Order Code RL31817
CRS Report for Congress
Received through the CRS Web
Child Care Issues
in the 108th Congress
Updated July 20, 2004
Melinda Gish
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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Child Care Issues in the 108th Congress
Summary
The 108th Congress inherited several child care-related agenda items from the
previous Congress: possible reauthorization of both the Child Care and Development
Block Grant (CCDBG) and the welfare block grant (Temporary Assistance for Needy
Families (TANF), and FY2003 appropriations for many programs, including child
care-related programs under the Departments of Health and Human Services (HHS)
and Education. In addition to the variety of federal programs administered by HHS
and the Department of Education that support child care or related services, there are
tax provisions to assist families with the cost of child care.
The task of passing an FY2003 appropriations measure was completed in the
form of the Consolidated Appropriations Resolution 2003, signed into law (P.L. 108-
7) on February 20, 2003. Among other funding, the law included $2.1 billion
(subject to a rescission of $13.6 million) in discretionary funds for the CCDBG and
$6.668 billion for Head Start. Mandatory child care funding and TANF block grant
funding (both of which expired at the end of FY2002) have been provided at the
FY2002 level via a series of temporary extensions, while each program continues to
await reauthorization. Most recently, a seventh short-term extension (H.R. 4589) to
provide funding through September 30, 2004, was signed into law (P.L. 108-262) on
June 30, 2004.
Two weeks prior to the signing of the FY2003 appropriations law, the
Administration released its budget request for FY2004. It proposed to maintain level
funding for the CCDBG, TANF, and the Social Services Block Grant (SSBG), while
providing increases for Head Start, Early Reading First, and Individuals with
Disabilities Education Act (IDEA) grants for infants and families. The budget
requested cuts in funding for the 21st Century Community Learning Centers and Even
Start.
In addition to the requested funding levels, the President’s FY2004 budget
included proposals to transfer the Head Start program from HHS to the Department
of Education, and to offer states the opportunity to administer the Head Start
program, both in the context of the program’s anticipated reauthorization. The
House-passed reauthorization bill (H.R. 2210) does not include the transfer proposal,
but does propose an eight-state demonstration program. The Senate HELP
committee-reported bill (S. 1940) contains neither the transfer nor the state
demonstration proposals, and differs markedly from the House-passed bill. Changes
already underway in the Head Start program include a Strategic Teacher Education
Program and a national reporting system for assessing programs’ effectiveness with
respect to promoting school readiness.
An FY2004 appropriations bill was not signed into law (P.L. 108-199) until
January 23, 2004 — 10 days before the President’s FY2005 budget was released. He
requests level funding for the CCDBG, SSBG, 21stCCLC and IDEA preschool, and
increases for Head Start, Early Reading First, and IDEA infants and families. The
President proposes no funding for the Early Learning Fund and Even Start. This
report will be updated to reflect legislative activity.

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Contents
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Federal Child Care-Related Programs and Tax Provisions . . . . . . . . . . . . . . 2
Child Care and Development Block Grant (CCDBG) . . . . . . . . . . . . . . 2
Temporary Assistance for Needy Families (TANF) . . . . . . . . . . . . . . . 3
Child and Adult Care Food Program (CACFP) . . . . . . . . . . . . . . . . . . . 4
Social Services Block Grant (SSBG) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Head Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
21st Century Community Learning Centers (21st CCLC) . . . . . . . . . . . . 5
Even Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Individuals with Disabilities Education Act (IDEA) Programs . . . . . . . 5
Early Learning Fund/Early Learning Opportunities Act Program . . . . . 6
Early Reading First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Early Childhood Educator Professional Development . . . . . . . . . . . . . 6
Loan Forgiveness for Child Care Providers . . . . . . . . . . . . . . . . . . . . . . 6
Child Care Access Means Parents in School (CAMPIS) . . . . . . . . . . . . 6
Dependent Care Tax Credit (DCTC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Dependent Care Assistance Program (DCAP) . . . . . . . . . . . . . . . . . . . . 7
FY2003 Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
FY2004: Comparing President Bush’s Budget Proposals to
the Final Appropriation Levels
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
CCDBG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Social Services Block Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Head Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
21st Century Community Learning Centers . . . . . . . . . . . . . . . . . . . . . 11
Even Start . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
IDEA Grants for Infants and Families . . . . . . . . . . . . . . . . . . . . . . . . . 11
IDEA Preschool Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Early Learning Fund/Early Learning Opportunities Act Program . . . . 12
Early Childhood Educator Professional Development . . . . . . . . . . . . 12
Early Reading First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Child Care Access Means Parents in School (CAMPIS) . . . . . . . . . . . 13
Loan Forgiveness for Child Care Providers . . . . . . . . . . . . . . . . . . . . . 13
President Bush’s FY2005 Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . 15
FY2005 Appropriations - In Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Administration’s Early Childhood Initiative . . . . . . . . . . . . . . . . . . . . . . . . 17
Legislative Activity in the 108th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Child Care and Welfare Reauthorization . . . . . . . . . . . . . . . . . . . . . . . 18
Comprehensive Child Care Legislation . . . . . . . . . . . . . . . . . . . . . . . . 20
Other Child Care-Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . 20
Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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List of Tables
Table 1. Funding for Federal Child Care and Related Programs,
FY2000-FY2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 2. Comparison of FY2004 President’s Request and House
and Senate Proposals with Final FY2004 Appropriations . . . . . . . . . . . . . 14
Table 3. Bush Administration’s FY2005 Funding Request compared to
FY2004 Funding for Select Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Table 4. FY2005 Proposed Funding Levels Compared to FY2004
Actual Appropriations for Select Programs . . . . . . . . . . . . . . . . . . . . . . . . 17

