[Background Material and Data on Programs within the Jurisdiction of the Committee on Ways and Means (Green Book)]
[Program Descriptions]
[Section 9. Child Care]
[From the U.S. Government Printing Office, www.gpo.gov]


[1998 Green Book] SECTION 9. CHILD CARE

                                CONTENTS

Introduction
Employment and Marital Status of Mothers
Child Care Arrangements Used by Working Mothers
Child Care Costs
Supply of Child Care Providers
Child Care Standards
The Federal Role--Background and Overview
The Federal Role--Major Day Care Programs
  Dependent Care Tax Credit
  Child Care Programs Under Title IV-A of the Social Security 
            Act
  Child Care and Development Block Grant
  Title XX--Social Services Block Grant
  Child and Adult Care Food Program
  Head Start
Child Care Tables
References

                              INTRODUCTION

    Child care is an issue of significant public interest for 
several reasons. The dramatic increase in the labor force 
participation of mothers is the most important factor affecting 
the demand for child care in the last quarter century. 
Currently, in a majority of American families with children--
even those with very young children--the mother is in the paid 
labor force. Similarly, an increasingly significant trend 
affecting the demand for child care is the proportion of 
mothers who are the sole or primary financial supporters of 
their children, either because of divorce or because they never 
married. In addition, child care has been a significant issue 
in recent debates over how to move welfare recipients toward 
employment and self-sufficiency; some observers have argued 
that some mothers on welfare are not entering the labor force 
because of child care problems. Finally, the impact of child 
care on the children themselves is an issue of considerable 
interest, with ongoing discussion of whether low-income 
children benefit from participation in programs with an early 
childhood development focus.
    Concerns that child care may be in short supply, not of 
good enough quality, or too expensive for many families 
escalated during the late 1980s into a national debate over the 
nature and extent of the Nation's child care problems and what, 
if any, Federal interventions would be appropriate. The debate 
culminated in the enactment of legislation in 1990 that 
expanded Federal support for child care by establishing two new 
State child care grant programs. The programs--the Child Care 
and Development Block Grant and the At-Risk Child Care 
Program--were enacted as part of the Omnibus Budget 
Reconciliation Act of 1990 (Public Law 101-508). These programs 
were preceded by enactment of a major welfare reform 
initiative, the Family Support Act of 1988 (Public Law 100-
485), which authorized expanded child care assistance for 
welfare families and families leaving welfare. Most recently, 
these programs were consolidated into an expanded Child Care 
and Development Block Grant, which will provide increased 
Federal funding and will serve both low-income working families 
and families attempting to transition off welfare through work. 
This child care consolidation and expansion was enacted in 1996 
as a component of welfare reform legislation (Personal 
Responsibility and Work Opportunity Reconciliation Act, Public 
Law 104-193).
    This chapter provides background information on the major 
indicators of the demand for and supply of child care, and a 
summary description of the major Federal programs that fund 
child care services.

                EMPLOYMENT AND MARITAL STATUS OF MOTHERS

    The dramatic increase in the labor force participation of 
mothers is commonly regarded as the most significant factor 
fueling the increased demand for child care services. A person 
is defined as participating in the labor force if she is 
working or seeking work. As shown in table 9-1, in 1947, just 
following World War II, slightly over one-fourth of all mothers 
with children between the ages of 6 and 17 were in the labor 
force. By contrast, in 1996, three-quarters of such mothers 
were labor force participants. The increased labor force 
participation of mothers with younger children has also been 
dramatic. In 1947, it was unusual to find mothers with a 
preschool-age child in the labor force--only about 12 percent 
of mothers with children under the age of 6 were in the labor 
force. But in 1996, over 62 percent of mothers with preschool-
age children were in the labor force, a rate more than 5 times 
higher than in 1947. Women with infant children have become 
increasingly engaged in the labor market as well. Today, over 
half of all mothers whose youngest child is under age 2 are in 
the labor market, while in 1975 less than one-third of all such 
mothers were labor force participants.
    The rise in the number of female-headed families has also 
contributed to increased demand for child care services. Single 
mothers maintain a greater share of all families with children 
today than in the past. Census data show that in 1970 less than 
11 percent of families with children were headed by a single 
mother, compared with almost 18 percent of families with 
children in 1996. Perhaps the most telling statistic about 
female-headed families is that while the number of 2-parent 
families with children increased by 20 percent between 1970 and 
1996, female-headed families with children exploded by 127 
percent, to 12.5 million families in 1996. These families 
headed by mothers were a major source of growth in the demand 
for child care.
    Mothers' attachment to the labor force differs depending on 
the age of their youngest child and marital status, as tables 
9-2 and 9-3 show. Table 9-2 exhibits the labor force 
participation rates of various demographic groups of mothers 
with youngest child over or under age 6. The table provides 
graphic evidence of the exploding rate of working mothers, 
especially working mothers with preschool children.

  TABLE 9-1.--LABOR FORCE PARTICIPATION RATES OF WOMEN, BY PRESENCE AND AGE OF YOUNGEST CHILD, SELECTED YEARS,  
                                                     1947-96                                                    
----------------------------------------------------------------------------------------------------------------
                                                                              With children under age 18        
                                                              No    --------------------------------------------
                                                           children            Age 6-         Under age 6       
                                                           under 18   Total   17 only --------------------------
                                                                                        Total   Under 3  Under 2
----------------------------------------------------------------------------------------------------------------
April 1947...............................................      29.8     18.6     27.3     12.0       NA       NA
April 1950...............................................      31.4     21.6     32.8     13.6       NA       NA
April 1955...............................................      33.9     27.0     38.4     18.2       NA       NA
March 1960...............................................      35.0     30.4     42.5     20.2       NA       NA
March 1965...............................................      36.5     35.0     45.7     25.3     21.4       NA
March 1970...............................................      42.8     42.4     51.6     32.2     27.3       NA
March 1975...............................................      45.1     47.3     54.8     38.8     34.1     31.5
March 1980...............................................      48.1     56.6     64.3     46.8     41.9     39.2
March 1985...............................................      50.4     62.1     69.9     53.5     49.5     48.0
March 1986...............................................      50.5     62.8     70.4     54.4     50.8     49.2
March 1987...............................................      50.5     64.7     72.0     56.7     52.9     51.9
March 1988...............................................      51.2     65.0     73.3     56.1     52.5     50.8
March 1989...............................................      51.9     65.7     74.2     56.7     52.4     51.7
March 1990...............................................      52.3     66.7     74.7     58.2     53.6     52.1
March 1991...............................................      52.0     66.6     74.4     58.4     54.5     53.8
March 1992...............................................      52.3     67.2     75.9     58.0     54.5     54.3
March 1993...............................................      52.1     66.9     75.4     57.9     53.9     54.2
March 1994...............................................      53.1     68.4     76.0     60.3     57.1  \1\ 56.
                                                                                                               7
March 1995...............................................      52.9     69.7     76.4     62.3     58.7  \1\ 57.
                                                                                                               9
March 1996...............................................      53.0     70.2     77.2     62.3     59.0    57.9 
----------------------------------------------------------------------------------------------------------------
\1\ Includes mothers in the Armed Forces.                                                                       
                                                                                                                
 NA--Not available.                                                                                             
                                                                                                                
 Note.--Data for 1994 and beyond are not directly comparable with data for 1993 and earlier years because of    
  introduction of a major redesign in the Current Population Survey (household survey) questionnaire and        
  collection methodology and the introduction of 1990 census-based population controls, adjusted for the        
  estimated undercount. For additional information, see ``Revisions in the Current Population Survey Effective  
  January 1994'' in the February 1994 issue of Employment and Earnings.                                         
                                                                                                                
 Source: U.S. Department of Labor, Bureau of Labor Statistics.                                                  

    Table 9-3 provides a detailed breakdown of the labor force 
participation of women for March 1996 by marital status and the 
age of the youngest child. Among those with children under 18, 
divorced women have the highest labor force participation 
rates, followed by married and separated women. Widowed and 
never-married women have lower labor force participation rates.
    As table 9-3 illustrates, no matter what the marital status 
of the woman, labor force participation rates tend to increase 
as the age of the youngest child increases. Among all women 
with children under 18, 59 percent of those with a child under 
3 participate, 67 percent of those whose youngest child is 
between 3 and 5 participate, and 79 percent of those whose 
youngest child is between 14 and 17 participate.

       TABLE 9-2.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN, BY MARITAL STATUS AND AGE OF YOUNGEST CHILD FOR SELECTED YEARS, 1960-96      
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Percent 
                                                   1960    1970    1980   1987   1988   1989   1990   1991   1992   1993   1994   1995   1996  increase,
                                                                                                                                                1970-96 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Married women:                                                                                                                                          
    Youngest under 6............................    18.6    30.3   45.0   56.8   57.1   57.4   58.9   59.9   59.9   59.6   61.7   63.5   62.7      106.9
    Youngest 6 or older.........................    39.0    49.2   61.8   70.6   72.5   73.4   73.6   73.6   75.4   74.9   76.0   76.2   76.7       55.9
Separated women:                                                                                                                                        
    Youngest under 6............................      NA    45.4   52.2   55.1   53.0   54.9   59.3   52.2   55.7   52.1   59.2   59.3   63.1       39.0
    Youngest 6 or older.........................      NA    60.6   66.6   72.6   69.3   68.0   75.0   74.7   71.6   71.6   70.7   71.5   73.3       21.0
Divorced women:                                                                                                                                         
    Youngest under 6............................      NA    63.3   68.3   70.5   70.1   66.3   69.8   68.5   65.9   68.1   67.5   73.3   76.5       20.9
    Youngest 6 or older.........................      NA    82.4   82.3   84.5   83.9   85.7   85.9   84.6   85.9   83.6   84.9   85.2   85.5        3.8
Never-married women:                                                                                                                                    
    Youngest under 6............................      NA      NA   44.1   49.9   44.7   48.9   48.7   48.8   45.8   47.4   52.2   53.0   55.1         NA
    Youngest 6 or older.........................      NA      NA   67.6   64.1   67.1   69.0   69.7   64.8   67.2   70.2   67.5   67.0   71.8         NA
                                                 -------------------------------------------------------------------------------------------------------
        All women...............................  \1\ 30                                                                                                
                                                      .4  \1\ 52                                                                                        
                                                              .9   56.6   64.7   65.0   65.7   66.7   66.6   67.2   66.9   68.4   69.7   70.2      32.7 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Excludes never-married women.                                                                                                                       
                                                                                                                                                        
 NA--Not available.                                                                                                                                     
                                                                                                                                                        
 Note.--Data for 1994 and beyond are not directly comparable with data for 1993 and earlier years because of introduction of a major redesign in the    
  Current Population Survey (household survey) questionnaire and collection methodology and the introduction of 1990 census-based population controls,  
  adjusted for the estimated undercount. For additional information, see ``Revisions in the Current Population Survey Effective January 1994'' in the   
  February 1994 issue of Employment and Earnings.                                                                                                       
                                                                                                                                                        
 Source: U.S. Department of Labor, Bureau of Labor Statistics.                                                                                          


    TABLE 9-3.--LABOR FORCE PARTICIPATION RATES OF WOMEN WITH CHILDREN UNDER 18, BY MARITAL STATUS AND AGE OF   
                                           YOUNGEST CHILD, MARCH 1996                                           
----------------------------------------------------------------------------------------------------------------
                                                                              Age of youngest child             
                                                                ------------------------------------------------
                         Marital status                          Under  Under  Under                            
                                                                   3      6      18    3-5    6-13   6-17  14-17
----------------------------------------------------------------------------------------------------------------
Married, spouse present........................................   60.5   62.7     70     66     76   76.7   78.4
Divorced.......................................................   67.1   76.5   83.2   81.4   84.8   85.5   86.9
Separated......................................................   62.1   63.1   68.8     64   73.2   73.3   73.5
Widowed........................................................   33.1   48.3   63.3   55.8   64.5   65.9   67.6
Never married..................................................   50.3   55.1   60.5   64.1   71.7   71.8   72.4
                                                                ------------------------------------------------
    All women with children under 18...........................     59   62.3   70.2   66.9   76.6   77.2  78.9 
----------------------------------------------------------------------------------------------------------------
Note.--Labor force participation rates include nonworking mothers who are actively looking for work.            
                                                                                                                
 Source: U.S. Department of Labor, Bureau of Labor Statistics.                                                  

    While there has been a substantial increase in the 
proportion of mothers in the labor force, the data can be 
misleading. Although 70 percent of mothers participated in the 
labor force in 1996, table 9-4 shows almost 48 percent worked 
full time and 19 percent worked part time (less than 35 hours 
per week). Thirty-nine percent of mothers with children under 
age 6 worked full time, and 19 percent worked part time.

