If we want to create a bright future for our state, the most important thing we can do is invest in the well-being of children, especially our youngest children.

Early childhood is the foundation of life. Children who have positive experiences in their early years are much more likely to graduate from high school, enjoy better health and have higher earnings as adults. The opposite is often true for children who, sadly, grow up in stressful environments and lack access to proven support. These outcomes, be they positive or negative, have a ripple effect not only on the children but also on our communities.

It is vital that we, as a state, do what we can to ensure that children have a good start in life. There are a number of investments that the 2025 Oregon Legislature could make in that regard. Two of these would put more resources into Employment Related Day Care and strengthen the Earned Income Tax Credit, policies that strengthen family finances.

Children don’t grow in isolation; they are part of families. The more financial resources a family has, the less likely it is that the child will endure the stress that comes with economic hardship and all its negative repercussions.

Employment Related Day Care bolsters family finances by making child care affordable for families with the fewest resources. Child care is expensive, often carrying a bigger price tag than the cost of college. Because infants and young children require full-time care, the lack of access to affordable child care often prevents parents from taking a job and gaining a steady source of income.

As its name suggests, Employment Related Day Care enables parents to join the workforce, confident in the knowledge that their little ones will get the care they need. For some parents, the program allows them to continue their education and gain new skills, which can lead to a better-paying job in the not-too-distant future.

Unfortunately, the child care program lacks the resources to meet the needs of families. Nearly 10,000 families are on the waitlist to enter the program. Another 4,000 families already in the program cannot find a provider, as the low pay, workforce shortages and lack of suitable facilities produces a shortage of child care.

Stepped up legislative investment in the program would support child development, provide economic opportunity to families and infuse Oregon’s economy with needed workers.

Work, unfortunately, often doesn’t pay enough. Many parents working full time, or even working two jobs, struggle to pay the rent and other basic necessities. That’s where the Earned Income Tax Credit comes in.

Modeled after the federal tax credit with the same name, the Oregon credit puts money in the pockets of working families whose jobs don’t pay enough to make ends meet. In delivering those extra dollars through the tax code, the tax credit is an efficient way to bolster family finances. It’s no wonder the program has long enjoyed bipartisan support.

Oregon’s tax credit recognizes the importance of the first few years of life in a child’s emotional and physical development. Some years back, the Legislature bumped up the size of the tax credit for families with children under the age of three.

As good a program as the credit is, there is significant room for improvement. That is especially true when it comes to the size of the credit — the amount of help it delivers to families. Oregon’s tax credit is just 9% of the federal tax credit for families with children age 3 or older, and 12% of the federal credit for younger children. That makes it one of the smallest Earned Income Tax Credits among all states that offer the tax credit.

This session, the Legislature is considering boosting the state credit. House Bill 2958 would double the size of the credit, making it work better for working families.

The investments we make as a state in the well-being of children can ease the financial stress many families presently endure, increasing the odds that these children will grow up healthy and able to thrive. That would be a win for our state, now and into the future.

Dana Hepper is the director of policy and advocacy at the Children’s Institute, a nonpartisan advocacy organization working to make Oregon the best place to be a kid. Alejandro Queral is the executive director of the Oregon Center for Public Policy, a nonpartisan think tank that works to improve the economic security of low-income Oregonians.