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Child Care Issues in the 108th Congress
Recent Developments
On July 14, 2004, the House Committee on Appropriations approved and
ordered reported a bill (number not yet available) which would make FY2005
appropriations for the Departments of Labor, Health and Human Services, and
Education. The bill proposes $2.1 billion (rounded) for the discretionary funding
portion of the Child Care and Development Block Grant, which reflects the same
level as proposed in FY2004, before an across-the-board cut ultimately reduced
FY2004 CCDBG funding by $12.4 million. Head Start funding under this bill would
be increased to $6.899 billion ($124 million more than the FY2004 funding level, but
less than the $6.944 billion requested in the President’s FY2005 budget). FY2005
funding for the Social Services Block Grant would be maintained at $1.7 billion,
however the percentage of a state’s TANF block grant that it may transfer to the
SSBG would be reduced from 10% to 4.5%. (For proposed funding amounts of other
child care-related programs included in the committee bill, see FY2005
Appropriations - In Process, later in this report.)
On June 30, 2004, the seventh in a series of short-term extensions funding the
mandatory portion of the Child Care and Development Fund was signed into law
(H.R. 4589/P.L. 108-262) by the President. This extension continues mandatory
funding for the CCDF at the rate of $2.717 billion annually, through September 30,
2004. The extension also continues funding for Temporary Assistance for Needy
Families through this period. Both the TANF and CCDF programs continue to await
reauthorization.
On March 30, 2004, during the second day of Senate consideration of the
Finance Committee-reported welfare reauthorization bill (H.R. 4), the Senate
approved (78-20) Senator Snowe’s amendment (S.Amdt. 2937) proposing to increase
mandatory child care funding by $6 billion (over five years) above the $1 billion
increase included in the underlying bill (H.R. 4). No other amendments were voted
upon, and this legislation to reauthorize TANF and CCDF has yet to receive any
further action.
On February 2, 2004, the Administration released President Bush’s budget
request for FY2005. (For proposed funding amounts included for child care and
related programs, see President Bush’s FY2005 Budget Request, later in this report.)
On January 23, 2004, an omnibus appropriations bill for FY2004 (H.R.
2673/H.Rept. 108-401) was signed into law (P.L. 108-199). The omnibus bill
consolidates appropriations for multiple agencies, including the Departments of HHS
and Education, both of which administer child care-related programs. (For funding
amounts included for child care and related programs in the omnibus see FY2004:

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CRS-2
Comparing President Bush’s Budget Proposals to the Final Appropriation Levels,
later in this report.)
On November 24, 2003, the Senate Health, Education, Labor, and Pensions
Committee reported a Head Start reauthorization bill (S. 1940), which differs
significantly from the reauthorization bill passed by the House (H.R. 2210) in July
2003. (For more information on Head Start, see CRS Report RL30952 Head Start
Issues in the 108th Congress.)
On September 9, 2003, the House Ways and Means Committee amended and
reported H.R. 7, the Charitable Giving Act of 2003. Representative Camp’s
amendment to permanently maintain the 10% transfer authority (from TANF to
SSBG) was accepted. However, Representative Cardin’s amendment to increase the
SSBG funding from $1.7 billion to $2.8 billion was defeated.
Federal Child Care-Related 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 for the past five years. In many cases, other Congressional Research
Service (CRS) reports are referenced as sources for more detailed information about
individual programs. Several programs are up for reauthorization this year (i.e.,
CCDBG, TANF, Head Start, and IDEA), and readers should be aware that this report
does not attempt to cover all issues connected with each of those reauthorizations.
Child Care and Development Block Grant (CCDBG).1 The primary
federal grant program funding child care is the CCDBG, which was created in 1990,
and reauthorized and substantially expanded in 1996, as part of welfare reform. The
CCDBG was up for reauthorization during the second session of the 107th Congress,
and remains so in the second session of the 108th Congress. The CCDBG is
administered by HHS, and provides formula block grants to states, which use the
grants 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.
1 For more information, see CRS Report RL30785, The Child Care and Development Block
Grant: Background and Funding, by Alice Butler and Melinda Gish.
2 For more information on states’ Child Care and Development Fund (CCDF) plans, see
CRS Report RL31605, Child Care: State Programs Under the Child Care and Development
Fund, by Melinda Gish and Shannon Harper.

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CRS-3
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 care givers. 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 (MOE) 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.
For FY2004, the consolidated appropriations act (P.L. 108-199) provides $2.1
billion (minus an across-the-board rescission of 0.59%) in discretionary funding for
the Child Care and Development Block Grant. Mandatory (or “entitlement”)
CCDBG funding for FY2003 was provided at the FY2002 rate ($2.717 billion for the
year), under a series of funding extensions. The seventh and most recent extension
(H.R. 4589) was signed into law (P.L. 108-262) by the President on June 30, 2004
and provides funding (at the same FY2002 rate) through September 30, 2004.
Temporary Assistance for Needy Families (TANF). TANF, created in
the 1996 welfare reform law (P.L. 104-193), provides fixed block grants ($16.5
billion annually through FY2002, and extended through September 30, 2004, by P.L.
108-262) for state-designed programs of time-limited and work-conditioned aid to
needy families with children. Child care is one of many services for which states
may use TANF funding. In FY2002, HHS reports that states spent $1.6 billion in
federal TANF funds for child care within the TANF program, and $1.9 billion in
state TANF and separate state program (SSP) MOE funds. (Of that $1.9 billion in
state spending, approximately $900 million could be “double counted” as state
spending toward the CCDF MOE requirement.) 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 transfer from the FY2002
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, by
Melinda Gish.

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TANF allotment to the CCDBG totaled $2.1 billion (representing 12% of the
FY2002 TANF allotment).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. For FY2004, obligations are estimated to be $2.0
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 indicates that almost 8% of total SSBG expenditures made in FY2002
($205 million) were for child care in that year, almost equal to those made for child
care in FY2001 ($201 million). Title XX is a capped entitlement, and state
allocations are based on relative population size. It should be noted that although the
SSBG has an entitlement ceiling, appropriations may not always abide by it. For
example, the ceiling in FY2001 was at the current level of $1.7 billion; however,
Congress appropriated $1.725 billion for that year, despite the ceiling. The
Consolidated Appropriations Act of 2004 (P.L. 108-199) provides $1.7 billion for the
SSBG. (Note: the SSBG is not a discretionary program, and thus is not affected by
the across-the-board rescission.)6
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. The Head Start program is due to be considered for
reauthorization this year. Under current law, Head Start funds are provided directly
by HHS to local grantees, which must comply with detailed federal performance
standards. However, in its FY2004 budget request, the Administration proposed to
give states the opportunity to administer Head Start, provided they demonstrate how
Head Start will be coordinated with other preschool programs and services to
emphasize developing skills and behaviors including language development; pre-
reading skills; numeracy; and social and emotional competence, while meeting state-
established accountability standards. This proposal proved controversial in both the
House and Senate, and current legislation finds a more limited version of it in the
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, by Melinda Gish.
5 See CRS Report RL31577, Child Nutrition and WIC Programs: Background and Funding,
by Joe Richardson.
6 See CRS Report 94-953, Social Services Block Grant (Title XX of the Social Security Act),
by Melinda Gish.

