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Virginia reports historic early‑childhood funding and program growth as childcare wait lists emerge
Summary
State education staff told the advisory committee that Virginia hit historic highs in enrollment and program participation after a bipartisan budget package that the department says represents roughly $1.1 billion in federal and state investments over two years, but officials also reported a 7,666‑child statewide child care subsidy wait list and operational strain from a July 1 funding 'freeze.'
State officials told the Virginia Early Childhood Advisory Committee in September that the commonwealth has expanded publicly funded early‑childhood services to record levels but must manage operational strain created by rapid growth.
Department presenters said publicly funded programs now reach more children than ever before: more than 2,500 children were served in mixed delivery (a 25% year‑over‑year increase), the Virginia Preschool Initiative/Birth‑to‑Five Initiative (VPI/BPI) served more than 23,000 children (including nearly 1,000 in private settings), and the child‑care subsidy caseload exceeded 43,000 in May. The department said that counting all programs taking public funds, the system now touches roughly 24% of children under age 6 in the commonwealth and that over 3,000 programs voluntarily accept subsidy dollars.
Officials credited a bipartisan two‑year budget package they described as a roughly $1.1 billion combination of state and federal funds for much of the expansion. Department staff cited $366 million in state funds in the current year and an additional $461 million planned for fiscal 2026 as part of that package, and said the budget sets a dedicated line (section 12510 in the budget text as presented) for childcare subsidy and mixed‑delivery funding.
At the same time, presenters warned that locking enrollment and funding to a June 30/July 1 snapshot—language added to the budget and codified in related legislation (staff referenced Senate Bill 54 and Senate Bill 419 during the meeting)—means that new demand appearing after that date creates wait lists. The department reported a child‑care subsidy wait list of about 7,666 children statewide as of September 1, with 93 of 120 localities reporting some wait list activity. Staff said attrition and shifting family circumstances move some children onto slots within weeks, but demand remains high and unpredictable.
Officials described near‑term priorities as capturing and sharing wait‑list data with elected officials and stakeholders, coordinating enrollment processes so slots vacated by attrition are quickly filled, and pursuing innovations—such as employer‑assisted child care pilots and digital wallets for local contributions—to expand capacity.
The department also flagged workforce and funding risks. A workforce incentive program (Recognize ME V5) previously ran on larger federal pandemic funds; state support this year provided about $20 million and allowed one‑time payments to educators of up to $1,500. Staff said pandemic relief enabled $40 million in incentives last year but that under current budget plans the state allocation for Recognize ME V5 would fall to zero in FY26 without additional legislative action.
What comes next: department staff said they will publish a public quality‑profile microsite in mid‑October listing more than 3,200 programs with basic quality, location and hours information, and will continue to collect and share wait‑list data with the commission and General Assembly as they refine financing recommendations.