 TABLE 9-4.--PERCENT OF MOTHERS BY FULL- OR PART-TIME EMPLOYMENT STATUS,
                             MARCH 1996 \1\                             
------------------------------------------------------------------------
                                           With children   With children
             Marital status                  under 18         under 6   
------------------------------------------------------------------------
Married, spouse present:                                                
    Employed full time..................        46.3            39.4    
    Employed part time..................        21.3            20.9    
Divorced:                                                               
    Employed full time..................        66.2            56.5    
    Employed part time..................        12.6            12.9    
Never married:                                                          
    Employed full time..................        35.5            28.8    
    Employed part time..................        13.8            15.1    
                                         -------------------------------
    All mothers:                                                        
        Employed full time..............        47.5            39.0    
        Employed part time..............        19.0           19.1     
------------------------------------------------------------------------
\1\ Full-time workers work 35 hours or more per week.                   
                                                                        
 Source: U.S. Department of Labor, Bureau of Labor Statistics.          

    As table 9-4 demonstrates, how much mothers work differs 
according to their marital status and the age of their 
children. Forty-six percent of married women with children 
worked full time; thus, over 50 percent either didn't work at 
all or worked part time. Some 66 percent of all divorced 
mothers worked full time; almost 57 percent of divorced mothers 
with children under 6 worked full time. Almost 36 percent of 
never-married mothers worked full time, and 14 percent worked 
part time.

            CHILD CARE ARRANGEMENTS USED BY WORKING MOTHERS

    Data are collected periodically by the Census Bureau on the 
types of child care arrangements used by families with working 
mothers. Because the interview questions obtain information 
about both paid and unpaid substitute care used while the 
mother works, it provides information on categories of care 
that generally are not considered child care, such as care 
provided by the father and school attendance. Further, the 
survey does not gather information on the child care 
arrangements used by the family while the father works. Though 
information is collected on the arrangements of families in 
which there is only a father present, it is considered too 
negligible to report.
    The most recent Census Bureau statistics on child care 
arrangements are based on data collected by the Survey of 
Income and Program Participation (SIPP) for the fall of 1994. 
These data indicate that the types of child care arrangements 
used by families while the mother works vary depending on the 
age of the child, as well as the mother's work schedule, 
marital status, and family income. Table 9-5 shows the 
distribution of primary child care arrangements provided for 
preschoolers (children under age 5), by marital status and 
mother's work schedule. ``Primary'' child care arrangement 
refers to the arrangement used most frequently during a typical 
work week.

 TABLE 9-5.--PRIMARY CHILD CARE ARRANGEMENTS OF CHILDREN UNDER 5 WITH AN
  EMPLOYED MOTHER, BY MARITAL AND EMPLOYMENT STATUS OF THE MOTHER, FALL 
                                  1994                                  
                              [In percent]                              
------------------------------------------------------------------------
                                    Mothers with children under 5 years 
                                  --------------------------------------
       Type of arrangement                        Employed     Employed 
                                      Total      full time    part time 
------------------------------------------------------------------------
                                            All Marital Statuses        
                                  --------------------------------------
Care in child's home:                                                   
    By grandparent...............          5.9          5.1          7.2
    By other relative............          3.5          2.9          4.4
    By nonrelative...............          5.1          4.8          5.6
                                  --------------------------------------
        Total....................         14.5         12.8         17.2
                                  ======================================
Care in another home:                                                   
    By grandparent...............         10.4         10.5         10.1
    By other relative............          5.5          6.7          3.2
    By nonrelative \1\...........         15.4         18.2         10.3
                                  --------------------------------------
        Total....................         31.3         35.4         23.6
                                  ======================================
Organized child care facilities:                                        
    Day/group care center........         21.6         25.0         15.2
    Nursery school/preschool.....          7.8          8.5          6.4
    Kindergarten/grade school....          0.9          0.8          0.9
    School-based activity........          0.2          0.2          0.1
                                  --------------------------------------
        Total....................         30.5         34.5         22.6
                                  ======================================
Parental care:                                                          
    By father....................         18.4         13.3         28.1
    By mother at work \2\........          5.5          3.9          8.5
    Child cares for self.........  ...........  ...........  ...........
                                  --------------------------------------
        Total....................         23.9         17.2         36.6
                                  ======================================
        Total children of                                               
         employed mothers (in                                           
         thousands)..............       10,329        6,732        3,597
                                  --------------------------------------
                                          Married, Husband Present      
                                  --------------------------------------
Care in child's home:                                                   
    By grandparent...............          3.4          3.1          3.9
    By other relative............          2.5          2.1          3.3
    By nonrelative...............          5.6          5.5          5.8
                                  --------------------------------------
        Total....................         11.5         10.7         13.0
                                  ======================================
Care in another home:                                                   
    By grandparent...............         10.1         10.7          9.1
    By other relative............          4.0          4.8          2.6
    By nonrelative \1\...........         15.7         19.0          9.8
                                  --------------------------------------
        Total....................         29.8         34.5         21.5
                                  ======================================
Organized child care facilities:                                        
    Day/group care center........         20.7         24.6         13.7
    Nursery school/preschool.....          8.3          9.0          6.9
    Kindergarten/grade school....          0.8          0.8          0.8
    School-based activity........          0.2          0.3          0.1
                                  --------------------------------------
        Total....................         30.0         34.7         21.5
                                  ======================================
Parental care:                                                          
    By father....................         22.3         15.9         33.7
    By mother at work \2\........          6.3          4.1         10.3
    Child cares for self.........  ...........  ...........  ...........
                                  --------------------------------------
        Total....................         28.6         20.0         44.0
                                  ======================================
        Total children of                                               
         employed mothers (in                                           
         thousands)..............        7,961        5,105        2,856
                                  --------------------------------------
                                       All Other Marital Statuses \3\   
                                  --------------------------------------
Care in child's home:                                                   
    By grandparent...............         14.2         11.4         20.3
    By other relative............          6.5          5.4          8.9
    By nonrelative...............          3.4          2.8          4.8
                                  --------------------------------------
        Total....................         24.1         19.6         34.0
                                  ======================================
Care in another home:                                                   
    By grandparent...............         11.2         10.0         14.0
    By other relative............         10.5         12.7          5.4
    By nonrelative \1\...........         14.6         15.7         12.3
                                  --------------------------------------
        Total....................         36.3         38.4         31.7
                                  ======================================
Organized child care facilities:                                        
    Day/group care center........         24.3         26.0         20.6
    Nursery school/preschool.....          6.2          6.9          4.5
    Kindergarten/grade school....          1.1          0.9          1.3
    School-based activity........          0.1          0.1  ...........
                                  --------------------------------------
        Total....................         31.7         33.9         26.4
                                  ======================================
Parental care:                                                          
    By father....................          5.4          5.0          6.3
    By mother at work \2\........          2.5          3.0          1.5
    Child cares for self.........  ...........  ...........  ...........
                                  --------------------------------------
        Total....................          7.9          8.0          7.8
                                  ======================================
        Total children of                                               
         employed mothers (in                                           
         thousands)..............        2,368        1,627         741 
------------------------------------------------------------------------
\1\ Care in another's home by a nonrelative is known as ``family day    
  care.''                                                               
\2\ Includes women working at home or away from home.                   
\3\ Includes married, husband absent (including separated), widowed,    
  divorced, and never-married women.                                    
                                                                        
 Source: Survey of Income and Program Participation, Bureau of the      
  Census, U.S. Department of Commerce.                                  

    Families of preschoolers with working mothers rely more on 
care provided in an organized child care facility (30.5 
percent) than on family day care (care in another home by 
nonrelative; 15 percent). Relative care, either in the child's 
home or the relative's home, is used by 25 percent of preschool 
children. Many families with young children do not rely on 
others for help with child care arrangements while the mother 
works because they use parental care (24 percent), especially 
care by fathers (18 percent). Only 5 percent of families rely 
on care provided in the child's home by a nonrelative.
    Preschool children of part-time employed mothers are much 
less likely to be cared for at an organized child care facility 
or by a family day care provider, and more likely to be cared 
for by a parent, than children of full-time employed mothers. 
Children of employed single mothers, shown in table 9-5 under 
the heading ``all other marital statuses,'' are much more 
likely to be cared for by a relative than children of married 
mothers.
    Table 9-6 shows the types of afterschool arrangements used 
in 1993 for school-age children by working mothers, as well as 
cases in which there were no arrangements used at all. A total 
of 1.2 million school-age children (5.4 percent of children age 
5-14) were reported to be in self-care or to be unsupervised by 
an adult for some time while their mothers were working. It is 
not known if the children in the ``no care mentioned'' category 
were unsupervised, or if other factors may account for their 
not being reported in a child care arrangement, such as travel 
time from school.
    Table 9-7 shows that the type of child care arrangements 
used for children under 5 varies by the economic well-being of 
the family. Children in poor families are more likely to be 
cared for by relatives (35 versus 24 percent) while their 
mother works than children in nonpoor families. In addition, 
children in nonpoor families use organized child care 
facilities more than children in poor families (31 versus 24 
percent). Children in nonpoor families rely more on family day 
care provided by nonrelatives than do children living in 
poverty (16 versus 11 percent).
    Table 9-8 shows the primary arrangements used by working 
mothers for their preschool-aged children from June 1977 
through the fall of 1994. In general, the table does not show 
dramatic changes in the arrangements used during this time 
period, except with regard to day care centers and nursery 
schools. The share of children enrolled in day care centers and 
nursery schools increased sharply between 1977 and 1994, from 
13 to 29 percent. The table shows that the role of fathers in 
caring for their preschool children increased slightly after 
1977, including for children of single mothers. The share of 
children cared for by their mothers at work decreased from 1977 
to 1994, as did the percent of children in family day care 
homes. Data on children cared for by their grandparents were 
obtained beginning in 1985, and remained relatively stable 
during the period from 1985 to 1994.

TABLE 9-6.--AFTERSCHOOL CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS
                      FOR CHILDREN 5-14, FALL 1993                      
------------------------------------------------------------------------
                                                   Number (in           
               Type of arrangement                 thousands)   Percent 
------------------------------------------------------------------------
Care in child's home:                                                   
    By grandparent...............................         779        3.5
    By other relative............................       1,209        5.4
    By nonrelative...............................         547        2.5
                                                  ----------------------
        Total....................................       2,535       11.4
                                                  ======================
Care in another home:                                                   
    By grandparent...............................         949        4.3
    By other relative............................         517        2.3
    By nonrelative \1\...........................       1,179        5.3
                                                  ----------------------
        Total....................................       2,645       11.9
                                                  ======================
Organized child care facilities:                                        
    Day/group care center........................       1,071        4.8
    Nursery school/preschool.....................         167        0.7
    School-based activity........................       1,217        5.5
                                                  ----------------------
        Total....................................       2,455       11.0
                                                  ======================
Parental care:                                                          
    By father....................................       2,587       11.6
    By mother at work \2\........................         616        2.8
    Child cares for self.........................       1,202        5.4
                                                  ----------------------
        Total....................................       4,405       19.8
                                                  ======================
No care mentioned................................      10,236       46.0
                                                  ----------------------
        Total children...........................      22,276     100.0 
------------------------------------------------------------------------
\1\ Care in another home by a nonrelative is known as a ``family day    
  care.''                                                               
\2\ Includes women working at home or away from home.                   
                                                                        
 Source: Survey of Income and Program Participation, Bureau of the      
  Census, U.S. Department of Commerce.                                  


TABLE 9-7.--PRIMARY CHILD CARE ARRANGEMENTS USED BY EMPLOYED MOTHERS FOR
      CHILDREN UNDER 5, BY POVERTY STATUS OF THE MOTHERS, FALL 1994     
------------------------------------------------------------------------
          All marital statuses           Total \1\   Poor \2\   Not poor
------------------------------------------------------------------------
Care in child's home:                                                   
    By grandparent.....................        5.9        7.5        5.7
    By other relative..................        3.5        7.2        3.0
    By nonrelative.....................        5.1        3.7        5.3
                                        --------------------------------
        Total..........................       14.5       18.4       14.0
                                        ================================
Care in another home:                                                   
    By grandparent.....................       10.4        9.4       10.5
    By other relative..................        5.5       10.5        4.9
    By nonrelative \3\.................       15.4       10.8       16.0
                                        --------------------------------
        Total..........................       31.3       30.7       31.4
                                        ================================
Organized child care facilities:                                        
    Day/group care center..............       21.6       17.2       22.1
    Nursery school/preschool...........        7.8        5.0        8.1
    Kindergarten/grade school..........        0.9        1.3        0.8
    School-based activity..............        0.2        0.2        0.2
                                        --------------------------------
        Total..........................       30.5       23.7       31.2
                                        ================================
Parental care:                                                          
    By father..........................       18.4       17.6       18.5
    By mother at work \4\..............        5.5        9.7        4.9
    Child cares for self...............  .........  .........  .........
                                        --------------------------------
        Total..........................       23.9       27.3       23.4
                                        ================================
        Total children of employed                                      
         mothers (in thousands)........     10,329      1,109     9,208 
------------------------------------------------------------------------
\1\ Includes children for which no poverty estimates were available.    
\2\ Below the poverty threshold, which was $15,141 annually or $1,262   
  monthly in 1994 for a family of four.                                 
\3\ Care in another home by a nonrelative is known as ``family day      
  care.''                                                               
\4\ Includes women working at home or away from home.                   
                                                                        
 Source: Survey of Income and Program Participation, Bureau of the      
  Census, U.S. Department of Commerce.                                  


