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Early Childhood Care and Education
Programs: Background and Funding
Karen E. Lynch
Analyst in Social Policy
Gail McCallion
Specialist in Social Policy
August 19, 2009
Congressional Research Service
7-5700
www.crs.gov
R40212
CRS Report for Congress
P
repared for Members and Committees of Congress
c11173008
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Early Childhood Care and Education Programs: Background and Funding
Summary
Federal support for child care and education comes in many forms, ranging from grant programs
to tax provisions. Some programs serve as specifically dedicated funding sources for child care
services (e.g., the Child Care and Development Block Grant, or CCDBG) or education programs
(e.g., the Preschool Grants Program and Infants and Toddlers Program funded under the
Individuals with Disabilities Education Act). For other programs (e.g., Temporary Assistance for
Needy Families, or TANF), child care is just one of many purposes for which funds may be used.
In many cases, federal programs target low-income families in need of child care, but in the case
of certain tax provisions, the benefits reach middle- and upper-income families as well. This
report provides an overview of federal child care, early education, and related programs, and their
current funding statuses.
Funding for many child care, early education, and related programs is provided each year as part
of the annual appropriations process for the Departments of Health and Human Services (HHS),
and Education (ED). This report briefly summarizes the status of FY2010 appropriations for early
childhood programs and the FY2010 President’s Budget released on May 7, 2009, by the Barack
H. Obama Administration. In addition, this report discusses FY2009 funding developments. The
American Recovery and Reinvestment Act (ARRA, P.L. 111-5), signed into law by President
Obama on February 17, 2009, bolstered appropriations for several existing streams of federal
funding for early childhood care and education programs. The ARRA was rapidly followed by the
FY2009 Omnibus Appropriations Act (P.L. 111-8), which President Obama signed on March 11,
2009. Combined, the overall appropriations provided for early childhood care and education
programs through these two pieces of legislation exceed the FY2009 funding requested for these
programs by President George W. Bush. With few exceptions, President Bush’s FY2009 request
would have maintained funding for programs discussed in this report at the same level provided
in FY2008.
Several early childhood care and education programs have funding authorizations that have
already expired or are due to expire soon. The Child Care and Development Block Grant, for
instance, expired in FY2002. However, it has continued to be funded through appropriations
legislation. Authorization for many programs under the No Child Left Behind Act expired at the
end of FY2008, though they have also continued to receive funding. Head Start, however, was
reauthorized by the 110th Congress in legislation that was signed into law (P.L. 110-134) by the
President on December 12, 2007.
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Early Childhood Care and Education Programs: Background and Funding
Contents
Introduction ................................................................................................................................ 1
FY2010 Funding Developments .................................................................................................. 1
FY2010 Appropriations......................................................................................................... 1
FY2010 Budget Resolution ................................................................................................... 2
Barack H. Obama Administration FY2010 Budget ................................................................ 2
FY2009 Funding Developments .................................................................................................. 4
George W. Bush Administration FY2009 Budget................................................................... 4
FY2009 Appropriations......................................................................................................... 4
Overview of Federal Early Childhood Care and Education Programs and Related Tax
Provisions ................................................................................................................................ 6
Current Programs .................................................................................................................. 8
Child Care and Development Block Grant (CCDBG) ...................................................... 8
Temporary Assistance for Needy Families (TANF)........................................................ 10
Child and Adult Care Food Program (CACFP) .............................................................. 10
Social Services Block Grant (SSBG)............................................................................. 10
Head Start ..................................................................................................................... 11
Elementary and Secondary Education Act (ESEA) Title I, Part A................................... 12
Early Reading First ....................................................................................................... 12
The William F. Goodling Even Start Family Literacy Programs (Even Start) ................. 13
Individuals with Disabilities Education Act (IDEA) Programs ....................................... 13
Child Care Access Means Parents in School (CAMPIS) ................................................ 14
Tax Provisions .................................................................................................................... 14
Dependent Care Tax Credit (DCTC).............................................................................. 14
Dependent Care Assistance Program (DCAP)................................................................ 15
Programs Funded in Recent Years, But Not Currently Funded ............................................. 15
Early Childhood Educator Professional Development.................................................... 15
Early Learning Fund/Early Learning Opportunities Act Program................................... 15
Tables
Table 1. FY2010 Appropriations: Funding Levels in President Obama’s Budget Request,
as well as the House-Passed and Senate Appropriations Committee-Passed L-HHS-ED
Appropriations Bills for Early Childhood Care and Education Programs .................................. 3
Table 2. FY2009 Appropriations: Funding Levels in President George W. Bush’s FY2009
Request and Subsequent Congressional Actions ....................................................................... 5
Table 3. Funding for Federal Early Childhood Care, Education, and Related Programs,
FY2004-FY2009...................................................................................................................... 6
Contacts
Author Contact Information ...................................................................................................... 16
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Early Childhood Care and Education Programs: Background and Funding
Introduction
Several federal programs support child care, education, 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. This report includes an update on FY2010 funding
developments (see Table 1) and the status of FY2009 appropriations (summarized in Table 2) in
the early childhood care and education arena. This report also provides a six-year funding history
(see Table 3) and brief descriptions of the various related programs and tax provisions. In many
cases, other Congressional Research Service (CRS) reports are referenced as sources for more
detailed information about individual programs.
Early childhood care and education programs due to be reauthorized in the 111th Congress include
the Child Care and Development Block Grant (CCDBG) and programs under the No Child Left
Behind Act (NCLBA). All of these programs have continued to receive funding. The NCLBA
programs include those funded under the Elementary and Secondary Education Act (ESEA) Title
I, Part A, as well as Early Reading First and Even Start. Programs for young children contained in
the Individuals with Disabilities Education Act (IDEA), i.e., the Preschool Grants program and
the Infants and Toddlers program, are not up for reauthorization in the 111th Congress. This report
does not attempt to cover all issues connected with each of those reauthorizations.
