Economic Impact

How California’s Free Preschool Expansion Threatens Private Daycare Survival

By Economics Desk | February 17, 2026

Governor Newsom’s ambitious expansion of free transitional kindergarten is squeezing private daycares out of business, risking a childcare crisis that undermines American families’ freedom and economic security.

California’s bold experiment to provide free preschool for every 4-year-old, championed by Governor Gavin Newsom, promises progress on education but delivers a harsh reality for private daycare providers struggling to survive. While the government touts "the most significant expansion of child care in America," hardworking small business owners like Frisha Moore face empty classrooms and mounting losses as families flock to free public options. Is Public Preschool Expansion Killing Private Childcare Jobs? Moore’s Elk Grove preschool once had waiting lists filled with eager families. Now, many parents have redirected their children into transitional kindergarten (TK) — a state-funded pre-kindergarten offering...

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