The Economics of the Market for Early Childhood Care and Education in California

Summary

Published Date: January 01, 2026

This brief describes both the supply and demand sides of the market for early childhood care (ECE) in California and outlines the economics of public investment in ECE. 

Findings: A California ECE program, aimed at improving affordability and access for families with infants and toddlers, would cost between $4 billion and $8 billion annually when targeted to low- and middle-income families and $12 billion and $21 billion annually with universal income eligibility, and would likely generate substantial societal returns in excess of the public investment. 

This policy brief references 2024 California Health Interview Survey and CHIS Making an Impact 2025.