FY2010 Funding Developments
FY2010 Appropriations
The full Senate has yet to pass a bill providing FY2010 appropriations for the Departments of
Labor, Health and Human Services, and Education (L-HHS-ED). However, on August 4, 2009,
the Senate Appropriations Committee reported a bill (S.Rept. 111-66, H.R. 3293) that would
provide L-HHS-ED appropriations for FY2010 (see Table 1). The Senate Appropriations
Committee-passed bill would maintain level funding for most early childhood care and education
programs compared to the funding they received under the FY2009 Omnibus Appropriations Act
(P.L. 111-8). However, compared to FY2009 Omnibus funding levels, the bill would provide a
modest increase to Head Start (+$122 million) and would eliminate funding for Even Start (-$66
million). Both the increase to Head Start and the elimination of Even Start align with the Obama
Administration’s FY2010 budget request. The Senate Appropriations Committee-passed bill
would also eliminate a separate authorization for the Early Reading First program. It would
instead add early reading programs to an expanded Striving Readers Program; the expanded
program would serve children from preschool through adolescence. The Senate Appropriations
Committee recommended funding of $262.9 million for the program in FY2010, an increase of
$227.5 million over FY2009 Omnibus funding levels.
On July 24, 2009, the House passed its FY2010 L-HHS-ED appropriations bill, H.R. 3293 (see
Table 1). The House-passed bill would maintain level funding for most early childhood care and
education programs compared to the funding they received under the FY2009 Omnibus
Appropriations Act (P.L. 111-8), but would provide modest increases to three programs compared
to their FY2009 Omnibus funding levels: Head Start (+$122 million), Early Reading First (+$15
million), and Child Care Access Means Parents in School (+$1 million). In contrast to the
Administration and Senate Appropriations Committee’s proposal to eliminate the Even Start
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Early Childhood Care and Education Programs: Background and Funding
Program, the House would continue the program with level funding ($66 million) for FY2010.
Prior to consideration by the full House, this bill was reported by the House Committee on
Appropriations on July 22, 2009 (H.Rept. 111-220).
FY2010 Budget Resolution
On April 2, 2009, the House and Senate each passed versions of a concurrent resolution on the
FY2010 budget (H.Con.Res. 85 and S.Con.Res. 13). After resolving the differences between their
respective versions, the House and Senate agreed on a conference report to accompany the
FY2010 budget resolution (S.Con.Res. 13, H.Rept. 111-89) on April 29. The conference
agreement on the budget resolution does not specify funding levels for early childhood care and
education programs. However, it does include deficit neutral reserve funds for home visiting
programs in both the House and the Senate, and a deficit neutral reserve fund for the
enhancement of the dependent care tax credit in the Senate only.1
Barack H. Obama Administration FY2010 Budget
Prior to Congress’ work on the FY2010 budget resolution, the Obama Administration released an
outline of its FY2010 budget on February 26, 2009.2 More detailed budget proposals were later
released by the Obama Administration on May 7 and 12. As displayed in Table 1, the FY2010
President’s Budget calls for most of the existing early childhood programs to maintain the same
level of funding that they received in FY2009; only three of the existing discretionary programs
would receive an increase or decrease in funding levels. Specifically, the budget proposes to
eliminate funding for Even Start (-$66 million) and to increase funding for Head Start (+$122
million) and Early Reading First (+$50 million).
In addition, the FY2010 President’s Budget calls for the creation of several new programs to
support the Obama Administration’s “Zero to Five” agenda for early childhood care and
education. These new programs include
• Home Visitation: Capped mandatory funds would provide matching formula
grants to states, territories, and tribes to support the establishment and expansion
of evidence-based home visitation services for low-income mothers and pregnant
women. The initiative would give priority to models that have been rigorously
evaluated and shown to have positive effects on critical outcomes for families
and children. The program would also include a set-aside of not less than 5% for
training and technical assistance, research and evaluation, monitoring, and
administrative support.
• Title I Early Childhood Grants: Discretionary funds would be awarded by
formula to states, who would use funds to provide matching grants to Title I
Local Education Agencies (LEAs) that agree to invest American Recovery and
Reinvestment Act (P.L. 111-5) funds in early childhood education. This program
would provide one year of funding to support the planning and implementation of
1 For more information on how deficit neutral reserve funds operate, see CRS Report RL33122, Congressional Budget
Resolutions: Revisions and Adjustments, by Robert Keith.
2 For more information about the FY2010 budget cycle, see CRS Report R40558, Major FY2010 Budget Proposals, by
D. Andrew Austin.
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early childhood education initiatives. The Administration proposes to continue
funding these initiatives in subsequent years through the Early Learning
Challenge Fund.
• Early Learning Challenge Fund: Discretionary funds would provide
competitive grants to states for development of state plans and statewide
infrastructure of integrated early learning supports and services for children from
birth through age five in order to raise the quality of publicly funded early
learning programs and improve school readiness among children.
In addition, the Obama Administration’s Budget also calls for discretionary funds to support
Promise Neighborhoods and Teacher Quality Partnerships. Neither of these initiatives would
focus solely on early childhood efforts. However, it is possible that either, or both, of these
programs may support some activities related to early childhood care and education.
Table 1 displays the status of FY2010 appropriations, including the FY2010 budget request from
the Obama Administration and the funding levels included in the House-passed and Senate
Appropriations Committee-Passed appropriations bills for FY2010.
