots, or facility improvements depending on how the Office of Head Start allocates the funds.

Child care providers should contact their state CCDBG lead agency to understand how the additional federal dollars will flow locally. Some states will raise reimbursement rates; others will expand the number of subsidized slots. Timing varies by state.

Organizations that serve young children and families but have not pursued federal early childhood grants may find that this moment — with stable funding and clear congressional support — is the right time to apply. Granted can help identify open Head Start, CCDBG, and PDG B-5 opportunities matched to a provider's service area and capacity. Further analysis is available on the Granted blog.