109-383 , signed into law December 9, 2006, provided funding for government operations (including the Departments of Health and Human Services and Education) through February 15, 2007, based on the FY2006 rate. For information on FY2007 Labor-HHS-Education the appropriations bills that were approved by House and Senate committees, but did not receive floor action, see the section " FY2007 Appropriations Process ," later in this report. Federal Child Care-Related Programs and Tax Provisions

Several federal programs support child care or related services, primarily for low-income working families. Several programs were due for reauthorization in the 109 th Congress (i.e., Child Care and Development Block Grant and Head Start), but remained unauthorized at the end of the 109 th Congress, whereas others (TANF and mandatory child care funding) were reauthorized in the second session. 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 and substantially expanded in 1996, as part of welfare reform. (See the " Legislative Activity in the 109 th Congress " section of this report for more on the unsuccessful reauthorization efforts.) 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. Temporary Assistance for Needy Families (TANF)

TANF, created in the 1996 welfare reform law ( P.L. Child care is one of many services for which states may use TANF funding. 109-148 ), targeted for needs arising from the Gulf Coast Hurricanes ofÂ 2005. 107-110 ). IDEA was reauthorized during the 108 th Congress. The FY2006 Appropriations Act ( P.L. An across-the-board rescission of 1% was applied to discretionary programs funded under P.L. Note that the FY2007 appropriations process was still under way at the close of the 109 th Congress, with funding being provided (through February 15, 2007) under a third continuing resolution ( P.L. (Note: the FY2006 Defense Appropriations Act ( P.L. 109-149 )). The Administration's Early Childhood Initiative

Good Start, Grow Smart: The Bush Administration's Early Childhood Initiative, was first announced by the President in April of 2002 and has been reflected in budget proposals and program initiatives since that date. In the President's FY2004 budget, he 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 during the 108 th Congress ( H.R. 2123 and S. 2206 ) emphasized increased coordination among early childhood programs, but neither proposed either a departmental transfer of the program or state demonstration projects. 109-171 ), finally reauthorizing TANF and the mandatory portion of child care funding for FY2006-2010. 240 ). The bill also proposed to provide an additional $1 billion over five years to the Social Services Block Grant. Major provisions would have authorized CCDBG discretionary funding at a level of $2.3 billion for FY2006, rising in $200 million increments up to $3.1 billion for FY2010; increased the percentage of funds that must be used for quality activities (newly specified in the proposal) from at least 4% to at least 6%; instructed states to use not less than 70% of funds remaining after quality and administrative set-asides for direct services (as defined by states); added 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; eliminated the federal eligibility maximum limit of 85% of state median income (SMI); required states to describe in their state plans how they would coordinate with other early childhood programs such as Head Start, state pre-kindergarten, and IDEA to expand accessibility to and continuity of care; required 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); expanded data collection requirements; and required states beginning in FY2006 to submit a plan addressing the quality of child care services provided. Other Child Care-Related Legislation

Other bills related to child care that were introduced in the 109 th Congress include H.R.
Federal support for child care 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), while for others (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 assistance, 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 and related programs as they were addressed by the 109 th Congress.
The 109 th Congress inherited several child care-related agenda items from the previous Congress(es), but resolved only a few. Efforts to reauthorize the CCDBG and TANF block grants, as well as the Head Start program, had started in the 108 th Congress, and ultimately, in February 2006, after 12 temporary extensions, the TANF block grant and the mandatory portion of child care funding was reauthorized for a five-year period via the Deficit Reduction Act ( P.L. 109-171 ). Whereas bills to reauthorize the Child Care and Development Block Grant itself ( H.R. 240 and S. 525 ) and the Head Start Program ( H.R. 2123 and S. 2206 ) failed to make their way to enactment in law, and remain on the agenda for the 110 th Congress.
Funding for many child care 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). Fiscal Year 2007 appropriations bills for those departments (among most others) did not receive floor action in the House or Senate during the 109 th Congress, although the 2007 fiscal year began on October 1, 2006. The process extended into the 110 th Congress, with a third continuing resolution ( P.L. 109-383 ) temporarily funding government operations (through February 15, 2007) at rates based on the FY2006 funding levels. The FY2006 appropriations ( P.L. 109-149 ) included funding slightly below FY2005 amounts for most child care and related programs, as a result of an across-the-board rescission of 1% applied to most discretionary programs. Additional targeted funding for Head Start and the Social Services Block Grantâsupplemental funding targeted specifically in response to needs arising from the Gulf Coast hurricanes of 2005âwas included in the FY2006 Defense Appropriations Act ( P.L. 109-148 ).
The President's FY2007 budget proposals in areas related to child care and early childhood development were framed in the context of the Administration's Early Childhood Initiativeâ"Good Start, Grow Smart"âwhich was initially launched in April 2002. The initiative emphasized the importance of promoting school readiness, a key focus of the President's Head Start reauthorization proposals. In efforts to promote school readiness among pre-school children, there has also been a growing emphasis on better coordination of early childhood programs, including most of the federal programs described in this report, as well as state pre-kindergarten programs and other state-funded efforts.
This is the final update of this report; the 109 th Congress has adjourned.