Table 1. FY2010 Appropriations: Funding Levels in President Obama’s Budget
Request, as well as the House-Passed and Senate Appropriations Committee-Passed
L-HHS-ED Appropriations Bills for Early Childhood Care and Education Programs
($ in millions)
H.R. 3293
Senate
FY2010
H.R. 3293
Appropriations
Program/Provision
President’s
House-
Committee-
(Federal Admin. Agency)
Request
Passed Bill
Passed Bill
Existing Programs
Child Care and Development Block Grant—discretionary
2,127 2,127 2,127
portion (HHS)
Social Services Block Grant (HHS)
1,700
1,700
1,700
Head Start (HHS)
7,235
7,235
7,235
Early Reading First (ED)
163
128
0
Even Start (ED)
0
66
0
Individuals with Disabilities Education Act (IDEA)—Infants and
439 439 439
Families (ED)
Individuals with Disabilities Education Act (IDEA)—Preschool
374 374 374
Grants (ED)
Child Care Access Means Parents in School (ED)
16
17
16
Newly Proposed Programs for FY2010
Home Visitation—mandatory funding (HHS)
124
0
0
Title I Early Childhood Grants (ED)
500
0
0
Early Learning Chal enge Fund (ED)
300
0
0
Source: Prepared by the Congressional Research Service (CRS).
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Notes: The Elementary and Secondary Education Act (ESEA) Title I, Part A (ED) is not included here because it
primarily serves school-age disadvantaged children, and because reliable data on expenditures for preschoolers
are not available. However, the U.S. Department of Education has estimated that approximately 2% of Title I,
Part A funds are used to support preschool services. These preschool services are not separately funded under
Title I, Part A, but rather are spent for this purpose at the discretion of local educational agencies (LEAs).
Preschool spending data are not col ected. The Obama Administration’s FY2010 Budget requests a total of
$12.992 billion for ESEA, Title I, Part A funding in FY2010. The House-passed appropriations bill, H.R. 3293,
would fund ESEA, Title I, Part A at $14.5 billion. The Senate Appropriations Committee-passed bill, H.R. 3293,
would fund ESEA, Title I, Part A at $13.792 billion.
FY2009 Funding Developments
George W. Bush Administration FY2009 Budget
President George W. Bush released his proposed budget for FY2009 on February 4, 2008.
President Bush’s funding request for most of the early childhood care and education programs
discussed in this report mirrored the funding levels provided in FY2008. Exceptions included a
proposed $149 million increase for the Head Start program, and the elimination of the Social
Services Block Grant (SSBG). The FY2009 President’s Budget originally called for a $500
million decrease for SSBG in FY2009, however the Bush Administration subsequently submitted
two budget amendments to Congress (H.Doc. 110-123 and H.Doc. 110-141), which ultimately
reduced the President’s proposed FY2009 SSBG funding level to $0. In addition to the proposed
cut for FY2009, the President’s Budget also proposed a plan to permanently eliminate the SSBG
beginning in FY2010. For FY2009, the Administration again proposed to eliminate the Even Start
program. The Early Childhood Educator Professional Development Program received no funding
in FY2008 or FY2009. (The Obama Administration proposes no funding for FY2010.)
FY2009 Appropriations
On February 17, 2009, President Obama signed into law the American Recovery and
Reinvestment Act (ARRA, P.L. 111-5), which bolstered appropriations for several existing
streams of federal funding for early childhood care and education programs, including the Child
Care and Development Block Grant (CCDBG), Head Start, and two programs under the
Individuals with Disabilities Education Act (IDEA). The ARRA was followed shortly by the
FY2009 Omnibus Appropriations Act (P.L. 111-8), which President Obama signed on March 11,
2009. Combined, the overall FY2009 appropriations provided for early childhood care and
education programs through these two pieces of legislation exceeded the FY2009 funding
requested for these programs by President George W. Bush. With few exceptions, President
Bush’s FY2009 request would have maintained funding for programs discussed in this report at
the same level provided in FY2008.
Prior to the passage of the FY2009 Omnibus Appropriations Act, Congress had passed two
continuing resolutions (CRs) for FY2009 (P.L. 110-329 and P.L. 111-6). Both CRs maintained
prior fiscal year funding levels, which were established in the Consolidated Appropriations Act of
2008 (P.L. 110-161). The FY2008 appropriation had applied a cut of 1.74% to all of the
discretionary funding streams discussed in this report. This across-the-board reduction was
maintained under the FY2009 CRs. The first of the two CRs (P.L. 110-329) was signed into law
by President Bush on September 30, 2008, and remained in effect until March 6, 2009. The
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Early Childhood Care and Education Programs: Background and Funding
second CR (P.L. 111-6) was signed into law by President Obama on March 6, 2009, and lasted
until it was superseded by the FY2009 Omnibus on March 11, 2009.
During the summer of 2008, well before the passage of the FY2009 Omnibus, both the House and
Senate had started the FY2009 process. On July 8, 2008, the Senate Committee on Appropriations
reported S. 3230 (S.Rept. 110-410), its proposal for FY2009 appropriations for the Departments
of Labor, Health and Human Services, Education, and Related Agencies (L-HHS-ED). On June
19, 2008, the House L-HHS-ED Appropriations Subcommittee marked up a draft bill and
approved it for consideration by the full committee. The House Committee on Appropriations
convened a markup session on its draft bill on June 26, 2008, but adjourned before final action.
