FOR IMMEDIATE RELEASE
Alexandria, VA — At their quarterly meeting held this week, the Hopkins House Trustees approved a $4.1 million operating budget for fiscal year 2026–2027, effective July 1, 2026. The approved budget represents an 8 percent increase ($314,243) over the organization’s current $3.8 million budget.
The increase reflects sharply rising payroll expenses, escalating employee health insurance costs, and tariff-related price increases affecting educational and office supplies. The approved spending plan funds no new programs and no additional staff, underscoring the financial pressures facing nonprofit childcare providers.
“With an increasingly competitive childcare market in Northern Virginia, recruiting and retaining highly skilled educators is a growing challenge,” said J. Glenn Hopkins, President of Hopkins House. “We are competing not only with other childcare providers, but also with public school systems for experienced, qualified educators.”
To strengthen its market presence, the budget includes $12,500 for community outreach and marketing, aimed at distinguishing Hopkins House from a growing number of lower-cost, lower-quality childcare options. Over the past decade, the number of childcare providers in Old Town Alexandria — where Hopkins House operates a longstanding Preschool Academy — has tripled, while at least three longtime providers have closed in recent months, due in part to intensifying competition.
Balancing the need to provide safe, high-quality, and affordable childcare for working and military families against rising costs and declining enrollment proved challenging, particularly amid an unpredictable economic environment. After months of financial review and scenario planning, the Trustees were obliged to approve one of the steepest tuition increases at the Hopkins House Preschool Academy in years.
Beginning with the start of the 2026-2027 preschool year in September, tuition at the academy will increase by $30–$35 per week.
“We have no choice in the matter,” said Hopkins House Treasurer Jesse O’Connell. “If we hope to maintain the highest level of quality, keep our top-notch team of educators, and remain competitive for working families, this increase is unavoidable. But tuition increases of this magnitude cannot be sustained long term. Working families are increasingly pushed toward large corporate childcare centers or unsafe alternatives. That is why Hopkins House continues to work closely with advocacy partners to educate policymakers about the urgent need for sustained public investment in childcare.”
To help offset operating costs and maintain access for families most in need, the budget increases the organization’s fundraising goal by 5 percent, targeting $631,000 in charitable support, and earmarks $44,000 in donations to assist financially low-resourced families in accessing Hopkins House programs.
Despite rising costs, enrollment challenges, and market pressures, Hopkins House has built modest cash reserves in recent years to help manage unexpected financial fluctuations. “The hope of this budget is that Hopkins House will not have to draw on its reserves,” said O’Connell. “Those reserves are an important safeguard that helps ensure families can continue to rely on this 86-year-old institution for safe, high-quality childcare. This is one of the most difficult budgets the Trustees have ever had to assemble.”
Founded in 1939, Hopkins House remains committed to supporting children, families, and educators while navigating the increasingly complex economics of early childhood education.
