Governor Renews Commitment to $300M Preschool Plan

Gov. Ned Lamont told a childcare forum April 8 he remains committed to funding an initial $300 million investment in a new universal preschool endowment, despite growing state budget challenges.

Speaking at a roundtable discussion in Hartford with Lt. Governor Susan Bysiewicz, Office of Early Childhood Commissioner Beth Bye, legislators, and childcare leaders, the governor said the goal was to make childcare free for households earning less than $100,000 a year.

The endowment plan was part of the budget Lamont proposed to legislators in February, with the governor recommending a one-time weakening of the state’s volatility cap—one of the critical fiscal reforms implemented in 2017—to fund the initial investment.

Annual program withdrawals would be capped at 10% of the fund’s balance after a one-time $30 million withdrawal to fund startup needs.

“It’s an endowment,” Lamont said April 8 in response to reporters’ questions about federal funding cuts and growing fears of an economic recession.

“It’s not going to be a drag if we have a recession—it’s money that’s always there. We’re going to spend it prudently and make a big difference for these kids.”

Fiscal Guardrails

The business community continues to be a strong voice for expanding access to affordable, high-quality childcare statewide.

Childcare challenges are one of the factors driving the state’s labor shortage, including inflating the labor force participation gap between women and men.

“There are better ways to accomplish this goal within the budget.”

CBIA’s Chris DiPentima

CBIA president and CEO Chris DiPentima, who sits on the governor’s Blue Ribbon Panel on Childcare, said “expanding access to affordable childcare is critical for employers, especially to get more women back in the workforce.”

“However, there are better ways to accomplish this goal within the budget,” DiPentima added.

The governor’s recommendations are included in HB 6867, one of a number of childcare-related measures that all feature funding measures that weaken the state’s fiscal guardrails.

Employer Tax

Senate Democrats are pushing SB 1369, which implements a 1.5% tax on employers to fund childcare programs.

Lamont said that bill—currently awaiting action in the legislature’s Finance, Revenue, and Bonding Committee—was “probably not where I’d be.”

CBIA’s Jenna Grasso emphasized employer support for “practical, high-impact solutions—such as expanding the number of children allowed in family childcare homes.”

How can #smallbusinesses attract and retain talented employees, particularly parents, without straining their finances? As CBIA’s Jenna Grasso notes, “there are several practical steps small businesses can take to support working parents." #childcarehttps://t.co/af4iWggcC0

— CBIA (@CBIANews) March 28, 2025

“This is an important step toward increasing capacity, particularly for infant and toddler care, which the universal preschool proposal does not address,” she said.

“We urge them to prioritize childcare measures in the state budget while upholding the fiscal guardrails that have been instrumental in stabilizing Connecticut’s economy.

“Investing in childcare must go hand-in-hand with responsible budgeting to ensure long-term success for families, businesses, and the state as a whole.”

---

For more information, contact CBIA’s Jenna Grasso (860.244.1169).