November 18, 2025
By Lily Padula
Illinois is in the process of consolidating early childhood services into a new agency, the Illinois Department of Early Childhood (IDEC). The Department will assume responsibility for programs that were previously spread across multiple state agencies, with the goal of creating a more streamlined and coordinated system. The transition is designed to simplify access for families, reduce administrative burdens for providers, and strengthen oversight of state resources. State transition materials emphasize that the current system is “too complex and burdensome,” pointing to duplicative paperwork, unclear eligibility rules, and fragmented funding and data systems as major barriers. By centralizing early childhood services under IDEC, Illinois aims to improve efficiency, equity, and outcomes for children, families, and providers across the state.
Transition to the New Department
The creation of a new department came in part out of a recommendation from the Governor’s Commission on Early Childhood Funding report issued in 2021. In October 2023, Governor JB Pritzker signed an executive order calling for an early childhood agency. The Illinois Department of Early Childhood was authorized through the passage of Senate Bill 1, or the Department of Early Childhood Act, which established the framework for consolidating early childhood programs into a single agency. SB1 was adopted with bipartisan support in 2024 and set a timeline for transferring programs by July 1, 2026. Governor Pritzker signed the bill into law as the Department of Early Childhood Act in June 2024, formally creating IDEC.
Transition Phases
The transition to IDEC is occurring in multiple phases, beginning in late 2023 and continuing through July 1, 2026, when the Department will become fully operational. During the transition period, early childhood programs and services will continue to be administered by the Illinois State Board of Education (ISBE), the Illinois Department of Human Services (IDHS), and the Department of Children and Family Services (DCFS). While these agencies retain programmatic responsibilities, the Governor’s Office and transition team are working with them to align policies and redesign processes in preparation for consolidation under IDEC.
Phase 1: Pre-Launch (December 2023 to July 2024)
Phase 1 focused on planning, including the drafting and passage of legislation to establish the department. During this stage, the transition team concentrated on building internal capacity to understand budgetary and technological needs, mapping the various components required to stand up a new agency, and learning directly from families. Extensive engagement opportunities and advisory groups helped surface what families want from the new department, while also unpacking the challenges of the current system. Specialized working groups were convened to address the needs of children with disabilities and developmental delays, and multilingual families.
A technology assessment revealed that the three departments use approximately 40 separate systems, about one-third of which are antiquated (out of date, no longer supported, or have gaps in functionality). In December 2023, the Transition Advisory Committee (TAC) was established to help synthesize learnings from engagement sessions, ensure family voices remained central, and elevate key needs. Legislation establishing IDEC was subsequently drafted and passed with overwhelming bipartisan support.
Phase 2: Start-Up, Redesign, and Build Capacity (July 2024 to July 2026)
Phase 2 is now underway. As of October 15, 2025, IDEC has grown to a team of 24 and is beginning to implement the systems and processes needed for a full transition. A major challenge involves reconciling personnel structures: while IDHS and DCFS staff fall under the Illinois Personnel Code, ISBE staff do not. In practice, this means that IDHS and DCFS hiring, job classification, pay grades, and disciplinary procedures are regulated by the Central Management Services (CMS) and must follow civil service rules. Operating outside of the Personnel Code, ISBE can set its own hiring and pay policies and is not bound by the same civil service rules or CMS oversight. As a result, the agencies operate under differing salary schedules, payroll systems, and union representation, all of which will need to be reconciled. The Department is approaching this transition through careful change management. On the technology side, the goal is to move away from paper-based applications for families and providers toward a modernized system, including new licensing and subsidy portals, as well as integrated search and application features.
This phase emphasizes not just transferring programs but rethinking how systems can be aligned to reduce redundancy, fill service gaps, and better support families. Four redesign priorities anchor this work: (1) modernizing and simplifying the state’s child care licensing system, a major pain point for providers; (2) improvements to early intervention services through modernized structures and technology; (3) funding reform to better align the 12 separate funding streams that each operate with different rules and applications; and (4) building modern, integrated data systems with consistent definitions and the ability to generate unduplicated counts of children and workforce members.
Phase 3: Fully Operational (July 2026+)
Phase 3, beginning in the State’s 2027 fiscal year, will mark the official launch of IDEC as the state’s consolidated early childhood agency. While the transition will culminate in the Department being “stood up”, leaders acknowledge that much of the redesign work, particularly in funding, data, and service delivery, will take years to advance and will require additional legislation and ongoing implementation effort.
Backup Options
While the transition is currently on track, there are several backup options that could be utilized if significant operational, legal, or system readiness issues threaten the quality, continuity, or timing of the transition. An example of this is if the new Grant Management System (GMS) is not fully functional and IDEC cannot administer all early childhood programs’ grants. The first backup option is a partial transition, in which select programs and services from DCFS and ISBE would transition, while DHS and all other programs and services would transition a year later. The second option is to delay the transition of all programs and services until FY2028 (beginning July 1, 2027). This would allow more time for continued program alignment.
