Order Code RL30944
Report for Congress
Received through the CRS Web
Child Care Issues
in the 107th Congress
Updated October 29, 2002
Melinda Gish
Analyst in Social Legislation
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

Child Care Issues in the 107th Congress
Summary
Many bills relating to child care have been introduced since 1996, but most
have failed to be enacted into law. The notable exceptions were appropriations acts
that included increases in discretionary funding for child care and some related
programs. In 2001, the new Administration introduced new proposals and initiatives
as part of the FY2002 Budget, and the FY2002 appropriations process addressed the
issue of funding levels for some of those proposals.
The FY2002 appropriations act for the Departments of Labor, Health and
Human Services and Education (H.R. 3061/P.L. 107-116) included $2.1 billion in
discretionary funding for the CCDBG ($100 million less than President Bush’s
FY2002 budget request) and did not include the Administration’s proposed $400
million set-aside for a new after-school certificate program within the CCDBG.
The Administration in February released its FY2003 budget request, which
proposes to maintain level funding for the CCDF, while increasing Head Start
funding and eliminating the Early Learning Fund. Congress has not yet passed a
Labor/HHS/Ed appropriations bill for FY2003, but has continued funding for
programs through a series of continuing resolutions.
The CCDBG currently provides child care subsidies to low-income families
with children under age 13. It is the primary source of federal child care assistance
for low-income families, and is funded through both mandatory and discretionary
funds, referred to in total as the Child Care and Development Fund (CCDF).
Authorization for both funding streams is due to expire at the end of FY2002.
Reauthorization bills pertaining to welfare legislation (which includes mandatory
child care funding) and the CCDBG Act (which authorizes discretionary funding and
sets program rules) have been introduced, and in the House, a bill has been passed
(H.R. 4737). Senate committees have acted, with the Finance Committee passing its
version of a welfare reauthorization bill, and the Health, Education, Labor, and
Pensions Committee reporting out the CCDBG Amendments Act (S. 2758).
There are also additional federal grant programs that fund child care-related
programs and activities, as well as tax provisions that assist parents of varying
incomes with child care expenses. Proposed bills and initiatives of the past several
years reflected attempts to approach the overarching issues of child care availability,
affordability, and quality with proposed changes to the block grant and/or tax code.
Although most of those earlier bills and initiatives failed to reach law, several similar
bills have been introduced in the 107th Congress, including an omnibus tax bill,
which was signed into law, and contained changes to the Dependent Care Tax Credit.
Child care has become an area of increased focus during reauthorization
debates, and the overall issue of early childhood development has received increased
attention, with Congressional hearings, as well as a White House Summit on Early
Childhood Cognitive Development. The Administration has built upon the summit,
with the President announcing the Administration’s new “Good Start, Grow Smart”
early childhood initiative.

Contents
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Federal Child Care Programs and Tax Provisions . . . . . . . . . . . . . . . . . . . . . 1
Child Care and Development Block Grant (CCDBG) . . . . . . . . . . . . . . 1
Temporary Assistance for Needy Families (TANF) . . . . . . . . . . . . . . . 2
Child and Adult Care Food Program (CACFP) . . . . . . . . . . . . . . . . . . . 3
Social Services Block Grant (SSBG) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Head Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
21st Century Community Learning Centers (21st CCLC) . . . . . . . . . . . . 4
Even Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Individuals with Disabilities Education Act (IDEA) programs . . . . . . . 4
Early Childhood Educator Professional Development . . . . . . . . . . . . . 4
Loan forgiveness for child care providers . . . . . . . . . . . . . . . . . . . . . . . 4
Child Care Access Means Parents in School (CAMPIS) . . . . . . . . . . . 5
Early Learning Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Dependent Care Tax Credit (DCTC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Dependent Care Assistance Program (DCAP) . . . . . . . . . . . . . . . . . . . 5
Labor/HHS/Education FY2002 Appropriations . . . . . . . . . . . . . . . . . . . . . . 7
FY2002 Treasury-General Government Appropriations (Federal Child
Care Provisions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Related Provisions in FY2003 Administration Budget . . . . . . . . . . . . . 8
Bush Administration’s FY2003 Budget Proposals . . . . . . . . . . . . . . . . . . . . 9
CCDBG: Level Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Social Services Block Grant (SSBG): Level Funding . . . . . . . . . . . . . . 9
Head Start: Increase Funding, with Added Emphasis on Education . . 9
21st Century Community Learning Centers: Level Funding . . . . . . . . 10
Even Start: Decrease Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
IDEA Grants for Infants and Families: Increase Funding . . . . . . . . . . 10
IDEA Preschool Grants: Level Funding . . . . . . . . . . . . . . . . . . . . . . . 10
Labor/HHS/Education FY2003 Appropriations . . . . . . . . . . . . . . . . . . . . . 11
Legislative Activity in the 107th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Reauthorization Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Comprehensive Child Care Legislation . . . . . . . . . . . . . . . . . . . . . . . . 16
Child Care Bills with Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . 17
Bills Relating to Quality of Care, Curricula, and Health and Safety . . 17
Bills Relating to Child Care Providers . . . . . . . . . . . . . . . . . . . . . . . . 17
Child Care (and Pre-Kindergarten) Availability and Access
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Multi-Purpose Child Care Legislation . . . . . . . . . . . . . . . . . . . . . . . . . 18
Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
White House Summit on Early Childhood . . . . . . . . . . . . . . . . . . . . . 20
Administration’s Early Childhood Initiative . . . . . . . . . . . . . . . . . . . . 20
List of Tables
Table 1. Funding for Federal Child Care and Related Programs
FY1998-FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 2. FY2002 Appropriations: Administration, House, and Senate
proposed funding levels versus Final Funding Levels . . . . . . . . . . . . . . . . . . 8

Table 3. Bush Administration’s FY2003 Budget Request for Child Care and
Related Programs and Senate Appropriations Committee recommended
levels for FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Child Care Issues in the 107th Congress
Recent Developments
On October 18, 2002, the fourth in a series of continuing resolutions was signed
into law (P.L. 107-244; H.J.Res.123) providing appropriations through November
22, 2002 at the rate made available under the Departments of Labor, Health and
Human Services, and Education and Related Agencies Appropriations Act, 2002.
An extension of funding (at the FY2002 level) providing the mandatory portion of the
Child Care and Development Fund (CCDF) as well as Temporary Assistance for
Needy Families (TANF) funding through the first quarter of FY2003 (December 31,
2002) is included in the first continuing resolution ( P.L. 107-229; H.J.Res. 111)
signed into law September 30, 2002. For more information, see
“Labor/HHS/Education FY2003 Appropriations,” infra.
On September 4, 2002, the Senate Health, Education, Labor, and Pensions
(HELP) Committee reported a substitute version of S. 2758, the Child Care and
Development Block Grant Amendments Act (originally introduced by Senator Dodd
on July 18, 2002). Funding authorized by the substitute mirrors that included in the
original version of the bill ($3.1 billion in discretionary funds for FY2003, and such
sums as necessary for FY2004-FY2007). However, unlike the original version of S.
2758, the substitute would require that a state’s reservation of funds for quality be
increased from a minimum of 4% to a minimum of 10% only if the increase can be
made without reducing the number of families receiving child care subsidies. The
substitute maintains the legislative language authorizing the Federal Employees
Child Care Act and the Early Care and Education Act, as well as the Book Stamp Act
(although the substitute does not provide for the establishment of a special postage
stamp for child literacy). For more details regarding this legislation, see
“Legislative Activity in the 107th Congress,” infra.
Federal Child Care Programs and Tax Provisions
Several federal programs support child care or related services, primarily for
low-income working families. In addition, the tax code includes provisions
specifically targeted to assist families with child care expenses. Descriptions of
those programs and tax provisions follow, as does Table 1, which shows funding (or
estimated revenue loss or obligations where applicable) for the programs and tax
provisions.
Child Care and Development Block Grant (CCDBG). The primary
federal grant program is the CCDBG, which was created in 1990, reauthorized and
substantially expanded in 1996, as part of welfare reform, and is due to be

