Wisconsin, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.
State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.
Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.
Young Children in Low-Income Households: Declining
Approximately 34 percent (192,000) of the state’s children 0-8 live in households below 200 percent of the Federal Poverty Level (2022). This number represents a decrease from 37 percenet (222,000) in 2017.1
Racial Disparity Among Young Children Living in Low-Income Households: High
Black, Hispanic/Latino, and/or Native children aged 0-8 are significantly more likely to be living in households below 200 percent of the Federal Poverty Level than are Asian and non-Hispanic White children.2
State General Fund Appropriations:3 Growing
In 2025, Wisconsin’s governor signed the state’s two-year budget for fiscal 2026-2027 after issuing a series of line-item vetoes. The budget calls for $55.34 billion in total spending in fiscal 2026, and $55.86 billion in total spending in fiscal 2027. The two-year budget is 12.5 percent higher than the adjusted base for the prior two-year budget. The budget calls for $22.88 billion in general fund appropriations for fiscal 2026, and $23.19 billion in general fund appropriations for fiscal 2027. General fund spending in the two-year budget is 7.8 percent higher than the adjusted base for the prior two-year budget. The enacted budget assumes general fund total available revenue of $27.04 billion in fiscal 2026 and $25.13 billion in fiscal 2027. Total taxes are projected to be $21.96 billion in fiscal 2026 and $22.61 billion in fiscal 2027. The net general fund balance is projected to be $1.89 billion at the end of fiscal 2026 and $655.5 million at the end of fiscal 2027.
Largest Revenue Sources (after federal transfers):4
Wisconsin uses all major state and local taxes. Charges are public payments connected with a specific government service, such as tuition paid to a state university, payments to a public hospital, or highway tolls.
State Budget Rules:4
Wisconsin uses a biennial budget. The legislature must pass a balanced budget, but it can carry a deficit over into the following year. Wisconsin further limits both spending and revenue growth. These are binding rules and require a legislative supermajority or vote of the people to override them. Wisconsin also requires a supermajority vote for any legislation that increases the state’s general sales, individual income, or corporate income tax. Wisconsin limits both total authorized debt and debt service incurred by the state.
There is no permanent state funding stream—such as lottery revenue, nicotine tax, or trust fund distributions—dedicated by statute to early childhood supports. (Examples of other states with such funding in place can be found in the Alliance’s Revenue and Early Childhood Finance resource center.)
Political Alignment:6 Divided
During the legislative session, the state’s Senate and House were both Republican controlled. The state’s governor was a Democrat.
Types of Common Ballot Measures Available:7 Two
Early Childhood Policy Advocacy Organizations Include:
Early Childhood Policy Advocacy Multi-State Initiatives Include:8
Highlights from the state’s early childhood policy advocacy community include:9
The most significant early childhood policy win in 2025 was the creation in the state budget of a dedicated, ongoing appropriation for a school readiness program. While the goal was to have a more robust universal direct funding program, this is a foundational step to have a more permanent line-item that is supported by state general purpose revenue in the future. This new appropriation establishes the first stable state investment in early learning beyond the K–12 system, marking a major shift in Wisconsin’s approach to early childhood financing. Although modest ($66 million) compared to the long-term need, it provides a critical structural foothold to build upon in future budget cycles. It also demonstrates bipartisan acknowledgment of the child care crisis and a willingness to make financial investments.
In addition to achieving a permanent funding source, overall child care funding was a central component of the budget negotiations. In a split government environment, there is only the capacity for our governor to prioritize a few items beyond K-12 education (his top priority). In previous budgets, we saw Child Care emerge as a top-five priority, but not top-three priority. This budget cycle, it reached that level of a top 3 priority.
There was also $110 million in one-time payments (federal funds from interest earned on relief dollars) until June 30, 2026 for child care providers. This program is the remains of the direct provider stabilization program that was created during the pandemic called Child Care Counts, disbursing monthly payments based on children served and staff employed since 2020. While these one-time funds mitigate the immediate fiscal cliff created by the end of Child Care Counts, they are less than half as much as the payments received in previous years and will end a year before the next biennium budget is signed.
The state budget increased the child care subsidy to 75 percent. Up from 41 percent, the new rate affords families to purchase 75 percent of care slots available within their communities.
The Alliance for Early Success has two key allies in Wisconsin: Kids Forward and the Wisconsin Early Childhood Association (WECA). Kids Forward provides research, public education, and advocacy for the development and implementation of equitable and inclusive public policy that improves child and family well-being in health, economic security, safety, and education. Wisconsin Early Childhood Association is the state affiliate of NAEYC, and engages in state level early childhood policy and budget work through their Center for ECE Policy & Research, including running advocacy campaigns and fully engaging their membership. WECA supports Raising Wisconsin, a multi-sector coalition that includes leaders from child care, child health, local government, economic development, and various social impact organizations across the state. The initiative focuses on advocating for significant state investment in early care and education to ensure all children, families, early educators, and communities can thrive. Kids Forward is also a part of Raising Wisconsin.
Wisconsin Early Childhood Association (WECA) and Kids Forward are working to advance early childhood policies in several areas that align with the Alliance’s birth-through-eight policy framework:
Child Care
Child Care Workforce
Infant & Child Health
Child Mental Health
Early Intervention (Age 0-3)
Maternal Health
Family Economic Security
Home Visiting
Infrastructure
It is no secret that early childhood educators face challenges in Wisconsin and beyond, and yet plans to make the system more equitable are often missing the voices of these practitioners themselves. In Wisconsin, a new study that centers the voices of Wisconsin early educators from traditionally marginalized groups is already having an impact on policy in the state.
NOTES:
1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.
2 National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.
3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2026.
4 Urban Institute, State Fiscal Briefs, April 2025.
5 Alliance for Early Success, State Examples of Dedicated Funding Streams, 2025
6 National Conference of State Legislatures, 2025 State & Legislative Partisan Composition, January 31, 2025.
7 Ballotpedia, Ballot Measures by State, Kids Count Data Center, 2025.
8 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.
9 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2025.
