Subprime Learning

Early Education in America since the Great Recession
Policy Paper
Jan. 21, 2014

Five years ago, the United States was in the thick of the Great Recession, coping with a stock market crash and loss of jobs that would send aftershocks throughout early education. Yet early 2009 was also a time of great hope among advocates for young children. President Barack Obama, newly sworn in, had called attention to early education throughout his campaign, aiming for $10 billion in public investments for children from birth to age five, educational infrastructure grants for states, and improvements in teaching. Many states already had been making investments in public preschool. Given this mix of promise and severe financial insecurity, would the nation be able to address the needs of children in these formative years?

This report, which examines learning from birth through third grade, provides some answers. Starting with 2009 as our baseline, we examined objective indicators across the birth-through-eight age span that pertain to student achievement, family well-being, and funding. We also provide subjective but research-based assessments of policies for improving teaching and learning and the creation of more cohesive systems. The aim is to provide a clearer picture of where America stands today by highlighting what is improving, in stasis, in flux, imperiled, or ignored.

Our analysis finds that in the wake of a financial crash triggered by subprime lending, too many children in America have been experiencing subprime learning. While bright spots are visible in some states, funding has fluctuated wildly, millions of children still lack access to quality programs, the K–3 grades have received little attention, and achievement gaps in reading and math have widened between family income levels. Meanwhile, child poverty rates have shot up. Congress helped President Obama make good on his $10-billion pledge, but most of it came from the fiscal stimulus bill of 2009. After that one-time infusion of extra spending, the federal government has barely managed to maintain its baseline investment year after year. Indicators do show improved infrastructure throughout the country, but the question now is: When will more children be able to benefit from it?

To read the full report, please click here.