Early childhood care and education (ECCE) is a critical foundation for Arkansas’s children, families, and economy. Research shows that high-quality child care and pre-K improve school readiness, boost long-term success, and support working parents. But making these programs accessible and affordable depends on sustained public funding—and that’s where things get tricky.
Arkansas relies on a mix of federal, state, and local resources to support early learning, but funding patterns shift over time. Recently, we’ve seen major changes, including a new administrative structure under the LEARNS Act, inflation outpacing state investments, and temporary federal relief funds expiring.
So… How Is Early Childhood Education Funded in Arkansas?
We have released a detailed report, policy brief and dataset for those of you who want to dig deep, but we’ll hit the highlights here.
ECCE funding comes from multiple sources, each with different rules, goals, and challenges. Here’s a breakdown of the key players:
- Arkansas Better Chance (ABC) Pre-K → The state’s main pre-K program, typically available to children from families experiencing financial challenges. ABC is funded through state general revenue and TANF (Temporary Assistance for Needy Families). ABC also requires a local match from grantees (typically in-kind services rather than extra cash).
- Child Care Development Fund (CCDF) → The largest federal funding stream, designed to help families with limited financial resources afford quality child care. States must contribute matching funds to receive the full allocation.
- Head Start & Early Head Start (HS & EHS) → Federally funded direct grants to local providers, offering comprehensive early learning, nutrition, and health services for children whose families fall below the federal poverty guidelines or meet special eligibility criteria.
Other Key Funding Streams in Arkansas:
- Child and Adult Care Food Program (CACFP) → Reimburses ECCE providers for serving healthy meals to children from families experiencing financial challenges.
- Maternal, Infant, and Early Childhood Home Visiting (MIECHV) → Supports evidence-based home visiting programs for families with heightened needs.
- Preschool Development Grant Birth to Five (PDG B-5) → One- or three-year grant that helps states improve coordination and quality across early childhood systems.
- Child Care Access Means Parents in School (CCAMPIS) → Supports student-parents in college by subsidizing child care costs.
Each of these programs serves a specific purpose, but together they form the financial backbone of Arkansas’s early childhood system.
Key Takeaways from the Data
Looking at funding trends from 2018 to 2023, a few important patterns stand out:
1. Federal Relief Funds Were Temporary
During the pandemic, federal funding surged, especially through CCDF and Head Start. This helped stabilize child care providers and support families. But now, with those funds are winding down, the state must readjust to pre-pandemic funding levels.
Total (Federal, State, and Local) Inflation-Adjusted ECCE Expenditures (2018-2023): Arkansas vs. Neighboring States
2. State Funding Hasn’t Kept Up with Inflation
- Arkansas’s ABC Pre-K funding has remained flat at $106.5 million per year, meaning its purchasing power is shrinking over time.
- Since ABC requires a local match, local funding mirrors the state’s contributions and has also lost real value over time.
- Bottom line? Without increases that account for inflation, the state can serve fewer kids at the same quality level.
State Only Inflation-Adjusted ECCE Expenditures (2018-2023): Arkansas vs. Neighboring States
3. LEARNS Act Shifted ECCE Oversight to the Department of Education
- Before 2023, ECCE programs were divided across multiple state agencies.
- The LEARNS Act created the Office of Early Childhood (OEC) within the Arkansas Department of Education (ADE), consolidating oversight of programs like CCDF, CACFP, and PDG B-5.
- This centralization could streamline administration and improve overall coordination, but the specific effects on funding priorities, processes, and distribution remain to be determined.
4. How Does Arkansas Compare to Neighboring States?
- Arkansas’s per-child ECCE funding has gone up and down over the years, with a big spike in 2021 before dropping back down. The 2021 bump in funding happened across all neighboring states, due to temporary federal pandemic relief rather than a long-term increase.
- Arkansas generally has more per-child ECCE funding than most of its neighbors, but less than Oklahoma, a state with a universal public pre-K program.
Per-Child, Total (Federal, State, and Local) Inflation-Adjusted ECCE Expenditures (2018-2023): Arkansas vs. Neighboring States
- However, Arkansas receives less federal ECCE funding than most neighboring states, making the state investment crucial to ensuring stable and sustainable ECCE support in the future.
Federal Only Inflation-Adjusted ECCE Expenditures (2018-2023): Arkansas vs. Neighboring States
Why Does This Matter?
Funding doesn’t just affect budgets—it affects families, educators, and children’s futures. Here’s why these trends are important:
- More funding = more access, higher quality → Without stable funding, families struggle to find quality, affordable care, something many families prioritize.
- Educator pay matters → Low wages drive turnover in the early childhood workforce, impacting quality and consistency.
- Pre-K access affects K-12 outcomes → Children who attend high-quality pre-K start school more prepared and have better long-term academic success.
What’s Next?
With federal relief funds ending and costs rising, Arkansas has some big decisions ahead. Policymakers, providers, and families should keep an eye on a few key areas:
- Increasing state investments → Boosting ABC Pre-K funding to match inflation would help sustain existing providers using this funding.
- Tracking funding impact → With new data systems and the implementation of Local Leads under the newly established Office of Early Childhood, there’s a chance to improve transparency and coordination.
Final Thoughts
Arkansas’s ECCE system is at a crossroads. Federal investments have been crucial, but state and local commitments will determine whether programs can grow, sustain quality, and reach more children.
As the new Office of Early Childhood takes shape, we’ll be watching to see how funding flows, what changes occur, and how early learning in Arkansas evolves. Stay tuned!
Have thoughts or questions? We’d love to hear from you! Drop us a message or share your experiences with early childhood programs in Arkansas.