Prekindergarten students play on the floor in a classroom. Universal pre-K services in Memphis continue after the city released $8.5 million in funding to First 8 Memphis, though a broader city-county funding dispute remains unresolved. (Photo illustration/Envato)

Universal pre-K services have been sustained — for now — after City of Memphis leaders released $8.5 million to First 8 Memphis on Monday, Feb. 2.

The nonprofit distributes funding to child care providers across the county that offer the service. After funding ran out in January, First 8 took out a loan to keep programs operating.

Meanwhile, Shelby County is still holding $10 million, its share of the funding in the joint city-county effort.

Shelby County Mayor Lee Harris continues to oppose the direction of the funding as he enters the final months of his term, which ends in August.

First 8 is intended to complement the city and county’s combined $21 million universal pre-K initiative serving children ages 3 to 5. The program was considered a landmark investment in early childhood education when the joint city-county nonprofit launched in 2019. Both the Shelby County Commission and Memphis City Council designated First 8 to provide pre-K services during the 2026 budget cycle.

However, all funding requires Harris’ approval. Without his signature on the joint contract, First 8 cannot receive city funding, effectively freezing the program. Without an agreement, funding would run out at the end of January. Some pre-K providers have warned that without the January quarterly payment, they could be forced to close classrooms.

“The proposal that I am negotiating right now would have Shelby County paying about $14 million to $14.5 million a year for pre-K and the city paying $7 million a year for pre-K,” Harris told the Frayser Exchange Club earlier this month. “So the county will pay more than double what the city pays for city-county collaboration, and that’s not going to be sustainable.”

Harris has also criticized the number of students served by the First 8 program. First 8 disputes the mayor’s enrollment figures, with the two sides disagreeing over both program costs and how many children are served compared with capacity. Harris contends too little funding reaches classrooms, arguing the nonprofit spends too much on administrative payroll and reserves.

Those concerns have been raised repeatedly during First 8’s regular reports to the Memphis City Council and Shelby County Commission, where officials frequently question how public dollars are allocated.

Shelby County is slated to cover $2 million of First 8’s $3.5 million share of federal Head Start funding in 2026, with Memphis paying the remainder.

While First 8 administers a small portion of the pre-K program, most federal grant dollars are managed by another nonprofit. Federal officials recently changed oversight of the Head Start grant in Shelby County, complicating enrollment and cost figures this year.

Last year, Porter-Leath secured a $30 million grant to manage federally subsidized Head Start and Early Head Start programs over the next five years. Memphis-Shelby County Schools previously oversaw the services.