Table 2. FY2009 Appropriations: Funding Levels in President George W. Bush’s
FY2009 Request and Subsequent Congressional Actions
($ in millions)
Senate
House
American
Appropriations Appropriations
Recovery and
FY2009
President’s
Committee-
LHE
Reinvestment
Omnibus
Request
Passed Bill
Subcommittee-
Act
Appropriations
Program
FY2009
(S. 3230)
Passed Bill
(P.L. 111-5)
(P.L. 111-8)
CCDBG—
discretionary
2,062 2,137 2,112
2,000 2,127
portion (HHS)
Social Services
Block Grant (HHS)
0a 1,700 1,700
0 1,700
Head Start (HHS)
7,027
7,105b 7,120 2,100 7,113c
Even Start (ED)
0
66
66
0
66
IDEA—Infants and
Families (ED)
436 443 436
500 439
IDEA—Preschool
(ED)
374 374 374
400 374
Early Reading First
(ED)
113 113 113
0 113
Child Care Access
Means Parents in
16 16 17
0 16
School (CAMPIS)
(ED)
Source: Prepared by the Congressional Research Service (CRS).
a. The Bush Administration’s FY2009 Budget originally proposed a funding level of $1.2 billion for the SSBG in
FY2009. This amount was subsequently reduced to $0, as a result of two budget amendments (H.Doc. 110-
123 and H.Doc. 110-141) submitted to Congress by the Bush Administration during June and August 2008.
b. The Head Start appropriation includes advance funding for the next fiscal year. Of the $7.105 billion
appropriated in S. 3230 in FY2009, a total of $1.389 billion would not become available until the beginning
of FY2010.
c. The FY2009 Omnibus (P.L. 111-8) did not continue the prior practice of providing advance appropriations
in the Head Start appropriation. As a result, the full $7.113 billion included in the Omnibus must be
obligated in FY2009. In addition to funds from the Omnibus, FY2009 funding for Head Start also includes
$1.389 billion in funds that were advance appropriated to this account by the Consolidated Appropriations
Act of 2008 (P.L. 110-161). Combined, these appropriations make $8.502 billion available in FY2009.
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Overview of Federal Early Childhood Care and
Education Programs and Related Tax Provisions
Table 3 provides historical funding levels for current early childhood care and education
programs (and related tax provisions) from FY2004 through FY2009. Brief descriptions of the
programs and provisions highlight the breadth of variation in purpose, target population, and
funding for these many early childhood initiatives.
Table 3. Funding for Federal Early Childhood Care, Education, and Related
Programs, FY2004-FY2009
(nominal dollars in millions)
Program/Provision
(Federal Admin.
Agency)
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Programs
CCDBG—
discretionary portion
2,087a 2,083b 2,062c 2,062 2,062d 2,127e
(HHS)
CCDBG—
mandatory portion
2,717f 2,717f 2,917g 2,917g 2,917g 2,917g
(HHS)
TANF (HHS)
fh
fh
h
h
h
h
Child and Adult Care
Food (USDA)
2,056i 2,134i 2,141i 2,172i 2,245i 2,514j
Social Services Block
Grant (HHS)
1,700k 1,700k 1,700kl 1,700k 1,700km 1,700k
Head Start (HHS)
6,775an 6,843bn 6,786co 6,888p 6,878dq 7,113r
Early Reading First
(ED)
94a 104b 103c 118s 113d 113
Even Start (ED)
247a 225b 99c 82t 66d 66
IDEA Infants and
Families (ED)
444a 441b 436c 436t 436d 439u
IDEA Preschool
Grants (ED)
388a 385b 381c 381t 374d 374v
Child Care Access
Means Parents in
16a 16b 16c 16t 16d 16
School (ED)
Tax Provisions
Dependent Care Tax
Credit (Treasury)
3,207w 3,338w 3,462w 3,487w 3,020x 3,670x
Dependent Care
Assistance Program
y
y
600w 1,170z 940x 1,240x
(Treasury)
Source: Prepared by the Congressional Research Service (CRS).
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Notes: This table displays currently funded federal programs and tax provisions only. Programs that were
funded in recent years but no longer receive funding are not shown. Two such programs include the U.S.
Department of Education’s Early Childhood Educator Professional Development Program (funded at roughly $15
million from FY2004 to FY2007, but not funded since) and the Early Learning Fund from the Early Learning
Opportunities Act, administered by the U.S. Department of Health and Human Services (funded at $34 million in
FY2004, $36 million in FY2005, and not funded since). Also of note, the Elementary and Secondary Education
Act (ESEA) Title I, Part A (ED) is not included here because it primarily serves school-age disadvantaged children,
and because reliable data on expenditures for preschoolers are not available. However, the U.S. Department of
Education has estimated that approximately 2% of Title I, Part A funds are used to support preschool services.
These preschool services are not separately funded under Title I, Part A, but rather are spent for this purpose at
the discretion of local educational agencies (LEAs). Preschool spending data are not collected. Total ESEA Title I,
Part A funding was $14.49 billion in FY2009; $14.03 billion in FY2008; $12.84 billion in FY2007; $12.74 billion in
FY2006; $12.74 billion in FY2005; and $12.34 billion in FY2004.
a. Discretionary programs included in Table 3 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.
b. The omnibus appropriations law (P.L. 108-447) included an across-the-board rescission of 0.8% for the
discretionary programs included in Table 3. The numbers in the table reflect the offset. (For the smal er
programs, the use of rounding in the table masks the decrease in the actual appropriation.)
c. This amount reflects the 1% across-the-board rescission that applies to discretionary programs included in
this appropriations act (P.L. 109-149).
d. This amount reflects the 1.747% across-the-board rescission that applies under P.L. 110-161.
e. In addition to the $2.127 billion appropriated in the FY2009 Omnibus Appropriations Act (P.L. 111-8), the
American Recovery and Reinvestment Act (P.L. 111-5) provided an additional $2.0 billion in discretionary
funding for the CCDBG. In addition, states transferred almost $2.1 billion of their FY2007 TANF allotments
to the CCDBG, representing about 12% of the total FY2007 TANF al otment.
f.
