California’s early care and education (ECE) workforce will be the first to tell you they’re not in this profession for the money. They wake up early every day and prepare to greet children because of their passion. But that’s not where their story ends. When the last child goes home for the day, educators must also take care of themselves and their families, and their own well-being is undermined by persistently low wages. Data from the Center for the Study of Child Care Employment (CSCCE) shows early educators need better pay and benefits—and actions from state leaders can make a difference during this year’s budget development.
In all 50 states, early educators’ wages are not enough to support a single adult—and approximately one half of California’s ECE workers have at least one child of their own, putting living wages even further out of reach. Despite their qualifications and experience, California early educators have been underpaid for decades and still are in 2025.
Right now, CSCCE is conducting a statewide survey of family child care (FCC) providers and child care center workers, with 3,000 responses already submitted. The survey asks these educators about their greatest challenge. While some people are sharing anecdotes about preparing lessons or supporting parents, one of the biggest categories is compensation:
“I am a professional child care provider. I pay my taxes, but I do not have retirement or health coverage.”
— Family child care provider, Contra Costa County
“My biggest challenge is being a renter. I know at any time I can lose my rental or they could increase my rent.”
— Family child care provider, Humboldt County
“I fall short every month after paying employees and taxes. You can help by advocating towards the true cost of care.”
— Family child care provider, Los Angeles County
We can and should do more to recognize the essential work of early educators. In recent years, California has started to lay the foundation for a new ECE system. In fact, the state made history in 2023 by collaborating with Child Care Providers United to establish a fund for retirement benefits and reimbursement for educators’ health care. California is also one of several states addressing the “true cost of care” and rethinking how child care subsidy rates should be set.
The year 2025 will be pivotal for California: the state must confirm a new subsidy rate structure and/or share a plan for finalizing and implementing this structure by July 1. Failure to meet this deadline during the 2025-26 state budget process will result in further delays in paying early educators the true cost of care. The state also faces the choice of continuing, growing, or shrinking its landmark investments in retirement and health insurance costs for early educators.
Funding for wages and benefits for early educators is an urgent need. Our 2025 survey also asks educators if they worry about their economic well-being. To put it simply, yes, most people worry (see the chart below). For instance, 70 percent of FCC educators worry about their family’s monthly bills, along with 77 percent of center teachers and assistants.
These concerns are further exacerbated by current federal threats related to health care, housing, and food assistance. If materialized, these threats could: push Medi-Cal recipients to take on more medical debt; jeopardize access to federal rental assistance and affordable housing programs; and put millions of Californians at risk for hunger. In light of this federal context, early educators may face even more challenges to their economic well-being without the funding for the wages and benefits they desperately need.
California has only made its first steps towards correcting the history of underinvestment in early educators. Paying these essential professionals the true cost of early care and education can be delayed no longer. In the 2025-2026 budget, we are facing a collective choice. Will we finally commit resources to fund better subsidy rates and benefits, or will we undo the small gains we have made? If we choose the latter, it means perpetuating an unacceptable level of personal sacrifice for early educators and parents of young children.