The funding for free childcare education subsidies will be jointly funded by the central and local governments.

Guo Tingting, Deputy Minister of Finance, stated at the State Council's regular policy briefing held by the State Council on August 7 that the subsidy funds for exempting nursery education fees are shared by the central and local governments. The central government will take the larger share, with a focus on supporting the central and western regions. Local governments will coordinate the allocation of central subsidy funds and their own financial resources to ensure timely and sufficient disbursement of funds and the smooth implementation of this policy benefiting the people.