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reauthorized during the second session of the 107th Congress (2002).1 The CCDBG
is administered by HHS, and provides block grants to states, according to a formula,
which are used to subsidize the child care expenses of families with children under
age 13, if the parents are working or in school and family income is less than 85%
of the state median. (In practice, many states establish income eligibility levels that
are lower than this federal threshold.2) Child care services are provided on a sliding
fee scale basis, and parents may choose to receive assistance through vouchers or
certificates, which can be used with a provider of the parents’ choice, including
sectarian providers and relatives.
States receiving CCDBG funds must establish child care licensing standards,
although federal law does not dictate what these standards should be or what types
of providers must be covered. In addition, states must have health and safety
requirements applicable to all providers receiving CCDBG subsidies, that address
prevention and control of infectious diseases, building and physical premises safety,
and health and safety training for caregivers. However, federal law does not dictate
the specific contents of these requirements.
The CCDBG is funded through both discretionary and capped entitlement
grants (referred to in combination as the Child Care and Development Fund, or
CCDF), and state maintenance-of-effort and matching requirements apply to part of
the entitlement funds.3 States must use at least 4% of their total funds to improve the
quality and availability of child care, and according to statute, must target 70% of
entitlement funds on welfare recipients working toward self-sufficiency or families
at risk of welfare dependency. However, because all families falling below the 85%
of state median income requirement can be categorized as “at risk,” the 70%
targeting of the welfare and at-risk population does not necessarily mean welfare
families must be served. In theory, all funds may be used for low-income, non-
welfare, working families. However, state plans indicate that many states guarantee
child care to welfare families. No more than 5% of state allotments may be used for
state administrative costs.
In FY2002, a total of $4.817 billion was appropriated for the CCDBG (see
Table 2). Entitlement funds of $2.717 billion were appropriated in advance by the
welfare reform law, and $2.1 billion in discretionary funds were appropriated by the
FY2002 appropriations bill. (Unlike prior years, there was no advance discretionary
funding for the CCDBG in FY2002, or for FY2003.)
Temporary Assistance for Needy Families (TANF). TANF provides
fixed block grants ($16.5 billion annually through FY2002) for state-designed
programs of time-limited and work-conditioned aid to families with children. Child
care is one of many services for which states may use TANF funding. In FY2000,
1 For more information, see CRS Report RL30785, The Child Care and Development Block
Grant: Background and Funding.
2 For more information on states’ CCDF plans, see CRS Report RL30919, Child Care: State
Programs Under the Child Care and Development Fund.
3 For more detailed information on the CCDF financing structure and spending trends, see
CRS Report RL31274 Child Care: Funding and Spending under Federal Block Grants.

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states spent $2.3 billion of TANF funding on child care within the TANF program.
In addition, states may transfer up to 30% of their TANF allotments to the CCDBG
(CCDF), to be spent according to the rules of that program (as opposed to TANF
rules). The FY2000 transfer from TANF to the CCDBG totaled $2 billion. Over the
course of FY1997-FY2000, for all states combined, a cumulative amount of almost
9% of TANF funds has been transferred to the CCDBG.4
Child and Adult Care Food Program (CACFP). The CACFP provides
federal funds (in some cases commodities) for meals and snacks served in licensed
child care centers, family and group day care homes, and Head Start centers. Child
care providers that are exempt from state licensing requirements must comply with
alternative state or federal standards. Children under 12, migrant children under 15,
and children with disabilities of any age may participate, although most are
preschoolers. Eligible providers are usually public and private nonprofit
organizations. The CACFP is an open-ended entitlement, administered by the
Department of Agriculture. In FY2002, estimated obligations are $1.9 billion.5
Social Services Block Grant (SSBG). Title XX of the Social Security Act
authorizes Social Services Block Grants, which may be used for social services at the
states’ discretion. There are no federal income eligibility requirements, targeting
provisions, service mandates, or matching requirements. An HHS analysis of state
expenditures in FY2000 indicates that 6% of SSBG funds were used for child care
in that year (compared to 13% in FY1999 and just under 10% of FY1998 SSBG
funds). Title XX is a capped entitlement, and state allocations are based on relative
population size. Legislation enacted in 1998 (P.L. 105-178) reduced the entitlement
ceiling for the SSBG from $2.38 billion to $1.7 billion in FY2001. However,
Congress appropriated $1.725 billion for FY2001, despite the ceiling. On March 8,
2001, two companion bills (H.R. 956 - Representative Nancy Johnson and S. 501 -
Senator Graham) were introduced, which would restore the FY2002 authorized
funding level to its earlier level of $2.38 billion, however these bills received no
action, and the FY2002 appropriations bill (H.R. 3061), signed into law (P.L. 107-
116), provides $1.7 billion in FY2002 SSBG funding.6 On April 4, 2001,
Representative Nancy Johnson introduced H.R. 1470, which would permanently set
the authorized funding level at $2.38 billion; it has received no action. More
recently, on June 19, 2002, the Senate Finance Committee approved the Charity Aid
Recovery and Empowerment Act (a substitute for H.R. 7), which would increase
funding for the SSBG by a total of $1.3 billion above the FY2002 level over
FY2003-FY2004.
Head Start. Head Start provides comprehensive early childhood education
and development services to low-income preschool children, typically (but not
always) on a part-time basis. Head Start funds are provided directly by HHS to local
grantees, which must comply with detailed federal performance standards. In
FY2002, $6.538 billion is appropriated for Head Start, of which $5.138 billion is
4 For more information on use of TANF funding for child care, see CRS Report RL31274,
Child Care: Funding and Spending under Federal Block Grants.
5 See CRS Report 98-25, Child Nutrition Programs: Background and Funding.
6 See CRS Report 94-953, Social Services Block Grant (Title XX of the Social Security Act).