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House reauthorization bill, and no sign of it in the Senate’s committee reported bill.
The Head Start reauthorization bill passed by the House (H.R. 2210) on July 25,
2003, would restrict the state demonstration option to a maximum of eight states,
whereas the Senate HELP Committee-reported bill (S. 1940), proposes no state
demonstration option.7 Similarly, the President’s FY2004 budget proposal to fully
transfer authority over the Head Start program from HHS to the Department of
Education by FY2005 has not been championed in either the House or Senate.
The most recent available data show funded enrollment for Head Start in
FY2003 to have totaled 909,608 children (of whom almost 73,000 were under age
three, participating in Early Head Start). The Consolidated Appropriations Act of
2004 (P.L. 108-199) provides $6.775 billion for Head Start, of which $1.4 billion
becomes available in FY2005. (Note: while in FY2003, Head Start was not subject
to the across-the-board offset, in the FY2004 law Head Start is subject to the 0.59%
rescission. The $6.775 billion reflects the rescission.)
21st Century Community Learning Centers (21st CCLC). The 21st
Century Community Learning Centers program is administered by the Department
of Education and is authorized under the Elementary and Secondary Education Act
(ESEA), as amended in 2002 by the No Child Left Behind Act (P.L. 107-110).8
Funding for the 21st CCLC program is provided to states under a formula grant, based
on states’ shares of Title I, Part A funds. States then use their allocations to make
competitive awards to local educational agencies, community-based organizations,
or consortia of public or private agencies who primarily serve students who attend
schools with concentrations of poor students or low-performing schools. The focus
of the program is to provide after-school academic enrichment opportunities for
children in these communities. The appropriation provided by the FY2004
Consolidated Appropriations Act (P.L. 108-199) is $1 billion (minus an across-the-
board rescission of 0.59%, which reduces the total to $999 million).
Even Start. The Department of Education administers the Even Start program,
which provides grants for family literacy projects that include early childhood
education.9 Appropriations for FY2004 are $247 million (including the 0.59%
rescission).
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, and preschool
grants for children with disabilities.10 Congress is considering reauthorizing IDEA
this year. FY2004 appropriations for the IDEA infants and toddlers program are
7 For more information, see CRS Report RL30952, Head Start Issues in the 108th Congress,
by Melinda Gish.
8 For more information, see CRS Report RL31240, 21st Century Community Learning
Centers in P.L. 107-110: Background and Funding, by Gail McCallion.
9 For more information, see CRS Report RL30448, Even Start Family Literacy Programs:
Background and Reauthorization Issues, by Gail McCallion.
10 For more information, see CRS Report RL31273, Individuals with Disabilities Education
Act (IDEA): Early Childhood Programs (Section 619 and Part C), by Richard Apling.

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$444 million, and the funding level for the preschool grants program is $388 million
(including the rescissions for both programs).
Early Learning Fund/Early Learning Opportunities Act Program.
This HHS program (referred to by both names), authorized by the FY2001
Consolidated Appropriations Act (P.L. 106-554), provides grants to communities to
enhance school readiness for children under five, 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; FY2003 funding was set at $34 million (despite the President’s FY2003
budget proposal to eliminate the program) and for FY2004, P.L. 108-199 includes
$34 million for the Early Learning Fund.
Early Reading First. The Early Reading First program, authorized by the
Elementary and Secondary Education Act of 1965 (as amended), supports local
efforts to enhance the school readiness of young children — particularly those from
low-income families — through scientific research-based strategies and professional
development that are designed to enhance the verbal skills, phonological awareness,
letter knowledge, and pre-reading skills of preschool age children.11 The program
provides competitive grants to eligible local educational agencies (LEAs) and to
public or private organizations or agencies that are located in eligible LEAs. The
Department of Education may award grants for up to six years. In FY2004, this
program is funded at $94 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. For FY2004, $15 million was
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 the early child care profession. “Early child care” covers activities and
services provided for the education and care of children from birth through age five.
Under this program, borrowers who have earned a degree in early childhood
education, and work for two full years as a child care provider in a low-income
community, may have a portion of their federal program loan obligations forgiven.
FY2001 marked the first year that this program was funded, at $1 million — the
same amount appropriated for FY2004 (minus the rescission of 0.59%).
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 four years in duration are awarded
11 For more information, see CRS Report RL31241, Reading First and Early Reading First:
Background and Funding, by Gail McCallion.

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CRS-7
competitively to institutions of higher education, to either supplement existing child
care services, or to start a new program. Funding for FY2004, as included in the
Consolidated Appropriations Act, is $16 million (minus a rescission of 0.59%).
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.12
Beginning in tax year 2003, the Economic Growth and Tax Relief Reconciliation Act
of 2001 (P.L. 107-16) increases 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) in income until the rate reaches 20% for
taxpayers with incomes over $43,000. The current estimated revenue loss for
FY2004 is $3.1 billion, as determined by the Joint Committee on Taxation (JCT).
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.13 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. The
estimated revenue loss associated with this income exclusion is $800 million in
FY2004.
12 For more information, see CRS Report RS21466, Dependent Care: Current Tax Benefits
and Legislative Issues, by Christine Scott.
13 ibid.

