The early childhood landscape is undergoing rapid transformation, leaving state agencies, families, and providers navigating a season of change and uncertainty. There are clear indications that states will have more flexibility in managing their programs and customizing them to respond to the needs of their citizens. But what can states do to prepare as they face uncertainty and changes to federal guidelines and regulations?
Jack Welch, known for transforming General Electric and considered a legendary agent of change, once said, “Change before you have to.” His philosophy emphasized anticipating future trends and internal shifts to innovate, grow, and secure long term success. State administrators and other policymakers are the agents of change and we must support them as they navigate the transition to a new early childhood landscape.
In this brief, we discuss:
- The most current information regarding early childhood funding and legislation.
- Federal priorities for CCDF.
- Practical advice about what states can do right now to prepare for changes in child care.
- The merits of several change management modules and major concepts.
Current Status of Early Childhood Funding and Legislation
On September 2, 2025, the First Five Years Fund provided information about where Congress stands in providing funding for early childhood programs. Below is a summary of the proposed House and Senate budgets.
HOUSE
On September 2, 2025, the House Labor, Health and Human Services, Education, and Related Agencies Appropriations Committee marked up its FY2026 budget proposal, including funding for child care and early learning programs. The bill proposed:
- Child Care and Development Block Grant (CCDBG): Level funding at $8.746 billion
- Head Start: Level funding at $12.272 billion
- Preschool Development Grants Birth through Five (PDG B-5): Eliminated
This mirrors the proposal put forward in May 2026 from the White House.
SENATE
The Senate has proposed more robust funding for child care and early learning programs. In July 2025, Senate Appropriators set the overall Labor-HHS spending number for FY2026 at $197 billion, which includes a $170 million increase for early learning programs over fiscal year 2025, including:
- CCDBG: $8.83 billion – an $85 million increase over fiscal year 2025
- Head Start: $12.36 billion, an $85 million increase over fiscal year 2025
- PDG B-5: $315 million, level with FY25
Additionally, the Child Care Modernization Act was put forth on September 17, 2025 by Senators Deb Fischer (R-NE), Kirsten Gillibrand (D-NY), John Hickenlooper (D-CO), and Susan Collins (R-ME). The legislation is intended to strengthen the federal Child Care and Development Block Grant (CCDBG) program rules related to the administration of CCDF funding. It focuses on flexibility, parental choice, and workforce support. It also addresses cost estimation models, supply and facilities grants, new benchmarks, reporting requirements, and expanding access to underserved populations.
Federal Administration Priorities
We don’t know exactly what new CCDF rules may be proposed in early 2026; however, the President issued an information memorandum on April 29, 2025, called “Expanding Educational Freedom and Opportunities for Families” that provide some direction. The memorandum listed several priorities related to the use of CCDF funds.
Expand provider participation
Increase the number of providers who participate in the CCDF program, including faith-based institutions and private school-affiliated programs.
Educational choice
Leverage CCDF to support educational choice for school-age children, including before/after-school and wraparound care, children from home-schooled families who need child care, and flexible hours.
Transparency and accountability
Enhance transparency and accessibility including enhancing provider information, streamlining enrollment, and increasing parent education.
Parent choice
Support parents with a wide variety of choices in child care, including centers, homes, relative and faith-based settings.
Limitations on CCDF funding
The CCDBG Act and CCDF regulations are clearly indicate that CCDF funds cannot be used for education services for students enrolled in grades one through twelve.
Actionable Steps to Prepare for Change Right Now
There are many actions state administrators can take to prepare for change. This document presupposes the following:
- State administrators are the experts regarding the child care needs of their citizens.
- Program staff will follow their own agency protocols and chains of command in informing their leadership of upcoming changes.
- The information below regarding sample activities is intended to serve as a catalyst for conversations among state policy staff.
Change Management
Managing change in uncertain times requires building an organizational culture that is flexible, resilient, and adaptive. It is worthwhile to consider principles and approaches to change management.
According to David A. Shore, instructor of two Harvard Professional & Executive Development programs focused on strategies for leading change, leadership is often the key to a successful change initiative.
“When change initiatives fail (and they do so more often than not) they rarely fail on technical skills (hard skills), they fail on the people skills.” His solution is to make a strategic and thoughtful assessment about how a change initiative may impact employees and to identify potential resistance from the start. Shore recommends tailoring communication strategies so administrators can address that resistance as soon as—or even before—it arises.
These and other change management models and principles allow states to begin planning for the unknown with a motivated team and a blueprint for managing large organizational changes. Below, we provide a brief overview of 3 models that acknowledge change is constant. Each model prioritizes flexibility over rigid, long-term plans.
Kotter’s 8-Step Model
Strategic Framework for Change
Kotter’s model offers a structured approach for leading successful organizational transformations with eight key steps.
Leadership and Vision
Effective leadership inspires action by creating urgency and defining a clear strategic vision to align efforts.
Empowering Team and Removing Barriers
Building a guiding team and removing obstacles ensures smooth progress and active participation in the change process.
Maintaining Momentum and Sustaining Change
Celebrating short-term wins and reinforcing new behaviors helps maintain momentum and sustain long-term change.
Bridges Transitions Model
Ending, Losing, and Letting Go
The first stage involves employees experiencing fear and discomfort as they resist change and let go of the old ways.
The Neutral Zone
A transitional period where individuals feel uncertain and are caught between old habits and new realities.
The New Beginning
This stage marks acceptance of change and comfort with the new reality, enabling growth and resilience.
Supporting Organizational Change
The model helps leaders foster empathy and psychological safety to support employees through transitions.
Agile Development Model
We most often think of Agile in the sense of data system projects. However, the core principles could also be applied to program change management.
Core Agile Principles
Agile prioritizes flexibility, resilience, and adaptability, focusing on continuous cycles instead of rigid planning stages.
Psychological Safety
Psychological safety empowers employees to share ideas and concerns freely, fostering creativity and problem-solving.
Self-Organizing Teams
Teams manage their workflows and adapt quickly to change, increasing autonomy and buy-in through decentralization.
Alignment with Vision and Values
Grounding in core mission and values provides organizational stability and guides decisions during change.
Ready or Not, Change Is Here—Let’s Lead Through It
Change is already underway—and more is on the horizon. Fortunately, we’re not starting from scratch: we know what some of the changes look like, we understand what’s likely coming, and we have the tools to prepare. Now is the time to get your facts and data in order, engage key stakeholders and executives, and build a shared vision for the future. By assessing your current state and planning strategically, you can turn uncertainty into opportunity and pivot with purpose.