⛓️‍💥ECE Funding Gap By State — The Data & What You Can Do

Today's Issue: World Cup drama on American soil; the child care funding gap exposed; two states that just made moves for providers = ¾ cup of coffee ☕

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⚽ The World Cup Gave Us Everything — Drama, Goals, and American Hospitality.

What a tournament. Spain topped Argentina 1-0 in extra time at the New Jersey stadium, with substitute Ferran Torres delivering a 106th-minute winner to deny Messi a back-to-back title. There was a red card, 11 jaw-dropping saves, and more drama than a Monday morning drop-off line. But here's the best part: through ALL of it, the world came together, right here on American soil. Packed stadiums. Open doors. And a warmth that reminded the entire world why the USA is unlike anywhere else. The World Cup was ours, and we absolutely nailed it. 🇺🇸🏆

Read the Full Recap HERE!!

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💰 The Big Read: Child Care Funding Doesn’t Cover all State Gaps

A new report from Child Care Aware of America just dropped, and every ECE leader needs to see it. Examining the Gaps: Child Care Prices, Costs, and Subsidies lays out exactly how far most state subsidy reimbursement rates fall below what quality care actually costs to deliver. Spoiler: the gap is staggering.

Key Findings:

• 27 states use market rate surveys to set subsidy rates, which measure what families pay, NOT what it actually costs to provide quality care

• Only 9 states + DC have been approved to use cost estimation models as an alternative methodology

• In most states, subsidy rates fall below both current market prices AND the true cost of providing care

• The biggest gaps? Infant and toddler care and high-quality programs; the exact areas that matter most

• Only 15% of federally eligible children currently receive subsidies, leaving the overwhelming majority without support

Why Do Reimbursement Rates Differ So Much Between States?

1. Methodology Matters: States using market rate surveys lock in rates based on what the market charges, not what it costs to actually deliver quality care. Cost modeling is more accurate, but most states haven't made the switch yet.

2. The Urban-Rural Divide: Without a minimum "floor rate," rural providers consistently receive less than their urban counterparts, even when their costs are comparable or higher. Geography is costing rural centers.

3. Age Group Blind Spots: Infant and toddler rooms require lower staff-to-child ratios and cost significantly more to operate. Most rate-setting doesn't reflect this, leaving infant rooms financially underwater every single month.

What Can Your Center Do Right Now?

• Document your real operating costs. This data is fuel for advocacy

• Connect with your state ECE advocacy coalition and push for cost modeling over market surveys

• Get familiar with the bipartisan Child Care Modernization Act, which would require states to use cost modeling to set subsidy rates

📖 There is a lot more in this report worth your time, and we mean that. Read the Full Article Here for Even More Key Details →

📰 ECE In The News

🔹 North Carolina's $97M Child Care Win Is a Lifeline for Rural Providers: NC's new state budget just established a first-of-its-kind statewide subsidy "floor rate;” meaning every provider in every county will now receive at least the statewide average reimbursement. No more rural centers getting half what urban providers receive. The total child care subsidy program now sits at $593.1M for FY 2026-27. This is what showing up for advocacy looks like. Full Story HERE →

🔹 Michigan Is Tackling the Staffing Shortage Head-On With $35M: Parents in Michigan are waiting 12–18 months for a child care spot, and it's not because there aren't enough classrooms. It's because there aren't enough teachers. Michigan's new budget directs $35 million specifically toward attracting and retaining quality child care workers with higher wages as the goal. More staff in the building means more kids through the door. Simple math, big impact. Get the Details HERE →

🌐 The Internet is a Playground

📅 On This Day in History: On July 21, 1969, Apollo 11 astronauts Neil Armstrong and Buzz Aldrin departed the Moon's surface in the Eagle lunar module, wrapping up humanity's first-ever moonwalk after spending over 21 hours in the Sea of Tranquility. Armstrong's famous "one small step" still gives us chills. Tip: Ask your little ones: "If YOU could go to the Moon, what's the ONE thing you'd bring?" The answers will absolutely make your week. 🚀🌙

⚒️ 2026 Lifehacks: Mom’s are posting their top 25 lifehacks.

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