4 Early Care and Education Issues to Watch in 2026

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If 2025 featured a mix of highs and lows in early care and education, 2026 is poised to bring a series of deeper challenges to the field, as states prepare to make difficult budget decisions in anticipation of the looming federal funding cuts.

“It’s pretty grim,” said Natalie Renew, executive director of Home Grown, a national initiative committed to improving the quality of and access to home-based child care, about the outlook for the sector.

“I don’t think anyone is particularly optimistic about child care” in the new year, added Daniel Hains, chief policy and professional advancement officer at the National Association for the Education of Young Children (NAEYC). 

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