Paying for Preschool: Who Blends Funding in Early Childhood Education?

Abstract

As a result of patchwork policies, early childhood education (ECE) providers combine funding from multiple sources, known as blended funding. However, little is known about the consequences of blended funding for policy goals. We use national ECE provider data to identify the prevalence of blended funding models, and detailed state quality rating data to describe the relation between funding and quality through the lens of organizational theory. We operationalize blended funding as the total number of revenue sources, which reflects participation in multiple ECE institutions. Results emphasize that combining funding from distinct ECE policies within programs is a typical practice for ECE providers, and reveal a positive association between a provider’s number of funding sources and program quality.