High-quality early care and education (ECE) programs are associated with positive academic and social outcomes for participating children, and therefore policies intended to support ECE programs deserve critical analysis to identify, then eliminate, correctable disparities. The authors' research employs a critical policy analysis framework in the context of a state-level case study to explore the tiered design of contemporary ECE subsidy funding and examine how Black and Latinx children are much less likely than White children to participate in high-quality ECE programming. This disparity replicates and amplifies chronic racial disparities found elsewhere in the United States. Several plausible policy alternatives are offered, including increases in base subsidy rates, increases in funding for home-based and relative and neighbor caregivers, and the implementation of progressive funding formulas.