{
  "id": "RL31274",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL31274",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 105410,
      "date": "2002-03-19",
      "retrieved": "2016-05-24T20:13:28.930941",
      "title": "Child Care: Funding and Spending under Federal Block Grants",
      "summary": "The welfare reform law of 1996 ( P.L. 104-193 ) sharply increased federal child care funding for\nlow-income families, with the expectation that new work requirements for welfare parents (most of\nwhom were single mothers) would increase demand for child care services. This additional funding\nwas accompanied by the creation of a unified and expanded Child Care and Development Block\nGrant (CCDBG) program, with the aim of serving low-income families, regardless of welfare status. \nThe expanded program is financed through two funding streams commonly referred to in\ncombination as the Child Care and Development Fund (CCDF).\n  CCDF appropriations in FY2002 from the two funding streams total $4.8 billion: $2.7 billion\nin mandatory funding and $2.2 billion in discretionary funds ( Figure 1 ). The two\nfunding streams\nfall under separate committee jurisdictions, and carry with them different rules regarding allocation,\nstate matching requirements, and time limits for obligating and spending money. A portion of the\nmandatory funding is \"guaranteed\" to states and is based on states' spending on child care prior to\nthe 1996 welfare law. In order for a state to be eligible for its share of the remaining mandatory\nfunds, which require state matching, the state must first spend a designated amount (also based on\nhistorical spending) of its own state funds. Discretionary CCDF funding is 100% federal (i.e.,\nrequires no state match) and is allocated according to a different formula than either portion of\nmandatory funds.  Both  the mandatory  and  the discretionary funding streams\nexpire at the end of\nFY2002 and are due to be reauthorized this year, the mandatory funding as part of welfare (TANF)\nreauthorization.\n  Although the CCDF is the only federal grant program dedicated solely for the purpose of\nproviding child care subsidies and activities for low-income families, states also are using two other\nfederal block grants for this purpose: TANF and the Social Services Block Grant (SSBG). States\nhave increasingly used TANF dollars for child care services within their TANF programs ($2.2\nbillion in FY2000) in addition to transferring TANF funds to the CCDF. The TANF transfers to\nCCDF in FY2000 ($2.4 billion) exceeded the discretionary funds appropriated for any single year\nso far. Overall, expenditure data show that in FY2000, states spent more than $9 billion in federal\nand state funds associated with the CCDF and TANF -- more than double the amount spent on child\ncare via these programs in FY1997. SSBG expenditure data are not available for FY2000, but states\nare reported to have spent almost $400 million in SSBG funds in FY1999 to support child care\nservices.\n  As Congress decides how much funding to make available for child care, it will need to\nconsider multiple programs, and the various funding streams within them. It is unclear whether the\ncurrent level of child care funding via TANF and SSBG will be sustained if the recent economic\ndownturn gives rise to needs perceived to be more pressing.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
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      "topics": []
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  "topics": [
    "Appropriations"
  ]
}