              TABLE 9-8.--PERCENT OF CHILDREN UNDER 5 IN SELECTED CHILD CARE ARRANGEMENTS, 1977-94              
----------------------------------------------------------------------------------------------------------------
                                                                 Percent of children cared for by               
                                                ----------------------------------------------------------------
                                                                                                     Day care   
        Family status and date of survey                                             Family day   center/nursery
                                                  Father   Mother \1\  Grandparent    care \2\        school    
                                                                                                                
----------------------------------------------------------------------------------------------------------------
All families:                                                                                                   
    Fall 1994..................................      18.4         5.5        16.3          15.4           29.4  
    Fall 1993..................................      15.9         6.2        16.5          16.6           29.9  
    Fall 1991..................................      20.0         8.7        15.8          17.9           23.0  
    Fall 1990..................................      16.5         6.4        14.3          20.1           27.5  
    Fall 1988..................................      15.1         7.6        13.9          23.6           25.8  
    Fall 1987..................................      15.3         8.9        13.8          22.3           24.4  
    Fall 1986..................................      14.5         7.4        15.7          24.0           22.4  
    Winter 1985................................      15.7         8.1        15.9          22.3           23.1  
    June 1977..................................      14.4        11.4          NA          22.4           13.0  
Married couples:                                                                                                
    Fall 1994..................................      22.3         6.3        13.5          15.7           29.0  
    Fall 1993..................................      19.3         6.9        14.4          16.4           30.0  
    Fall 1991..................................      22.9         9.8        13.7          17.1           22.7  
    Fall 1990..................................      19.8         7.8        13.0          19.7           26.8  
    Fall 1988..................................      17.9         8.7        11.8          23.7           25.4  
    Fall 1987..................................      18.2        10.1        12.2          22.2           23.4  
    Fall 1986..................................      17.9         8.3        14.1          24.4           20.3  
    Winter 1985................................      18.8         9.2        13.9          21.8           22.3  
    June 1977..................................      17.1        12.9          NA          22.6           11.6  
Single mothers:                                                                                                 
    Fall 1994..................................       5.4         2.5        25.4          14.6           30.5  
    Fall 1993..................................       3.4         3.5        24.6          17.3           29.5  
    Fall 1991..................................       7.0         3.7        24.8          21.3           24.5  
    Fall 1990..................................       3.2         0.7        20.0          27.8           30.4  
    Fall 1988..................................       1.5         2.4        23.9          22.8           27.8  
    Fall 1987..................................       2.3         3.4        20.8          22.3           28.3  
    Fall 1986..................................       1.4         3.8        20.3          22.4           30.2  
    Winter 1985................................       2.2         3.5        24.5          24.4           26.7  
    June 1977..................................       0.8         4.4          NA          21.8          19.1   
----------------------------------------------------------------------------------------------------------------
\1\ Includes mothers working at home or away from home.                                                         
\2\ Children cared for in another home by nonrelatives.                                                         
                                                                                                                
 NA--Not available.                                                                                             
                                                                                                                
 Note.--Data are the principal arrangement used by mothers during most of their hours at work. Single mothers   
  include women never married, widowed, divorced, and separated.                                                
                                                                                                                
 Source: Survey of Income and Program Participation and the June 1977 Current Population Survey, ``Who's Minding
  the Kids? Child Care Arrangements: Fall 1991,'' Current Population Reports, Series P70-36, Bureau of the      
  Census, U.S Department of Commerce.                                                                           

                            CHILD CARE COSTS

    Research studies have found that the majority of families 
with working mothers and preschool children purchase child care 
services. The tendency to purchase care and the amount spent on 
care, both in absolute terms and as a percent of family income, 
generally varies by the type of child care used, family type 
(married or single mothers), and the family's economic 
situation.
    The most recent data on child care expenditures are from 
the Survey of Income and Program Participation for the fall of 
1993, published by the Census Bureau (Casper, 1995). These data 
show that 56 percent of families with employed mothers paid for 
child care for their preschool-aged children. Nonpaid child 
care was most typically provided by relatives. Families with 
mothers employed full time were more likely to purchase care 
for their young children than those with mothers working part 
time. Among families with full-time working mothers, 63 percent 
paid for child care, compared to 41 percent of families with 
mothers employed part time. Likewise, as shown in table 9-9, 
families with higher incomes were more likely to purchase care 
than families with lower incomes. For example, 69 percent of 
families with monthly incomes of $4,500 or more purchased child 
care in the fall of 1993, while only 39 percent of families 
with monthly incomes of less than $1,200 purchased care.

 TABLE 9-9.--AVERAGE WEEKLY CHILD CARE EXPENDITURES FOR PRESCHOOLERS AND
PERCENTAGE OF INCOME SPENT ON CARE, BY POVERTY STATUS AND FAMILY INCOME,
                                FALL 1993                               
------------------------------------------------------------------------
                                                              Percent of
                                                               monthly  
                                     Percent      Average       family  
                                    paying for  weekly cost     income  
                                       care       of care      spent on 
                                                                 care   
------------------------------------------------------------------------
Poverty status:                                                         
    Below poverty................           37       $49.56         17.7
    Above poverty................           58        76.03          7.3
Monthly family income:                                                  
    Less than $1,200.............           39        47.29         25.1
    $1,200-$2,999................           49        60.16         12.0
    $3,000-$4,499................           57        73.10          8.5
    $4,500 and over..............           69        91.93          5.7
                                  --------------------------------------
        Total....................           56        74.15         7.5 
------------------------------------------------------------------------
Source: Casper (1995).                                                  

    As indicated in table 9-9, average weekly costs per family 
for all preschool-aged children were $74 in 1993 for those 
families who purchased care. Families with two or more 
preschoolers paid almost $110 per week for child care (11 
percent of family income), while families with one child paid 
$66 per week (7 percent of family income). Married-couple 
families devoted a smaller percentage of their income to child 
care (7 percent) than single-parent families (12 percent), but 
their child care expenditures were nonetheless greater ($78 per 
week) than those of single-parent families (about $60 per 
week).
    Table 9-9 also shows that, while low-income families spend 
fewer dollars for child care than higher income families, they 
spend a much greater percentage of their family income for 
child care. Specifically, families with monthly incomes of less 
than $1,200 had average weekly child care expenses of $47 in 
1993, compared with $92 for families with monthly incomes of 
$4,500 or more. However, lower income families devoted 25 
percent of their family income to child care, while the higher 
income families spent less than 6 percent of their income for 
child care.
    For families purchasing care, the average weekly cost of 
child care per arrangement was $57 in 1993. In-home, 
nonrelative babysitters were the most expensive type of care, 
at an average weekly cost of $68, followed by organized child 
care centers at $64 per week. Family day care homes cost an 
average of $57 per week, while the least expensive form of paid 
care was provided by relatives, at an average of $42 per week. 
Looking at child care costs per child, the average weekly cost 
for preschoolers in 1993 was $60, ranging from $66 per week for 
infants under 1 year old to $56 for 3-year-olds and $59 for 4-
year-olds.
    Child care costs have increased in recent years. Chart 9-1 
illustrates growth in the average weekly cost of care for all 
children (up to age 15) in families with a preschooler from 
1986 to 1993, in constant 1993 dollars. As the chart shows, the 
average weekly cost has gone up by $15, from $64 in 1986 to $79 
in 1993.

                CHART 9-1. WEEKLY COST OF CHILD CARE \1\

  [In constant 1993 dollars. Limited to families with a preschooler.] 





    \1\ Represents total costs for all children in the family.

    Source: Casper (1995).

                     SUPPLY OF CHILD CARE PROVIDERS

    The profile of child care settings (PCS) study, released by 
the U.S. Department of Education in 1991, is regarded as the 
most comprehensive national study of regulated child care/early 
education services since the 1970s (Kisker, Hofferth, Phillips 
& Farquhar, 1991). The study provides information on the supply 
and characteristics of State licensed child care centers and 
early education programs, center-based programs exempt from 
State or local licensing (such as programs sponsored by 
religious organizations or schools), and licensed family day 
care providers. Readers should note that both demand and 
Federal support for child care have increased since 1990, most 
likely also causing an increase in the supply since this study 
was conducted.
    Kisker and her colleagues reported that approximately 
80,000 center-based early education and care programs were 
providing services in the United States at the beginning of 
1990. The Children's Foundation has subsequently reported that, 
in 1996, there were 93,221 regulated child day care centers 
(Children's Foundation, 1996). The PCS researchers estimated 
that about 12 percent of centers on State licensing lists were 
not operating during the time of the survey, but that operating 
centers had about 5.3 million spaces (defined as the sum of 
enrollment plus vacancies), of which approximately 4.2 million 
were for preschool-age children and 1.1 million were for 
school-age children. The study found that an average of 88 
percent of the available spaces in centers were filled. The 
researchers concluded that this high overall utilization rate 
indicates that ``the market seems to be working to increase 
supply as demand expands.'' As shown in table 9-10, centers 
were distributed across regions in urban/rural areas 
approximately in proportion to the population of children under 
age 5.

   TABLE 9-10.--DISTRIBUTION OF PRESCHOOL CHILDREN, EARLY CHILDHOOD PROGRAMS, AND PROGRAM SPACES BY REGION AND  
                                                   URBANICITY                                                   
                                                  [In percent]                                                  
----------------------------------------------------------------------------------------------------------------
                                                                                                       Spaces in
                                                              Children             Spaces   Regulated  regulated
                                                               younger   Centers     in       home-      home-  
                                                               than 5              centers    based      based  
                                                                 \1\                         programs   programs
----------------------------------------------------------------------------------------------------------------
Region:                                                                                                         
    Northeast...............................................        19        18        16         14         11
    South...................................................        35        41        42         21         20
    Midwest.................................................        24        23        23         29         32
    West....................................................        23        18        19         36         37
                                                                                                                
Urbanicity:                                                                                                     
    Metropolitan............................................        75        76        83         77         77
    Nonmetropolitan.........................................        25        24        17         23        23 
----------------------------------------------------------------------------------------------------------------
\1\ The distribution of children younger than age 5 by region is estimated from projections of 1980 census data 
  to 1988 (U.S. Bureau of the Census, 1989). The distribution of children younger than age 5 by urbanicity is   
  estimated as the distribution of the population by urbanicity in 1980 (U.S. Bureau of the Census, 1983).      
                                                                                                                
 Source: Kisker, Hofferth, Phillips, & Farquhar (1991).                                                         

    The study also found that there were approximately 118,000 
licensed family day care providers with a capacity to care for 
860,000 children (defined as the number of children for whom 
the provider is licensed to provide care) operating in the 
United States at the beginning of 1990. This number is about 30 
percent less than counts of family day care providers obtained 
directly from licensing lists because such lists are not 
generally up to date. About 82 percent of all family day care 
spaces were filled at the beginning of 1990. In contrast to 
centers, the distribution of family day care homes across 
regions of the United States was not proportional to the number 
of young children in those regions (table 9-10). The authors 
postulate that this imbalance may be due to regional 
differences in State family day care licensing requirements.
    When providers were asked how many vacancies were actually 
available, the study found that the average child care center 
had four full-time vacancies and that the average regulated 
family day care home had one full-time vacancy. For centers, 
the study reported that vacancies were concentrated in fewer 
than half of all centers and that two-thirds to three-fourths 
of all centers reported having no vacancies. Vacancies were 
also concentrated in less than half of all family day care 
homes. According to the study, more than half of all regulated 
homes reported being ``unable or unwilling'' to accept more 
children on a full-time basis.
    It is assumed by child care researchers that the number of 
unregulated family day care providers far exceeds the number of 
regulated family providers, though it is difficult to determine 
by how much. Based on an estimate that 4 million children were 
in family day care in 1991 and that the average number of 
children per home ranged from 3 to 6, Kisker et al. estimated 
that there were from 550,000 to 1.1 million unlicensed 
providers. Based on this estimate, the number of regulated 
family day care homes (118,000) represented 10-18 percent of 
the total number of family day care providers (National 
Association for the Education of Young Children, 1991).

