ECE drives productivity, retention and long-term growth

BATON ROUGE, La. – The Louisiana Association of Business and Industry (LABI), along with the Louisiana Policy Institute for Children (LPIC), released LA B to 3: Building on What Works, a report from the Early Childhood Care and Education Commission. These findings highlight the need for Louisiana to expand access to affordable, high-quality early childhood education (ECE) to sustain workforce growth and secure the state’s economic future.

With more than 50,000 new and retained jobs projected in the coming years, Louisiana’s economy is poised for expansion. Working parents play an important role in meeting the workforce demand, but without access to affordable, high-quality child care, many parents are unable to fully participate in the workforce. The lack of ECE costs Louisiana employers $762 million annually and reduces the state’s economy by $1.3 billion each year.

A strong foundation for investment has already been set in place. Since 2018, legislators have increased state investment in the Child Care Assistance Program, dedicated five specific revenue sources for the Early Childhood Education Fund (a state-to-local matching fund), and increased incentives for businesses to support child care costs through the revamped Workforce Child Care Tax Credits. With more than 100,000 economically disadvantaged children still unserved, the Commission urges a continued effort to ensure greater access to high-quality ECE so that Louisiana can thrive.

The Commission recommends Louisiana:

• Invest an additional $95 million in state funds annually for early childhood programs over the next 10 years,
• Allocate $30 million to the Early Childhood Education Fund and codify the state’s matching commitment into law, and
• Continue business-friendly policies that incentivize employer investment in ECE, such as the Workforce Child Care Tax Credits.

“A strong ECE system equips children for lifelong success and empowers parents to fully participate in the workforce,” said Will Green, LABI president and CEO. “The payoff is enormous—stronger families, higher graduation rates and a skilled, dependable workforce that drives our economy.”

While framing the context for the necessity of ECE investment, the Commission report also presents the two-fold impact of high-quality early childhood education. When ECE is prioritized and funded, working parents can more reliably participate in the workforce, enhancing employer productivity and economic prosperity. In 2025, legislators passed Act 454, deploying innovative Workforce Child Care Tax Credits that make it easier for businesses to help increase early education options and affordability for working parents. These tax credits strengthen Louisiana’s economy by ensuring both current and future generations of the workforce are supported.

“Louisiana has made important progress in early childhood education quality and access, but still too many families face barriers to high-quality and affordable early education programs,” said Libbie Sonnier, Ph.D., CEO of LPIC. “Expanding these opportunities is essential so more children can be kindergarten-ready and working parents can fully participate in their careers.”

The LA B to 3: Building on What Works report makes clear that we must prioritize early childhood education within Louisiana’s workforce and economic strategy—a two-generational investment. By building on the existing foundation, Louisiana has the opportunity to expand access and support families across the state.

Louisiana’s Early Childhood Care and Education Commission was established in 2018 by Act 639 and is charged with creating a vision and framework for the future of early childhood care and education in Louisiana.

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About The Louisiana Association of Business and Industry: The Louisiana Association of Business and Industry was organized in 1975 to represent Louisiana businesses, serving as both the state chamber of commerce and state manufacturers association. LABI’s primary goal is to foster a climate for economic growth by championing the principles of the free enterprise system and representing the general interest of the business community through active involvement in the political, legislative, judicial and regulatory processes. Find out more information at labi.org.

About Louisiana Policy Institute for Children: Louisiana Policy Institute for Children is a 501(c)(3) nonpartisan, nonprofit organization dedicated to ensuring that Louisiana’s young children, from birth to age four, are best prepared for success in school and in life. The Policy Institute develops policy proposals informed by data, research, best practices, and the experiences of other states to improve the outcomes of Louisiana’s youngest citizens, and further provides educational and outreach activities based on recommended policy solutions. The organization works to ensure children are safe, healthy, and have the opportunity to reach their full potential. For more information, visit www.policyinstitutela.org and follow the Louisiana Policy Institute for Children on Facebook, Twitter, and Instagram.