The District of Columbia (DC) introduced the Early Childhood Educator Pay Equity Fund in 2022, aiming to achieve pay parity between early childhood educators in licensed child care facilities and public school teachers. This program, the first of its kind in the nation, seeks to address historical inequities and improve staff recruitment and retention efforts. This report provides an in-depth exploration of early childhood educators’ experiences with the Pay Equity Fund during its initial year of implementation.

Why This Matters

Early childhood educators play an essential role in providing child care for families and learning and development supports for young children, yet they have long faced challenges due to low wages.

What We Found

Drawing on data from surveys conducted in May 2023 and follow-up focus groups, the report offers insights into the transition from direct payments—totaling $14,000 a year for full-time lead educators and $10,000 for full-time assistant educators—to an opt-in payment structure by employers in FY 2024 that raises wages to a minimum salary scale. The report describes early educators’ introduction to the Fund, their application and payment experiences, financial impacts, and perceived benefits for child care programs and the broader early childhood education field.

Educators’ Perspectives on Navigating the Pay Equity Fund

Educators described how they learned about the Pay Equity Fund, their initial impressions, their experiences applying, and what the payments meant to them. Findings include:

• Clear information from a trusted source was important for awareness, understanding, and uptake of the fund.
• Initial doubts and concerns about the Fund were followed by excitement and satisfaction once early educators received clear information and guidance from a trustworthy source.
• Although overall uptake was high, early educators mentioned several concerns about applying. Tax implications were a top reason.
• Overall, early childhood educators reported ease in applying for and receiving payments from the Pay Equity Fund.

Perceived Benefits of Pay Equity Fund Payments

Early educators shared the many ways they saw the Pay Equity Fund payments benefiting themselves and others, including financial well-being, stress reduction, feelings of respect, and work performance. Key findings include:

• The Pay Equity Fund emerged as a crucial lifeline for early educators, addressing immediate financial needs and fostering long-term stability.
• Early educators experienced significant stress relief after receiving Pay Equity Fund payments, alleviating financial worries and improving emotional well-being.
• Many educators noted that the Fund has made them and other early educators feel appreciated and acknowledged for their essential role in the workforce.
• Educators perceived the Fund as an important step toward continuous self-improvement within the teaching profession.

Reflections on How the Pay Equity Fund is Shaping the Field

Champions of the Pay Equity Fund aimed to achieve workforce goals in DC, including fair pay and workforce stability. Early childhood educators were asked to consider whether the Fund helped achieve these goals.

• The Pay Equity Fund—as delivered as a direct supplemental payment to early educators in its early implementation—appears to have contributed to educators’ beliefs that they are now being compensated fairly.
• Survey and focus group responses suggest that the Fund is retaining early educators in their jobs and the child care field while attracting new educators.

How We Did It

To examine the implementation and outcomes associated with the Pay Equity Fund, the Urban Institute partnered with OSSE under a 2022 Child Care Policy Research Partnership cooperative agreement from the federal Administration for Children and Families. Urban researchers used various research methods, including surveys, focus groups, interviews, and administrative data analysis.