                          CHILD CARE STANDARDS

    Regulation and licensing of child care providers is 
conducted primarily at the State and local levels, although the 
extent to which the Federal Government should play a role in 
this area has been a topic of debate for many years (see 
below). Table 9-11 presents information on State licensing 
standards in 1993, which was collected by Parenting magazine 
and the Children's Defense Fund (CDF). It should be noted that 
these standards apply to licensed or regulated child care 
providers. In the case of family day care homes, most States 
exempt certain providers--typically those serving smaller 
numbers of children--from licensing or regulation. As cited 
above, research in 1990 estimated that between 82 and 90 
percent of family child care is unregulated.

    TABLE 9-11.--NUMBER OF STATES WITH SELECTED CHILD CARE LICENSING    
  REQUIREMENTS, FOR CHILD CARE CENTERS AND FAMILY DAY CARE HOMES, 1993  
------------------------------------------------------------------------
                                                 Child care   Family day
                     Item                         centers     care homes
------------------------------------------------------------------------
Children must have all immunizations \1\......       50           45    
Children must have all recommended                                      
 immunizations \2\............................        7            9    
All or some staff must have first aid training       42           28    
All or some staff must have CPR training......       32           18    
Energy-absorbing surfaces must be under                                 
 climbing equipment...........................       23           NA    
Smoke detectors and periodic fire drills:                               
    Both required.............................       44           35    
    Fire drill only...........................        6            2    
    Smoke detector only.......................        1            7    
Staff must wash hands after diapering and                               
 before handling food.........................       48           NA    
Smoking prohibited............................       45           19    
Maximum number of children allowed per staff                            
 members exceeds NAEYC recommendation: \3\                              
    6 months old..............................       18           NA    
    12 months old or walking..................       20           NA    
    18 months old.............................       25           NA    
    2 years old...............................       31           NA    
    3 years old...............................       21           NA    
    4 years old...............................       33           NA    
Group size not regulated, or exceeds NAEYC                              
 recommendation: \3\                                                    
    6 months old..............................       33           NA    
    12 months old or walking..................       25           NA    
    18 months old.............................       30           NA    
    2 years old...............................       20           NA    
    3 years old...............................       23           NA    
    4 years old...............................       23           NA    
Parental access required......................       46           42    
Frequency of State licensing inspections:                               
    More than once per year...................       12            9    
    Once per year.............................       30           15    
    Less than once per year...................        8           21    
    Never.....................................        1            6    
Liability insurance required..................       20            5    
Corporal punishment prohibited................       43          39     
------------------------------------------------------------------------
\1\ Basic immunizations are the DPT vaccine against diphtheria-pertussis-
  tetanus, the OPV vaccine against polio, and the MMR vaccine against   
  measles, mumps and rubella.                                           
\2\ In addition to the basic immunizations, the American Academy of     
  Pediatrics recommends the Hib vaccine against bacterial meningitis,   
  and HBV against hepatitis B.                                          
\3\ Staff-child ratios are recommended by the National Association for  
  the Education of Young Children.                                      
                                                                        
 NA--Not available.                                                     
                                                                        
 Source: Prepared by the Congressional Research Service from data       
  reported by Adams, 1995.                                              

               THE FEDERAL ROLE--BACKGROUND AND OVERVIEW

    The Federal Government entered the child care business 
during the New Deal of the 1930s when federally funded nursery 
schools were established for poor children. The motivation for 
creating these nursery schools was not specifically to provide 
child care for working families. Rather, the schools were 
designed primarily to create jobs for unemployed teachers, 
nurses, and others, and also to provide a wholesome environment 
for children in poverty. However, when mothers began to enter 
the work force in large numbers during World War II, many of 
these nursery schools were continued and expanded. Federal 
funding for child care, and other community facilities, was 
available during the war years under the Lanham Act, which 
financed child care for an estimated 550,000-600,000 children 
before it was terminated in 1946.
    The end of the war brought the expectation that mothers 
would return home to care for their children. However, many 
women chose to remain at work and the labor force participation 
of women has increased steadily ever since. The appropriate 
Federal role in supporting child care, including the extent to 
which the Federal Government should establish standards for 
federally funded child care, has been an ongoing topic of 
debate. In 1988 and 1990, four Federal child care programs were 
enacted providing child care for families receiving Aid to 
Families with Dependent Children (AFDC), families that formerly 
received AFDC, low-income working families at risk of becoming 
dependent on AFDC, and low-income working families generally.
    The establishment of these programs was the culmination of 
a lengthy, and often contentious debate, about what role the 
Federal Government should play in child care. Lasting nearly 4 
years, the debate centered on questions about the type of 
Federal subsidies that should be made available and for whom, 
whether the Federal Government should set national child care 
standards, conditions under which religious child care 
providers could receive Federal funds, and how best to assure 
optimal choice for parents in selecting child care arrangements 
for their children, including options that would allow a mother 
to stay home. Differences stemming from philosophical and 
partisan views, as well as jurisdictional concerns, were 
reflected throughout the debate.
    Though the programs created in 1988 and 1990 represented a 
significant expansion of Federal support for child care, they 
joined a large number of existing Federal programs providing 
early childhood services, administered by numerous Federal 
agencies and overseen by several congressional committees. The 
General Accounting Office (GAO) estimated that in fiscal year 
1992 and fiscal year 1993, more than 90 early childhood 
programs were funded by the Federal Government, administered 
through 11 Federal agencies and 20 offices. Of these programs, 
GAO identified 34 as having education or child care as key to 
their mission (U.S. General Accounting Office, 1994a). The 
Congressional Research Service (CRS), in a memo to the House 
Committee on Ways and Means (Forman, 1994), identified 46 
Federal programs related to child care operating in fiscal year 
1994, administered by 10 different Federal agencies. However, 
CRS noted that some of these programs were not primarily child 
care programs; rather, they were designed for some other major 
purpose but included some type of child care or related 
assistance. Moreover, a majority of the programs were small, 
with 32 of the 46 providing less than $50 million in annual 
funding. A more recent GAO (1998) report identified 22 key 
child care programs, of which 5 accounted for more than 80 
percent of total child care spending in fiscal year 1997.
     Most recently, the 104th Congress passed a major 
restructuring of Federal welfare programs, including a 
consolidation of major Federal child care programs into an 
expanded Child Care and Development Block Grant (CCDBG) (Public 
Law 104-103). The child care provisions in the new law were 
developed to achieve several purposes. As a component of 
welfare reform, the child care provisions are intended to 
support the overall goal of promoting self-sufficiency through 
work. However, separate from the context of welfare reform, the 
legislation attempts to address concerns about program 
effectiveness and efficiency. The four separate child care 
programs that were enacted in 1988 and 1990 had different rules 
regarding eligibility, time limits on the receipt of 
assistance, and work requirements. Consistent with other block 
grant proposals considered in the 104th Congress, the child 
care provisions in Public Law 104-193 are intended to 
streamline the Federal role, reduce the number of Federal 
programs and conflicting rules, and increase the flexibility 
provided to States. In addition, the Child Care and Development 
Block Grant, which had originally been enacted in 1990 to 
provide child care services for low-income families, expired at 
the end of fiscal year 1995, and the welfare reform legislation 
was used as a vehicle for reauthorization.
     Under the new amendments, the CCDBG is now the primary 
child care subsidy program operated by the Federal Government, 
and replaces previous child care programs for welfare and 
working families. The new law makes available to States almost 
$20 billion over a 6-year period (1997-2002) in a combination 
of entitlement and discretionary funding for child care, which 
is approximately $4 billion above the level that would have 
been available under the previous programs. Despite this 
increase in Federal resources, concerns persist about the 
adequacy and quality of child care, particularly after welfare 
reform is fully implemented and States are required to ensure 
that a certain portion of their welfare caseload is enrolled in 
work activities. The Congressional Budget Office (CBO) 
projected in August 1996 a potential $1.4 billion shortfall in 
child care funding over the 6 years if all States complied with 
new welfare-to-work participation requirements. However, the 
CBO analysis was limited only to entitlement funding, and did 
not consider the $6 billion in discretionary funds also 
authorized for child care. Moreover, welfare caseloads have 
declined since CBO's analysis was conducted, which would free 
up funds from the Temporary Assistance for Needy Families 
(TANF) Block Grant that States could use for child care. On the 
other hand, about a third of the total child care funding is 
subject to maintenance-of-effort and matching requirements, and 
CBO's estimate was based on the assumption that all States 
would meet these requirements. If any States fail to meet these 
requirements, they would not receive the full amount of 
available Federal funds.
     It is likely that increased demand and Federal resources 
for child care will cause some growth in the supply of child 
care providers. The U.S. General Accounting Office (GAO) 
reported in May 1997 that gaps currently exist between the 
demand for child care and the ``known'' supply (i.e., providers 
that are regulated by or otherwise known to the States), based 
on research at four sites. These gaps are larger in poor areas 
and for certain types of care, such as infant and school-aged 
child care. It is important to note, however, that many parents 
rely on informal care givers, such as relatives and neighbors, 
who may not be known to State agencies. Nonetheless, as welfare 
reform and the new child care law are implemented, a number of 
perennial issues will be of continuing interest, including the 
availability, cost, and quality of child care. In addition, 
States now will have the flexibility and responsibility for 
determining the most equitable method of providing child care 
services to both welfare families who are trying to become 
self-sufficient, and low-income working families who are not 
dependent on welfare.

               THE FEDERAL ROLE--MAJOR DAY CARE PROGRAMS

    Table 9-12 provides a brief description of the major 
Federal programs that currently support child care and related 
activities. As the table shows, one of the largest Federal 
sources of child care assistance is provided indirectly through 
the Tax Code, in the form of a nonrefundable tax credit for 
taxpayers who work or are seeking work. Other major sources of 
Federal child care assistance, in addition to the CCDBG, 
include the Social Services Block Grant under title XX of the 
Social Security Act and the Child Care Food Program, which 
subsidizes meals for children in child care. Head Start, the 
early childhood development program targeted to poor preschool 
children, also has been characterized as a child care program. 
Although Head Start primarily operates on a part-day, part-year 
basis, programs increasingly are being linked to other all-day 
child care providers to better meet the needs of full-time 
working parents.

                       Dependent Care Tax Credit

    Under section 21 of the Internal Revenue Code, a 
nonrefundable credit against income tax liability is available 
for up to 30 percent of a limited amount of employment-related 
dependent care expenses. Eligible employment-related expenses 
are limited to $2,400, if there is one qualifying dependent, or 
$4,800, if there are two or more qualifying dependents. The 
credit may be claimed by a taxpayer who maintains a household 
that includes one or more qualifying individuals. Generally, a 
qualifying individual is a dependent under the age of 13, a 
physically or mentally incapacitated dependent, or a physically 
or mentally incapacitated spouse. The costs of care must be 
incurred to enable a taxpayer (or taxpayer's spouse, if 
married) to work or look for work. Qualified expenses include 
the costs of household services.