Organizational Structure
Organizational planning is underway to ensure IDEC is prepared to operate on day one. Current efforts are concentrated on staffing, facilities, budgeting, technology and data modernization, and change management. A formal organizational flow chart has not been made public.
Advisory Bodies
Advisory structures are also central to the transition process. The Transition Advisory Committee (TAC) serves as the primary external advisory body and is on track to deliver a report by the end of 2026. This report will include an assessment of the current system pain points, recommendations to inform stakeholder engagement, structures, data insights, and reporting, and redesign efforts like funding design. Broader stakeholder engagement is being carried out through bi-monthly listening sessions, co-design workshops, and existing councils, including the Early Learning Council, Child Care Advisory Council, Illinois Interagency Council of Early Intervention, and the Early Childhood Access Consortium for Equity (ECACE), a group of higher education institutions that collaborate to improve access to early childhood education. The Department of Early Childhood Act further requires that a standing advisory body be in place by July 1, 2026, to provide ongoing input once IDEC is established.
What is Moving Under the New Department
A central element of the consolidation is the transfer of programs from existing state agencies to the new department. From the Illinois State Board of Education (ISBE), the Department will assume responsibility for the Early Childhood Block Grant, including Preschool for All (PFA), PFA Expansion, and Prevention Initiative. Early Childhood Special Education (ECSE) services will not be moving under the new department and will remain in ISBE. This is because the Individuals with Disabilities Education Act Part B Section 619 requires the funding agent for special education to be the state educational agency.
From the Illinois Department of Human Services (IDHS), programs moving to IDEC include:
- Child Care Assistance Program (CCAP);
- Early Intervention services;
- State and federally funded Home Visiting programs (including State Home Visiting; the Maternal, Infant, and Early Childhood Home Visiting [MIECHV] program; and Maternal/Child Home Visiting);
- Head Start Collaboration Office; and
- Migrant and Seasonal Head Start.
IDEC will also take on responsibility for childcare (day care) licensing from the Department of Children and Family Services (DCFS). In addition, Infant and Early Childhood Mental Health (IECMH) functions previously housed within the Governor’s Office of Early Childhood Development (GOECD) are expected to be integrated into the new department.
In total, more than 12 separate early education and care programs and services from four different state offices and departments will move under the new Department of Early Childhood.
Funding
The new department is projected to administer approximately $3 billion in program funding beginning in FY2027, reflecting the consolidation of major funding streams across agencies. This amount includes both existing program funding and new Smart Start investments made in recent years. During the transition, IDEC’s FY2026 budget totals $21.7 million in operational funding to support staffing, facilities, technology, and planning. A unified funding approach is planned for implementation in FY2028, following the FY2027 transfer of programs and services.
Currently, early childhood funding is administered through a complicated patchwork of federal and state revenue streams spread across three state agencies and numerous local recipients. Providers often manage multiple awards simultaneously, each with its own rules and requirements. Given this complexity, it can be helpful to think about how funding flows through three funding concepts:
- Funding alignment: How funding streams are aligned across common purposes, common recipient pools, and similar child/family and provider eligibility
- Funding distribution: How money flows to programs and providers
- Funding allocation: how funding levels are set and the impact of estimated cost factors
The following figure shows the many types of federal and state funding sources that currently flow to various early childhood programs offered in Illinois.
Currently, three separate state agencies administer ten early childhood programs. Once the Illinois Department of Early Childhood is launched and fully operational, all funding will flow through one central department rather than three. The underlying funding sources, allocation decisions, and distribution methods will remain the same in FY2027. This is intended to streamline oversight and coordination.
To demonstrate the complexity of the finance system, we can look at the Child Care Assistance Program (CCAP), and the process funds currently go through to reach their final destination.
- CCAP funding is allocated to IDHS from three separate funding streams: federal Temporary Assistance for Needy Families (TANF) program, federal Child Care and Development Fund (CCDF), and the State’s General Fund.
- To receive CCAP reimbursements, providers submit a child care certificate for each CCAP child once a month to Child Care Resource and Referral Agencies (CCRRAs).
- CCRRAs then submit this information to IDHS, which then reviews and asks the Comptroller's Office to issue reimbursements for the cost of childcare.
- IDHS then distributes the reimbursements to providers.
IDHS and CCRRAs utilize cost-modeling analyses to estimate provider expenses and guide rate adjustments, which then set the reimbursement rate.