Funding for TANF and the mandatory portion of CCDBG funding for FY2004 and FY2005 was provided (at
the FY2002 rates) through a series of temporary extensions.
g. P.L. 109-171 provides $2.917 billion for mandatory child care funding in each of fiscal years 2006-2010.
h. TANF funds ($16.5 billion annually) may be used for child care, but are not specifically appropriated as such.
HHS reports that states spent $1.17 billion in federal TANF funds for child care within the TANF program
in FY2007 (the most recent data available).
i.
Obligations (actual for 2002-2008), Department of Agriculture.
j.
This number represents estimated obligations from the Congressional Budget Office, as of January 29, 2009,
and may be subject to change.
k. Total SSBG appropriation amount shown (excluding supplementals), though not al SSBG funds go toward
early childhood care and education activities. In FY2007 (the most recent expenditure data available), $389
million in SSBG expenditures went toward child care services. In FY2006, the comparable figure was $220
million; in FY2005, it was $241 million; and in FY2004, it was $254 million.
l.
In addition to the $1.7 billion appropriated in the Labor, HHS, Education law (P.L. 109-149), the Defense
Appropriations Act (P.L. 109-148) provided $550 million in supplemental SSBG funds, specifically targeted
for needs arising from the Gulf Coast Hurricanes of 2005.
m. In addition to the $1.7 billion appropriated in the Consolidated Appropriations Act of 2008 (P.L. 110-161),
the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 (P.L. 110-329)
provided $600 million in supplemental SSBG funds, specifically targeted toward needs arising from major
disasters of 2008 as well as Hurricanes Katrina and Rita.
n. In FY2004, $1.4 billion was advance appropriated for the following year. In FY2005, $1.389 billion of the
$6.843 billion was advance appropriated for FY2006.
o. Of the $6.786 billion (post-rescission), $1.386 billion became available in FY2007. In addition to the amount
shown in the table, the Defense Appropriations Act (P.L. 109-148) provided $90 million in additional
funding for Head Start, to be used specifically for grantees serving children displaced by Gulf Coast
hurricanes of 2005, and to help with costs of renovating Head Start facilities affected by the storms.
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p. Of the $6.888 billion, $1.365 billion became available in FY2008.
q. Of the $6.878, $1.389 billion became available in FY2009.
r. In addition to the $7.113 billion appropriated in the FY2009 Omnibus Appropriations Act (P.L. 111-8), the
American Recovery and Reinvestment Act (P.L. 111-5) provided an additional $2.1 billion for Head Start (of
which $1.1 billion was explicitly directed toward Early Head Start expansion). Notably, the FY2009
Omnibus (P.L. 111-8) did not continue the previous practice of providing advance appropriations for the
next fiscal year in the Head Start appropriation. As a result, the full $7.113 billion included in the Omnibus
must be obligated in FY2009. In addition to funds from the Omnibus, FY2009 funding for Head Start also
includes $1.389 billion in funds that were advance appropriated to this account by the Consolidated
Appropriations Act of 2008 (P.L. 110-161).
s. Figures taken from the Department of Education table showing “FY2007 CR Operating levels.” The fourth
and final continuing resolution (CR) making appropriations for FY2007 was enacted February 15, 2007 (P.L.
110-5).
t. Figure taken from the Department of Education FY2008 Budget Justification.
u. In addition to the $439 million appropriated in the FY2009 Omnibus Appropriations Act (P.L. 111-8), the
American Recovery and Reinvestment Act (P.L. 111-5) provided an additional $500 million for IDEA
programs for infants and toddlers.
v. In addition to the $374 million appropriated in the FY2009 Omnibus Appropriations Act (P.L. 111-8), the
American Recovery and Reinvestment Act (P.L. 111-5) provided an additional $400 million for IDEA
preschool grants.
w. Prior tax year actual expenditures reported in (Internal Revenue Service) IRS publication 1304 Table 3.3 –
in other words, $3.338 billion in tax credit claimed in tax year 2004.
x. Amounts reflect estimates for the prior tax year (2007) and current tax year (2008), taken from the FY2010
President’s Budget.
y. Actual tax expenditures associated with DCAP are not reported/collected on/from tax returns.
z. Amount reflects estimate for the prior tax year, taken from the FY2009 President’s Budget.
Current Programs
Child Care and Development Block Grant (CCDBG)3
The primary federal grant program funding child care is the CCDBG, which was created in 1990
and reauthorized (through FY2002) and substantially expanded in 1996, as part of welfare
reform. The CCDBG is overdue for reauthorization, and may be considered for reauthorization by
the 111th Congress. (Although the 109th Congress completed legislation to provide the mandatory
funding portion for the CCDBG through FY2010, the CCDBG Act itself, which outlines the rules
of the program, and includes the authorization level for discretionary funding, awaits
reauthorization. In the meantime, discretionary funding has been provided via the appropriations
process.)
The CCDBG is administered by the Department of Health and Human Services (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, most states establish income eligibility levels
that are lower than this federal threshold.) Child care services are provided on a sliding fee scale
3 For more information, see CRS Report RL30785, The Child Care and Development Block Grant: Background and
Funding, by Karen E. Lynch.
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basis, and parents may choose to receive assistance through vouchers or certificates, which can be
used with a provider of the parents’ choice, including religious 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 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 (mandatory) grants
(referred to in combination as the Child Care and Development Fund (CCDF)). State
maintenance-of-effort (MOE) and matching requirements apply to part of the entitlement funds.4
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 or 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.
The Consolidated Appropriations Act of 2008 (P.L. 110-161) included $2.062 billion for the
discretionary CCDBG, the same level of funding this program had received since FY2006. The
FY2009 Omnibus (P.L. 111-8) provides $2.127 billion in discretionary funding for CCDBG,
representing an increase of about $65 million above the FY2008 funding level. The ARRA (P.L.
