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Friday, March 1, 2013

Early Childhood Care and Education Programs: Background and Funding



Karen E. Lynch
Specialist 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, or IDEA). 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 a funding overview and brief background information on federal child care, early education, and related programs (and tax provisions). The report begins with an update on funding developments for FY2013 (including congressional actions on annual and supplemental appropriations, possible sequestration, and the President’s budget request) and a summary of final funding levels for FY2012. The report concludes with a six-year funding history and brief descriptions for each of the early childhood programs and tax provisions discussed throughout.

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). (Note that certain early childhood programs and tax provisions receive funding separate from the annual appropriations process.) For FY2013, funding for annually appropriated programs has been provided—through March 27, 2013—by a government-wide continuing resolution (P.L. 112-175), which generally maintains funding for discretionary programs at their FY2012 rates, plus 0.612%. For FY2012, funding for most of these programs was included in the Consolidated Appropriations Act, 2012 (P.L. 112-74). Compared to FY2011, the FY2012 appropriations law provided increases for some early childhood programs, such as the discretionary CCDBG, Head Start, and IDEA Grants for Infants and Families.

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 Act, for instance, expired in FY2002. However, the discretionary CCDBG has continued to be funded through annual appropriations laws. The authorization for many programs in the No Child Left Behind Act expired at the end of FY2008, but these programs have likewise continued to receive funding. Mandatory child care and basic TANF grants are also due for reauthorization in the 113
th Congress, but have been temporarily extended through March 2013 by P.L. 112-175.


Date of Report: January 9, 2013
Number of Pages: 24
Order Number: R40212
Price: $29.95

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