# Early childhood education funding in Illawarra > Live situation record from CLSTR: https://clstr.news/situations/early-childhood-education-funding-in-illawarra > Updated: 2026-08-31T23:00:38.000Z. Sources: 2. Developments: 2. Early childhood education and care in the Illawarra region is experiencing shifts in funding and operational models. A national initiative known as the Family Day Care Capability Trial, led by Family Day Care Australia (FDCA), has been providing start-up funding to help educators launch home-based businesses. This trial aims to address shortages in childcare places and reduce wait times by assisting with compliance, safety upgrades, and business setup costs. However, providers in the region have expressed concerns regarding upcoming New South Wales state funding reforms scheduled for January 1, 2027. These reforms involve replacing the Start Strong program with a Fee Relief for Long Day Care program. BFS Children’s Services warned that these changes, which link funding to the provision of specific preschool programs, could place significant pressure on families and service providers, potentially impacting those who require flexible hours for workforce participation. ## Timeline ### 2026-08-31: Illawarra education provider warns of impact from NSW funding reforms An Illawarra early education provider warns that upcoming NSW government funding reforms could pressure families and services by altering preschool program funding and long day care relief. 2 sources. https://clstr.news/cluster/illawarra-education-provider-warns-of-impact-from-nsw-funding-reforms ### 2026-08-08: Family Day Care Capability Trial boosts educator startups in Illawarra The Family Day Care Capability Trial is supporting more educators in the Illawarra and other regional areas to start businesses, aiming to increase childcare supply and ease waitlist pressures. 2 sources. https://clstr.news/cluster/family-day-care-capability-trial-boosts-educator-startups-in-illawarra --- Cite as: Early childhood education funding in Illawarra. CLSTR, https://clstr.news/situations/early-childhood-education-funding-in-illawarra