111-5) provided an additional $2.0 billion in discretionary funds to the CCDBG in FY2009.5
These funds are available for obligation through FY2010. The ARRA specifies that a sum of
approximately $255 million be reserved, out of the total appropriated to CCDBG, for quality
activities; this sum augments the 4% that states are already required to use for such activities. Of
the $255 million, nearly $94 million is reserved for activities designed to improve the quality of
infant and toddler care. The Obama Administration’s FY2010 Budget proposes to maintain the
FY2009 Omnibus level of $2.127 billion in discretionary CCDBG funds for FY2010.
Mandatory (or “entitlement”) CCDBG funding is pre-appropriated, and does not occur through
the annual appropriations process. Beginning in FY2003 through FY2005, a series of funding
extensions maintained mandatory child care funding at the FY2002 rate of $2.717 billion
annually. Ultimately, funding for a longer, five-year period (FY2006-FY2010) was included in
the Deficit Reduction Act of 2005, a budget spending reconciliation bill (S. 1932), which was
signed into law (P.L. 109-171) on February 8, 2006. This law provides $2.917 billion annually for
each of FY2006-FY2010.
4 For more detailed information on the CCDF financing structure and early spending trends (through FY2000), see CRS
Report RL31274, Child Care: Funding and Spending under Federal Block Grants, by Melinda Gish.
5 For more information, see CRS Report R40211, Human Services Provisions of the American Recovery and
Reinvestment Act, by Gene Falk et al.
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Temporary Assistance for Needy Families (TANF)
TANF, created in the 1996 welfare reform law (P.L. 104-193), provides fixed block grants for
state-designed programs of time-limited and work-conditioned aid to needy families with
children. The original legislation provided $16.5 billion annually through FY2002, and after a
series of twelve temporary extensions, Congress included several welfare provisions (and
mandatory child care funding) in its spending budget reconciliation bill (S. 1932), which was
signed into law (P.L. 109-171) on February 8, 2006. The law maintains the TANF block grant at
$16.5 billion for FY2006-FY2010. Child care is one of many services for which states may use
TANF funding. In FY2007 (the most recent year for which data are available), HHS reports that
states spent about $1.17 billion in federal TANF funds for child care within the TANF program,
and $2.55 billion in state TANF and separate state program (SSP) MOE funds.6 In addition, states
may transfer up to 30% of their TANF allotments to CCDF, to be spent according to the rules of
the child care program (as opposed to TANF rules). The transfer from the FY2007 TANF
allotment to the CCDF totaled almost $2.1 billion, representing 12% of the FY2007 TANF
allotment.
Child and Adult Care Food Program (CACFP)
The CACFP provides federal funds (in some case commodities) for meals and snacks served in
licensed child care centers, family and group day care homes, and Head Start centers. 7 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.8 Eligible providers are usually public
and private nonprofit organizations. Subsidies provided to day care centers, including Head Start
centers, vary according to the child’s family income. Subsidies provided to family and group day
care homes vary according to average income of the community in which the home is located.
The CACFP is an open-ended entitlement, administered by the Department of Agriculture. Actual
obligations came to $2.245 billion in FY2008. According to the most recent figures, released in
the Obama Administration’s FY2010 Budget, CACFP obligations are estimated to be $2.514
billion in FY2009 and $2.687 billion in FY2010.
Social Services Block Grant (SSBG)
The SSBG is an annually appropriated entitlement to states. Permanently authorized by Title XX
of the Social Security Act, the SSBG is a flexible source of funding that states may use to support
a wide variety of social services activities. States have broad discretion over the use of these
funds. There are no federal income eligibility requirements, targeting provisions, service
mandates, or matching requirements. In FY2006, the most recent year for which expenditure data
are available, the largest expenditures for services under the SSBG were for foster care services,
child care, and special services for the disabled. Approximately 13.7% of total SSBG expenditures
($389 million) were for child care services in that year, an increase from those made for child
6 For more information on states’ use of TANF funds, see CRS Report RL32748, The Temporary Assistance for Needy
Families (TANF) Block Grant: A Primer on TANF Financing and Federal Requirements, by Gene Falk.
7 For more information, see CRS Report RL33307, Child Nutrition and WIC Programs: Background and Recent
Funding, by Joe Richardson.
8 On average, something less than 2% of total funding has gone toward adult food projects.
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care in FY2006 ($220 million). Title XX is a capped entitlement, and state allocations are based
on relative population size.9 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 $1.7 billion;
however, Congress appropriated $1.725 billion for that year, despite the ceiling.
Base funding for the SSBG has been held steady at $1.7 billion for the past seven years (most
recently, under the FY2009 Omnibus, P.L. 111-8), with states retaining authority to transfer up to
10% of their TANF block grants to the SSBG.10 However, during these years, Congress has twice
provided supplemental funding to the SSBG to support states in responding to significant natural
disasters. For instance, Congress appropriated $600 million in supplemental SSBG funding for
necessary expenses resulting from major disasters of 2008 as part of the disaster relief and
recovery component of the Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act of 2009 (P.L. 110-329). In FY2006, Congress provided an additional $550
million to the SSBG as part of the Defense Appropriations Act (P.L. 109-148), targeting these
supplemental funds toward needs arising from the Gulf Coast Hurricanes of 2005. P.L. 110-28,
signed into law on May 25, 2007, extended the availability of these funds for expenditure through
the end of FY2009, as a good portion remained unspent prior to the end of FY2007, and without
legislative action, would have been returned to the Treasury.11 The Obama Administration’s
FY2010 Budget proposes to maintain funding for the SSBG at the $1.7 billion level in FY2010.