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available in FY2002 and $1.4 billion is available in FY2003. The advance funding
component of the appropriation was new for the Head Start program, starting in
FY2000.7 The Administration estimates that in 2002, Head Start will serve 916,000
children. Of that total, approximately 55,000 children under age 3 are estimated to
participate in the Early Head Start component of the program.
21st Century Community Learning Centers (21st CCLC). The
Elementary and Secondary Education Act (ESEA), as amended in 1994, authorized
grants to rural and inner-city public elementary or secondary schools for 21st Century
Community Learning Center programs. These competitive grants funded programs
which provide support for early childhood through after-school, weekend, and
summer activities. Although authorization for the 21st CCLC programs expired at
the end of FY2000, the program was funded at $846 million in FY2001.
On January 8, 2002, the President signed into law the Elementary and
Secondary Education Act reauthorization bill (H.R. 1). That legislation reauthorizes
the 21st Century Community Learning Centers program at $1.25 billion for FY2002,
rising in stages to $2.5 billion by FY2007. (The FY2002 appropriation does not
reach the authorized level, but does increase funding to $1 billion.) The reauthorized
program, in contrast to its predecessor, is structured as a formula grant to states.
Grants will be awarded to states in proportion to their share of Title I Part A grants
for the preceding fiscal year. Eligible local entities (including LEAs,
community-based organizations, and other public or private entities) will be awarded
grants competitively. The authorized uses of funds under the program will be limited
to after school-hours activities for students and their families, in contrast to the
broader array of authorized uses of funds permitted under the original 21st CCLC
program.
Even Start. The Department of Education administers the Even Start
program, which provides grants for family literacy projects that include early
childhood education for children through age 7. Appropriations for FY2002 are
$250 million.
Individuals with Disabilities Education Act (IDEA) programs. The
Individuals with Disabilities Education Act (IDEA) authorizes an early intervention
program for infants and toddlers with disabilities and their families (funded in
FY2002 at $417 million), and preschool grants for children with disabilities (funded
in FY2002 at $390 million).
Early Childhood Educator Professional Development. The
Department of Education provides competitive grants to partnerships to improve the
knowledge and skills of early childhood educators who work in communities that
have high concentrations of children living in poverty. In FY2002, $15 million were
appropriated for these grants.
Loan forgiveness for child care providers. Authorized under the Higher
Education Act amendments of 1998, the loan forgiveness for child care providers
program aims to retain and encourage more highly trained individuals to enter into
7 For more information, see CRS Report RL30952, Head Start: Background and Funding.

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the early child care profession. “Early child care” covers activities and services
provided for the education and care of children from birth through age 5. Under this
program, borrowers who have earned a degree in early childhood education, and
work for 2 full years as a child care provider in a low-income community, may have
a portion of their loan obligation forgiven. FY2001 marked the first year that this
program was funded, at $1 million – the same amount appropriated for FY2002.
Child Care Access Means Parents in School (CAMPIS). Authorized
under the Higher Education Act amendments of 1998, and first funded for FY1999
at $5 million, the CAMPIS program is designed to support the participation of low-
income parents in post-secondary education through campus-based child care
services. Discretionary grants of up to 4 years in duration are awarded competitively
to institutions of higher education, to either supplement existing child care services,
or to start a new program. Funding for FY2002 is $25 million.
Early Learning Fund. This program, authorized by the FY2001
Consolidated Appropriations Act (P.L. 106-554) provides grants to communities to
enhance school readiness for children under 5; specifically by funding efforts to
improve the cognitive, physical, social, and emotional development of these children.
Although authorized at $600 million, FY2002 funding for the program was set at $25
million, and the President’s FY2003 budget would eliminate the program.
Dependent Care Tax Credit (DCTC). The DCTC is a non-refundable tax
credit for employment-related expenses incurred for the care of a dependent child
under 13 or a disabled dependent or spouse, under Section 21 of the tax code. On
June 7, 2001 the omnibus tax bill was signed into law (P.L. 107-16), making some
changes to the DCTC, which will become effective starting in 2003. However, until
2003, the maximum credit is 30% of expenses up to $2,400 for one child (for a credit
of $720), and up to $4,800 for two or more children (for a credit of $1,440). The
credit rate is gradually reduced as income goes up for taxpayers with incomes above
$10,000, until the credit rate reaches 20% for taxpayers with incomes above $28,000.
The current estimated revenue loss for FY2002 is $2.5 billion, as determined by the
Joint Committee on Taxation (JCT).
Changes to DCTC in 2003. Beginning in tax year 2003, the Economic
Growth and Economic and Tax Reconciliation Act of 2001 (P.L. 107-16) will
increase the maximum credit rate to 35% of expenses up to $3,000 for one child (for
a credit of $1,050), and up to $6,000 for two or more children (for a credit of
$2,100). The 35% rate will apply to taxpayers with adjusted gross incomes of
$15,000 or less. The rate will decrease by 1% for each additional $2,000 increment
(or portion thereof) until the rate reaches 20% for taxpayers with incomes over
$43,000.
Dependent Care Assistance Program (DCAP). Under Section 129 of the
tax code, payments made by a taxpayer’s employer for dependent care assistance
may be excluded from the employee’s income and, therefore, not be subject to
federal income tax or employment taxes. The maximum exclusion is $5,000.
Section 125 of the tax code allows employers to include dependent care assistance,
along with other fringe benefits, in nontaxable flexible benefit or “cafeteria” plans.

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The current estimated revenue loss associated with this income exclusion is $600
million in FY2002.

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Table 1. Funding for Federal Child Care and Related Programs
FY1998-FY2002
($ in millions)
Fiscal year
Program
1998
1999
2000
2001
2002
CCDBG (discretionary portion)a
$1,002
$1,000
$1,183
$2,000
$2,100
CCDBG (entitlement portion)
2,067
2,167
2,367
2,567
2,717
b
b
b
b
b
TANFb
Child and Adult Care Food
1,562c
1,599c
1,690c
1,766c
1,878c
Social Services Block Grantsd
2,299d
1,909d
1,775d
1,725d
1,700
Head Start
4,347
4,658
5,267e
6,200f
6,538g
21st Century Community Learning
40
200
454
846
1,000
Centers
Even Start
124
135
150
250
250
IDEA Infants and Families
350
370
375
384
417
IDEA Preschool Grants
374
374
390
390
390
Early Learning Fund (Early
Learning Opportunities Act)
-
-
-
20
25
Early Childhood Educator
Professional Development
-
-
-
10
15
Loan forgiveness for child care
providers
-
-
-
1
1
Child care Access Means Parents in
School (CAMPIS)
-
5
5
25
25
h
Dependent Care Tax Credit
2,455h
2,200h
2,500h
2,500h
h
Dependent Care Assistance
400h
400h
500h
600h
Source: Table prepared by the Congressional Research Service (CRS).
a The CCDBG discretionary amounts shown in each column reflect the appropriated funding to be
made available for that given year, taking the advance funding into account.
b TANF funds ($16.5 billion annually) may be used for child care, but are not specifically appropriated
as such. The most recent data (FY1999) indicate that $1.1 billion of TANF expenditures were
for child care. In FY1997-1999, states transferred a cumulative 8% of TANF funds ($3.6
billion) from TANF to CCDBG
c Estimated obligations, Department of Agriculture.
d Total SSBG amount shown. In FY1999, states spent an estimated 13% on child care.
e Of the $5.267 billion, $3.867 billion was available for FY2000, and $1.4 billion for FY2001.
f Of the $6.2 billion, $4.8 billion was available for FY2001, and $1.4 billion is available for FY2002.
g Of the $6.538 billion, $5.138 billion is available for FY2002, and $1.4 billion will become available
in FY2003.
h Estimated revenue loss, Joint Committee on Taxation. Comparable estimate for FY1998 not
available.

