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Wednesday, March 30, 2011

Early Childhood Care and Education Programs: Background and Funding


Karen E. Lynch
Analyst in Social Policy

Gail McCallion
Specialist in Social Policy


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 funding requests for a selection of early childhood care and education programs in the Obama Administration’s FY2012 President’s Budget, which was released on February 14, 2011. In addition, this report reviews funding developments in FY2011, as compared to both the FY2011 President’s Budget Request and enacted funding levels for FY2010, before concluding with a six-year funding history for the selection of early childhood care and education programs and tax provisions discussed throughout.

Final FY2011 funding levels for many of the programs covered in this report remain uncertain. Congress has passed a series of continuing resolutions for FY2011, the most recent of which, P.L. 112-4, is scheduled to expire on March 18, 2011. The first four continuing resolutions generally maintained funding at the FY2010 rate for the annually appropriated early childhood programs discussed in this report. The fifth continuing resolution for FY2011 (P.L. 112-4) reduced funding rates for two programs (the Child Care and Development Block Grant and Even Start), but maintained funding rates for others. Congress has recently taken steps toward full-year FY2011 appropriations, though such legislation has yet to be enacted. H.R. 1, a full-year continuing resolution, was passed by the House on February 19, 2011. This bill proposes reductions in FY2011 funding levels for several early childhood programs (e.g., Head Start, the Child Care and Development Block Grant, and Even Start). The Senate rejected H.R. 1 in a vote on March 9, 2011. The Senate also rejected Senate Amendment 149 to H.R. 1 (in the nature of a substitute) on March 9, 2011. S.Amdt. 149 would have provided increases to certain early childhood programs (e.g., Head Start, Child Care and Development Block Grant), while eliminating others (e.g., Even Start).

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. Mandatory child care and TANF funds were temporarily extended for FY2011 by the Claims Resolution Act of 2010 (P.L. 111-291), but they are also due for reauthorization in this Congress.



Date of Report: March 11, 2011
Number of Pages: 22
Order Number: R40212
Price: $29.95

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