Through February, 44 governors from states and territories have delivered a State of the State speech, while 49 have proposed a new budget for fiscal 2026. NASBO is continuing to publish state-by-state summaries of both State of the State addresses and budget proposals. In their speeches and budget recommendations, governors focused on childcare needs including efforts to lower costs, increase access, support providers, partner with employers, create or expand childcare tax credits, establish a one-stop-shop for childcare services, rewrite childcare regulations, build new childcare centers, provide free childcare to childcare workers, and put the state on a path to universal childcare. Listed below are selected highlights from governors’ addresses and budget proposals outlining their childcare priorities. These examples are meant to be illustrative and do not represent an exhaustive list of gubernatorial initiatives related to childcare for fiscal 2026.
Arizona – In State of the State discussed the creation of the Working Families Child Care Act, aimed at lowering the cost of care by two-thirds through partnerships with employers. Budget proposal directs a combination of funds for the Bright Futures AZ initiative to reduce childcare costs, increase access, and support providers; creates a childcare tax credit for businesses; and increases support for the Childcare Assistance Program.
Georgia – Budget recommendation provides funding to support 500 additional state funded slots in the Childcare and Parent Services program; annualizes Childcare and Parent Services program reimbursement rates at the 60th percentile for providers and families; and adds funds for year two of a four-year phase-in to reduce Pre-K classroom size from 22 to 20 students.
Iowa – Condition of the State called for making permanent a pilot program that provides free childcare to childcare workers, launching a statewide solutions funds to which individuals or businesses can donate to enhance childcare workforce wages, and an early childhood Continuum of Care program to provide three-year grants for preschool programs and childcare providers that come together to integrate their services.
Kansas – State of the State proposed putting the functions of different agencies under the Office of Early Childhood and offering a one-stop-shop for young families, childcare providers, and businesses to access early childhood services. Recommended budget provides one-time funding for childcare capacity accelerator grants to address the shortage of childcare slots, recommends funds for childcare health and safety grants to assist providers with small renovations, and continues the childcare workforce registry.
Massachusetts – Early education and care investments in budget proposal, including for Commonwealth Cares for Children (C3) program to support early education and providers’ operational costs; a multi-year investment in the Commonwealth Preschool Partnership Initiative to put the state on a path to universal preschool; and childcare financial assistance funding.
Missouri – State of the State highlighted an executive order to re-write childcare regulations, grant funding to help make childcare more affordable, and ensuring timely payments to childcare providers. Budget recommendation includes funding for the Child Care Subsidy Program, continuing current eligibility levels for families, aligning the payment structure for childcare providers with private payors, and strengthening the childcare providers that serve this population
New Mexico – In State of the State said the state is close to realizing truly universal free childcare for all, and asked the legislature to allocate additional funds to finish the job. Recommended budget provides support for the childcare assistance program, launches a pilot program for transforming childcare quality across the state, provides funds for additional prekindergarten slots, and increases funding for the Early Childhood Education and Care Department.
New York – In State of the State called for putting New York on a path towards universal childcare. Budget proposal provides funding to continue expanding childcare access, support to build childcare centers, and expands the Child Tax Credit over two years.
Ohio – Budget proposal maintains access to quality childcare through Publicly Funded Childcare and the Childcare Choice program as well as proposes a refundable child tax credit targeted at working families with children through age six.
Utah – Recommended budget provides funding to increase the number of childcare facilities and expands the state’s child tax credit to include children younger than one year of age.