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Many early childhood educators can鈥檛 afford childcare for their own children 鈥� an irony that has long marked the early care and education field.

That began to change in 2022, when Kentucky became the first state in the country to roll out an initiative making most early childhood educators automatically eligible for childcare subsidies. 

Novel at the time, this program 鈥� which, in effect, provides free childcare to early childhood educators in licensed programs through an expansion of the state鈥檚 Child Care Assistance Program 鈥� caught the attention of leaders in dozens of other states and has been replicated widely in the years since. 

鈥淚t鈥檚 not just happening in one type of state,鈥� said Diane Girouard, state policy director at the National Association for the Education of Young Children, a nonprofit that advocates for high-quality early learning experiences. 鈥淚t鈥檚 happening in [states] big and small; blue, red and purple; rural and non-rural. States are just seeing that it鈥檚 working. It鈥檚 unique. It鈥檚 a really good workplace benefit.鈥�

The idea to make early educators automatically eligible for childcare assistance was conceived as a strategy to help recruit and retain early childhood educators in the wake of the pandemic. By 2022, many families needed childcare to return to a normal work schedule but often couldn鈥檛 find spots for their children because early care and education programs were so severely understaffed, leaving slots unfilled and entire classrooms vacant. 

The model was so successful in Kentucky that other states took notice and began to fund their own versions of an effort to provide childcare assistance to early childhood educators, primarily through pilot programs. More recently, some states have even moved to make the program permanent. 

Last month, both and enacted laws making most early childhood educators automatically eligible for childcare assistance. Iowa鈥檚 governor signed a bill on April 9, while Kentucky鈥檚 program was made permanent a few days later, on April 14. 

鈥淲e鈥檙e psyched,鈥� said Sarah Vanover, director of policy and advocacy at Kentucky Youth Advocates and one of the champions of this program in the Bluegrass State. 

鈥淲e鈥檙e known for being frugal and conservative with money,鈥� Vanover said of Kentucky鈥檚 legislature, which is overwhelmingly Republican. 鈥淎nd yet this is something we鈥檙e investing in. When you have that dialogue with [program] directors, they鈥檒l tell you they have been able to open classrooms and keep staff.鈥�

The reason states have continued to invest in this type of program, Vanover and other state leaders shared in interviews, is because it works. By delivering free or discounted childcare to early educators 鈥� many of whom have jobs with low wages and few, if any, benefits 鈥� several states have seen workers who are more willing to stay in their jobs. And some educators who had left the workforce to stay home with their young children are finding it鈥檚 just enough of an edge to lure them back into their teaching positions, surveys and program directors have shared.

Since 2022, leaders from 38 other states have reached out to Vanover about the model, she said. Many of those leaders have gone on to pursue some form of the program. At least a dozen states, including , , , and , currently have at least a pilot program in place providing childcare assistance to early childhood educators. Two others, New Jersey and West Virginia, have introduced related bills. is the only state known to have initially offered and then ended this type of program, and in that case, it was the result of a severe budget deficit, Girouard said. 

While the model has spread, no two initiatives are exactly alike, Girouard added.  

Kentucky and Iowa, for example, make this benefit available to early childhood educators regardless of income, while most other states only have enough funding to increase the income threshold above what is available to all families in their states. In Rhode Island, for instance, the state鈥檚 childcare subsidy program is available to all families with an income less than 261% of the federal poverty level. For , that income cap increases slightly, to 300%. 

And Kentucky鈥檚 program includes any staff member working in a center-based early care and education program 鈥� from teachers to administrators, cooks to early intervention specialists. 

鈥淵ou can鈥檛 run a childcare program without the assistant teachers, without the nutrition staff, without the administrators,鈥� Vanover said. 鈥淚f you’re looking at doing this without the other staff, you鈥檙e going to have teachers get shuffled around. It鈥檚 essential for the whole program to take advantage of it 鈥� every employee.鈥�

Meanwhile, a in Maine 鈥� called the 鈥渃hildcare employment award鈥� 鈥� has emerged as unique in a couple of ways. 

