Endowment Delivering the Largest Expansion of Early Childhood Education Services in Connecticut History
(HARTFORD, CT) – Governor Ned Lamont today announced that he is directing the Office of the Treasurer to deposit $411.7 million in state surplus funding into the Connecticut Early Childhood Education Endowment, bringing the endowment’s total value to more than $700 million.
Established by Governor Lamont in 2025 through Public Act 25-93, the endowment serves as a permanent funding source dedicated to strengthening Connecticut’s early childhood education system and will deliver the largest expansion of early childhood education services in state history. Combined with the $300 million deposited at the end of fiscal year 2025, this latest investment positions Connecticut as a national leader in creating a sustainable, long-term strategy to expand access to affordable, high-quality early childhood education.
Early childhood education is one of Governor Lamont’s top priorities as it helps children succeed, supports working families, and strengthens Connecticut’s economy. Advocates across the nation have recognized the endowment as a groundbreaking approach to providing stable, long-term funding that will benefit children, parents, educators, and providers for generations.
“Making Connecticut more affordable means making it easier for families to live, work, and raise children here,” Governor Lamont said. “High-quality early childhood education gives children the strongest possible start in life while helping parents pursue careers, grow their incomes, and contribute to our economy. By using our operating surplus to build this permanent endowment, we’re making a smart, long-term investment that will lower costs for families, strengthen our workforce, and ensure this support is available for generations to come. This is exactly why we have managed the state’s finances responsibly, so that when we have the opportunity to make transformational investments, we can do so without raising taxes or compromising our long-term fiscal stability.”
The endowment was created to address longstanding challenges facing Connecticut families and the child care industry, including the high cost of care, limited availability of child care, workforce recruitment and retention challenges, and the need for a stable funding source that supports access to high-quality early childhood education statewide.
Over time, the endowment will help create thousands of additional child care spaces, reduce costs for families, support competitive compensation for educators, strengthen program quality, improve provider sustainability, and expand access in communities where child care is needed most.
In addition to supporting affordability and access for families, Governor Lamont has prioritized investments in the essential components of a strong, sustainable early childhood system. Consistent with Public Act 25-93, beginning in fiscal year 2027, a portion of endowment expenditures may be used to support workforce initiatives, quality improvement efforts, provider business operations and sustainability, facility construction and renovation, and other system-building strategies that strengthen the delivery of high-quality early childhood education across Connecticut.
The endowment’s fiscal year 2027 budget also includes a $10 million investment in a health insurance subsidy for the early childhood workforce, reflecting Connecticut’s continued commitment to recruiting and retaining qualified educators. Together, these investments advance the state’s comprehensive strategy to strengthen early childhood education while supporting the educators and providers who serve children and families every day.
“This endowment represents a transformational commitment to Connecticut’s youngest children and the families who depend on high-quality early childhood education,” Connecticut Early Childhood Commissioner Elena Trueworthy said. “By creating a permanent, sustainable source of funding, we’re giving providers greater stability, supporting and retaining the dedicated educators who make early learning possible, and helping ensure that every child, regardless of where they live or their family’s income, has the opportunity to thrive. This investment will strengthen our early childhood system for decades to come.”
Beginning in fiscal year 2028, eligible families are expected to begin receiving no-cost or reduced-cost early childhood education opportunities supported by the endowment. Under Public Act 25-93, eligible families enrolled in state-funded child care through the Early Start CT program with household incomes up to $100,000 annually will have access to child care at no cost. For families with incomes above that level, family contributions will be capped at no more than 7% of household income, making child care significantly more affordable for thousands of Connecticut families.
The endowment is guided by an advisory board responsible for helping ensure investments advance the goals of affordability, access, quality, workforce stability, and long-term sustainability. Expenditures from the fund are dependent upon the overall endowment balance and may be adjusted overtime by the advisory board to ensure the total commitments of the fund do not exceed sustainable levels of fund expenditures.
“We are proud to have worked with Governor Lamont and the legislature to create this innovative funding approach and investment vehicle that will help ensure every child has access to high-quality early childhood education while strengthening the child care workforce and creating lasting economic benefits for communities across our state,” Treasurer Erick Russell, who is responsible for administering, investing, and distributing the funds and serves on the endowment’s advisory board, said. “This investment reflects a commitment to our youngest residents and to Connecticut’s future, and we look forward to responsibly investing these funds to maximize their long-term impact for Connecticut families.”
For more information about the Connecticut Early Childhood Education Endowment, visit www.ctoec.org/early-childhood-education-endowment.
Connecticut Early Childhood Education Endowment by the numbers
- FY 2025 deposit: $300 million
- FY 2026 deposit: $411.7 million
- Total invested in the endowment: $711.7 million
- Eligible families receiving free child care beginning fiscal year 2028: Household incomes up to $100,000
- Maximum family contribution above that threshold: 7% of household income