This study investigated the differential and persistent effects of a state-funded pre-K program, the Virginia Preschool Initiative (VPI). We analyzed data from a cohort of over 60,000 students nested in approximately 1000 schools from the beginning of kindergarten to the end of first grade using two-level hierarchical logistic regression models. While controlling for student- and school-level variables, we found that attending a VPI-funded program was beneficially associated with a lower likelihood of repeating kindergarten and improved probabilities of meeting or exceeding minimum literacy competencies. The benefits of attending pre-K were greatest upon kindergarten entry and persisted until the end of the first grade for Hispanic and Black students, as well as for students with disabilities, despite VPI-funded program attendees going to schools with higher concentrations of poverty. (Contains 6 tables and 2 figures.)