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Table 1. Funding for Federal Child Care and Related Programs,
FY2000-FY2004
($ in millions)
Program
2000
2001
2002
2003
2004
CCDBG (discretionary portion)a
$1,183
$2,000
$2,100
$2,086i
$2,087l
CCDBG (entitlement portion)
2,367
2,567
2,717
2,717c 2,717c
b
b
b
b
b
TANFb
Child and Adult Care Food
1,690d
1,742d
1,831d
1,925d
2,019d
Social Services Block Grantsd
1,775e
1,725e
1,700e
1,700e
1,700e
Head Start
5,267f
6,200f
6,538f
6,667g
6,775f,l
21st Century Community Learning Centers
454
846
1,000
994i
999l
Even Start
150
250
250
248i
247l
IDEA Infants and Families
375
384
417
434i
444l
IDEA Preschool Grants
390
390
390
387i
388l
Early Learning Fund / ELOA
0
20
25
34i
34l
Early Reading First
n/a
n/a
75
75i
94l
Early Childhood Educator Prof. Develop.
0
10
15
15i
15l
Loan forgiveness for child care providers
0
1
1
1i
0
Child care Access Means Parents in
School
5
25
22j
16i
16l
Dependent Care Tax Credit
2,200h
2,500h
2,500h
3,200k
3,100k
Dependent Care Assistance Program
400h
500h
600h
800h
800h
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. HHS reports that states spent $1.6 billion in federal TANF funds for child
care within the TANF program in FY2002. Also, the FY2002 transfer from the FY2002 TANF
allotment to the CCDBG totaled $2.1 billion (representing 12% of the TANF allotment).
c. Funding for TANF and the mandatory portion of CCDBG funding for FY2003 was provided (at the
FY2002 rates) through a series of temporary extensions. For FY2004, funding is provided
through September 30, 2004 (P.L. 108-262).
d. Estimated obligations, Department of Agriculture.
e. Total SSBG appropriation amount shown. In FY2001 (most recent data available), $201 million
in SSBG expenditures were for child care.
f. In each of these years, $1.4 billion was advance appropriated for the following year.
g. Of the $6.668 billion, $5.268 billion was available for FY2003, and $1.4 billion became available
in FY2004. The $5.268 billion is exempt from rescissions (or “offsets”) included in P.L. 108-7.
However, the advance appropriation of $1.4 billion for FY2004, included in P.L. 108-7 is
subject to the 0.59% rescission included in the FY2004 appropriations law (P.L. 108-199).
h. Estimated revenue loss, Joint Committee on Taxation.
i. Amount reflects rescission included in P.L. 108-7. See text for precise amount of rescission.

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CRS-9
j. This amount excludes $3 million in unobligated funds transferred to the Program Administration
account to help offset a $3.7 million rescission in administrative and related expenses pursuant
to section 803 of the FY2002 Supplemental Appropriations Act.
k. Estimated revenue loss, Joint Committee on Taxation. Note: The Economic Growth and Tax Relief
Reconciliation Act of 2001 (EGTRRA) raised the limit on expenses allowed for the credit,
beginning in tax year 2003.
l. These discretionary programs were subject to an across-the-board rescission of 0.59% included in
P.L. 108-199. For the larger programs, the listed amount reflects the rescission, whereas for the
smaller programs, the use of rounding in the table masks the decrease in the actual
appropriation.
n/a not applicable, program not authorized prior to FY2002.
FY2003 Appropriations
For FY2003, Congress did not pass an individual bill making appropriations for
the Departments of Labor, HHS, and Education. Instead, with 11 of 13
appropriations bills yet to be completed at the close of the 2002 fiscal year
(September 30, 2002), followed by the end of the calendar year and Congressional
session, the new 108th Congress undertook the task of passing an omnibus
appropriations bill. They ultimately passed a consolidated resolution (H.J.Res.
2/H.Rept.108-10), and it was signed into law (P.L. 108-7) by the President on
February 20, 2003. Funding for the Departments of Labor, HHS, and Education was
included in Division G of the law, and those levels are reflected in the FY2003
column of Table 1.
Readers should be aware that the Consolidated Appropriations Resolution, 2003
(P.L. 108-7), included provisions (Division N, Title VI) to cut a percentage (0.65%)
of discretionary funding provided in specified Divisions (A-K), as an offset to
increased spending in the law. The FY2003 amounts shown in Table 1 reflect the
“across-the-board” cut, however, in some cases the rescinded portion is small enough
to not affect the rounded total. See program descriptions in the earlier text for the
precise amount of each rescission. Of the programs addressed in this report, only
Head Start received discretionary funding from this act that was specifically
exempted from the percentage reduction.14
In the period between the beginning of FY2003 and enactment of P.L. 108-7,
funding for programs lacking FY2003 appropriations measures was extended on a
temporary basis via a series of continuing resolutions (CRs). A total of nine CRs
were signed into law (the final being H.J.Res. 18/P.L. 108-5) before the Consolidated
Appropriations Resolution, 2003 (H.J.Res. 2) was enacted (P.L. 108-7).
FY2004: Comparing President Bush’s Budget Proposals to
the Final Appropriation Levels
President Bush released his Administration’s proposed budget for FY2004 on
February 3, 2003. A final appropriations bill was not signed into law (P.L. 108-199)
until January, 23, 2004, following a series of continuing resolutions. The omnibus
14 The provision to exempt Head Start from any across-the-board rescission was proposed
by Sen. Dodd as an amendment to H.J.Res. 2, and was accepted by the Senate.