                                            TABLE 9-12.--OVERVIEW OF FEDERAL PROGRAMS THAT SUPPORT CHILD CARE                                           
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Program                                                      
                                   ---------------------------------------------------------------------------------------------------------------------
                                                                Child Care and        Child and Adult Care     Title XX Social                          
                                    Dependent Care Credit   Development Block Grant       Food Program       Services Block Grant        Head Start     
--------------------------------------------------------------------------------------------------------------------------------------------------------
Budgetary classification..........  Nonrefundable tax      Discretionary             Authorized             Authorized             Discretionary        
                                     credit.                authorization and         entitlement.           entitlement.           authorization       
                                                            authorized entitlement.                                                                     
Statutory authority...............  Internal Revenue Code  Omnibus Budget            National School Lunch  Social Security Act..  Omnibus Budget       
                                                            Reconciliation Act of     Act of 1946.                                  Reconciliation Act  
                                                            1990 and Personal                                                       of 1981             
                                                            Responsibility and Work                                                                     
                                                            Opportunity                                                                                 
                                                            Reconciliation Act of                                                                       
                                                            1996.                                                                                       
Federal administration............  U.S. Department of     HHS, ACF \1\............  U.S. Department of     HHS, ACF \1\.........  HHS, ACF \1\         
                                     Treasury, Internal                               Agriculture, Food                                                 
                                     Revenue Service.                                 and Nutrition                                                     
                                                                                      Service.                                                          
Federal funding support...........  NA...................  Funding ceiling, 100      Open-ended, 100        Funding ceiling, 100   Funding ceiling, 80  
                                                            percent Federal funding   percent Federal        percent Federal        percent Federal     
                                                            for discretionary and     funding.               funding.               funding             
                                                            part of entitlement                                                                         
                                                            funding; balance at                                                                         
                                                            Medicaid match rate.                                                                        
Fiscal year 1997 estimates (in      $2,800 \3\...........  970--discretionary,       1,524 \4\............  Total is 2,500 \5\...  3,981 \4\            
 millions) \2\.                                             1,435--mandatory.                                                                           
Target population.................  Taxpayers who need     Families with incomes at  NA...................  State discretion.....  Low-income children  
                                     dependent care in      or below 85 percent of                                                  and families        
                                     order to accept or     State median income,                                                                        
                                     maintain employment.   with parents engaged in                                                                     
                                                            work or education/                                                                          
                                                            training.                                                                                   
Eligible children.................  Children under age 13  Children under age 13     Children younger than  State discretion.....  Children from poor   
                                                            (unless incapable of      13; migrant children                          families who have   
                                                            self-care or under        younger than 16.                              not reached the age 
                                                            court supervision).                                                     of compulsory school
                                                                                                                                    attendance          
Provider requirements.............  Centers only must      Must meet applicable      Must meet applicable   Must meet applicable   Must meet federally  
                                     meet applicable        State and local           State and local        State and local        established         
                                     State and local        standards (including      standards.             standards.             standards with      
                                     standards.             relatives). With                                                        respect to health,  
                                                            exception of relatives,                                                 education, parental 
                                                            must also meet certain                                                  involvement,        
                                                            health and safety                                                       nutrition, and      
                                                            standards.                                                              social services     
Reimbursement rates to providers..  NA...................  No limit................  Meal rates are         No limit.............  No limit             
                                                                                      indexed to                                                        
                                                                                      inflation, rates                                                  
                                                                                      vary by family                                                    
                                                                                      income, and                                                       
                                                                                      provider's income                                                 
                                                                                      and location.                                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ U.S. Department of Health and Human Services, Administration for Children and Families.                                                             
\2\ Source: Congressional Budget Office for Programs, Joint Committee on Taxation for tax expenditures.                                                 
\3\ See Joint Committee, 1996. p. 21.                                                                                                                   
\4\ Obligations.                                                                                                                                        
\5\ States used almost 15 percent of SSBG funds for child day care in fiscal year 1995.                                                                 
                                                                                                                                                        
 NA--Not applicable.                                                                                                                                    
                                                                                                                                                        
 Source: Compiled by Committee on Ways and Means staff.                                                                                                 

    The percentage used to calculate the credit depends on a 
taxpayer's adjusted gross income (AGI). A taxpayer whose AGI is 
$10,000 or less is allowed a credit equal to 30 percent of 
qualified work-related expenses. The credit percentage is 
reduced by 1 percentage point for each additional $2,000 in AGI 
above $10,000. For taxpayers whose AGI is greater than $28,000, 
the credit is equal to 20 percent of qualified expenses. The 
maximum amount of the credit is $720 for one qualifying 
individual and $1,440 for two or more qualifying individuals.
    The Internal Revenue Code also contains a provision that 
allows taxpayers to exclude from their income the value of 
certain dependent care benefits provided by their employers. 
This exclusion is limited to $5,000 per year, or $2,500 for a 
married individual filing a separate return.
    More detailed information on the dependent care tax credit 
and the exclusion for employer-provided dependent care is 
provided in section 13.

    Child Care Programs Under Title IV-A of the Social Security Act

     Congress enacted legislation in 1996 that repealed the 60-
year-old Aid to Families with Dependent Children (AFDC) 
Program, which had been authorized under title IV-A of the 
Social Security Act, and established in its place a new block 
grant to States for Temporary Assistance for Needy Families 
(TANF). This legislation, the Personal Responsibility and Work 
Opportunity Reconciliation Act (Public Law 104-93), also 
repealed three child care programs that had been authorized 
under AFDC, and expanded the existing Child Care and 
Development Block Grant to include the purposes and populations 
that the repealed programs had served. The following sections 
describe the three AFDC-related child care programs as they 
existed before passage of the 1996 welfare reform legislation, 
and the expanded CCDBG, as it has been amended.
Child care for AFDC recipients
    Under the AFDC Program, the Federal Government required 
States to ``guarantee'' child care to recipients of AFDC if the 
care was needed for individuals to accept employment or remain 
employed. Child care also was guaranteed to AFDC recipients who 
were participating in a State-approved education and training 
activity, including an AFDC Job Opportunities and Basic Skills 
(JOBS) Training Program. \1\ The AFDC Child Care Program was 
funded by an open-ended entitlement. The Federal share of a 
State's child care payments was based on the Medicaid matching 
rate, which varies by State and is inversely related to a 
State's per capita income. The program was administered on the 
Federal level by the Administration for Children and Families 
(ACF) of the U.S. Department of Health and Human Services, as 
part of the AFDC Program.
---------------------------------------------------------------------------
    \1\ Under the Family Support Act of 1988 (Public Law 100-485), all 
States were required to have a JOBS Program in place by October 1, 
1990. The centerpiece of a major welfare reform initiative, JOBS was 
intended to prevent long-term welfare dependency by providing needy 
families with education, training, and employment. All AFDC recipients 
not otherwise exempt by law were required to participate in JOBS. The 
parent of a child under age 6 could be required to participate only if 
child care was guaranteed and if participation was limited to no more 
than 20 hours per week. A parent of a child under age 3 was exempt from 
participation, unless required to participate at State option. More 
detailed information on the AFDC JOBS Program is provided in section 7.
---------------------------------------------------------------------------
    State welfare agencies were responsible for administering 
the program at the State level and were required to inform AFDC 
applicants and recipients of the availability of child care 
assistance and the types and locations of child care services. 
The State agencies could provide child care directly, arrange 
for care with providers through contracts or vouchers, provide 
cash or vouchers in advance to families, reimburse families, or 
use other arrangements. States could also choose to disregard 
certain child care expenses--up to $175 per month per child age 
2 and over and up to $200 per month per child under age 2--from 
the earned income of a family in determining the family's 
eligibility for AFDC benefits.
    Reimbursement for child care costs had to be at least equal 
to the lower of the actual cost of care or a statewide limit 
(which could be the child care disregard amount or a higher 
amount). Reimbursement could not be more than the 75th 
percentile of the local market rate for the type of care being 
provided, as determined by each State. \2\ The child care had 
to meet applicable standards of State and local law. In 
addition, States had to ensure that center-based child care was 
subject to State and local health and safety requirements, 
including fire safety protections. States also had to endeavor 
to develop guidelines for family day care services.
---------------------------------------------------------------------------
    \2\ The 75th percentile does not mean 75 percent of the cost of 
care. To determine the 75th percentile, child care rates are ranked 
from lowest to highest. Starting from the bottom of the list, the 
amount separating the 75 percent of providers with the lowest rates 
from the 25 percent with highest rates is the 75th percentile.
---------------------------------------------------------------------------
    GAO reported, on the basis of a nationwide survey, that 
about three-fourths of State JOBS Programs able to provide 
child care subsidies or help arrange child care for all or most 
of their participants who needed such assistance. However, GAO 
attributed this success to the relatively small number of AFDC 
recipients actually participating in JOBS--about 13 percent of 
the adult caseload in a given month. State and local officials 
told GAO that barriers to providing child care assistance 
included shortages of certain types of care, such as infant 
care, sick child care, before- and after-school care, and child 
care during nontraditional work hours, as well as 
transportation problems (U.S. General Accounting Office, 1995).
Transitional child care assistance
    Under the AFDC Program, the Federal Government also 
required States to ``guarantee'' child care to a family that 
lost AFDC eligibility due to increased hours of, or increased 
income from employment or loss of the income disregard due to 
the time limitations, if the care was necessary for an 
individual to accept or retain employment. To be eligible for 
transitional child care (TCC), families had to have received 
AFDC in at least 3 of the 6 months immediately before the month 
in which they became ineligible for AFDC. The child care 
assistance under this program was limited to a period of 12 
months after the last month for which the family received AFDC 
benefits. The program, which was administered by ACF at the 
Federal level operated under the same rules as those that 
applied to the Child Care Program for eligible AFDC recipients, 
except that families had to contribute to the cost of the care 
in accordance with a State-established sliding fee scale.
At-Risk Child Care Program
    The At-Risk Child Care Program authorized by the Omnibus 
Budget Reconciliation Act of 1990 (Public Law 101-508) entitled 
States to Federal matching funds for child care services for 
low-income families who were not receiving AFDC, needed child 
care in order to work, and were ``at risk'' of becoming 
eligible for welfare if child care were not provided. The 
program was authorized as a capped entitlement at $300 million 
annually. It was administered by ACF. States were entitled to 
matching funds for child care expenditures up to State 
allocation limits determined by a formula in the law. State 
allocations were based on the number of children under age 13 
in a State compared to the total number of such children in the 
United States. If a State's grant award was less than its full 
allocation limit in 1 year, the difference could be applied to 
the State's allocation limit in the next year. Like the AFDC 
Child Care Programs, the Federal share of a State's child care 
payments was based on the Medicaid matching rate, which varies 
by State.
    The At-Risk Program was similar to the AFDC Child Care 
Programs with regard to the flexibility States were afforded in 
providing care. The requirements for reimbursement rates also 
were similar. Like the TCC Program, families were required to 
make some contribution to the cost of care, based on a State-
designed sliding fee scale. At-risk child care had to meet 
applicable standards of State and local law. In contrast to the 
other title IV-A child care programs, at-risk child care 
providers not required to meet such standards (with the 
exception of those providing care solely to family members) had 
to be registered by the State.

