June 3, 2025

Raising Illinois’ Response to Approved Fiscal Year 2026 State Budget

Our state’s prenatal-to-age-3 coalition appreciates the ongoing commitment to strengthening child care and economic supports for families—yet other maternal health and early childhood services will receive no new funding

Raising Illinois recognizes the Illinois General Assembly and Governor JB Pritzker for their continued multi-year investments in our state’s child care system and family-friendly income supports in the spending plan for Fiscal Year 2026 (FY 2026), approved this past Saturday. Nevertheless, the final budget deviates from the Pritzker administration’s Smart Start Illinois initiative by maintaining current funding levels for other critical maternal health and early childhood programs.

The final budget and implementation plan for FY 2026 include a combined $182.5 million in new state funding for the Illinois Department of Early Childhood, the Child Care Assistance Program and Smart Start Workforce Grants, as well as an allocation from Medicaid under existing appropriation authority for Early Intervention (EI). These resources will support the ongoing new agency transition, raise reimbursement rates for home-based child care providers and EI providers for certain services, accommodate growing child care subsidy caseloads and increase early care and learning staff salaries.

Unfortunately, this budget fails to raise reimbursement rates for center-based child care programs in the face of rising operational costs and does little to adequately stabilize our state’s EI system. Moreover, despite our coalition’s dedicated advocacy, there is no additional funding for the Early Childhood Block Grant, Home Visiting or the Early Childhood Access Consortium for Equity. These programs serve Illinois’ most vulnerable young learners, their families and the workforce that cares for them.

“Raising Illinois thanks the General Assembly for supporting our state’s littlest learners in its FY 2026 state budget,” Raising Illinois Director Simone Santiago said. “As grateful as we are for the approved investments, we are saddened to see a lack of investment in other critical programs that families and providers tirelessly advocated for during this legislative session. Illinois cannot be the best state in the nation to raise a child if families struggle to access child care, home visiting and services for infants and toddlers with disabilities and developmental delays. While we are making progress, we must do more.”

The spending plan also includes $55 million in expanded funding for the Child Tax Credit and the Medical Debt Relief Pilot Program. These supports help to alleviate the financial burden carried by too many families in Illinois as the cost of living continues to climb.

”In this moment in which federally we have legislators turning their back on working families in favor of billionaires, it's incredible to have legislators in Springfield who are champions for early childhood,” Raising Illinois Family Leaders Wendy Mamola and Keith Thompson said. ”We're so happy to see the Child Tax Credit doubled and the continuation of the Diaper Distribution Pilot. As a family of six with twin toddlers, every penny of financial support goes a long way. We know too well what a barrier diaper costs can be, and the extra tax credit is literally what's enabled our family to hold onto our car and to ensure we can get around. At the same time, as a family that's seen the life-changing effect of Early Intervention through our son's experience, we're devastated to see increases to EI funding left out of this budget."

The FY 2026 state spending plan contains the following expenditures, organized by our coalition’s priorities:

 

Healthy Parents and Babies

  • $118 million in new state funding for safety-net hospitals and $40 million (60% over FY 2025) for Federally Qualified Health Centers to serve more uninsured and underinsured residents
  • $27.9 million for the Maternal and Child Home Visiting Program, level with FY 2025 
  • $8 million (100% over FY 2025) for the Birth Equity Initiative

High-Quality Learning

  • $777.1 million (12.3% over FY 2025) for the Child Care Assistance Program to accommodate caseload growth
  • $748.1 million for preschool services and prenatal-to-age-three programs administered under the Early Childhood Block Grant, level with FY 2025
  • $200 million for Smart Start Workforce Grants, including $90 million in new state spending to replace expired federal funding and adjust contract rates
  • $161.9 million for Early Intervention, level with FY 2025, although separately accumulated Medicaid funds will support modest rate increases for some service providers
  • $46 million for Early Childhood Construction Grants, reappropriated from remaining funds available

Financially Secure Families

  • $100 million (100% over FY 2025) for the Child Tax Credit, doubling its value to 40% of the Earned Income Tax Credit, as established in FY 2025
  • $15 million (50% over FY 2025) for the Medical Debt Relief Pilot Program
  • $1 million for the Diaper Distribution Pilot Program, level with FY 2025

Strong Infrastructure

  • $21.9 million (54.5% over FY 2025) to continue establishing the new Illinois Department of Early Childhood
  • $6.25 million (25% over FY 2025) in total spending authority for the Human Services Professional Loan Repayment Program, although the remaining funds available fall below FY 2025
  • $5 million for the Early Childhood Access Consortium for Equity, level with FY 2025
  • $2 million for mental health training for the frontline pediatric workforce, level with FY 2025

“Raising Illinois thanks the General Assembly for supporting our state’s littlest learners in its FY 2026 state budget. As grateful as we are for the approved investments, we are saddened to see a lack of investment in other critical programs that families and providers tirelessly advocated for during this legislative session. Illinois cannot be the best state in the nation to raise a child if families struggle to access child care, home visiting and services for infants and toddlers with disabilities and developmental delays. While we are making progress, we must do more.”

Simone Santiago

Director, Raising Illinois

”In this moment in which federally we have legislators turning their back on working families in favor of billionaires, it's incredible to have legislators in Springfield who are champions for early childhood. We're so happy to see the Child Tax Credit doubled and the continuation of the Diaper Distribution Pilot. As a family of six with twin toddlers, every penny of financial support goes a long way. We know too well what a barrier diaper costs can be, and the extra tax credit is literally what's enabled our family to hold onto our car and to ensure we can get around. At the same time, as a family that's seen the life-changing effect of Early Intervention through our son's experience, we're devastated to see increases to EI funding left out of this budget."

Wendy Mamola & Keith Thompson

Raising Illinois Family Leaders

In light of increasing economic uncertainty and countless competing priorities for state leaders, Raising Illinois commends Governor JB Pritzker and the Illinois General Assembly for working to build a more equitable, affordable and high-quality system of health services, learning experiences and economic supports for our state’s expecting families, infants and toddlers. We also recognize and applaud the contributions of the more than 1,900 parents, caregivers, educators, providers and other advocates across the state who represent Raising Illinois.

Our collective effort in FY 2026 and beyond remains as important as ever. Join Raising Illinois to help ensure every expecting family, infant and toddler in our state has what they need to thrive.

Are you ready? Learn how you can get involved.

Discover who’s moving this work forward. Learn more.