Head Start
Head Start provides comprehensive early childhood education and development services to low-
income preschool children, on a part- or full-day basis.12 After unsuccessful attempts in the 109th
Congress to reauthorize the Head Start program (whose authorization had expired with FY2003),
legislation reauthorizing the program through FY2012 was passed by the 110th Congress in
November 2007. That bill, H.R. 1429/H.Rept. 110-439, was signed into law (P.L. 110-134) by
President George W. Bush on December 12, 2007.13
While the program was awaiting reauthorization, funding continued to be provided through the
appropriations process. Under current law, Head Start funds are provided directly by HHS to local
grantees, who must comply with detailed federal performance standards. The available data show
funded enrollment for Head Start in FY2007 to have totaled 908,412 children (10% of whom
were under age 3, and participated in Early Head Start).
The Consolidated Appropriations Act of 2008 (P.L. 110-161) included $6.878 billion for the Head
Start program, which reflected a decrease of $10 million compared to the FY2007 funding level.
9 Grants to Puerto Rico, Guam, the Virgin Islands, and Northern Marianas are based on their share of Title XX funds in
FY1981.
10 Funds transferred from TANF to SSBG can be used only for children and families whose income is less than 200%
of the federal poverty guidelines. Under welfare reform law, states also may use SSBG funds for vouchers for families
that are not eligible for cash assistance because of time limits under the welfare reform program, or for children who
are denied cash assistance because they were born into families already receiving benefits for another child.
11 For more information, see CRS Report 94-953, Social Services Block Grant (Title XX of the Social Security Act), by
Karen E. Lynch.
12 For more information, see CRS Report RL30952, Head Start: Background and Issues, by Melinda Gish.
13 For more information on the history of House and Senate provisions leading up to the conference-approved version,
see CRS Report RL33968, Head Start Reauthorization: A Side-by-Side Comparison of House- and Senate-Passed
Versions of H.R. 1429 and Current Law, by Melinda Gish.
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The FY2009 Omnibus (P.L. 111-8) provides an increase of nearly $235 million over FY2008,
resulting in an FY2009 funding level of almost $7.113 billion, including $2 million reserved for
Centers of Excellence in Early Childhood. In addition, Head Start received $2.1 billion from the
ARRA (P.L. 111-5) in FY2009.14 These funds are available for obligation through FY2010. The
ARRA specifies that $1.0 billion be distributed through the regular Head Start formula (which
covers increases for cost-of-living adjustments, quality activities, state advisory councils, and
expansions for Head Start and Early Head Start programs). The remaining $1.1 billion is
explicitly directed toward the expansion of Early Head Start programs. HHS estimates that
funding increases from the ARRA will expand Head Start and Early Head Start services to
approximately 70,000 additional children, 55,000 of whom are infants and toddlers. President
Obama’s FY2010 Budget requests $7.235 billion for Head Start, an increase of $122 million over
the amount appropriated under the FY2009 Omnibus. This increase is intended to ensure that
Head Start and Early Head Start programs are able to sustain the number of children served in
FY2010.
Elementary and Secondary Education Act (ESEA) Title I, Part A
ESEA Title I, Part A, is the largest federal education program serving disadvantaged children,
particularly school-age children. After Head Start, it is the largest program providing early
education and care to young children. The U.S. Department of Education estimates that
approximately 2% of children served by Title I each year are preschoolers. Preschool services are
not separately funded under Title I, Part A – such spending occurs if local educational agencies
(LEAs) choose to use some of their Title I funds for this purpose. The Consolidated
Appropriations Act of 2008 (P.L. 110-161) provided $14.03 billion for Title I, Part A, an increase
of almost $1.2 billion above the FY2007 level of $12.84 billion in funding. The FY2009 Omnibus
(P.L. 111-8) increased funding to $14.49 billion. The ARRA provided $10 billion for ESEA Title
I, Part A. President Obama’s FY2010 Budget requests $13.0 billion for ESEA Title I, Part A, a
decrease of about $1.5 billion from FY2009.
Early Reading First
The Early Reading First program, authorized by ESEA Title I, Part B, Subpart 2, 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.15 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. Early Reading
First was funded at a level of $113 million for FY2008, $5 million less than the $118 million
provided for FY2007. The FY2009 Omnibus (P.L. 111-8) maintains the FY2008 funding level.
President Obama’s FY2010 Budget requests $163 million for the program, an increase of $50
million over FY2009 funding.
14 For more information, see CRS Report R40211, Human Services Provisions of the American Recovery and
Reinvestment Act, by Gene Falk et al.
15 For more information, see CRS Report RL31241, Reading First and Early Reading First: Background and Funding,
by Gail McCallion.
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The William F. Goodling Even Start Family Literacy Programs (Even Start)
Even Start programs are authorized by ESEA Title I, Part B, Subpart 3, and are intended to
integrate early childhood education, adult basic education, and parenting skills education into a
unified family literacy program.16 These programs provide grants to states which then distribute
them to eligible entities (consisting of a local education agency (LEA) in collaboration with a
community based organization). Even Start services generally serve children aged 0-7 and their
parents. Even Start services must include adult literacy instruction, early childhood education,
instruction to help parents support their child’s education, participant recruitment, screening of
parents, staff training, and home-based instruction.
Even Start, first authorized in 1989, grew rapidly in its first years, but has been subject to
increasing criticism in recent years and has seen its funding decline in each year from FY2003
through FY2008. The Education Department’s FY2007 CR operating plan provided $82 million
in funding for Even Start, a cut of $17 million from the FY2006 funding level of $99 million. As
in the FY2007 budget request, the Administration of President George W. Bush requested no
funding for the program for FY2008. However, the Consolidated Appropriations Act of 2008
(P.L. 110-161) provided $66 million for Even Start. The FY2009 Omnibus (P.L. 111-8) maintains
the FY2008 funding level. President Obama’s FY2010 Budget requests no funding for the
program, a decrease of $66 million from the FY2009 funding level.
