Early Childhood Unified System
EPEL Partners,

Please see below information about the FY25 budget passed this week to create the new Department of Early Childhood in Illinois, including almost $250 million in early childhood programs and initiatives,

This is a transformative time in early childhood and we look forward to positive changes for our young children and their families across the state and in our local communities. See below information shared by Illinois Action for Children (IAFC) and Start Early.

Together We Can,

Amber Peters
Executive Director, EPEL
Dear Alliance friends, 
 
Illinois had an exciting legislative session where we were able to pass legislation (SB1) to create the new Department of Early Childhood in Illinois, establish a permanent state Child Tax Credit, and an FY25 budget, that was passed this week, which included increased funding for early childhood programs and initiatives. 
 
The new Department of Early Childhood will be effective July 1, 2024, and will start to build internal capacity. It will have a two-year transition where the Department will engage with providers, parents, educators, and other community partners to reimagine learning programs. Current early childhood programs that are operating in different state agencies will transfer to the new department beginning July 1, 2026. 
 
The final version of the CTC was a negotiation between the Senate and the Governor's Office. The Senate pushed for as high a dollar amount as possible and that turned into $150 million over this tax season and next, and $100 million annually thereafter. The Credit is roughly $300-$600 depending on how many dependents you have and tied to the EITC - if you earn the EITC and have a child under 12, your credit is "boosted". This is inclusive of ITIN filers, disabled adult dependents, and senior care.  
 
The final budget that was passed included nearly $250 million in early childhood programs and initiatives, including funding for year two of the Smart Start Illinois Initiative, the ECACE scholarship program, and new funds to create the Department of Early Childhood. See below for additional information: 
 
  • $75 million (11.1% increase) to the Early Childhood Block Grant at the Illinois State Board of Education, which will help create 5,000 additional preschool slots 
  • $158.5 million (27.3% increase) to the Illinois Department of Human Services (IDHS) for Smart Start Workforce Grants to provide wage increases, support stability for the child care sector, and serve caseload growth for the Child Care Assistance Program
  • $6 million (3.8% increase) for the Early Intervention (EI) program at IDHS to accommodate caseload growth, but no additional funding for provider rate increases
  • $5 million (21.8% increase) for evidence-based home visiting programs at IDHS to expand access to services and address compensation improvements
  • $14.2 million in operational funding for the new Illinois Department of Early Childhood 
  • $5 million for ECACE scholarship program, but no additional funding to ensure current scholarship recipients can finish their programs
 
In addition to budget increases to our early childhood programs and initiatives, we also had legislative wins that would impact Illinois' early childhood field. 
 
  • SB1 (Sen. Lightford, Rep. Canty) – authorizes the creation of the Department of Early Childhood 
  • HB4959 (Rep. Gabel, Sen. Sims) – the FY 2025 budget implementation bill, which, among other provisions, codifies into law the ECACE scholarship program 
  • HB4951 (Rep. Burke, Sen. Villanueva) – a revenue omnibus bill, which, among other provisions, establishes a permanent state Child Tax Credit for families eligible for the Earned Income Tax Credit and have children under age 12 
  • HB5142 (Rep. Gabel, Sen. Collins) – requires, among other provisions, private health insurers to cover all pregnancy, postpartum and newborn care services provided by perinatal doulas or licensed certified professional midwives, including home births, home visits and support during labor. Insurance companies would need to cover home visits by board-certified lactation consultants, including the cost of recommended breast pumps, breastfeeding supplies and feeding aids. 
  • HB4491 (Rep. Faver Dias, Sen. Johnson) – allows a child care director or qualified early childhood educator to be present during the opening or closing of the child care program 
  • SB2675 (Sen. Villivalam, Rep. Croke) – expands eligibility to the Early Childhood Construction Grant (ECCG) program for not-for-profit early childhood providers that rent or lease from another not-for-profit entity
 
Thank you all for the great partnership in advocating for young children and their families all across the nation. Please feel free to reach out to us with any questions. 
 
Here are both Start Early and Illinois Action for Children's end session statements. 
 
Best, 
IAFC and Start Early 
 

Michael Kim - MSE
Director, Public Policy
678-717-7325
MISSION: EPEL engages families, organizations, the early childhood workforce, and health care providers dedicated to creating a collaborative community-wide system of support for every young child to succeed in school and life.

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EPEL is 501(c)3 non-profit.