Together, these funding streams illustrate how funding alignment, funding distribution, and funding allocation shape Illinois’ early childhood finance system. Consolidation under IDEC is intended to improve this multi-step process, ensuring funding alignment, reducing administrative burden, and supporting more equitable and efficient distribution of resources across programs and regions.
Potential Challenges and Considerations
While the creation of the Illinois Department of Early Childhood (IDEC) presents an opportunity to streamline and improve services, the transition also brings a set of significant challenges that require careful governance planning and oversight.
Aligning program eligibility and service models: Illinois’ early childhood programs have historically operated under different eligibility rules and funding requirements. For example, the Smart Start Workforce Grants (SSWG) require participation in the Child Care Assistance Program (CCAP) and exclude classrooms funded through the Early Childhood Block Grant (ECBG) or Head Start. Reconciling such program-specific rules will be necessary to ensure consistency and fairness across the new system.
Integrating technology and data systems: Transition assessments found that roughly one-third of Illinois’ existing early childhood IT systems are outdated or unsupported, and many processes remain paper-based. Recent updates show progress, including partnerships with the Department of Innovation & Technology on cloud hosting, procurement of Wonderschool to build a platform to manage the child care licensing and CCAP, as well as create an online search tool for families, and finalized selection of a grants management system vendor, AmpliFund. However, challenges remain, including delays in hiring a Chief Information Officer (CIO) and incomplete data migration across legacy agencies. Building a unified Early Childhood Integrated Data System (ECIDS) and a Unified User Portal will require significant modernization.
Managing workforce transitions and training: Workforce stability remains a pressing issue. Programs such as Smart Start Workforce Grants and Smart Start Quality Supports have introduced wage floors, coaching supports, and quality improvement initiatives that will need to be standardized across all programs. At the same time, IDEC must expand its own internal staffing. Currently, they have a staff of 24, and while the vast majority of staff will transition from transferring agencies, hiring needs remain significant, and state processes are traditionally lengthy. Sustaining program gains and building new organizational capacity will require updated cost models, fiscal planning, and coordinated professional development.
Maintaining service continuity: The transition is structured as a multi-year, phased rollout through July 2026, during which ISBE, IDHS, and DCFS will continue to administer programs. Ensuring uninterrupted service delivery for families while building new agency infrastructure presents a balancing act. Transition risk materials note that the needed capacity for integration and potential delays in federal approvals could add pressure.
Ensuring funding sustainability: The new department is projected to administer approximately $3 billion annually beginning in FY2027. This is a combination of existing funding and recent new investments. The Funding Design Workgroup has identified key funding tensions, including how to balance expanding access with providing intensive supports, strengthening provider financial stability, and reducing administrative burden. Identified risks also highlight incremental costs tied to integration and the need for budget flexibility.
Why Good Governance Matters
In the context of a government department, governance is the system of rules, processes, and leadership that defines how a department is directed, controlled, and held accountable to the public. This goes beyond day-to-day management to provide the overarching framework for strategic direction and oversight.
Strong governance creates the conditions for efficiency, accountability, and fairness, while weak or fragmented governance risks duplicative efforts, inequities, and unmet outcomes. For the new Department of Early Childhood, good governance practices and structures will determine how services are delivered, how accessible and equitable programs are, and whether outcomes for young children are achieved.
Reducing fragmentation and increasing access. Effective departmental governance will connect the many parts of the early childhood system—programs, funding streams, and administrative agencies—so families can more easily access services without unnecessary confusion or bureaucratic barriers. When governance is fragmented, families need to navigate multiple agencies or application processes, which can reduce participation and exacerbate inequities. The Transition Advisory Committee (TAC) has hired a team of consultants to conduct extensive mapping of programs, staff, and funding across ISBE, IDHS, and DCFS to identify overlap and fragmentation, and the State has outlined plans for a “no wrong door” approach to simplify eligibility and applications. However, while this structural consolidation represents an important step toward accessibility, stakeholders emphasize that improved family experience will depend on the integration of front-end systems, including application portals and case management tools. Questions also remain about whether a fully unified intake process will be ready by the Department’s launch. IDEC said it remains committed to the transition happening in FY2027.
Improving coordination and alignment. Coherent governance will strengthen alignment of standards, workforce support, data collection, and quality improvement efforts across the system. This alignment ensures consistency in service delivery and fosters better outcomes for children both in the short term and over time. Coordinated governance and funding also help guarantee that all children benefit from common quality benchmarks, outcome measurement, and accountability structures. IDEC has launched cross-agency workgroups to advance alignment in key areas, including workforce supports, licensing reform, and data modernization. Based on the technology assessment that was conducted, planning is underway to integrate data platforms and reporting structures. Nonetheless, technology readiness remains a major constraint. Limited IT capacity has slowed progress on build-out and integration, and there continue to be opportunities to align and simplify reporting and data transparency. In addition, differences in personnel codes, salary structures, and union representation across agencies add complexity to alignment efforts.
