Illinois Action for Children Responds to Fiscal Year 2026 State Budget and Spring Legislative Recap

Late Saturday night, the Illinois General Assembly passed the Fiscal Year 2026 (FY26) state budget (SB2150), which includes appropriations for year three of Smart Start Illinois that will increase salaries through Smart Start Workforce Grants to recruit and retain early childhood educators, and also expand funding for the Child Care Assistance Program (CCAP) to meet growing demand from working families who rely on affordable child care.

Illinois Action for Children (IAFC) applauds these vital investments needed to sustain and grow the child care sector. However, the FY26 budget falls short in other critical areas, maintaining flat funding for essential programs such as the Early Childhood Access Consortium for Equity (ECACE) scholarship, Early Intervention (EI), Home Visiting, and the Early Childhood Block Grant.

IAFC recognizes the difficult and rapidly evolving budget and policy landscape we are in today. Yet this does not mean that the state can lose focus on ensuring that Illinois’ youngest children and their families have the comprehensive services and supports they need to learn, grow and succeed. 

“We greatly appreciate the General Assembly’s commitment to our state’s youngest learners and their families in the face of a challenging fiscal environment and uncertainty at the federal level,” said Angela Farwig, Vice President of Public Policy, Advocacy, and Research. “However, limiting investments in key programs such as the ECACE scholarship and EI services for infants and toddlers risks undermining the progress we have made in recent years. Every child deserves a strong, stable foundation, which requires a bold, sustained investment in early childhood.” 

Overview of FY26 Appropriations

The total funding increase for early childhood programs in the FY26 budget is $175 million. Additionally, the Illinois Department of Early Childhood (IDEC) received a $7.5 million funding increase for operational support.

Below is more detail about investments in early childhood funding in the FY26 budget:

• The Illinois Department of Human Services (IDHS) received a $175 million increase for child care. This includes a $90 million increase for Smart Start Workforce Grants to maintain increased wages for the workforce and support stability for the child care sector and an increase of $85 million to ensure that working families can access affordable child care through the Child Care Assistance Program.  
• The Illinois Department of Early Childhood (IDEC) received a $7.5 million increase to support staffing, operations, data and technology infrastructure, program redesign, and communication and engagement efforts.  

Programs that received flat funding in the FY26 budget include:

• The Early Childhood Block Grant at the Illinois State Board of Education (ISBE), which supports Preschool for All, Preschool for All Expansion, and Prevention Initiative programs for young children
• The ECACE scholarship program, which supports early childhood educators pursuing degrees and credentials
• Early Intervention at IDHS. There is no increase in state funding; however, the state will invest $10 million for provider rate increases, supported by federal Medicaid funds.
• Home Visiting programs at IDHS

In addition to the flat funding sustained across most early childhood programs, the General Assembly and the Administration’s decision to maintain ECACE funding at $5 million hinders the significant progress this scholarship has made in supporting incumbent early childhood educators.

Demand for ECACE continues to grow. In the most recent academic year, more than 3,000 educators applied, yet less than 700 scholarships were awarded, leaving approximately 2,300 qualified applicants without support. This underinvestment jeopardizes the state’s goal to expand preschool slots and child care access by weakening the pipeline of qualified educators needed to lead classrooms.

Together, we can do more—and must do more—to ensure that every child in Illinois has the opportunity to thrive through high-quality early learning and care.

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