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Understanding the relationship between environmental characteristics and differences in children’s cognitive skills is essential to assessing and increasing the effectiveness of social and educational policies. Therefore, utilizing data from the Early Childhood Longitudinal Study, Kindergarten Class of 2010-2011 (ECLS-K:2011), this study seeks to more accurately examine the degree to which malleable environmental characteristics influence differences in children’s cognitive skills before and after kindergarten entry. We find that environmental characteristics account for a sufficient portion of the differences in children’s cognitive skills before kindergarten entry and that home learning environment has one of the largest relationships with cognitive skill development, indicating that a significant degree of differences in cognitive skill development can be linked to policy-relevant social contexts.