                 Child Care and Development Block Grant

     The Child Care and Development Block Grant (CCDBG) was 
originally authorized as an amendment to the Omnibus Budget 
Reconciliation Act of 1990, and most recently, has been 
reauthorized and amended by the Personal Responsibility and 
Work Opportunity Reconciliation Act (Public Law 104-193). The 
program provides funding for child care services for low-income 
families, as well as for activities intended to improve the 
overall quality and supply of child care for families in 
general. The CCDBG currently is authorized through fiscal year 
2002.
 Financing
     Under the original CCDBG Act, discretionary funds were 
authorized, subject to the annual appropriations process. As 
amended by the 1996 welfare reform law, the program is funded 
by a combination of discretionary and entitlement amounts. With 
regard to the discretionary funds, $1 billion is authorized 
annually. These funds are allocated among States according to 
the same formula contained in the original CCDBG Act, which is 
based on each State's share of children under age 5, the 
State's share of children receiving free or reduced-price 
lunches, and State per capita income. Half of 1 percent of 
appropriated funds is reserved for the territories, and between 
1 and 2 percent is reserved for payments to Indian tribes and 
tribal organizations. States are not required to match these 
discretionary funds. Funds must be obligated in the year they 
are received or in the subsequent fiscal year, and the law 
authorizes the Secretary to reallocate unused funds.
    The 1996 welfare reform law replaced the AFDC Program with 
a new block grant to States for Temporary Assistance for Needy 
Families (TANF), under title IV-A of the Social Security Act 
(see section 7). The welfare reform law also provides 
entitlement funding to States for child care under title IV-A, 
and directs the States to transfer these funds to the lead 
agency that administers the CCDBG. Although provided through 
TANF, these child care funds must be spent subject to the 
requirements and limitations of the CCDBG Act. The law 
authorizes and appropriates the following entitlement amounts 
for child care: $1.967 billion in fiscal year 1997; $2.067 
billion in fiscal year 1998; $2.167 billion in fiscal year 
1999; $2.367 billion in fiscal year 2000; $2.567 billion in 
fiscal year 2001; and $2.717 billion in fiscal year 2002.
     As required for discretionary funds, the Secretary must 
reserve between 1 and 2 percent of entitlement funds for 
payments to Indian tribes and tribal organizations. After this 
amount is reserved, remaining entitlement funds are allocated 
to States in two components. First, each State receives a fixed 
amount each year, equal to the funding received by the State 
under the three child care programs previously authorized under 
AFDC in fiscal year 1994 or fiscal year 1995, or the average of 
fiscal years 1992-94, whichever is greater. This amount totals 
approximately $1.2 billion each year. This component of the 
entitlement funds are sometimes referred to as ``guaranteed'' 
or ``mandatory'' funds. No State match is required for these 
funds, which may remain available for expenditure by States 
with no fiscal year limitation. However, to receive their full 
TANF allotment, States must maintain at least 80 percent of 
their previous welfare expenditures, including previous 
expenditures for welfare-related child care, in fiscal year 
1994. This may be reduced to 75 percent for States that meet 
Federal requirements regarding the participation of welfare 
recipients in work activities.
     Second, remaining entitlement funds (after the Indian 
reserve and ``guaranteed'' entitlement funds are allocated) are 
distributed to States according to each State's share of 
children under age 13. States must meet maintenance-of-effort 
and matching requirements to receive these funds. Specifically, 
States must spend all of their ``guaranteed'' Federal 
entitlement funds for child care, plus 100 percent of the 
amount they spent of their own funds in fiscal year 1994 or 
fiscal year 1995, whichever is higher, under the previous AFDC-
related child care programs. Further, States must provide 
matching funds at the fiscal year 1995 Medicaid matching rate 
to receive these additional entitlement funds for child care. 
If the Secretary determines that a State will not spend its 
entire allotment for a given fiscal year, then the unused 
amounts may be redistributed among other States according to 
those States' share of children under age 13.
     In addition to amounts provided to States specifically for 
child care, States may transfer up to 30 percent of their TANF 
Block Grant allotments into their CCDBG or Social Services 
Block Grant Programs. Funds transferred into child care must be 
spent according to the CCDBG rules. However, States also may 
use TANF funds for child care without formally transferring 
them to the CCDBG, in which case, CCDBG rules would not 
necessarily apply.
 Eligibility and target population groups
     Children eligible for services under the revised CCDBG are 
those whose family income does not exceed 85 percent of the 
State median. The original CCDBG limited eligibility to 
children whose family income did not exceed 75 percent of State 
median. Children must be less than 13 years old and be living 
with parents who are working or enrolled in school or training, 
or be in need of protective services. States must use at least 
70 percent of their total entitlement funds for child care 
services for families that are trying to become independent of 
TANF through work activities, and families that are at risk of 
becoming dependent on public assistance. In their State plans, 
States must demonstrate how they will meet the specific child 
care needs of these families. Of remaining child care funds 
(including discretionary amounts), States must ensure that a 
substantial portion is used for child care services to eligible 
families other than welfare recipients or families at risk of 
welfare dependency.
 Use of funds
     CCDBG funds may be used for child care services provided 
on a sliding fee scale basis; however, Federal regulations 
allow States to waive child care fees for families with incomes 
at or below the poverty line. Funds also may be used for 
activities to improve the quality or availability of child 
care. States are required to spend no less than 4 percent of 
their child care allotments (discretionary and entitlement) for 
activities to provide comprehensive consumer education to 
parents and the public, activities that increase parental 
choice, and activities designed to improve the quality and 
availability of child care (such as resource and referral 
services).
     Child care providers receiving Federal assistance must 
meet all licensing or regulatory requirements, including 
registration requirements, applicable under State or local law. 
States must have in effect licensing requirements applicable to 
child care; however, Federal law does not dictate what these 
licensing requirements should be or what types of providers 
they should cover. States must establish minimum health and 
safety standards, applicable to child care providers receiving 
block grant assistance (except relative providers). These 
standards must cover: prevention and control of infectious 
diseases (including immunizations); building and physical 
premises safety; and health and safety training.
     Parents of children eligible to receive subsidized child 
care must be given maximum choice in selecting a child care 
provider. Parents must be offered the option to enroll their 
child with a provider that has a grant or contract with the 
State to provide such services, or parents may receive a 
certificate or voucher that can be used to purchase child care 
from a provider of the parents' choice. Child care certificates 
can be used only to pay for child care services from eligible 
providers, which can include sectarian child care providers. 
Eligible providers also can include individuals, age 18 or 
older, who provide child care for their grandchildren, great 
grandchildren, nieces or nephews, or siblings (if the provider 
lives in a separate residence). States must establish payment 
rates for child care services that are sufficient to ensure 
equal access for eligible children to comparable services 
provided to children whose parents are not eligible for 
subsidies.
     The CCDBG contains specific requirements with regard to 
the use of funds for religious activities. Under the program, a 
provider that receives operating assistance through a direct 
grant or contract with a government agency may not use these 
funds for any sectarian purpose or activity, including 
religious worship and instruction. However, a sectarian 
provider that receives a child care certificate from an 
eligible parent is not so restricted in the use of funds.
 Administration and data collection
     At the Federal level, the CCDBG is administered by the 
Administration for Children and Families (ACF), of the 
Department of Health and Human Services (HHS). The Secretary is 
required to coordinate all child care activities within the 
agency and with similar activities in other Federal agencies. 
States are required to designate a lead agency to administer 
the CCDBG, and may use no more than 5 percent of their Federal 
child care allotment for administrative costs. States must 
submit disaggregated data on children and families receiving 
subsidized child care to HHS every quarter, and aggregate data 
twice a year. The Secretary is required to submit a report to 
Congress once every 2 years.

                 Title XX--Social Services Block Grant

    Title XX of the Social Security Act authorizes grants to 
States for providing social services that are determined 
appropriate by the State. The program operates as a ``capped 
entitlement,'' under which States are allocated funds based on 
their relative population size up to a nationwide ceiling. No 
matching funds are required. In addition, there are no Federal 
eligibility requirements for participants. The program is 
administered at the Federal level by ACF, HHS. The Omnibus 
Budget Reconciliation Act of 1989 (Public Law 101-239) 
permanently authorized $2.8 billion annually for the program. 
However, Congress reduced the entitlement ceiling to $2.38 
billion in fiscal year 1996 through appropriations legislation. 
Omnibus welfare reform legislation (Public Law 104-193) 
established $2.38 billion as the entitlement ceiling in fiscal 
years 1997-2002, although Congress exceeded this ceiling in 
fiscal year 1997 appropriations legislation (Public Law 104-
208), which provides $2.5 billion for title XX.
    Available information on use of title XX funds indicates 
that a majority of States typically spend some portion of their 
grants on child care services. According to State reports on 
the intended use of title XX funds (known as preexpenditure 
reports), 45 States funded child care services in fiscal year 
1990. States also submit reports to HHS on their actual use of 
funds. According to an unpublished analysis of these reports 
for fiscal year 1995 from all States, conducted by the 
Congressional Research Service, States spent almost 14 percent 
of their title XX funds on child day care.
    More information on title XX, including State allocations, 
is provided in section 10.

                   Child and Adult Care Food Program

    The Child and Adult Care Food Program (CACFP) is 
permanently authorized under section 17 of the National School 
Lunch Act. The CACFP provides Federal subsidies for breakfasts, 
lunches, suppers, and snacks meeting Federal nutrition 
requirements that are served in licensed nonresidential child 
care centers (including programs run by schools) and family or 
group day care homes. \3\ Federal assistance is made up 
overwhelmingly of cash subsidies based on the number of meals 
and snacks served; about 2 percent is in the form of federally 
donated commodities. CACFP subsidies to participating centers 
and homes are available for meals and snacks served to children 
age 12 or under, migrant children age 15 or under, and 
handicapped children of any age. But the majority of children 
in the program are between 3 and 6 years old. CACFP spending 
was $1.58 billion (including commodities) in fiscal year 1996 
(up from $1.467 billion in 1995 and $1.355 billion in 1994). In 
fiscal year 1996, average daily attendance in CACFP-subsidized 
centers and homes totaled 2.4 million children.
---------------------------------------------------------------------------
    \3\ CACFP subsidies also are available for meal services to 
chronically impaired adults and the elderly in adult day care centers 
under the same general terms and conditions as child care centers. 
However, very few adult centers participate (about 1,600 sites serving 
some 50,000 persons in fiscal year 1996), and Federal spending for them 
is a minor fraction of the total cost of the CACFP ($25 million in 
fiscal year 1996, or about 1.6 percent of overall CACFP spending).
---------------------------------------------------------------------------
    At the Federal level, the program is administered by the 
Agriculture Department's Food and Consumer Service. At the 
State level, a variety of agencies have been designated as 
responsible by the individual States, and, in one State 
(Virginia) the Federal Government operates the program in lieu 
of the State. In fiscal year 1996, State agencies, in turn, 
approved, oversaw, and provided payments to some 13,000 child 
care centers with over 30,000 sites and to their sponsoring 
organizations some 1,200 family or group day care home sponsors 
with more than 190,000 homes.
    Child care centers in the CACFP serve an average of 40-50 
children and are of 4 types: public or private nonprofit 
centers (the single largest group), Head Start centers, for-
profit proprietary centers (see restrictions noted below), and 
outside-of-school centers often operated by schools. \4\ Almost 
60 percent of children in the CACFP are reached through 
centers, and, of those participating through centers, one-third 
are in Head Start centers, 1 out of 8 are in proprietary 
centers, and 1 out of 10 are in afterschool centers. On the 
other hand, only about 40 percent of CACFP funding is provided 
to centers, primarily because subsidies are differentiated by 
children's family income (see below). Child care centers must 
meet any applicable Federal, State, or local licensing 
requirements, or otherwise demonstrate that they comply with 
government-established standards (e.g., receive title XX 
funds). Proprietary centers are eligible for CACFP subsidies 
only if they receive title XX funding for at least 25 percent 
of their enrollment or licensed capacity, regardless of the 
income status of the children they serve. \5\
---------------------------------------------------------------------------
    \4\ A small Homeless Children Nutrition Program (with about 100 
sites) also provides shelters with subsidies for free meals and snacks 
served to homeless children in their charge who are under age 6.
    \5\ In two States (Iowa and Kentucky), a pilot project allows 
proprietary centers to participate in the CACFP if children 
representing at least 25 percent of their enrollment or licensed 
capacity have family income below 185 percent of the Federal poverty 
income guidelines (the income test for receiving free or reduced-price 
meals and snacks).
---------------------------------------------------------------------------
    Day care centers may receive daily subsidies for up to two 
meals and one snack or one meal and two snacks for each child. 
All meals and snacks served in centers are federally subsidized 
to at least some degree; different subsidies are provided for 
breakfasts, lunches/suppers, and snacks, and subsidy rates are 
indexed annually. However, subsidies vary according to the 
family income of each child, and applications for free or 
reduced-price meals and snacks must be taken. The largest 
subsidies are paid for meals and snacks served free to children 
with family income below 130 percent of the Federal poverty 
income guidelines: for July 1997-June 1998, these subsidies are 
51.75 cents for each snack, $1.045 for each breakfast, and 
$1.89 for each lunch or supper. Smaller subsidies are available 
for meals and snacks served at a reduced price to children with 
family income between 130 and 185 percent of the Federal 
poverty guidelines: for July 1997-June 1998, these are 26 cents 
for each snack, 74.5 cents for each breakfast, and $1.49 for 
each lunch or supper. The smallest subsidies are paid for meals 
and snacks served to children who do not qualify or apply for 
free or reduced-price meals and snacks: for July 1997-June 
1998, these are 4 cents for snacks, 20 cents for breakfasts, 
and 18 cents for lunches and suppers.
    CACFP-subsidized family and group day care homes serve an 
average of 4-6 children; just over 40 percent of children in 
the CACFP are in day care homes. Approximately 60 percent of 
CACFP money supports meals served in homes. As with day care 
centers, approved homes must meet licensing requirements or 
otherwise show compliance with government standards. Unlike 
centers, day care homes must participate under the auspices of 
a public or private nonprofit sponsor that typically has over 
100 homes under its supervision; CACFP day care home sponsors 
receive monthly administrative payments based on the number of 
homes for which they are responsible. Also unlike centers, day 
care homes receive cash subsidies that do not differ by 
individual children's family income. Instead, there are two 
distinct subsidy rates. ``Tier I'' homes (those located in low-
income areas or operated by low-income providers) receive 
higher subsidies; for July 1997-June 1998, all lunches and 
suppers are subsidized at $1.62, all breakfasts at 88 cents, 
and all snacks at 48 cents. ``Tier II'' homes (those not 
located in low-income areas or without low-income providers) 
receive lower subsidies; for July 1997-June 1998, all lunches 
and suppers are subsidized at 98 cents, all breakfasts at 33 
cents, and all snacks at 13 cents. Payments are provided for no 
more than two meals and one snack (or one meal and two snacks), 
and tier II providers may seek higher tier I rates for 
individual low-income children for whom they collect and verify 
financial information.

                               Head Start

    Head Start began in 1965 under the general authority of the 
Economic Opportunity Act, and is authorized currently through 
fiscal year 1998 under the Human Services Amendments of 1994 
(Public Law 103-252). Head Start is federally administered by 
ACF, HHS, and provides grants directly to local programs. Head 
Start provides comprehensive early childhood development, 
educational, health, nutritional, social and other services to 
primarily low-income preschool children and their families. In 
general, Head Start operates a part-day program during the 
school year, although some local Head Start grantees coordinate 
with other programs to provide all-day care. With Federal 
appropriations of almost $4 billion in fiscal year 1997, Head 
Start will serve an estimated 800,000 children. (For more 
information on Head Start, see section 15.)