In advocating for the elimination of Even Start, the Obama Administration contends that this
program has not demonstrated effectiveness in improving child and adult learning outcomes
through the integration of the four core services of adult education, parenting education, parent-
child activities, and early childhood education. The Administration argues that these conclusions
are supported by data from three national evaluations of Even Start.
Advocates of continuing Even Start programs argue that the goal of providing integrated family
literacy services to an extremely disadvantaged population is so important that these programs
should not be eliminated. Furthermore, they argue that a thorough study of the impact of
legislatively mandated quality improvements to Even Start is needed, as well as a concerted effort
to improve Even Start through implementation of model programs and technical assistance.
Individuals with Disabilities Education Act (IDEA) Programs
The majority of IDEA funding for special education and related services (approximately 90%)
goes to school-age children via grants to states. However, IDEA also authorizes two state grant
programs for young children: an early intervention program for infants and toddlers with
disabilities (IDEA, Part C) and a preschool program for children with disabilities (IDEA, Part
619).17 The Infants and Toddlers Program serves disabled children from birth to two years of age,
and the Preschool Program generally serves children ages 3 to 5.
The Infants and Toddlers Program requires that states receiving grants create and maintain a
“statewide, comprehensive, coordinated, multidisciplinary, interagency system that provides early
16 For more information, see CRS Report RL30448, Even Start Family Literacy Programs: An Overview, by Gail
McCallion, and CRS Report RL33071, Even Start: Funding Controversy, by Gail McCallion.
17 For more information, see CRS Report RL31273, Individuals with Disabilities Education Act (IDEA): Early
Childhood Programs (Section 619 and Part C), by Richard N. Apling.
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intervention services for infants and toddlers with disabilities and their families.” Services focus
on children experiencing “developmental delay” with respect to physical, mental, or other
capacities, and their families. Services are detailed for each child and his or her family in an
Individualized Family Service Plan. Services are to be provided, to the maximum extent feasible,
in “natural environments,” including the home, with other infants and toddlers who are not
disabled.
States are eligible for Preschool Program grants under Section 619 of IDEA if they are eligible for
grants under IDEA, Part B, grants to states, and they make available free appropriate public
education to all disabled children 3 to 5 in the state. In recent years, all states qualified for and
received preschool grants under this section. Since Part B grants to states are used to serve
children with disabilities as young as three years of age (as well as school-age children), Section
619 is not so much a separate program as it is supplementary funding for services to this age
group. In general, the provisions, requirements, and guarantees under the grants to states program
that apply to school-age children with disabilities also apply to children in this age group. As a
result, Section 619 is a relatively brief section of the law, which deals mostly with the state and
substate funding formulas for the grants and state-level activities.
IDEA was reauthorized during the 108th Congress. IDEA, Part C, received $439 million in
funding for FY2009, an increase from FY2008 funding of $436 million. IDEA, Part C, received
$500 million in funding from the ARRA. IDEA, Section 619, was funded at a level of $374
million for FY2009, the same level it received in FY2008. IDEA, Part 619, received $400 million
in funding from the ARRA.
Child Care Access Means Parents in School (CAMPIS)
Authorized under the Higher Education Act amendments of 1998, and first funded in 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 competitively to institutions of higher education, to either
supplement existing child care services, or to start a new program. Funding for FY2009 was $16
million, compared to $15.5 million in FY2008.
Tax Provisions
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.18 Beginning in tax year 2003, the Economic Growth and Tax Relief Reconciliation Act of
2001 (P.L. 107-16) increased 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 applies to taxpayers with adjusted gross incomes of $15,000 or less. The rate
decreases by 1% for each additional $2,000 increment (or portion thereof) in income until the rate
18 For more information, see CRS Report RS21466, Dependent Care: Current Tax Benefits and Legislative Issues, by
Christine Scott and Janemarie Mulvey.
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reaches 20% for taxpayers with incomes over $43,000.19 Under the FY2010 Budget released by
the Obama Administration in May 2009, DCTC expenditures for tax year 2008 (fiscal year 2009)
are estimated to be $3.670 billion.
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.20 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. Under the FY2010 Budget released by the Obama
Administration in May 2009, DCAP expenditures for tax year 2008 (fiscal year 2009) are
estimated to be $1.240 billion.
Programs Funded in Recent Years, But Not Currently Funded
Early Childhood Educator Professional Development
The Department of Education has provided 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. Funding in FY2006 and FY2007 remained stable at
approximately $14.5 million, but FY2007 was the last year in which funds were appropriated.
President Obama’s FY2010 Budget does not request any funds for this program for FY2010.
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), was last funded in FY2005 at $36 million. The FY2006
Appropriations Act included no funding for this program, nor has there been funding provided
through any of the continuing resolutions for fiscal years 2007-2009. When funded, the program
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, FY2003 funding for the program was set at $25
million; FY2004 funding was set at $34 million (despite President George W. Bush’s FY2003
budget proposal to eliminate the program); and in FY2005, P.L. 108-199 included $36 million for
the Early Learning Fund. FY2005 was the last year in which this program received funding.
President Obama’s FY2010 Budget requests no funding for this program for FY2010.
19 These provisions are currently schedule to expire on December 31, 2010.
20 For more information, see CRS Report RS21466, Dependent Care: Current Tax Benefits and Legislative Issues, by
Christine Scott and Janemarie Mulvey.
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Author Contact Information
Karen E. Lynch
Gail McCallion
Analyst in Social Policy
Specialist in Social Policy
klynch@crs.loc.gov, 7-6899
gmccallion@crs.loc.gov, 7-7758
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