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Revenue and Estimates

There are numerous funding strategies state advocates and leaders can pursue for increasing the revenue from state and local sources that can be directed to support early childhood programs. There has been significant work done at both at the state and local levels, to support quality programs through dedicated taxes. These revenues can have a significant impact on long-term goals, and there have already been several early successes in using them to help close the extreme funding gap in early childhood.

Please click on the categories below to learn more about a few revenue generating sources:


Revisiting Integrated Efficient Early Care and Education Systems

Bipartisan Policy Institute — BPC examined how states manage federal early childhood programs to better understand if efficiencies were to be gained and where they occurred. The report outlines findings from all 50-states and D.C.

Funding Our Future: Generating State and Local Tax Revenue for Quality Early Care and Education

The BUILD Initiative, Center for American Progress, Children’s Funding Project, Institute on Taxation and Economic Policy, and University of Maryland College Park, Schools of Public Health and Public Policy — This brief introduces state and local tax policy areas for consideration as part of the push for expanded public investment in early care and education. Seven tax policy areas are presented. Each tax is defined, and examples are included showing current use of these taxes for early care and education, policy ideas that have been tried but have not yet passed and new, next-generation ideas. (2019)

early childhood financing brief cover

Innovative Financing to Expand Services So Children Can Thrive

Children's Funding Project and Harvard Graduate School of Education — This policy brief shines light on ten innovative methods to finance services for children and youth. (2019)

Alliance for Early Success - Early Childhood Policy

Blending and Braiding Fact Sheet

Children's Funding Project — This policy brief provides a 101 on Blending and Braiding financing practices. (2023)


Understanding Fiscal Maps (Funding Our Kids 101)

Children’s Funding Project — This paper is a primer on documenting and analyzing the various sources of funding that support programs and services for children and youth in a state, city, or county. (2022)

State Fiscal Modeling Resources and Studies

P5 Fiscal Strategies -- P5 Fiscal Strategies compiles numerous early childhood revenue resources on its site, including a resource list of cost-modeling tools and and a clearinghouse of state cost-modeling reports.


Federal Funding Streams for Children and Youth Services

The Children's Funding Project —  The Federal Funding Streams for Children and Youth Services database helps communities find federal funding available to states, tribal areas, counties, cities, towns, school districts, and local nonprofit organizations to support children and youth. This database catalogs the purposes and key characteristics of more than 280 federal funding programs—funded across 12 different federal agencies—that support cradle-to-career initiatives. (2023)

ABCs of Federal Early Learning and Child Care Funding Streams

First Five Years Fund —  This resource book is an introduction to the foundational early learning and care programs that originate at the federal level and are funded by Congress. It works alongside the FFYF Blueprint for Progress, which contains resources and information that policymakers can use to support the care and education of children from birth through age five. (2023)

Early Years and Climate Provisions in the Inflation Reduction Act

Early Years Climate Action & Start Early —  This resource, developed in partnership with Early Years Climate Action and Start Early, outlines how the IRA will advance federal policies and programs to support mitigation, adaptation, and resilience within the early years ecosystem. It provides a short description of relevant tax credits, financing mechanisms, and highlights the lead agency, eligible beneficiaries, and the potential benefits to children and families. (2023)

Back-to-School Success Requires Strong Community-School Partnerships

Children’s Funding Project —  This resource explains how states are using American Rescue Plan and Elementary and Secondary School Emergency Relief Fund (ESSER) dollars to support community partnerships. (2022)