                           CHILD CARE TABLES

    Tables 9-13 through 9-22 provide extensive information 
about selected Federal child care programs, especially former 
and current programs under the jurisdiction of the Committee on 
Ways and Means. These programs include AFDC Child Care, 
Transitional Child Care, At-Risk Child Care, and the Child Care 
and Development Block Grant.
    Table 9-13 provides data on Federal payments to States for 
AFDC child care and TCC for fiscal years 1991-96. Table 9-14 
provides State-specific information on child care options under 
the AFDC and TCC Programs, based on biennial State ``supportive 
services'' plans filed with HHS as of February 6, 1996. Table 
9-15 provides data on Federal payments to States for At-Risk 
Child Care for fiscal years 1991-96. Table 9-16 provides State-
specific information on child care options under the At-Risk 
Child Care Program, based on biennial State ``supportive 
services'' plans.
    The most recent State-by-State data on the number of JOBS 
participants who received title IV-A child care subsidies are 
shown in table 9-17. The types of child care arrangements used 
by the JOBS participants' children is provided in table 9-18. 
The number of families not in JOBS who received title IV-A 
child care assistance is shown in table 9-19. The type of care 
used by AFDC families not in JOBS who received title IV-A child 
care assistance is shown in table 9-20. Data on the number of 
children who received TCC subsidies and the type of care 
arrangements used by their families are found in table 9-21. 
Table 9-22 summarizes State allocations for 1996 and 1997 under 
the Child Care and Development Block Grant.

  TABLE 9-13.--FEDERAL PAYMENTS TO STATES FOR AFDC CHILD CARE AND TRANSITIONAL CHILD CARE, FISCAL YEARS 1991-96 
                                           [Fiscal year in thousands]                                           
----------------------------------------------------------------------------------------------------------------
                 States                      1991        1992        1993        1994        1995        1996   
----------------------------------------------------------------------------------------------------------------
Alabama.................................      $2,820      $5,981      $9,050     $13,586     $11,115     $11,637
Alaska..................................         445       1,329       1,262       1,756       2,221       3,723
Arizona.................................       2,354       5,998       8,462      11,025      15,846      19,798
Arkansas................................       4,348       1,940       1,268       1,525       2,142       2,752
California..............................      11,331      16,655      34,401      30,586      48,205      37,716
                                                                                                                
Colorado................................       3,649       4,082       5,315       5,763       5,342       7,734
Connecticut.............................       5,301       6,563       7,061       9,916      13,987      22,387
Delaware................................       1,300       1,787       3,016       3,350       4,445       4,782
District of Columbia....................       2,799       4,284       1,855       4,668       3,187       3,442
Florida.................................      20,678      17,506      20,136      20,457      31,313      33,829
                                                                                                                
Georgia.................................      13,231      16,060      25,247      36,240      36,599      42,086
Guam....................................           9          22           4           1           3           2
Hawaii..................................         249          70         273       1,084       1,667       4,906
Idaho...................................         756         775       1,069       1,468       1,307       1,440
Illinois................................       8,468       4,455      11,949      22,237      42,870      70,379
                                                                                                                
Indiana.................................      12,828       4,640       7,101       5,763      22,696      31,559
Iowa....................................       2,204       1,730       2,409       3,227       6,402       3,442
Kansas..................................       3,233       5,388       6,677       7,836       5,442       7,219
Kentucky................................       5,027       9,188      10,450      13,484      11,948      13,258
Louisiana...............................      12,741      10,955      15,512      11,233      12,088      10,247
                                                                                                                
Maine...................................       1,354         361       1,083         953       1,935       1,939
Maryland................................       9,509      10,027      13,912      17,192      19,187      18,891
Massachusetts...........................      24,889      24,933      23,991      36,003      48,401      49,593
Michigan................................      14,467      15,727      13,597      17,866      12,514      30,922
Minnestoa...............................      11,342       9,918      12,415      19,911      16,328      21,423
                                                                                                                
Mississippi.............................         574       2,577       3,230       3,660       5,782       6,135
Missouri................................       1,196       8,624      14,348      14,201      17,528      21,728
Montana.................................       1,144       2,943       1,988       2,127       1,908       3,060
Nebraska................................       5,152       5,630       7,455       9,936       8,787       6,555
Nevada..................................       1,057         435       1,032       1,029       1,228       1,787
                                                                                                                
New Hampshire...........................       1,621       2,013       2,495       2,955       3,670       3,091
New Jersey..............................       2,195       6,653       9,309       9,096      11,921      43,612
New Mexico..............................       2,026       1,745       3,994       6,475       3,657       7,195
New York................................      29,289      36,303      57,988      60,215      46,171      97,325
North Carolina..........................       7,306      24,423      35,163      56,868      61,151      59,311
                                                                                                                
North Dakota............................       1,554       1,725       1,709       1,841       1,513         990
Ohio....................................       9,394      18,407      34,071      46,630      54,665      56,292
Oklahoma................................       7,983      18,925      22,950      19,460      16,828      27,269
Oregon..................................       6,260       5,392       8,768      15,007      15,937      20,025
Pennsylvania............................       (100)      28,647      31,105      32,473      40,964      46,816
                                                                                                                
Puerto Rico.............................         223       2,901           0           0           0           0
Rhode Island............................       1,821       2,154       4,310       3,980       5,957       6,064
South Carolina..........................         541       1,040       4,294       3,673       4,910       9,233
South Dakota............................         983      13,457       1,759         766       1,003       1,174
Tennessee...............................       4,492      25,090      18,675      33,617      31,969      45,206
                                                                                                                
Texas...................................      20,803       6,544      33,737      39,014      43,929      46,040
Utah....................................       6,275       1,605       9,236      10,401      10,026      11,070
Vermont.................................       1,626           3       2,023       2,684       3,567       2,585
Virgin Islands..........................          11          11          11           4           1           1
Virginia................................       4,320      15,439       8,328      11,009      16,386      14,913
                                                                                                                
Washington..............................       8,355       3,205      21,057      28,887      43,654      31,924
West Virginia...........................       2,169      16,742       4,548       5,304       6,902       8,003
Wisconsin...............................       8,242       2,300      12,390      10,281      15,209      29,509
Wyoming.................................         957  ..........       2,076       1,825       2,416       1,784
                                         -----------------------------------------------------------------------
      Total.............................     320,744     415,000     595,568     730,544     854,828  1,063,800 
----------------------------------------------------------------------------------------------------------------
Source: Office of Financial Management, Administration for Children and Families, U.S. Department of Health and 
  Human Services.                                                                                               


                        TABLE 9-14.--AFDC CHILD CARE AND TRANSITIONAL CHILD CARE (TCC)--SUMMARY OF STATE CHILD CARE OPTIONS, 1996                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Supplements                              Statewide limit; special                        
               State                 Method of providing     dependent care      Method of providing   needs care  (if different)    Child care provided
                                     AFDC child care \1\        disregard              TCC \1\                     \2\                 during gaps \3\  
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama...........................  2, 5, 6, 7..........  Yes.................  5, 6, 7.............  $324.75.....................  2 weeks/1 month     
Alaska............................  2, 6................  No..................  6...................  $845.00.....................  2 weeks/1 week      
Arizona...........................  2, 6, 7.............  Yes.................  5, 6, 7.............  $455.40/$391.00.............  2 weeks/1 month     
Arkansas..........................  5, 6................  No..................  5, 6................  $453.00.....................  1 month             
California........................  2, 3, 4, 5, 6, 7, 8.  Yes.................  3, 4, 5, 6, 7.......  $1,068.30/$11,039.20;         2 weeks/1 month     
                                                                                                       $1,602.45/$1,558.80.                             
Colorado..........................  1, 2, 7, 8..........  Yes.................  5, 7................  $314.00/$288.00; $637.00/     2 weeks/1 month     
                                                                                                       $575.00.                                         
Connecticut.......................  2, 3................  No..................  3...................  $325.00; $435.00............  1 month             
Delaware..........................  2, 4, 5, 6, 7.......  No..................  4, 5, 6, 7..........  $358.00/$312.00; $375.90/     2 weeks/1 month     
                                                                                                       $327.60.                                         
District of Columbia..............  2, 3, 4, 5, 6, 7....  No..................  3, 4, 5, 6, 7.......  $635.50/$558.00; $1,555.00..  No                  
Florida...........................  2, 5, 6, 7..........  Yes.................  5, 6, 7.............  $340.00.....................  2 weeks/1 month     
Georgia...........................  6, 7................  No..................  5, 6, 7.............  $346.66/$303.33.............  1 month             
Guam..............................  2, 5,...............  No..................  5...................  $325.00/$300.00.............  1 month             
Hawaii............................  1, 2, 3, 5, 6, 7....  No..................  3, 5, 7.............  $350.00.....................  2 weeks/1 month     
Idaho.............................  1, 2, 5.............  No..................  5...................  $440.00.....................  2 weeks/1 month     
Illinois..........................  2, 3, 5, 6, 7.......  No..................  3, 5, 6, 7..........  $932.17.....................  2 weeks/1 month     
Indiana...........................  2, 3, 5, 6..........  Yes.................  3, 5, 6.............  $650.00.....................  1 month             
Iowa..............................  2, 5, 8.............  No..................  7...................  $844.80/$702.24; $2,067.12/   1 month             
                                                                                                       $2,633.84.                                       
Kansas............................  2, 5, 6, 7..........  No..................  5, 6, 7.............  $563.00/$427.00; $947.00/     2 weeks/1 month     
                                                                                                       $844.00.                                         
Kentucky..........................  2, 7, 8.............  No..................  5, 7, 8.............  $496.00.....................  2 weeks/1 month     
Louisiana.........................  2, 3, 5, 6..........  No..................  3, 5, 6.............  $238.30/$216.50.............  2 weeks/1 month     
Maine.............................  2, 5, 6.............  No..................  5...................  $551.00.....................  2 weeks/1 month     
Maryland..........................  2, 7................  No..................  7...................  $662.42/$348.08; $387.21....  2 weeks/1 month     
Massachusetts.....................  2, 4, 6, 7, 8.......  No..................  4, 6, 8.............  $1,426.00...................  2 weeks/1 month     
Michigan..........................  2, 7................  No..................  3, 7................  $866.67.....................  No                  
Minnesota.........................  2, 5, 7.............  Yes.................  7...................  $200.00/$175.00; $4,300.00..  No                  
Mississippi.......................  6, 7................  No..................  6, 7................  $299.00/$276.00.............  2 weeks             
Missouri..........................  2, 7, 8.............  No..................  7, 8................  $542.50/$474.30.............  1 month             
Montana...........................  2, 6, 8.............  No..................  6, 8................  $330.00/$308.00; $319.00....  2 weeks/1 month     
Nebraska..........................  2, 5, 6, 7..........  Yes.................  5, 7................  $1,150.00/$970.00; $3,000.00  2 weeks/1 month     
Nevada............................  2, 5................  No..................  5...................  $516.00/$430.00.............  No                  
New Hampshire.....................  2, 5, 6.............  No..................  5, 6................  $548.70.....................  2 weeks             
New Jersey........................  2, 7................  Yes.................  7...................  $955.00/$787.00.............  2 weeks/1 month     
New Mexico........................  2, 3, 5, 7..........  No..................  5, 7................  $330.00/$291.50.............  2 weeks/1 month     
New York..........................  1, 2, 3, 4, 5, 6, 8.  Yes.................  1, 3, 4, 5, 6, 7, 8.  $940.33.....................  2 weeks/1 month     
North Carolina....................  1, 2, 3, 5, 6, 7....  No..................  1, 3, 5, 6, 7.......  $550.00; $2,164.00..........  2 weeks/1 month     
North Dakota......................  1, 2, 3, 5, 6.......  No..................  1, 5, 6.............  $200.00/$175.00.............  1 month             
Ohio..............................  2, 6, 7.............  No..................  6, 7................  $537.50/$494.50.............  2 weeks/1 month     
Oklahoma..........................  2, 4, 7.............  No..................  5, 7................  $372.00/$341.00; $775.00....  2 weeks/1 month     
Oregon............................  4, 6, 7.............  No..................  7...................  $450.00.....................  1 month             
Pennsylvania......................  2, 3, 5, 6, 8.......  No..................  5, 8................  $878.00.....................  2 weeks/1 month     
Puerto Rico.......................  2, 6, 7.............  Yes.................  7...................  $200.00/$175.00; $250.00....  1 month             
Rhode Island......................  2, 7................  No..................  7...................  $415.97/$285.98.............  No                  
South Carolina....................  1, 2, 6, 8..........  No..................  5, 6, 8.............  $425.00.....................  2 weeks/1 month     
South Dakota......................  2, 3................  No..................  3...................  $300.00; $400.00............  No                  
Tennessee.........................  2, 5, 7.............  No..................  5, 7................  $296.70/$258.00.............  1 month             
Texas.............................  2, 5, 7.............  No..................  5, 7................  $482.00; $916.00............  2 weeks/1 month     
Utah..............................  2, 5, 6.............  No..................  6...................  $410.70/$296.70.............  No                  
Vermont...........................  5, 7................  No..................  5, 7................  $659.51.....................  2 weeks/1 month     
Virgin Islands....................  1, 8................  Yes.................  5...................  $200.00/$175.00; $300.00....  1 month             
Virginia..........................  2, 5, 6, 7..........  No..................  5, 6, 7.............  $752.50/$593.40; $2,500.00..  2 weeks/1 month     
Washington........................  2, 7................  No..................  7...................  $616.00/$476.08; $1,206.15..  1 month             
West Virginia.....................  2, 7................  Yes.................  7...................  $300.00/$253.00; $300.00....  2 weeks/1 month     
Wisconsin.........................  1, 2, 3, 4, 5, 6, 8.  Yes.................  4, 6................  $600.00/$500.00.............  2 weeks/1 month     
Wyoming...........................  7...................  No..................  7...................  $325.00.....................  Up to 1 week        
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Key: 1 = Direct; 2 = Dependent care disregard; 3 = Cash in advance; 4 = Voucher in advance; 5 = Cash reimbursement; 6 = Purchase of service; 7 =    
  Certificate; 8 = Other.                                                                                                                               
\2\ When two amounts are shown separated by a slash (/), the first amount is the statewide limit for children under 2. The second amount is the         
  statewide limit for children over 2. Statewide limits for handicapped/special needs children follow a semicolon (;) when different limits apply.      
\3\ At State option, child care provided: for up to 2 weeks while participant is waiting to enter either approved education, training, or JOBS; OR for  
  up to 1 month if JOBS component activity is scheduled to begin within that period or to reserve child care arrangements which would otherwise be lost.
                                                                                                                                                        
