SALEM, Ore. — State-funded preschool programs in Oregon could lose millions after the Senate approved a budget that slashes funding for early childhood education by $45 million. The decision came with a “reluctant yes” from several lawmakers who expressed concern over the long-term impact of the cuts.
Senate Bill 5514, which outlines the 2025–27 budget for the Department of Early Learning and Care, passed Monday in a 22-6 vote. While five Republicans joined Democrats in support, lawmakers from both parties voiced frustration that the budget shortchanges some of Oregon’s youngest and most vulnerable residents.
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“This budget is better than nothing — but barely,” said Sen. Lisa Reynolds (D-Portland). “Zero to 5-year-olds don’t have a strong union or a wealthy lobby, and their parents are tired.”
The bill allocates $1.4 billion, which is:
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$45 million (3%) less than what’s needed to maintain current programs,
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$72 million less than what advocates estimate is required to cover rising costs,
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And slightly less than the previous biennium’s budget.
What’s Getting Cut?
All early learning programs will see a 2% reduction, while four key initiatives face 10% cuts:
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Preschool Promise: Loses $20.2 million, which could remove access for up to 640 children.
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Healthy Families Oregon: Loses $4.4 million, reducing home support for new and expecting parents.
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Early Childhood Equity Fund: Faces a $3 million cut, affecting culturally specific programs.
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Parenting Education Programs: Will lose $400,000 in support.
“These aren’t just numbers — they’re missed opportunities for kids who need a strong start,” said Dana Hepper, policy director for the Children’s Institute, a Portland-based advocacy group.
Why the Cuts?
Lawmakers attribute the budget squeeze to a 6% drop in projected revenue from the corporate activity tax, which funds the Student Success Act and provides $200 million annually for early childhood learning.
Meanwhile, the Legislature has passed a record $11.36 billion K-12 budget, an 11% increase over the last biennium — underscoring where most education dollars are flowing.
Advocates Push Back
In a letter to lawmakers, more than two dozen advocacy groups urged the House to either vote down the current budget or reduce cuts to $10–20 million instead of $45 million.
They warned of ripple effects, including:
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Reduced access to preschool, despite research showing it boosts equity and student success.
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Increased strain on early learning providers, already dealing with low wages and staff shortages.
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Pressure from stagnant federal funding for programs like Head Start, which has seen freezes and cuts.
“We’re asking those who work with babies and preschoolers to do the same work with less,” the letter stated.
What’s Next?
The bill now heads to the Oregon House, where advocates hope lawmakers will revise it. If passed as-is, they’ll push for relief in the “Christmas tree bill” — a year-end budget package used to plug gaps and fund last-minute priorities.
For now, Oregon’s youngest learners — and those who care for them — remain caught in a tight fiscal squeeze.