Enhancing accountability and transparency. Strong governance structures clarify responsibility for funding, monitoring, and performance improvement. Transparent processes supported by meaningful stakeholder engagement build legitimacy and public trust, ensuring that early childhood systems reflect the needs and priorities of families and communities. The TAC has held public meetings and leveraged a network of early childhood organizations to collect input from providers, advocates, and families. The Department of Early Childhood Act also establishes a standing advisory body to ensure ongoing stakeholder engagement beyond the transition period. While these efforts have expanded opportunities for input, engagement among families (particularly multilingual, rural, and underrepresented populations) remains inconsistent. Stakeholders have also noted limited visibility into how community feedback is shaping final decisions, and a unified performance accountability framework has not yet been published.
Supporting equity and economic return. Well-designed governance helps ensure that early childhood systems close gaps in access and outcomes, particularly for families facing economic or social barriers. Research shows that equitable early childhood systems generate some of the highest returns on investment of any public policy, reducing long-term costs in areas such as special education, social services, and criminal justice, while increasing educational attainment and economic productivity. The TAC has convened workgroups focused on children with disabilities, multilingual learners, and elevating family voice. Cost modeling tools are being used to assess how program expansions, changes in services and supports, rate increases for providers, and eligibility changes may advance equity goals. However, equity has so far been articulated as a guiding value rather than a measurable objective. Specific benchmarks have not yet been defined, and some advocates have expressed concern that fiscal modeling may be driving decisions more than community-defined priorities.
Managing limited resources effectively. Finally, good governance enables states to maximize limited funding by minimizing duplication, strategically layering funding streams, and directing investments where they can have the greatest impact. Clear structures for fiscal responsibility allow resources to be used more efficiently and effectively. IDEC, with input from workgroups and TAC, is conducting fiscal mapping to identify redundancies and opportunities for braiding (coordinating multiple funding streams while maintaining their separate reporting) or matching (using state dollars to draw down additional federal resources) funds, with a unified funding structure planned for FY2028 to consolidate state and federal resources under one department. However, the timeline for full fiscal integration is ambitious, given the complexity of more than a dozen funding streams and varied accounting systems. Stakeholders also stress that efficiency efforts must not compromise quality or equitable access. Strengthening fiscal oversight and capacity within the new department will be essential to sustain transparency and accountability as consolidation proceeds.
In short, good governance in early childhood is not simply a technical concern but a foundational requirement for building effective, efficient, and equitable systems. By reducing fragmentation, promoting alignment, and strengthening accountability, supporting equity, and managing scarce resources wisely, governance ensures that families can access what they need, children benefit fully, and public investments deliver maximum value to society.
Strengthening Implementation and Accountability
While Illinois has made significant progress in designing a more coherent and equitable early childhood system, realizing the promise made by strong governance will depend on sustained leadership, transparent progress reporting, and capacity investments throughout the implementation period. To address outstanding challenges, several areas warrant focused attention in the coming year:
- Clarify family access pathways. The State should translate the “no wrong door” vision into a clear operational model, specifying what families will experience when the Department is launched, how applications will be integrated, and which agencies will be responsible for intake, referral, and case management. Ongoing user testing should guide design decisions.
- Accelerate technology readiness. CIO approvals, procurement, and data system integration need explicit timelines, dedicated capacity, and public tracking. Without functional data and application systems, service alignment and accountability cannot be achieved.
- Operationalize equity goals. Equity should be translated from principle to practice through measurable targets and public dashboards tracking progress. The new standing advisory body should include families and providers from communities most affected by inequities to ensure decisions reflect lived experience.
- Strengthen fiscal and human capacity. IDEC will need enhanced fiscal, HR, and program management capacity to handle consolidated funding streams and personnel systems. Early recruitment, training, and resource allocation for internal teams are essential to ensure readiness by FY2027.
- Maintain Continuous Stakeholder Engagement. Engagement should not end when the TAC sunsets. The new advisory structure must have clear authority, regular meeting schedules, and transparent reporting to maintain public trust. Ongoing feedback loops should ensure that families, providers, and advocates can continue shaping implementation decisions.
Illinois is taking bold steps to transform early childhood governance. The new Department of Early Childhood offers a once-in-a-generation chance to simplify access, align funding, and advance equity. Continued commitment to collaboration, transparency, and clear accountability will determine whether this transition fulfills its promise, creating a system where every family can find the support they need, through any door, from birth to school entry.
This research was supported by the Robert R. McCormick Foundation. The Civic Federation is a nonpartisan, independent research organization, and the views expressed in this report do not necessarily reflect those of the Foundation.