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Labor/HHS/Education FY2002 Appropriations
On January 10, 2002, H.R. 3061(Committee Report H.Rept. 107-342), the bill
approved by Congress, making FY2002 appropriations for the Departments of Labor,
Health and Human Services (HHS), and Education was signed into law (P.L. 107-
116). The law includes $2.1 billion for the Child Care and Development Block
Grant (CCDBG). This reflects a $100 million decrease from the level of funding
provided for the CCDBG in FY2001. (The FY2002 bill also does not include the
Administration’s proposed $400 million set-aside for a new after-school certificate
program within the CCDBG.) The $2.1 billion does include the following set-asides:
$19 million for school-age care and resource and referral; $1 million for the Child
Care Aware toll-free hotline; $100 million for infant and toddler care; $173 million
for quality initiatives; and $10 million for research.
The bill provides $1.7 billion for the Social Services Block Grant (SSBG),
which states may choose to use for child care, and also maintains states’ authority
to transfer up to 10% of their Temporary Assistance for Needy Families (TANF)
allotments to the SSBG. Also included in H.R. 3061 are $6.538 billion for Head
Start, of which $1.4 billion does not become available until FY2003. The 21st
Century Community Learning Centers (reauthorized by legislation (H.R. 1) signed
into law on January 8, 2002) received an FY2002 appropriation of $1 billion.
The FY2002 bill maintained the same level of funding (as in FY2001) for the
following programs: Even Start ($250 million), IDEA preschool grants ($390
million), loan forgiveness for child care providers ($1 million), Child Care Access
Means Parents in School ($25 million).
Other child care-related programs whose funding increased in FY2002 include:
IDEA grants for Infants and Families ($417 million), the Early Learning
Opportunities Act, sometimes referred to as “Early Learning Fund” ($25 million),
and the Early Childhood Educator Professional Development program ($15 million).
(For background on the funding levels proposed in the House and Senate
versions that preceded the appropriations bill ultimately signed into law, see Table
2
.)

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Table 2. FY2002 Appropriations: Administration, House, and
Senate proposed funding levels versus Final Funding Levels

($ in millions)
House
Senate
President’s
passed
passed
Program
request
version
version
Final
CCDBG
$2,200
$2,200
$2,000
$2,100
Head Start (total)
6,325
6,476
6,600
6,538
SSBG
1,700
1,700
1,700
1,700
21st CCLC
846
1,000
1,000
1,000
Even Start
250
260
200
250
IDEA grants - preschool
390
390
390
390
IDEA grants - infants and families
384
430
384
417
Loan forgiveness for child care
1
1
1
1
Child Care Access Means Parents
in School (CAMPIS)
25
25
25
25
Early Learning Opportunities Act
0
0
25
25
Early Childhood Educator
not
not
Professional Development
specified
specified
15
15
Source: Table prepared by the Congressional Research Service (CRS).
FY2002 Treasury-General Government Appropriations
(Federal Child Care Provisions)

On November 12, 2001 the President signed the FY2002 appropriations bill for
the Department of Treasury, the Postal Service, and General Government into law
(H.R. 2590/P.L. 107-67). On October 31, 2001 and November 1, 2001, the House
and Senate had respectively agreed to the conference report on H.R. 2590 (H.Rept.
107-293). Included in the law are provisions to maintain the federal pilot project for
federal day care centers, the purpose of which is to improve the affordability of child
care for lower income personnel in Executive agencies.
Related Provisions in FY2003 Administration Budget. In its FY2003
budget proposal (described in detail below), the Bush administration has proposed
elimination of the provisions found at Section 630 of P.L. 107-67. The provisions
authorize use of appropriated funds (salaries and expenses accounts) to provide child
care in a federally owned or leased facility, either directly or through contract, for
civilian employees of the agency. The funds used are to be applied so as to improve
affordability of the service for lower income personnel. The Committees on
Appropriations are to be notified before implementation. P.L. 107-67 also added
language authorizing payment to licensed or regulated child care providers “in
advance of services rendered, covering agreed upon periods, as appropriate.”

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Unlike the Bush Administration, the House and Senate appropriations bills for
FY2003 (H.R. 5120 and S. 2740) do not propose to repeal the aforementioned
provisions found in Section 630 of P.L. 107-67.
Bush Administration’s FY2003 Budget Proposals
President Bush released his Administration’s proposed budget for FY2003 on
February 4, 2002. The following is a summary of child care-related funding and
initiatives proposed in the budget documents. Table 3 shows the proposed FY2003
funding levels, and how the proposed funding amounts compare to the levels
appropriated for FY2002.
CCDBG: Level Funding. The proposed budget would maintain the
discretionary funding level for the CCDBG at $2.1 billion and the mandatory (or
“entitlement”) funding amount at $2.717 billion, for a total of $4.817 billion. Also
included in the budget request were proposals to maintain the set-asides of $19
million for child care resource and referral and school-aged child care activities ($1
million for the Child Care Aware toll free hotline); $273 million for quality activities
(of which $100 million would be specifically for improving the quality of infant and
toddler care); and $10 million for use by the Secretary of HHS for child care
research, demonstration, and evaluation activities.
Social Services Block Grant (SSBG): Level Funding. The
Administration’s FY2003 budget proposes to continue funding the SSBG at its
authorized level of $1.7 billion. The ability of states to transfer up to 10% of their
TANF state allotments is not addressed. The FY2002 appropriations law (P.L. 107-
116) maintained the 10% transfer, superceding earlier legislation which would have
decreased the transfer limit to 4.25%.8
Head Start: Increase Funding, with Added Emphasis on Education.
The Bush Administration proposes to continue the trend of increasing funding to the
Head Start Program, along with plans to make education the program’s top priority.
The budget requests $6.667 billion for Head Start, a $130 million increase above the
FY2002 appropriation. Of the total amount proposed, $1.4 billion would be advance
appropriated for FY2004.
The President maintains plans to reform Head Start by making education the
program’s primary focus. In the FY2002 budget, the Administration proposed to
require Head Start to adopt a “proven core curriculum that makes school readiness
–pre-reading and numeracy– its top priority.” In the FY2003 budget documents, the
Administration highlights an HHS-Department of Education (ED) task force which
has formed in order to assess ways to improve Head Start and lay the ground work
for the proposed transfer of the program to ED. The transfer is intended to reinforce
the program’s emphasis on school readiness, and is planned as part of the program’s
reauthorization. The budget also maintains funding ($75 million) for the Early
Reading First program within ED for research-based reading programs in existing
pre-school programs, including Head Start Programs.
8 For more information on the SSBG, see CRS Report 94-953, Social Services Block Grant
(Title XX of the Social Security Act).

