This qualitative study explores intersections between U.S. language policies (federal and state-level) and instructional practice in early childhood settings for multilingual learners (MLs). We draw on the theoretical framework of culturally sustaining pedagogy to engage in a critical content analysis of U.S. federal and state-level policy from three states. In the cross-analysis of policy and pedagogy, we also examine data from ML teachers' instructional artifacts, open-ended surveys, and semi-structured interviews. The findings provide insight into how educators draw on culturally sustaining and asset-based approaches to teaching MLs. Additionally, findings demonstrate how ML teachers negotiate policies that prioritize English language and academic achievement and those focused on teaching discrete language skills (i.e., phonological awareness and phonics) by continually centering children's linguistic and cultural repertoires. Participants in this study advocated for linguistic pluralism in their instruction and as leaders in their schools and communities. The study further illustrates how policies mandate specific aspects of instruction and leave linguistically inclusive pedagogies to individual educators. This tension can be beneficial for educators' freedom in interpreting and navigating the policy in their classroom but can also create disparities for young learners and their literacy opportunities. The significance implies a need for revisiting early childhood ML teachers' role in creating policy that fosters linguistic and cultural inclusion in language and literacy teaching.