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CRS-10
bill consolidates appropriations for multiple agencies, including the Departments of
HHS and Education, both of which administer child care-related programs. The
following is a summary of child care-related funding and initiatives proposed in the
FY2004 budget documents, and how those compare to enacted funding levels. Table
2 shows how the funding requested by the President for FY2004 compares to House
and Senate proposals, and ultimately, to the levels signed into law (P.L. 108-199).
CCDBG. The Administration’s FY2004 budget included a request for the same
rounded levels of CCDBG discretionary and mandatory (“entitlement”) funding as
were appropriated for FY2003 (and FY2002): $2.1 billion in discretionary funding,
and $2.717 billion in mandatory funding. Likewise, the budget request proposed that
the same set-asides be reserved from the discretionary funding total: $19 million for
child care resource and referral (of which $1 million would be dedicated for the Child
Care Aware hotline); $273 million for quality child care activities (of which $100
million would be dedicated to improving infant and toddler care); and $10 million
for child care research and evaluation.
The FY2004 appropriations law included the President’s requested level of
funding for the discretionary portion of the CCDBG, minus an across-the-board
rescission of 0.59% that applied to many discretionary programs in the bill. The
rounded figure remains $2.1 billion for FY2004, and that amount encompasses all the
set-asides requested by the President. (The mandatory portion of CCDBG funding
is not appropriated as part of the appropriations bill process; however, such funding
has been provided at the same rate as in FY2003 through March 31, 2004 under
separate legislation.)
Social Services Block Grant. The President’s FY2004 budget proposed to
continue funding the SSBG at its authorized level of $1.7 billion. The
Administration also proposed to maintain states’ authority to transfer up to 10% of
their TANF allotments to the SSBG if they so choose.
The FY2004 appropriations law provides the same level of funding for the
SSBG as was appropriated in FY2003, and as was requested by the President. The
transfer authority of 10% was also maintained.
Head Start. The Administration’s FY2004 budget request included a funding
increase for Head Start of $148 million, which would have taken its total to $6.816
billion (of which $1.4 billion would be advance appropriated for FY2005). The
budget request also included background information and proposals that were
expected to be addressed as part of the program’s anticipated reauthorization in 2004.
According to the FY2004 budget request, the Administration expects that in
FY2004 almost 923,000 children will receive Head Start services, including 62,000
in Early Head Start. The Administration contends that the increased funding,
coupled with the President’s proposal to allow states to administer Head Start in
coordination with other preschool programs, will enable the program to maintain
current service levels and increase enrollment by up to 10,500 children. The FY2004
budget explained that “in order to improve coordination between Head Start and
other federal, state, and local programs affecting pre-school children, the President
plans to move responsibility for managing the Head Start program from the

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CRS-11
Department of Health and Human Services to the Department of Education.”15 It
proposed that this transition begin in 2004, with the Department of Education
assuming full responsibility for the program in 2005.
As yet, the Administration’s transfer proposal has not been included in any
legislative proposals introduced this Congress, however, the House reauthorization
bill (H.R. 2210) would allow state administration for up to a maximum of eight
states. The bill reported from the Senate HELP Committee, S. 1940, contains no
such provision to allow state administration of Head Start.
The FY2004 consolidated appropriations law includes $6.816 billion, minus an
across-the-board rescission of 0.59%, which reduces the Head Start funding total to
approximately $6.775 billion.
21st Century Community Learning Centers. The Administration
requested $600 million for 21st CCLC, a decrease of $394 million from the FY2003
level. In the explanation of the request for less funding, the budget justification cited
“disappointing initial findings from a rigorous evaluation of the centers funded in the
program’s first three years” (1999-2001).
Despite the President’s initial request, Congress proposed (and the President
approved) funding the 21st CCLC program at a level of $1 billion. With the across-
the-board rescission taken into account, the appropriation for FY2004 is $999
million.
Even Start. The Administration requested $175 million for Even Start in
FY2004, which marked a decrease of $73 million from the FY2003 funding level.
The Department of Education’s budget justifications cited the results from national
evaluations of Even Start as support for decreasing the program’s funding level.
Furthermore, Even Start was among programs rated as “ineffective” by the Office of
Management and Budget’s new “Program Assessment Rating Tool” (PART).
According to the Administration, the PART identified several weaknesses in Even
Start, including lack of numerical targets to demonstrate progress toward short-term
and long-term goals, and also cited findings from the aforementioned national
evaluations.
The FY2004 appropriations law funds Even Start at a level of $248 million, less
the rescission, reducing it to $247 million, still more than the President’s requested
amount.
IDEA Grants for Infants and Families. The Administration requested
$447 million for the IDEA grants for infants and families in FY2004, which reflected
an increase of almost $13 million above the FY2003 funding level. The
Administration asserted that the proposed funding level would help states in meeting
rising costs associated with implementing statewide systems, expanding child-find
activities, serving larger numbers of children, increasing the focus on providing
15 See Fiscal Year 2004 Budget of the U.S. Government: Analytical Perspectives, p. 251.

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CRS-12
services in natural environments, and improving transition services for children with
disabilities and their families.
The FY2004 appropriation is slightly below the President’s request, as the
across-the-board rescission reduces the funding level to $444 million.
IDEA Preschool Grants. The Administration requested $390 million for the
IDEA preschool grants in FY2004 — the same rounded level as appropriated in
FY2003 prior to the rescission, which decreased funding by about $2.5 million. In
2002, the preschool grant program served 617,394 children aged three through five
years, and the Department of Education predicts that the number of children that are
served will increase by 2.5% from 2003 to 2004.
As with the IDEA grants for infants and families, the FY2004 appropriations
law funds the IDEA preschool grants at the level requested by the President — less
the 0.59% rescission — which brings it to a level of $388 million.
Early Learning Fund/Early Learning Opportunities Act Program.
The Administration requested no funds in its FY2004 budget for this program.
Instead, the President proposed to fund similar activities through the Early Reading
First program and the Early Childhood Education Professional Development Grant.
Although the House followed the President’s lead in proposing to eliminate the
Early Learning Opportunities Act program, the Senate favored funding it, and
ultimately, the FY2004 appropriations law included $34 million for this program.
Early Childhood Educator Professional Development. The
Administration requested $15 million for supporting Early Childhood Educator
Professional Development in FY2004, the same level provided in FY2003, prior to
the $98,000 rescission. According to budget justifications, the request would support
a new round of grants for use in helping local communities (especially those with
high concentrations of young children in poverty) to improve the knowledge and
skills of early childhood educators and care givers.
The FY2004 appropriations law includes $25 million for Early Childhood
Educator Professional Development, as requested by the President in his FY2004
budget.
Early Reading First. The Administration requested $100 million for the
Early Reading First program in FY2004, an increase of $25 million over the FY2003
funding level. The proposed increase would support efforts in additional low-income
communities to develop model programs for fostering the school readiness of young
children. As mentioned above, the Administration proposed to eliminate the Early
Learning Opportunities Act program (also known as the Early Learning Fund) to fund
similar programs through the Early Reading First program and the Early Childhood
Education Professional Development Grant (see above).

