Report Finds Gaps in Illinois Early Childhood System Ahead of New Agency Launch (Chicago, IL) – As Illinois prepares to launch a new Department of Early Childhood next year, a new report finds the state’s early childhood system continues to fall short in access, workforce stability and equity, despite nearly $3 billion in annual investment.
The report, Illinois Early Childhood Landscape, released by the Civic Federation, examines services for children from birth to age five and comes as programs long spread across multiple state agencies are set to be consolidated into the new Department of Early Childhood, known as IDEC. The new department is scheduled to officially open July 1, 2026.
According to the report, Illinois has increased spending on early childhood programs in recent years, but funding has not kept pace with rising costs or growing needs. State-administered early childhood funding rose from $1.75 billion in fiscal year 2021 to $2.44 billion in fiscal year 2025, and total funding approaches $3 billion annually when federal Head Start dollars are included. Still, reimbursement rates remain below the true cost of providing quality care.
“Illinois took a historic step towards a more equitable and unified early childhood system with the creation of IDEC, but the new Department is not a magical fix,” said Joe Ferguson, president of the Civic Federation. “While Illinois has increased investment in early childhood, this report shows that funding has not kept pace with rising costs or the growing intensity of need.”
The report finds that access to care remains limited across much of the state. Licensed providers can serve only about 31.7 percent of children under age five and just 21 percent of infants and toddlers. Nearly three-quarters of Illinois counties qualify as child care deserts, with the most severe shortages in rural areas.
Provider capacity has declined sharply over the past decade. Illinois has lost more than 4,300 licensed providers and 38,000 licensed child care slots, largely due to rising operating costs, low reimbursement rates and chronic staffing shortages.
The early childhood workforce, estimated at more than 80,000 workers statewide, is also struggling. Many workers earn below a living wage, contributing to high turnover, classroom closures and service delays, especially in infant and toddler care and Early Intervention programs.
Families also face challenges navigating a fragmented system. Child care, preschool, Early Intervention and home visiting services are administered by different agencies with separate eligibility rules and application processes. Housing instability and frequent moves further disrupt continuity of care for many families.
The report also highlights persistent inequities. Disparities in access, quality and child outcomes continue across race, income, geography, language and disability status. Fewer than one-third of Illinois children meet kindergarten readiness benchmarks across all developmental areas.
Researchers say the report is meant to serve as a baseline as the state transitions to the new Department of Early Childhood. While recent investments and structural changes represent progress, the findings show major challenges remain.
“By providing a comprehensive understanding of the structural gaps and challenges, this report provides a starting point from which to hold IDEC accountable and ensure its long-term success,” Ferguson said.
State leaders have said IDEC is intended to improve coordination, reduce confusion for families and strengthen outcomes for children. But the Civic Federation report makes clear that addressing access shortages, stabilizing the workforce and closing equity gaps will be critical if the new department is to succeed.
Report Finds Gaps in Illinois Early Childhood System Ahead of New Agency Launch
