According to Member for Upper Hunter Dave Layzell, the new Start Strong Free Preschool program will replace the current COVID-19 Free Preschool Funding program that has been supporting families since the beginning of the pandemic.

"This program is supporting more than 45,000 eligible children, keeping our children learning and engaged during some of their most formative years," Mr Layzell said.

Minister for Education Sarah Mitchell said that early childhood education is a vital part of development and preparation, especially in the two years before school.

"This is a $150 million investment in our children's futures, as we know the first 2000 days of a child's life are crucial and those who experience the benefit of early childhood education grow up to lead happier, healthier and more productive lives," Ms Mitchell said.

"This program allows families to save up to $4000 per year per child in preschool fees, easing the cost of living pressures and helping families with work life balance."

The budget includes $725 million direct investment into Early Childhood Education to help parents support their children during some of their most important years.

Up to 740 community preschools will benefit from this important investment across the state.