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CRS-13
The Early Reading First program received an increase in funding under the
FY2004 appropriations law, but not as much as was requested by the President. The
law includes $94 million for this program in FY2004.
Child Care Access Means Parents in School (CAMPIS). The
Administration requested $15 million in FY2004 for CAMPIS. This marks a
decrease of slightly over $1 million from the FY2003 appropriation level. The
Administration stated that the FY2004 funds would be used for the continuation of
grants first funded in FY2001 and FY2002. No funds were requested for new grant
awards.
The FY2004 appropriations law maintains CAMPIS funding at a level of $16
million — $1 million more than was requested by the President.
Loan Forgiveness for Child Care Providers. The Administration
requested no funding for this program in FY2004, and none was appropriated.
According to the Department of Education’s budget justifications, “funding at the
current level [$994,000 in FY2003] is not cost-effective to administer and does not
support a broad enough pool of recipients from which representative data on the
effectiveness of loan forgiveness can be assessed.” The same document notes that
the elimination of funding would not affect existing recipients, because funds have
already been obligated to support them through the five-year forgiveness period.

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CRS-14
Table 2. Comparison of FY2004 President’s Request and House
and Senate Proposals with Final FY2004 Appropriations
($ in millions)
FY2004
FY2004
House-
Senate-
FY2004 Omnibus
FY2004
passed
passed
H.R. 2673
President’s
bill H.R.
version
(H.Rept. 108-401) a
Program
request
2660
H.R. 2660
P.L. 108-199
CCDBG discretionary
$ 2,100
$2,100
$2,100
$2,087
CCDBG mandatory
2,717
— - b
— - b
— - b
SSBG
1,700
1,700
1,700
1,700
Head Start
6,816
6,816
6,816
6,775
21st CCLC
600
1,000
1,000
999
Even Start
175
250
175
247
IDEA infants and families
447
447
447
444
IDEA Preschool
390
390
390
388
Early Learning Fund
0
0
38
34
Early Childhood Educator
Professional Development
15
15
15
15
Early Reading First
100
100
85
94
Child Care Access Means
Parents in School (CAMPIS)
15
15
16
16
Loan Forgiveness for child
care providers
0
0
0
0
Source: Table prepared by the Congressional Research Service (CRS).
a. The omnibus appropriations law includes an across the board rescission of 0.59% that applies to
discretionary programs listed here (among others). The Department of Education has released
tables with the appropriation amounts reflecting the rescission, and that is reflected in the table,
as are the amounts included in the FY2005 HHS budget justifications, which reflect the
rescission. Please note, however, that in some cases the rescission amount is negligible due to
rounding used in this table.
b. The mandatory portion of CCDBG funding is not included in the Labor/HHS/ED or omnibus
appropriations bills. Like the TANF block grant, the mandatory child care funding has been
funded via additional legislative action in the form of temporary extensions. (Currently, funding
is provided through September 30, 2004 via P.L. 108-262.)
The final column of Table 2 shows the final child care and related program
funding amounts included in the omnibus as passed into law. These were the levels
agreed to in conference (H.Rept. 108-401). Previously, the House passed its version
of a Labor/HHS/ED FY2004 appropriations bill (H.R. 2660) on July 10, 2003, and
Table 2 shows the amounts that were included in that bill for comparison. Likewise,
the table shows the amounts that were included in the amended version of H.R. 2660
as passed by the Senate on September 10, 2003. All amounts can be compared to the
President’s requested funding levels, shown in the first column of numbers.

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President Bush’s FY2005 Budget Request
On February 2, 2004, President Bush released his budget request for FY2005.
For several programs, such as the CCDBG, SSBG, and 21stCCLC, the President
proposes to maintain funding at the same rounded level provided in FY2004. (In the
case of the CCDBG, the requested amount is $12 million more than the final FY2004
appropriation including the rescission.) Two child care-related programs are
proposed to be eliminated: Even Start, and the Early Learning Opportunities Act
program. Instead of continuing to fund these two programs, the Administration
proposes to redirect funds to Reading First and Early Reading First, which they
contend are more successful literacy programs. The budget proposes to increase
funding for Early Reading First by $38 million.
The Administration also proposes to increase funding for Head Start — by $169
million. The President’s FY2005 budget requests $6.9 billion for Head Start,
estimating that it will help provide 919,000 children with Head Start services
(including 62,000 children in Early Head Start) in FY2005. Of the $6.9 billion, the
Administration proposes to use $45 million to fund nine state pilot projects to
coordinate state preschool programs, federal child care grants, and Head Start into
a comprehensive system of early childhood programs. This coordination is proposed
in keeping with the Administration’s goal of improving preschool programs to help
ensure school readiness.
The Administration’s budget documents also state that in FY2005, Head Start
will contribute to the President’s Marriage and Healthy Family Development
Initiative by offering training for between 2,000 and 3,000 Head Start parents “in a
science-based curriculum designed to improve early language and literacy skill
outcomes.”
Table 3 provides the Administration’s proposed funding levels for child care
and related programs for FY2005 compared to the level of funding received for
FY2004.

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Table 3. Bush Administration’s FY2005 Funding Request
compared to FY2004 Funding for Select Programs
Difference (+/-)
between
President’s
President’s
FY2005 request
request
and FY2004
FY2005
Fundinga
Program
($ in millions)
($ in millions)
CCDBG discretionary
$2,100
+$12
CCDBG mandatory
2,717
same level
SSBG
1,700
same level
Head Start
6,944
+$169
21st CCLC
999
same level
Even Start
0
-$247
IDEA infants and families
467
+$23
IDEA Preschool
388
same level
Early Learning Fund
0
-$34
Early Childhood Educator Professional Development
15
same level
Early Reading First
132
+$38
Child Care Access Means Parents in School (CAMPIS)
16
same level
Source: Table prepared by the Congressional Research Service
a. The omnibus appropriations law (P.L. 108-199) includes an across-the-board rescission of 0.59%.
The differences shown in this column were calculated using the FY2004 appropriation levels
listed in the HHS FY2005 budget justification, and, in the case of Department of Education
programs, the tables released alongside the FY2005 budget request. In some cases, rounded
figures may mask slight changes in funding.
FY2005 Appropriations - In Process
On July 14, 2004, the House Committee on Appropriations approved and
ordered reported a bill (number not yet available) which would make FY2005
appropriations for the Departments of Labor, Health and Human Services, and
Education. As shown in Table 4, the bill proposes $2.1 billion (rounded) for the
discretionary funding portion of the Child Care and Development Block Grant, which
reflects the same level as proposed in FY2004, before an across-the-board cut
ultimately reduced FY2004 CCDBG funding by $12.4 million. Head Start funding
under this bill would be increased to $6.899 billion ($124 million more than the
FY2004 funding level, but less than the $6.944 billion requested in the President’s
FY2005 budget). FY2005 funding for the Social Services Block Grant would be
maintained at $1.7 billion, however the percentage of a state’s TANF block grant that
it may transfer to the SSBG would be reduced from 10% to 4.5%. The House
committee proposes to maintain Even Start funding at $247 million, as opposed to
the President, who proposes to eliminate the program in FY2005. Table 4 shows
funding amounts for other select child care-related programs.

