Implementation Spotlight

Lessons from Peer States 

Several states - including Colorado, Massachusetts, New Mexico, and Oregon - have established standalone early childhood agencies by consolidating programs from education, human services, and health into a unified governance structure. The Civic Federation is evaluating these state departments because they have a similar structure and governance to the Illinois Department of Early Childhood (IDEC). In practice, not all programs moved; some remained in legacy agencies due to federal requirements, statutory constraints, or operational consideration, particularly in areas such as health services and special education. Implementation in these states has typically unfolded over multiple years, extending beyond the formal launch of new agencies.

While governance changes occurred in a defined timeline, aligning data systems, eligibility processes, and administrative structures required ongoing consideration. States reported early challenges, including clarifying roles across agencies and short-term disruptions such as payment delays. For Illinois, these experiences shed light on areas to monitor during the transition. 

What to Watch 

• Access, equity, and family experiences 
• Operational stability (payments, eligibility, and licensing) 
• Workforce and internal capacity 
• Cross-agency coordination 
• Funding stability and use of dollars 
• Data integration and accountability 
• Child and family outcomes 

Civic Federation report regarding state comparison of early childhood agencies coming soon.

Budget Watch

FY2027 Budget Context 

The FY2027 proposed budget provides an early indication of how the State is positioning resources during the transition to IDEC. Overall, the budget reflects a maintenance approach, relying primarily on baseline revenue growth and targeted adjustments rather than significant new investments. 

Within early childhood, funding remains below estimated adequacy levels, with approximately $4 billion from all funds allocated to IDEC. The State’s Early Childhood Funding Commission estimated in 2021 that $12.4 billion was needed annually to fund a comprehensive system. Adjusting for inflation, this equates to approximately $15.6 billion today. 



Underinvestment also has broader economic implications. A recent ReadyNation report estimates that Illinois loses approximately $6.2 billion annually due to child care challenges, including reduced workforce participation and lost productivity. Together, these figures highlight both the gap between current funding and adequacy, as well as the ongoing economic cost to the State’s economy. 

Read our report about how the state closed the budget gap here.

Federal Funding Context 

Federal funding continues to play a significant role in Illinois’ early childhood system, particularly for programs connected to child care and family support services. This includes funding streams linked to the Child Care and Development Fund (CCDF) and Temporary Assistance for Needy Families (TANF). At the same time, broader federal uncertainty introduces additional risk. Potential changes to funding levels, eligibility requirements, or administrative expectations could affect both funding stability and program operations. These risks are particularly relevant as the State undertakes a major governance transition, where stable and predictable funding is important. 

Read about how the state is preparing for federal changes here

Policy Updates

Early Childhood Legislation 

Several bills introduced this session further align Illinois’ early childhood statutes, governance, and program rules with the creation of the Illinois Department of Early Childhood (IDEC). While no single proposal represents a comprehensive shift, taken together they illustrate how the State is approaching implementation, through incremental updates to governance structures, oversight, and program administration. 

On the governance side, SB 2984 updates the role of the Illinois Early Learning Council to reflect IDEC’s responsibilities, including changes to leadership and administrative support. HB 5204 adds a requirement for parent or caregiver representation on the Council, incorporating family perspective into statewide coordination. These changes reflect early steps to align advisory bodies and define roles within the new structure. 

Other proposals begin to build out oversight and operational capacity. HB 5364 extends Inspector General authority to IDEC at the agency’s request, signaling the development of accountability infrastructure. At the program level, HB 4861 updates Early Intervention procedures, however, this bill was re-referred to the Rules Committee. 

Finally, several bills reflect the gradual transfer of core functions. HB 5373 makes statutory and definitional updates to the child care licensing framework in advance of its transition to IDEC, and HB 5099/SB 3641 centralizes background check processes for providers under the new agency. 

Taken together, these proposals reflect a phased implementation approach, beginning with statutory alignment and governance, while gradually shifting programmatic and regulatory responsibilities into IDEC. 

Research Resources

The Civic Federation’s Illinois Early Childhood Landscape Report provides a data-driven overview of Illinois’ early childhood system serving children from birth to age five. The report examines demographic trends, governance and organizational structures, funding patterns, program access, workforce capacity, and outcomes across the system. It establishes a comprehensive baseline to help policymakers and stakeholders better understand the structure and scale of early childhood programs in Illinois as the State transitions to the Illinois Department of Early Childhood. 

The Civic Federation also developed an Illinois Early Childhood System Explainer, a plain-language guide to how early childhood services are organized and funded in Illinois. The document outlines the major programs in the birth-to-five system, the state agencies responsible for administering them, and the roles played by school districts and community-based providers. 

Designed as a foundational reference, the explainer helps readers understand how programs fit together within the broader system and provides context for ongoing policy discussions about governance, funding, and implementation. 

Explore The Civic Federation Early Childhood Dashboard



Early Childhood Dashboard

Catch up on recent publications related to IDEC

$4.4B budget request for new Illinois early childhood agency draws scrutiny

Illinois must keep investing in education from early learning to college

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