Childcare Costs and Universal Pre-K

The basics

Full-time center care for an infant in Texas averaged about $11,349 a year in Child Care Aware of America's 2024 price survey, below the national average of $13,128¹. For a married couple earning the state's median income, that is about 10% of earnings¹.

Federal and state money helps some lower-income families pay for care. In Texas, the number of children on the interest list for this help rose from 31,728 in 2020 to 194,892 by August 2025². In 2026, a family of four earning up to about $92,000 a year can fall within the program's income limit².

A 2025 federal budget and tax law, often called the One Big Beautiful Bill Act, passed the U.S. House 218 to 214 on July 3, 2025, with all Democrats and two Republicans voting no³. Starting in 2026, it raised the child and dependent care tax credit rate to as much as 50% of eligible costs for lower-income families and raised the tax-free dependent care account limit from $5,000 to $7,500⁴. It also raised the maximum tax credit for businesses that provide childcare from $150,000 to $500,000, or $600,000 for small businesses⁴⁹.

The 2024 Democratic platform called for childcare costing less than $10 a day for millions of working families and free, universal preschool for 4-year-olds⁵. The 2024 Republican platform does not lay out a childcare plan; it pledges to support working parents and to make the expanded Child Tax Credit permanent⁶.

Key terms

Universal pre-K

Free public prekindergarten open to every child of a certain age, not only to children who meet income or other rules⁵.

Targeted pre-K

Free pre-K limited to children who meet set criteria; this is the Texas model⁷.

Childcare subsidy

Public money, run in Texas by the Texas Workforce Commission, that helps eligible families pay a childcare provider².

Child and dependent care tax credit

A federal income tax credit for part of what families pay for care so parents can work; it was expanded starting in 2026⁴.

Education savings account (ESA)

A Texas program created in 2025 that gives families public money for private education, including eligible pre-K students starting in 2026 to 2027⁸.

In Texas

Texas school districts must offer free, full-day pre-K to 4-year-olds who meet at least one rule: they are learning English, qualify for free or reduced-price school lunch, are homeless, are in or were in foster care, have a parent in the military, or have a parent who received the Star of Texas Award as a first responder⁷. Starting in 2025 to 2026, children of classroom teachers in the district also qualify⁷. Pre-K for 3-year-olds is optional for districts, and districts may charge tuition for children who do not qualify⁷. Starting in 2027 to 2028, a 2025 law lets districts offer tuition-based pre-K only if no eligible private provider is available to serve the child⁸.

In 2025, lawmakers raised the Early Education Allotment, school funding for kindergarten through third grade, by about $90 million, changed rules for pre-K partnerships between school districts and private childcare centers, and put $100 million in unused federal welfare funds toward childcare aid⁸². A proposal to add children with disabilities to the pre-K eligibility list passed the House but was dropped in the Senate⁸. The new state education savings account program also lets eligible 3- and 4-year-olds use public funds for private school or approved childcare starting in 2026 to 2027⁸.

How people see it

The strongest case for each view, in terms its supporters would recognize. We don't pick a side.

Questions to ask a candidate

• Should free pre-K in Texas be open to every 4-year-old, or stay limited to children who meet set rules?
• Should the state spend more to shrink the childcare assistance waiting list?
• Is it better to help families through tax credits and savings accounts or through public programs?
• Should families who keep a child at home get the same help as families who pay for care?