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Table 4. FY2005 Proposed Funding Levels Compared to FY2004
Actual Appropriations for Select Programs
House
President’s
Committee
FY2004
request for
Proposal for
Program
Funding
FY2005
FY2005
CCDBG discretionary
$2,087
$2,100
$2,100
CCDBG mandatory
2,717
2,717
NA a
SSBG
1,700
1,700
1,700
Head Start
6,775
6,944
6,899
21st CCLC
999
999
999
Even Start
247
0
247
IDEA infants and families
444
467
467
IDEA Preschool
388
388
388
Early Learning Fund
34
0
0
Early Childhood Educator Professional
Development
15
15
15
Early Reading First
94
132
132
Child Care Access Means Parents in School
(CAMPIS)
16
16
16
Source: Table prepared by the Congressional Research Service
a. The mandatory portion of CCDBG funding is not included in the Labor/HHS/ED or omnibus
appropriations bills. Like the TANF block grant, the mandatory child care funding has been
funded via additional legislative action in the form of temporary extensions. (Currently, funding
is provided at the annual level of $2,717 million through September 30, 2004 via P.L. 108-262.)
Administration’s Early Childhood Initiative
Proposals included in the FY2004 and FY2005 budgets and other efforts already
underway reflect the goals outlined in Good Start, Grow Smart: The Bush
Administration’s Early Childhood Initiative, first announced by the President in
April of 2002. Good Start, Grow Smart focuses on three overall areas: 1)
strengthening Head Start; 2) partnering with states to improve early childhood
education; and 3) providing information to teachers, care givers, and parents. As
mentioned above, the President’s FY2004 budget proposed to transfer the Head Start
program to the Department of Education, as well as to provide states with the option
to administer the program. The Head Start reauthorization bill passed by the House
(H.R. 2210) does not include the proposal to transfer the program to ED, but does
include provisions to allow a maximum of eight states to administer the program
(provided they meet designated requirements).
The Administration has moved ahead with two additional efforts that are in
keeping with the Good Start, Grow Smart initiative, but that do not require legislative
changes to the Head Start Act. One is the Strategic Teacher Education Program, also
known as Project STEP, described by the Head Start Bureau as “a comprehensive,
multi-faceted, sequential professional development endeavor to ensure teachers use
research-based strategies to implement early and emergent literacy.” As part of this

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development, during the summer and fall of 2002, 3,000 Head Start staff and 100
state child care administrators received 32 hours of training in strategies to support
children’s emerging literacy. Those who were trained are expected to serve as
“mentor coaches” for staff within their respective Head Start programs.
The second effort is the development and implementation of a national reporting
system that can be used to assess the effectiveness of Head Start programs in
achieving successful outcomes for children in terms of school readiness —
particularly the areas of literacy and number knowledge. This national reporting
system was implemented starting in the Fall of 2003, and assesses Head Start four-
and five-year olds twice a year on educational performance measures — using
indicators that were included in legislation as part of the 1998 reauthorization of
Head Start.

Legislative Activity in the 108th Congress
Child Care and Welfare Reauthorization. Several bills pertaining
specifically to TANF and CCDBG reauthorization were introduced in the latter part
of the 107th Congress, however, none were passed into law. Therefore, the
reauthorizations of both programs remain on the agenda in the 108th Congress. The
House has passed reauthorization bills for both TANF/CCDBG (H.R. 4) and Head
Start (H.R. 2210), whereas in the Senate, comparable bills: H.R. 4
(TANF/mandatory child care funding), S. 880 (CCDBG), and S. 1940 (Head Start)
have been reported out of committee, but have yet to clear the floor. H.R. 4
(TANF/mandatory child care) was on the floor for consideration March 29-April 1,
and one amendment (Snowe) to increase mandatory child care funding was passed
(78-20); however, it is unclear when or if the Senate will resume consideration of the
bill. Following are brief summaries of the child care provisions included in bills that
have been introduced in the House and Senate thus far this Congress.
S. 880, The Caring for Children Act of 2003 (Reported by Senate
HELP Committee, April 2, 2003). S. 880 was approved in committee with
bipartisan support. Title I of the bill would amend and reauthorize the Child Care
and Development Block Grant (CCDBG). It includes provisions that would
authorize discretionary funding at $2.3 billion in FY2004, increasing by $200 million
increments to a level of $3.1 billion in FY2008; increase the percentage of funds that
must be used for quality activities (newly specified in the proposal) from 4% to 6%;
instruct states to use not less than 70% of funds remaining after quality and
administrative set-asides for direct services (as defined by states); add three new
goals to the act: 1) improving the quality of child care, 2) promoting school
preparedness through developmentally and age-appropriate activities in child care,
and 3) promoting parental and family involvement in the education of young children
in child care settings; eliminate the federal eligibility maximum limit of 85% of state
median income (SMI); require states to describe in their state plans how they will
coordinate with other early childhood programs such as Head Start, state pre-
kindergarten, and IDEA to expand accessibility to and continuity of care; require
states to conduct statistically valid market rate surveys within two years preceding
their state plans, and to set rates in accordance with the results (without reducing the
number of children served); expand data collection requirements; and require states
beginning in FY2004 to submit a plan addressing the quality of child care services

