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Head Start programs are federally funded to deliver comprehensive early care and education (ECE) services to the lowest income young children and families. Regulations require Head Start programs to contribute 20% of total program costs through non-federal "match," compelling providers to secure additional funding sources to deliver high-quality services. Yet systematic evidence on which funding sources programs access, how they are used, and what contextual factors help or hinder these efforts is limited.
This paper addresses two primary research questions: What funding approaches do Head Start programs use to support the cost of delivering high quality, comprehensive services? How does state context shape Head Start programs’ use of multiple funding sources? Specifically, it explores the number and types of funding sources accessed, costs covered, share of a program’s budget, and program leaders’ experiences. This paper also examines whether program-level funding approaches vary by state context, including governance structures and the degree of Head Start integration into state ECE systems.
This project conducted the first nationwide surveys of Head Start program directors and state ECE systems leaders capturing financing practices and perspectives. In summer 2024, surveys were sent to all Head Start directors yielding a 57% response rate and survey data that are representative of all Head Start programs across key characteristics (program and agency type and size). A separate survey was sent to state-level ECE administrators in all 50 states and DC. Of 148 administrators invited, 87 responded (58% response rate). Descriptive and correlational analyses provide a detailed picture of Head Start programs’ financing and examine associations between state context and program practices.
Using multiple funding sources is the norm, not the exception for Head Start programs: 86% of programs reported using at least one other source beyond their federal grant. Specifically, 66% of Head Start directors reported accessing either pre-k funding or Child Care Development Funds (CCDF) through their state, or both. Directors most frequently named covering basic operating costs, paying staff salaries, and serving children from specific populations as primary reasons for seeking additional funding. Yet support for managing multiple funding sources is uneven — only 38% of directors reported receiving training and technical assistance (T/TA) specifically focused on using multiple funding sources. Furthermore, 88% of Head Start State Collaboration Office directors reported being very involved in state-level ECE advisory groups, but this was less often the case for Head Start program directors (45%).
Findings illustrate the complexities and resourcefulness that characterize ECE financing. Head Start directors routinely draw on funding from across public and private sources to sustain and enrich program services. For systems leaders, findings points to several areas of opportunity: 1) strengthening targeted T/TA to support ECE funding coordination — currently reaching fewer than half of Head Start directors, 2) aligning eligibility and administrative requirements across state pre-K, CCDF, and Head Start, and 3) examining how state governance structures may affect programs' ability to use multiple funding sources. These data offer timely evidence base to inform coordination efforts at different levels of ECE systems.