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21st Century Community Learning Centers: Level Funding. The
budget proposes to maintain funding for 21st Century Learning Centers at the
FY2002 level of $1 billion. The 21CCLC program provides formula grants to states,
which in turn award subgrants to communities. Funds are used to provide academic
enrichment opportunities and related services to students (many of whom attend
high-poverty schools) during non-school hours (including weekends and summers).9
Even Start: Decrease Funding. The Administration requests $200 million
for the Even Start program– a $50 million decrease from the FY2002 appropriation
level. The budget justifications for the Department of Education indicates that the
decrease in Even Start reflects the Administration’s proposal to shift funds to
increase Reading First State Grants (to $1 billion). (Note: the budget requests level
funding for the Early Reading First program, at $75 million.)
IDEA Grants for Infants and Families: Increase Funding. The
Administration’s FY2003 budget requests $437 million for IDEA infants and
families grants. This reflects an increase of $20 million above the amount
appropriated in FY2002: $417 million. The Administration stated that the goal of
the IDEA grant program for infants and families (referred to in earlier years as
infants and toddlers) is to provide a comprehensive system of early intervention
services that will enhance family and child outcomes.
IDEA Preschool Grants: Level Funding. The FY2003 budget requests
$390 million for IDEA preschool grants, which is the same amount as was
appropriated for the program in FY2002.
Table 3 shows proposed funding for the aforementioned programs, as well as
smaller child care-related programs. The table shows the President’s request for
FY2003, a comparison to FY2002 actual funding, and in the last column, the
amounts recommended by the Senate Appropriations committee (as included in S.
2766, which was approved by the committee on July 22, 2002).
9 For more information, see CRS Report RL30306, 21st Century Community Learning
Centers: An Overview of the Program and Analysis of Reauthorization Issues.

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Table 3. Bush Administration’s FY2003 Budget Request for
Child Care and Related Programs and Senate Appropriations
Committee recommended levels for FY2003
Senate
Difference
Appropriations
(+/-) between
Committee
FY2003
President’s
recommended
President’s
FY2003
level for
requested
request and
FY2003
funding
FY2002
(S. 2766)
Program
($ in millions)
appropriation
($ in millions)
CCDBG discretionary
$2,100
same level
$2,100
CCDBG mandatory
$2,717
same level
N/A
SSBG (Title XX)
$1,700
same level
$1,700
Head Start
$6,667
+ $130 million
$6,870
21st Century Learning Centers
$1,000
same level
$1,090
Even Start
$200
- $50 million
$250
IDEA Infants and Families
$437
+ $20 million
$437
IDEA Preschool Grants
$390
same level
$390
Early Learning Fund
0
- $25 million
$38
Early Reading First
$75
same level
$75
Early Childhood Educator
Professional Development
$15
same level
$15
Childcare Access Means Parents in
School (CAMPIS)
$15
- $10 million
$15
Loan forgiveness for child care
providers
$1
same level
$1
Source: Table prepared by CRS based on the President’s FY2003 Budget Request and legislative bill
and report language for S. 2766.
Labor/HHS/Education FY2003 Appropriations
Fiscal year 2003 funding for the Departments of Labor, HHS, and Education is
currently being provided through a continuing resolution. Congress has passed a
series of four continuing resolutions (CRs) extending funding for programs into
FY2003. The most recent CR (H.J.Res. 123), signed into law (P.L. 107-244) on
October 18, 2002, provides appropriations through November 22, 2002 at the rate
made available under the Departments of Labor, Health and Human Services, and
Education and Related Agencies Appropriations Act, 2002. Funding for the
mandatory portion of the CCDF and for TANF (both of which expired at the end of
FY2002), was extended (at the FY2002 level) through the first quarter of FY2003
(December 31, 2002) under the first continuing resolution (H.J.Res. 111) signed into
law September 30, 2002.

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Prior activity with respect to FY2003 Labor/HHS/Ed appropriations included
the Senate Appropriations Committee approving (on July 22, 2002) its version of a
bill which would make FY2003 appropriations for the Departments of Labor, Health
and Human Services, and Education (S. 2766/ S.Rept. 107-216). As shown in Table
3
above, the Senate Appropriations Committee’s recommended funding levels for
child care-related programs either met or exceeded the levels requested by the
Administration in the President’s FY2003 budget request. The programs for which
the committee recommends a funding increase are Head Start, 21st Century
Community Learning Centers, Even Start, and the Early Learning Fund.
On September 4, 2002, Representative Young introduced H.R. 5320, a bill that
would make FY2003 appropriations for the Departments of Health and Human
Services, Education, and Labor (Labor/HHS/Educ). The bill was introduced in the
House without committee action, and requests the same funding levels as proposed
by the President in his FY2003 budget.
Legislative Activity in the 107th Congress
There are many examples of legislation covering a range of early child care and
education issues that have been introduced this Congress. Several bills aim to
address issues of child care affordability with modifications to the tax code (i.e., the
DCTC and DCAP), and as mentioned earlier in this report, some changes have
already been passed as part of the omnibus tax bill (P.L. 107-16). Other proposals
aim to improve child care quality, either by enhancing resources available to child
care programs, or by promoting better compliance with health and safety standards.
Issues relating to availability of and access to care are addressed through legislation
providing for construction of child care facilities, and greater access to child care
services for federal employees. In addition, as in previous Congresses, omnibus
child care bills that address multiple child care issues (among other areas) have once
again been introduced. Finally, the most recent bills addressing child care have
come in the context of reauthorizing major welfare (TANF) and child care programs
(CCDBG).
Reauthorization Legislation. Several bills have been introduced in recent
months that pertain specifically to TANF and CCDBG reauthorization. (Both of
these block grants play a major role in providing child care to low-income families.)
Also, the Administration in February released a welfare reform reauthorization
document, Working Toward Independence, which proposes level funding for child
care (both the discretionary and mandatory portions) for FY2003. Reauthorization
bills introduced to date are listed below.
H.R. 4737, by Representative Pryce (introduced May 9, 2002 as H.R.
4700, passed the House May 16, 2002 as H.R. 4737). The Personal
Responsibility, Work, and Family Promotion Act of 2002 encompasses many of the
provisions proposed in H.R. 4090 and H.R. 4092 (the welfare and child care
reauthorization bills reported out of the Ways and Means and Education and
Workforce Committees respectively – see below). However, it makes changes with
respect to proposed child care funding. Like H.R.4700, which was the “merged” bill
as originally introduced by Rep. Pryce, H.R. 4737 would increase child care funding
and authorization levels above those included in H.R. 4090 and H.R.4092. Under

