The proposed legislation, General Assembly Raised Bill No. 266, aims to limit the access of private equity firms to funds from the Early Childhood Education Endowment. The bill amends Section 10-512d of the general statutes, effective July 1, 2026, by stipulating that the Commissioner of Early Childhood may allocate funds from the Endowment to early care and education programs only if they meet specific criteria, including participation in the Early Start CT program, the quality improvement system, and the Child and Adult Care Food Program. Notably, the bill introduces a restriction that prohibits the expenditure of these funds to any early care and education program owned or controlled by a private equity company until all other eligible programs have received their funding.

Additionally, the bill defines "private equity company" as an asset class consisting of equity securities and debt in operating companies that are not publicly traded. This legislative change is intended to prioritize funding for child care service providers that are not backed by private equity, thereby ensuring that public funds are directed towards programs that may be more community-focused and accessible to families in need. The bill reflects a commitment to enhancing the quality and availability of early childhood education while safeguarding public resources from private financial interests.