Kuhnen

In 2023, for every public dollar spent on the education and care of a school-aged child in Michigan, only 23 cents were spent on a preschooler and just 8 cents were spent on an infant or toddler.

This new data from the Center for Early Learning Funding Equity’s latest Shortchanged Project report shows Michigan still has a long way to go to meet the needs of young families. Despite the positive impacts of early childhood funding on educational outcomes and maternal labor force participation, the state continues to underinvest in children during their earliest and most developmentally important years.

Like most states, Michigan invests more in preschoolers than infants and toddlers. Thanks to the state’s recent investments in the Great Start Readiness Program (GSRP), Michigan ranks in the top 15 states for preschool spending. In the most recent school year, more than 200 children in the Alpena-Montmorency-Alcona Educational Service District (ESD) were participating in GSRP.

Not only will these students be more prepared to enter kindergarten, but their families will see significant economic benefits. Research from the W.E. Upjohn Institute suggests each GSRP parent will save, conservatively, over $4,600 in childcare costs and 1 of every 25 parents will become employed due to the program.

But infants and toddlers are being left behind. According to the Shortchanged Project report, Michigan falls in the bottom 10 states for spending on infants and toddlers. As a result, the cost of childcare falls largely on families, with very few able to access state scholarships despite meeting income eligibility requirements. In the Northeast Lower Peninsula, nearly 1 in 3 infants and toddlers is living in a household with low income, but in Alpena, Alcona, Montmorency and Presque Isle counties, just 53 infants and toddlers received childcare scholarships in December 2024.

Unlike the K-12 system, which is primarily funded through the state’s School Aid Fund, Michigan is reliant on federal dollars to fund our early care and education system for infants and toddlers. In 2023, just 15% of public spending on the care and education of children under age 3 came from state dollars. As a result, the sector is incredibly vulnerable to federal policy shifts.

The federal House budget proposal, for example, would eliminate funding for Preschool Development Grants Birth through Five (PDG B-5), a program that helps strengthen early childhood systems and connect families to services. Michigan has used already awarded PDG B-5 funds for a wide range of projects, including pilot programs to strengthen childcare worker wages and promote worker retention in the sector.

Despite the lackluster federal outlook, the recently passed state budget offers a glimmer of hope. Although state lawmakers missed an opportunity to improve reimbursement rates for providers accepting childcare scholarships for fiscal year 2026-2027, they did include $30 million in new funding for early learning partnerships to improve access for early childhood services, including for developmental screening, home visiting services and early literacy materials. The budget also includes increased funding for Early On, Michigan’s early intervention program for infants and toddlers with developmental delays, which in 2024 served 44 children in the Alpena-Montmorency-Alcona ESD.

Perhaps the most exciting addition this year is the establishment of a new Early Childhood Investment Fund. With just $5 million in initial funding, the investment is far smaller than in states like Montana and Nebraska that have formed their own such funds, but its creation is an important first step to sustained, dedicated funding for early childhood.

We should pause to celebrate the small wins that will benefit families raising their children throughout the state, but the evidence shows there is still work needed to close gaps in funding for families with infants and toddlers.