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H.R. 4737, mandatory child care funding would be set at $2.917 billion in each of
FY2003-FY2007 (for an increase of $1 billion over 5 years above current funding).
The authorization level for discretionary funding would increase by $200 million
annually for 5 years, reaching the level of $3.1 billion in FY2007.
Like H.R. 4092, H.R. 4737 would increase the quality set-aside from 4% to 6%,
and would amend state child care plan requirements to encourage states to improve
the quality of child care available to families, and to promote school readiness by
encouraging the exposure of children in care to nurturing environments and
developmentally-appropriate activities. Likewise, the bill would allow states to
establish CCDBG income eligibility limits at any level (prioritized by need),
eliminating current law’s federal limit of 85% of state median income. The only
additional child care provision not included in H.R. 4092 would require that
aggregated statistics on child care supply, demand and quality be included in biennial
reports to Congress.
Senate Finance Committee version of H.R. 4737 (approved by
Senate Finance Committee June 26, 2002). The Work, Opportunity, and
Responsibility for Kids (WORK) Act is the committee’s substitute for House-passed
H.R. 4737. This welfare reform reauthorization measure contains provisions that
would provide mandatory child care funding for the Child Care and Development
Block Grant at $3.717 billion in each of FY2003-FY2005; and $3.967 billion in
each of FY2006 and FY2007 ($1 billion and $1.25 billion above the FY2002 funding
level, respectively, for a $5.5 billion total increase over 5 years). The increases up
to the $3.717 billion level in each of the five fiscal years would be applied to the
“guaranteed” portion of mandatory funding (requiring no match and allocated to
states according to the same proportion of guaranteed funds received in FY2002).
The increase beyond that (i.e. the additional $250 million in each of FY2006 and
FY2007) would require a state match and would be allocated based on states’
relative share of children under age 13. All increases above the FY2002 mandatory
funding level could not supplant state funding for child care. Of the new funding
that requires no match, $10 million would be reserved for Puerto Rico in each of
FY2003-2007. (Currently, Puerto Rico is not entitled to any of the mandatory
CCDBG funding.)
In addition, states would be required to certify in their state TANF plans that
procedures are in effect to ensure that any child care provider delivering child care
services funded by TANF complies with the health and safety requirements
applicable to the Child Care and Development Block Grant.
Also included in the Chairman’s Mark, as amended and passed (13-8), is a
provision that would permanently restore states’ authority to transfer up to 10 percent
of their annual TANF allotments to the Social Services Block Grant. Furthermore,
funding for FY2005 would be authorized at a level of $1.952 billion. A week earlier,
on June 19, the Senate Finance Committee approved the Charity Aid Recovery and
Empowerment Act (a substitute for H.R. 7), which would authorize SSBG funding
increases for FY2003 and FY2004.
H.R. 4092, by Representative McKeon (introduced April 10, 2002;
reported from Education and Workforce Committee May 2, 2002). The

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Working Toward Independence Act of 2002 (not to be confused with the
Administration’s welfare reform document “Working Toward Independence”) as
originally introduced proposed to authorize the discretionary portion of CCDF
funding at the current level of $2.1 billion annually for FY2003-FY2007. However,
in the Education and Workforce full committee mark-up, an amendment offered by
Representative Castle was accepted (25-21), which would increase the authorization
level to $2.3 billion in FY2003, and such sums as may be necessary for FY2004-
FY2007. It also would increase the quality set-aside from 4% to 6%. The bill also
would amend state child care plan requirements to encourage states to improve the
quality of child care available to families, and to promote school readiness by
encouraging the exposure of children in care to nurturing environments and
developmentally-appropriate activities. In addition, the bill would allow states to
establish CCDBG income eligibility limits at any level (prioritized by need),
eliminating current law’s federal limit of 85% of state median income.
H.R. 4090, by Representative Herger (introduced April 9, 2002;
reported from Ways and Means Committee May 2, 2002). The Personal
Responsibility, Work, and Family Promotion Act of 2002, a welfare reauthorization
bill reported out of the Ways and Means Committee, includes level funding for the
mandatory portion of CCDF funding ($2.7 billion) through FY2007. The bill would
increase the percentage of the TANF block grant that states may transfer to the
CCDF from 30% to 50% (or from 20% to 40% if a state transfers its maximum of
10% to the Social Services Block Grant). During the mark-up, Representative Stark
offered an amendment to increase mandatory funding for the CCDF by $11.25
billion over 5 years, which did not pass. Chairman Thomas indicated plans to
recommend an additional $2 billion (above the current funding level) for the CCDF
when the bill reaches the House floor, however additional funding has since been
proposed in H.R. 4700 (see above), the reauthorization bill introduced on May 9,
2002, which “merged” many of the provisions from H.R. 4090 and H.R. 4092.
S. 2758 Substitute Version (Passed by Senate HELP Committee
September 4, 2002). The HELP Committee approved a substitute version of S.
2758 (the Child Care and Development Block Grant Amendments Act, also known
as the Access to High Quality Child Care Act — originally introduced by Senator
Dodd on July 18, 2002, see below).
Funding authorized by the substitute mirrors that
included in the original version of the bill ($3.1 billion in discretionary funds for
FY2003, and such sums as necessary for FY2004-FY2007).
However, unlike the original version of S. 2758, the substitute would require
that a state’s reservation of funds for quality be increased from a minimum of 4% to
a minimum of 10% only if the increase can be made without reducing the number of
families receiving child care subsidies. As with the original bill, the required
increase to a minimum of 10% only would be implemented if mandatory child care
funding were to exceed 115% of the FY2002 level. Likewise, 5% of all CCDF funds
would be reserved and used for improving child care reimbursement rates, but only
if the mandatory child care funding level were to exceed 105% of the FY2002 level.
Like the original S. 2758, the substitute would allow states to use CCDBG funds
to operate an at-home infant care program. The substitute also maintains the original
bill’s legislative language authorizing the Federal Employees Child Care Act and the

CRS-16
Early Care and Education Act, as well as the Book Stamp Act (although the
substitute does not provide for the establishment of a special postage stamp for child
literacy).
S. 2758, by Senator Dodd (introduced July 18, 2002). The Access to
High Quality Child Care Act, S. 2758, would amend and reauthorize the Child Care
and Development Block Grant Act, adding provisions that focus on improving child
care quality and data collection, and increasing overall funding. The bill also would
authorize initiatives to improve the quality of child care in federal facilities
specifically, in addition to authorizing the Early Care and Education Act (originally
introduced by Senator Kennedy as S. 566), which would provide incentive grants to
states for developing or enhancing systems of early child care and education.
Sometimes referred to as the ACCESS Act of 2002, S. 2758 would authorize
discretionary CCDBG funding at a level of $3.1 billion for FY2003, and such sums
as necessary for FY2004-FY2007. Under this bill, not less than 4% of CCDF funds
would be reserved and used for quality activities (rising to not less than 10% if
mandatory child care funding were to exceed 115% of the FY2002 level). Moreover,
5% of all CCDF funds would be reserved and used for improving child care
reimbursement rates, but only if the mandatory child care funding level were to
exceed 105% of the FY2002 level. The bill would also allow states to use CCDBG
funds to operate an at-home infant care program.
S. 2524, by Senator Bayh (introduced May 15, 2002). The Work and
Family Act of 2002 is a welfare reauthorization bill that would increase mandatory
child care funding by $8 billion over 5 years, according to the following increments:
$3.717 billion for FY2003, $4.117 billion for FY2004, $4.417 billion for FY2005,
$4.617 billion for FY2006, and $4.717 billion for FY2007. The bill would also
increase the entitlement ceiling for the Social Services Block Grant (SSBG), starting
at $1.9 billion in FY2003, and rising to $2.8 billion in FY2007. In addition, the bill
would maintain states’ authority to transfer up to 10% of their annual TANF
allotments to the SSBG.
S. 2117, by Senator Dodd (introduced April 11, 2002). The Access to
High Quality Child Care Act (or “The 2002 ACCESS Act”) aims to bolster the child
development aspect of the CCDF program with new set-asides for promoting quality
and school readiness. It also would modify aspects of TANF law to ensure child care
provided with TANF funds meets the same standards as CCDF-funded care. The bill
does not designate a dollar figure for the mandatory funding portion of the CCDF,
and would authorize the discretionary component of the CCDF at such sums as
necessary for FY2003-FY2007. The quality set-aside, 4% under current law, would
be increased to 5%, and additional set-asides aimed at improving the quality of the
child care provider workforce and increasing the rates at which providers are
reimbursed would be contingent on (or triggered by) additional mandatory funding.
Among other things, under this bill states would have to certify that they require up
to two unannounced visits a year to providers receiving CCDF funds. Research, data
collection, and technical assistance would also extend beyond that required under
current law.
S. 2070, by Senator Bingaman (introduced March 22, 2002). The
Children First Act of 2002 would increase mandatory funding for the CCDF to

