Over the past three decades, state and local policymakers across the country, motivated by the necessity of providing workforce supports for parents, an increased understanding of the importance of early brain development, as well as the economic returns made by investing in early learning, have dramatically increased their investments in early care and education (ECE). However, federal investments made through large program funding streams and tax credits to families and businesses still provide the crucial foundation upon which these state and local investments are built. Specifically, this brief explores just how foundational federal investments are and how they: Provide the primary source of funding for public ECE programs; Support an ECE infrastructure that benefits children in care and their families; Leverage state, local, and other investments; Offer stability in challenging economic times; Advance the research and development of innovative solutions to new challenges; Present opportunities through the tax code. (author abstract)