Maine鈥檚 program provides at least a 50% discount on childcare for early childhood educators, according to Heather Marden, co-executive director of the Maine Association for the Education of Young Children, a state affiliate of NAEYC. For staff who were already eligible for childcare subsidies before the pilot, the state also covers the cost of their co-pays, which can run anywhere from $3,000 to $8,000 a year, Marden said.

Importantly, Maine鈥檚 program is distinct in that it allows home-based childcare providers 鈥� a group often left out of this benefit 鈥� to participate. (The legislation that made Kentucky鈥檚 program permanent also allows home-based providers to use the benefit for the first time.)

A recent of Maine鈥檚 pilot program found that it has had a positive impact on workforce retention, noting that nearly every participant was considering leaving the field before receiving the award.

Moreover, the report found, many of those participants were weighing whether to leave the workforce altogether to stay home with their children, rather than looking for jobs in other fields. The discounted childcare has put enough money back into their pockets that they have been able to stay.

Marden noted that while that鈥檚 good for each individual teacher, it鈥檚 also good for entire communities. 

鈥淭he impact of retaining one educator is pretty incredible,鈥� she said, explaining that a single educator gained or retained opens up licensed classroom slots for four to 12 children. 

Maine鈥檚 childcare employment award program was serving 511 children from 313 families as of September 2025, with nearly as many children and educators on the waitlist. The state has funded the pilot at $2.5 million a year for the past two years, and it just hasn鈥檛 been enough to reach everyone, Marden explained.

While many early childhood leaders in Maine want to see the pilot program funded at a higher amount, the reality is that it will likely soon cease to exist altogether. During the recent legislative session, which ended in mid-April, policymakers did not fund the pilot for another year. As of now, the program is slated to end after June 30.

In Iowa, uptake has been strong. As of September 2025, more than 3,600 children from 2,153 families had taken advantage of the benefit, according to data from the Iowa Department of Health and Human Services. And a survey conducted by the state agency, the results of which were shared in January 2025, found that 87% of participants remain in their roles, and 12% began working in childcare as a result of the pilot. 

Hollie Allen, co-owner of Vine Street Child Care, a large center-based program in West Des Moines, Iowa, said that at least 13 of her teachers 鈥� out of about 60 people on staff 鈥� are enrolled in the program. They still owe co-pays between $35 and $100 per week, depending on factors like household income and number of children, she said, but that鈥檚 a big improvement over the full cost of a spot in her program.

鈥淚 don鈥檛 understand why they鈥檙e calling it free childcare. It鈥檚 not,鈥� Allen said, but added that, compared to the $360 per week she charges for an infant slot, 鈥減aying $67 is awesome.鈥�

The program has been a 鈥渄ouble boon鈥� for Allen, she said, because she was previously giving staff who weren鈥檛 eligible for other financial support a 50% discount on childcare at Vine Street 鈥� and losing money on those slots in the process. Now, with the state鈥檚 childcare assistance program covering the cost of early childhood educators鈥� childcare, Allen has been able to give every person on payroll a $2 per hour wage increase. 

鈥淚t was a big cashflow injection for our program,鈥� Allen said. 鈥淭hose across-the-board wage increases were critical.鈥�

In other states, such as Rhode Island, where the pilot program has been extended through 2028, the impact on turnover in the field has been real but modest, said Lisa Hildebrand, executive director of the Rhode Island AEYC. 

鈥淚t鈥檚 still helpful,鈥� she said. 鈥淭he intent is there. It鈥檚 still retaining some educators. But it could be a lot better.鈥�

Hildebrand added: 鈥淲e just need way more money in the system. This is not going to solve all the problems. It鈥檚 a little bit of Band-Aids. You鈥檙e giving free childcare to educators because you鈥檙e not paying them enough that they can afford childcare on their own. You鈥檙e still not paying people enough, and that鈥檚 the problem.鈥�

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