CRS-17
$3.967 billion in FY2003 (rising to $5.967 billion in FY2007) and raise the CCDF
set-aside for quality from 4% to 12%. In addition, under S. 2070, states would be
allowed to use Temporary Assistance for Needy Families (TANF) funds from prior
years to provide child care, and TANF-funded child care would be required to meet
the same health and safety requirements and data reporting rules as those applicable
to CCDF-funded child care.
S. 2052, by Senator Rockefeller (introduced March 21, 2002). The
Personal Responsibility and Work Opportunity Reconciliation Act Amendments of
2002 would increase the mandatory portion of the CCDF from the current level of
$2.7 billion to $3.7 billion for each of FY2003-FY2007.
H.R. 3625, by Representative Cardin (introduced January 24, 2002).
The Next Step in Reforming Welfare Act would increase the mandatory portion of
CCDF funding by $11.25 billion over 5 years (FY2003-2007). Mandatory funding
appropriated for FY2003 would be $3.967 billion. The bill would also raise the
CCDF quality set-aside from 4% to 12%.
H.R. 3524, by Representative George Miller (introduced December
19, 2001). The Child Development and Family Employment Act of 2002 would
amend and reauthorize the CCDBG Act. Provisions contained in the bill include (but
are not limited to): increasing the authorized CCDF mandatory funding levels
($4.217 billion in FY2003, rising to $8.617 billion in FY2007) and discretionary
funding levels ($4 billion in FY2003, rising to $8 billion in FY2007); increasing the
set-aside for quality activities from 4% to 16%; expanding requirements with regard
to pre-service training for CCDBG providers; authorizing a new program to provide
funding for states to recruit and retain staff in child care; establishing a national data
system to develop statistics on the supply, demand, and quality of child care; and
creating a new grant program for states that increase their reimbursement rates for
CCDBG child care providers.
Comprehensive Child Care Legislation. The largest and most
comprehensive of child care bills introduced this Congress is the Leave No Child
Behind Act of 2001
(S. 940 and H.R. 1990), introduced by Senator Dodd and
Representative George Miller, with the support of the Children’s Defense Fund,
among other children’s advocacy groups. The Leave No Child Behind Act (1,168
pages) features child care-related proposals to increase funding for the CCDBG and
Head Start; to allocate 5% of total CCDBG funds in FY2003 to improve and expand
infant child care; to expand the set-aside for Early Head Start; to require states to pay
child care providers at least 100th percentile of the market rate for care; to create a
program to improve wages and skills of child care staff; to increase the CCDBG
quality set-aside from 4% to 12%; and to require all providers receiving CCDBG, or
who work in programs receiving CCDBG funding to have training in early childhood
development. Readers should not confuse S. 940/H.R. 1990 with the No Child Left
Behind Act of 2001 (H.R. 1), also introduced this Congress. The No Child Left
Behind Act of 2001 (H.R. 1), introduced by Representative Boehner, focuses on
amending the Elementary and Secondary Education Act; however it does include
child care-related provisions including reauthorization language for the 21st CCLC
program. H.R. 1 was signed into law (P.L. 107-110) on January 10, 2002.

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Another broad-reaching bill, which aims to foster a more unified system of early
care and education is S. 2566 (Kennedy), the Early Care and Education Act. This
bill would authorize $1 billion for FY2003 (and such sums as necessary for FY2004-
FY2007) to be used to provide incentive grants to states for developing or enhancing
systems of early child care and education. In addition, it would provide bonus grants
(starting in the third fiscal year) to reward states that have shown measurable
progress in areas including competency of early childhood providers, retention of
providers, and school readiness of children.
Following are other child care and child care-related bills that have been
introduced this Congress:
Child Care Bills with Tax Provisions. H.R. 206 (Sweeney) would
increase the DCTC. H.R. 252 (Gilman) would establish a DCAP program for federal
employees. H.R. 253 (Gilman) would amend the tax code, establishing an employer
tax credit for child care expenses. S. 9 (Daschle) is a large tax bill which includes
proposals to increase and make refundable the DCTC, provide a minimum credit for
stay-at-home parents, and create an employer-provided child care credit. S. 99
(Kohl) would also provide a tax credit to employers who provide child care
assistance for dependents of their employees. S. 384 (Snowe) would amend the tax
code to make the DCTC refundable.
Bills Relating to Quality of Care, Curricula, and Health and Safety.
H.R. 116 (Holt) would establish a program to promote child literacy by making
books available through early learning and other child care programs. H.R. 251
(Gilman) aims to promote child care quality and safety in federal child care facilities.
H.R. 367 (Nadler) proposes to promote the health and safety of children by requiring
the posting of Consumer Product Safety Commission child care center safety
standards in child care centers. H.R. 2034 (Roybal-Allard) would authorize the
Department of Housing and Urban Development to make grants to evaluate and
reduce lead-based paint hazards at licensed child daycare facilities. S. 1000 (Reed)
and H.R. 2097 (Bishop) are companion bills that would provide incentive grants to
states to improve the quality of child care through increased payment rates to
providers. H.R. 2787 (Meek) would amend the CCDBG Act, requiring states to use
5% of their CCDBG funding to increase the availability and quality of care for
children with disabilities. H.R.4164 (H. Wilson) would increase the CCDF quality
set-aside from 4% to 8%, and would require that at least 50% of the quality set-aside
funds be used to pay costs incurred by eligible child care providers to obtain
accreditation. S. 2671 (Edwards) would amend the CCDBG Act to provide for child
care quality improvements for children with disabilities or other special needs.
Bills Relating to Child Care Providers. S. 814 (Dodd) and H.R. 1650
(George Miller) are companion bills that propose to establish a child care provider
retention and development grant program, and a child care provider scholarship
program. The bill is being referred to as the Focus on Committed and Underpaid
Staff for Children’s Sake (FOCUS) Act. Also proposing to establish a child care
provider scholarship program is H.R. 1390 (DeFazio). H.R. 1743 (Blagojevich)/S.
123 (Feinstein) would amend the Higher Education Act of 1965 to extend to Head
Start teachers loan forgiveness for certain types of student loans. H.R.4539 (H.
Wilson) would amend the Child Care and Development Block Grant (CCDBG) Act