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CRS-19
provided. Title II of the bill contains provisions to enhance security at child care
centers in federal facilities, and Title III establishes a small business child care grant
program, through which competitive grants would be awarded to states for
establishment and operation of employer-operated child care programs.
S. 1443, by Senator Carper (introduced July 22, 2003). The Building
on Welfare Success Act of 2003 (S. 1443) is a welfare reauthorization bill that
includes an extension and increase in mandatory funding for the Child Care and
Development Fund (CCDF). The bill would amend Sec. 418 of the Social Security
Act to provide an additional $6 billion above current funding levels over the next five
years. In FY2004, $3.467 billion would be provided for the mandatory portion of the
CCDF, rising to $4.717 billion in FY2008.
H.R. 4, by Representative Pryce (introduced February 4, 2003,
passed the House February 13, 2003). The Personal Responsibility, Work,
and Family Promotion Act of 2003, H.R. 4, mirrored the welfare and child care
reauthorization bill passed by the House last Congress,16 with respect to the bill’s
child care provisions. H.R. 4 would set mandatory child care funding at $2.917
billion in each of FY2004-2008 (for an increase of $1 billion over five years above
current funding). The authorized level for the discretionary portion of Child Care
and Development Block Grant (CCDBG) funding would be increased by $200
million annually beginning in FY2004 ($2.3 billion), reaching $3.1 billion in
FY2008.
This bill would also increase the child care 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. Lastly, the
bill would require that aggregated statistics on child care supply, demand, and quality
be included in biennial reports to Congress.
H.R. 4 (Senate Finance Committee Version) Personal Responsibility
and Individual Development for Everyone (Reported by Senate Finance
Committee, October 3, 2003). The Senate Finance Committee reported a
substitute version of welfare reauthorization bill H.R. 4, entitled PRIDE, on October
3, 2003. The legislation would increase mandatory child care funding by $1 billion
over five years above the current funding level of $2.717 billion a year. This is the
same level of child care funding proposed in the House-passed version of H.R. 4.
During the mark-up of PRIDE, Senator Snowe indicated plans to offer an amendment
for a greater child care increase when the bill is brought to the Senate floor (see
below).
16 For more detailed information on previous legislative activity during the 107th Congress,
see CRS Report RL30944, Child Care Issues in the 107th Congress, by Melinda Gish.

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Snowe Amendment to H.R. 4 (approved March 30, 2004; 78-20).
S.Amdt. 2937 would provide an additional $6 billion (over five years) in mandatory
child care funding, above the $1 billion ($200 million in each of five years) provided
in the underlying bill, H.R. 4. The additional $6 billion would be allotted among the
years as follows: $700 million in FY2005; $1 billion in FY2006; $1.2 billion in
FY2007; $1.4 billion in FY2008; and $1.7 billion in FY2009.
S. 5, by Senator Talent (introduced February 14, 2003). The
Compassion and Personal Responsibility Act, S. 5, contains identical child care
provisions (Title II of the bill) to those included in H.R. 4 (see above).
S. 261, by Senator Bingaman (introduced January 30, 2003). The
Children First Act of 2003, S. 261, includes provisions that would increase
mandatory funding for child care ($3.967 billion in FY2004, rising to $5.967 billion
in FY2008). In addition, it would increase the child care quality set-aside from 4%
to 10%. The bill would also amend Title IV-A of the Social Security Act to exclude
child care assistance from the determination of the five-year limit on TANF
assistance.
Comprehensive Child Care Legislation. The largest and most
comprehensive child care-related bill introduced thus far (this Congress) is the Leave
No Child Behind Act of 2003 (S. 448/H.R. 936), introduced by Senator Dodd and
Representative George Miller. The bill is a reintroduced version of last year’s
legislation, and features proposals that would: increase the CCDBG discretionary
funding authorization to $3.5 billion in FY2004, rising to over $20 billion for
FY2013; increase the Head Start authorized funding level to $7 billion in FY2004,
rising to $20 billion in FY2013; allocate 5% of total CCDBG funds in FY2004
(rising to 10% in 2009) to improve and expand infant child care; expand the set-aside
for Early Head Start; require states to pay child care providers at least the 100th
percentile of the market rate for care; create a program to improve wages and skills
of child care staff; increase the CCDBG quality set-aside from 4% to 12%; and
require all providers receiving CCDBG, or who work in programs receiving CCDBG
funding, to have training in early childhood development.
Another broad-reaching bill, the Right Start Act of 2003 (S. 18), was introduced
by Senator Daschle, and includes increased funding authorization for Head Start
($7.5 billion in FY2004, rising to $10.5 billion in FY2008) as well as increased
mandatory funding for child care ($3.7 billion in FY2004, rising to $6.7 billion in
FY2008). This bill would also increase the child care quality set-aside from 4% to
10%.
Other Child Care-Related Legislation. Other bills that have been
introduced in the 108th Congress include H.R. 895 (McCarthy), a bill to provide for
the construction and renovation of child care facilities; S. 668 (Reed), a bill to
improve quality and access to CCDF child care by increasing provider payment rates;
S. 388 (Roberts), a bill to expand the dependent care tax credit and the dependent
care assistance program; S. 864 (Edwards), a bill to provide child care assistance
grants to members of the military in active duty; H.R. 3007 (Kucinich) a bill to assist
states in establishing universal pre-K; S. 2654 (Dodd) a bill to create “kindergarten
plus” programs via competitive grants to states; H.R. 4296 (Pomeroy), a bill to

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authorize the CAMPIS program at higher levels and to raise the minimum grant
level; and S. 405 (DeWine), a bill to provide loan forgiveness for preschool teachers
in a variety of educational and child care settings. Also pertaining to loan
forgiveness is S. 140 (Feinstein), which would extend loan forgiveness to Head Start
teachers for certain types of loans.
Hearings
! On July 22, 2003, the Senate Committee on Health, Education,
Labor, and Pensions held a hearing, “Reauthorizing Head Start:
Preparing Children to Succeed in School and in Life.”
! On March 12, 2003, the Senate Finance Committee held a hearing,
“Welfare Reform: Building on Success,” which featured discussion
of child care funding in the context of welfare reform.
! On March 6, 2003, the House Education and Workforce
Committee’s Subcommittee on Education Reform held a hearing,
“Head Start: Working Towards Improved Results for Children.”
Testimony can be accessed at [http://edworkforce.house.gov/
hearings/108th/edr/headstart030603/wl030603.htm].

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