CRS-19
to require that states reimburse child care providers at the state’s average market rate,
as determined by annual market rate surveys.
Child Care (and Pre-Kindergarten) Availability and Access
Legislation. H.R. 286 (McCarthy) would provide for the construction and
renovation of child care facilities. H.R. 555 (Morella) proposes to provide greater
access to child care services for federal employees. S. 371 (Reed) would establish
and expand “child opportunity zone” family centers in public elementary schools and
secondary schools. H.R. 1476 (Kind) would establish or expand pre-kindergarten
early learning programs. H.R. 3912 (Kucinich) and H.R. 1649 (Andrews) would
both provide grants to states to establish, expand, or enhance pre-kindergarten
programs for children ages 3-5. The FY2002 Treasury, Postal Service and General
Government Appropriations bill (H.R. 2590), currently in conference, contains
provisions to maintain the federal pilot project for federal day care centers, the
purpose of which is to improve the affordability of child care for lower income
personnel in Executive agencies. S. 1286 (Carnahan) would provide a permanent
authorization for that federal program. S. 1217 (Dodd), the Child Care Facilities
Financing Act, would authorize $50 million annually for FY2002-FY2006 to assist
non-profits in providing financial and technical help buying, building and improving
child care facilities. S. 1004 (Jeffords), the Child Care Construction and Renovation
Act, would allow CCDBG funds to go for center construction, create a $30 million
fund for mortgage insurance for rehabilitated or new child care facilities, and would
authorize $10 million annually in FY2002-FY2006 for technical assistance grants
and grants to providers to improve and expand child care centers and homes.
Multi-Purpose Child Care Legislation. Companion bills H.R. 265 and S.
18 (DeLauro and Daschle) would address multiple child care issues. The bills would
increase authorized funding for the CCDBG and Head Start; increase and modify the
DCTC, allowing a minimum credit for stay-at-home parents and advance payment
of the credit; and allow a business credit for employer-provided child care. H.R.
1201 (Schiff) would allow an unspecified amount of Head Start money for reading-
readiness grants within the program. The bill would also authorize specified
amounts ($9.2 billion in FY2002 and over $11 billion in FY2003) for Head Start, and
would increase eligibility to 150% of poverty guidelines for grantees who have
attempted to serve all poverty cases. H.R. 1118 (Mink) would establish
comprehensive early childhood education programs, staff development programs,
and model federal government early childhood education programs.
Hearings. On May 16, 2002, the Senate Finance Committee held a hearing
on “Issues in TANF Reauthorization: Building Stronger Families,” which included
testimony from Senator Dodd on the issue of how to improve and expand the
nation’s child care system, specifically addressing S. 2117, the Access to High
Quality Child Care Act he cosponsored with bipartisan support.10
On April 9, 2002, the House Education and Workforce Committee held a
hearing, “Working Toward Independence: The Administration’s Plan to Build upon
the Successes of Welfare Reform” which featured testimony pertaining to child care
funding in the context of welfare reform.
10 [http://finance.senate.gov/sitepages/hearing051602.htm]

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On March 19, 2002, the Senate Health, Education, Labor and Pensions
Subcommittee on Children and Families and the Senate Finance Subcommittee on
Social security and Family Policy held a joint hearing, “Child Care: Supporting
Working Families.” 11
On March 15, 2002, the Health, Education, Labor and Pensions Committee held
a hearing, “Child Care: Helping Parents Work and Improving the Well-being of
Children.”12
On February 27, 2002, the House Education and Workforce Committee’s
Subcommittee on 21st Century Competitiveness held a hearing, “Assessing the Child
Care and Development Block Grant.” Topics addressed by witnesses included the
adequacy of program funding and quality.13
On February 12, 2002, the Senate Health, Education, Labor and Pensions
Committee held a hearing on “Early Education: From Science to Practice.”
Witnesses included academics specializing in child development (including Edward
Zigler, one of Head Start’s “founders”), as well as a panel of practitioners,
representing early childhood-related programs and foundations.14
On January 24, 2002 First Lady Laura Bush testified before the Senate Health,
Education, Labor and Pensions Committee as the sole witness for the committee’s
hearing “Early Learning: Investing In Our Children, Investing In Our Future.”
On July 31, 2001, the House Subcommittee on Education Reform held a hearing
on early childhood education. Witnesses included representatives from the Head
Start and early childhood academic communities, as well as recently confirmed
Under Secretary Eugene Hickok from the Department of Education, and Department
of Health and Human Services Assistant Secretary for Children and Families Wade
Horn.
On March 27, 2001, the Senate Health, Education, Labor and Pensions (HELP)
Committee held a hearing on international early education and child care to examine
how the United States compares.
White House Summit on Early Childhood. On July 26, 2001 First Lady
Laura Bush, HHS Secretary Tommy Thompson, and U.S. Secretary of Education
Rod Paige co-hosted a two-day White House Summit on Early Childhood Cognitive
Development. The summit featured research and recommendations from early
childhood learning specialists and was described by Secretary Paige as the first step
in a long-range and widespread effort to promote research-based cognitive
development activities for preschool-age children. During the summit, Secretary
11 [http://finance.senate.gov/sitepages/subhearing031902.htm]
12 [http://labor.senate.gov/Hearings-2002/mar2002/031502wit/031502wit.htm]
13 Testimony from the hearing is available on the Education and Workforce Committee’s
website: [http://edworkforce.house.gov/hearings/107th/21st/childcare22702/wl22702.htm].
14 Testimony from the hearing is available on the HELP Committee’s website:
[http://labor.senate.gov/Hearings-2002/feb2002/021202awit/021202awit.htm].

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Paige announced plans to create a new federal task force of senior education and
health and human services department officials. This group will be charged with the
task of putting research and recommendations presented during the summit to work
in government programs for children.
Administration’s Early Childhood Initiative. On April 2, 2002, the
President announced the Administration’s Good Start, Grow Smart early childhood
initiative, which builds on themes developed at the First Lady’s Summit on Early
Childhood Cognitive Development held in July 2001.15 The initiative proposes to
develop a new accountability system for the Head Start program, through which
standards of learning in early literacy, language, and numeracy would be assessed.
It also calls for a national training program for Head Start teachers. Furthermore, the
initiative proposes that states develop criteria for the delivery of quality early
childhood programs outside the boundaries of the Head Start program. The
additional federal funding proposed as part of the initiative totals $45 million to
establish a research collaborative between the National Institute of Child Health and
Human Development and the Department of Education to identify effective pre-
reading and language curricula and teaching strategies.
15 [http://www.whitehouse.gov/infocus/earlychildhood/toc.html]