 Source: Based on biennial supportive service plans filed as of February 6, 1996. Child Care Bureau, U.S. Department of Health and Human Services.      


                                TABLE 9-15.--FEDERAL PAYMENTS TO STATES FOR AT-RISK CHILD CARE, FISCAL YEARS 1991-96 \1\                                
                                                                [In thousands of dollars]                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         States                             1991 actual     1992 actual     1993 actual     1994 actual     1995 actual     1996 actual 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.................................................          $4,935          $4,934          $4,692          $4,374          $4,978          $4,704
Alaska..................................................             808           1,211             825             903             859             905
American Samoa                                                         0              NA               0             145              72              NA
Arizona.................................................           1,151           9,210           4,624           4,709           4,769           5,004
Arkansas................................................               0           4,519           2,657           2,271           2,777           2,464
California..............................................          36,592          73,183          25,170          36,592          55,766          43,879
                                                                                                                                                        
Colorado................................................               0           8,103           4,320           4,062           3,990           4,201
Connecticut.............................................           3,455           3,455           3,485           4,574           3,448           3,474
Delaware................................................             777             776             770             771             778             763
District of Columbia....................................             677             677             648             537             527             543
Florida.................................................          13,231          13,230          13,632          13,904          14,321          14,310
                                                                                                                                                        
Georgia.................................................           8,110           8,110           7,986           3,905           1,342           6,858
Guam....................................................               0              NA               0               0               0               0
Hawaii..................................................               0           1,361             929           1,318           1,334           1,340
Idaho...................................................           1,392           2,088             879           1,439           1,396           1,396
Illinois................................................           6,833          13,666          16,007          13,426          14,876          13,363
                                                                                                                                                        
Indiana.................................................           6,538           6,537           6,538           6,539           7,433           6,127
Iowa....................................................           3,226           3,225           3,226           3,177           3,114           3,034
Kansas..................................................           3,070           3,070           3,052           5,162           2,972           2,948
Kentucky................................................           4,294           4,294           4,551           4,109           4,142           4,031
Louisiana...............................................               0           5,903               0               0           5,346           2,469
                                                                                                                                                        
Maine...................................................           1,367           1,367             809           1,335           1,318           1,088
Maryland................................................           5,363           5,363           5,539           5,398           5,562           4,154
Massachusetts...........................................           6,122           6,121           6,287           6,240           6,226           6,288
Michigan................................................               0              NA               0          11,522           8,242          10,270
Minnesota...............................................           5,245           5,245           5,427           5,359           5,359           5,305
                                                                                                                                                        
Mississippi.............................................               0              NA               0             351           1,309           3,464
Missouri................................................           5,966           5,966           6,022           5,926           5,894           5,872
Montana.................................................               0             843             568              84             857             567
Nebraska................................................           1,951           1,951           1,958           1,929           1,894           1,231
Nevada..................................................               0           3,262           1,589           1,352           1,713           1,713
                                                                                                                                                        
New Hampshire...........................................           1,280           1,280           1,290           1,261           1,259           1,271
New Jersey..............................................           8,290           8,290           8,000           8,272           8,363           8,441
New Mexico..............................................               0           3,401           2,580           1,943           1,375           1,512
New York................................................          19,931          19,930          19,699          19,647          19,697          19,785
North Carolina..........................................           7,333           7,333           9,681           7,274           7,411           7,573
                                                                                                                                                        
North Dakota............................................             839             838           1,007             550             595             718
Ohio....................................................          12,734          12,733          12,598          12,334          12,598          12,149
Oklahoma................................................           3,909           3,656           3,762           3,734           2,616           3,729
Oregon..................................................           3,194           5,029           3,354           3,352           3,352           3,311
Pennsylvania............................................               0          25,616          12,681          12,502          12,485          12,429
                                                                                                                                                        
Puerto Rico.............................................               0              NA               0               0               0               0
Rhode Island............................................           1,057           1,056           1,046             923             821           1,056
South Carolina..........................................           4,294           4,294           4,174           4,797           5,728           4,068
South Dakota............................................             914             913             431             488             605             758
Tennessee...............................................               0              NA             575           2,859           5,441           2,437
                                                                                                                                                        
Texas...................................................           8,923          37,103          26,480          19,601          18,623          27,284
Utah....................................................           2,995           2,995           2,732           2,826           1,730           1,111
Vermont.................................................             646             646             650             637             628             623
Virgin Islands..........................................               0              NA               0               0               0               0
                                                                                                                                                        
Virginia................................................           6,768           6,767           6,963           6,783           6,611           6,968
Washington..............................................           5,649           8,941           5,997           6,038           6,117           6,079
West Virginia...........................................               0           2,001           1,762           1,802           1,761           1,724
Wisconsin...............................................           5,755           5,754           5,892           5,402           5,782           5,699
Wyoming.................................................             634           1,267             770             536             572             564
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................         216,248         357,535         264,316         275,585         296,709        291,054 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Represents grant awards to States. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the At-Risk Child Care      
  Program as of October 1, 1996.                                                                                                                        
                                                                                                                                                        
 NA--Not available.                                                                                                                                     
                                                                                                                                                        
 Source: Office of Financial Management, Administration for Children and Families, U.S. Department of Health and Human Services.                        


                                       TABLE 9-16.--AT-RISK CHILD CARE--SUMMARY OF STATE CHILD CARE OPTIONS, 1996                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                      Method of providing       Statewide limit;       Rules for counting                          Registration required
               State                   at-risk child care    special needs care (if    income for sliding    Child care provided       for unlicensed   
                                              \1\                different) \2\            fee scale           during gaps \3\           providers      
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama............................  4, 5.................  No statewide limit.....  TCC rules............  2 weeks/1 month......  Yes                  
Alaska.............................  4....................  $845.00................  TCC rules............  No...................  Yes                  
Arizona............................  4, 5.................  $455.40/$391.00........  Different............  2 weeks/1 month......  Yes                  
Arkansas...........................  5....................  $1,135.00..............  Different............  2 weeks/1 month......  Yes                  
California.........................  2, 4, 5, 6...........  $1,068.30/$1,039.20;     TCC rules............  2 weeks/1 month......  Yes                  
                                                             $1,602.45/$1,558.80.                                                                       
Colorado...........................  5....................  $314.00/$288.00;         Different............  2 weeks/1 month......  Yes                  
                                                             $637.00/$575.00.                                                                           
Connecticut........................  5....................  No statewide limit.....  Different............  1 month..............  Yes                  
Delaware...........................  2, 3, 4, 5, 6........  $358.00/$312.60;         AFDC rules...........  2 weeks/1 month......  Yes                  
                                                             $375.90/$327.60.                                                                           
District of Columbia...............  5....................  $635.50/$558.00;         TCC rules............  1 month..............  Yes                  
                                                             $1,555.00.                                                                                 
Florida............................  3, 4, 5..............  $340.00................  AFDC rules...........  1 month..............  Yes                  
Georgia............................  4, 5.................  $346.66/$303.33........  AFDC rules...........  No...................  Yes                  
Hawaii.............................  2, 3, 5..............  $350.00................  Different............  2 weeks/1 month......  Yes                  
Idaho..............................  6....................  $440.00................  Different............  2 weeks/1 month......  Yes                  
Illinois...........................  2, 3, 4, 5...........  $932.17................  TCC rules............  2 weeks/1 month......  Yes                  
Indiana............................  2, 3, 5, 6...........  No statewide limit.....  Different............  1 month..............  Yes                  
Iowa...............................  5....................  $844.80/$702.24;         Different............  No...................  Yes                  
                                                             $2,067.12/$2,633.84.                                                                       
Kansas.............................  4, 5, 6..............  $563.00/$427.00;         TCC rules............  No...................  Yes                  
                                                             $947.00/$844.00.                                                                           
Kentucky...........................  5....................  $496.00................  TCC rules............  2 weeks/1 month......  AFDC-defined         
                                                                                                                                    relatives are exempt
Louisiana..........................  5....................  No statewide limit.....  Different............  1 month..............  Yes                  
Maine..............................  3, 4, 5, 6...........  No statewide limit.....  Different............  2 weeks/1 month......  Yes                  
Maryland...........................  2, 5.................  $662.42/$348.08;         TCC rules............  No...................  Yes                  
                                                             $387.21.                                                                                   
Massachusetts......................  4, 6.................  $1,426.00..............  AFDC rules...........  2 weeks/1 month......  Yes                  
Michigan...........................  5....................  $866.67................  TCC rules............  No...................  Yes                  
Minnesota..........................  5....................  No statewide limit.....  TCC rules............  No...................  Yes                  
Mississippi........................  4, 5.................  $299.00/276.00.........  AFDC rules...........  2 weeks/1 month......  Yes                  
Missouri...........................  5, 6.................  $542.50/$474.30........  TCC rules............  2 weeks/1 month......  AFDC-defined         
                                                                                                                                    relatives are exempt
Montana............................  4, 6.................  $330.00/$308.00........  TCC rules............  2 weeks..............  Yes                  
Nebraska...........................  5, 6.................  $1,150.00/$970.00;       Different............  2 weeks/1 month......  Yes                  
                                                             $3,000.00.                                                                                 
Nevada.............................  2, 3.................  No statewide limit.....  Different............  2 weeks/1 month......  Yes                  
New Hampshire......................  3, 4.................  $548.70................  TCC rules............  No...................  Yes.                 
New Jersey.........................  1, 4, 5..............  $955.00/$787.00........  TCC rules............  2 weeks/1 month......  Yes                  
New Mexico.........................  5....................  $300.00/$291.50........  AFDC rules...........  2 weeks/1 month......  Yes                  
New York...........................  1, 2, 4, 5, 6........  $940.33................  TCC rules............  2 weeks/1 month......  Yes                  
North Carolina.....................  2, 3, 4, 5...........  $550.00; $2,164........  TCC rules............  2 weeks/1 month......  Yes                  
North Dakota.......................  1....................  $200.00/$175.00........  AFDC rules...........  2 weeks/1 month......  Yes                  
Ohio...............................  4, 5.................  $537.50/$494.50........  TCC rules............  2 weeks/1 month......  Yes                  
Oklahoma...........................  5....................  $372.00/$341.00;         TCC rules............  No...................  Yes                  
                                                             $775.00.                                                                                   
Oregon.............................  5....................  $450.00................  TCC rules............  No...................  Yes                  
Pennsylvania.......................  4, 5.................  No statewide limit.....  Different............  1 month..............  Yes                  
Rhode Island.......................  5....................  $415.97/$285.98........  TCC rules............  No...................  Yes                  
South Carolina.....................  6....................  $425.00................  TCC rules............  2 weeks/1 month......  Yes                  
South Dakota.......................  5....................  $300.00; $400.00.......  Different............  No...................  Yes                  
Tennessee..........................  5....................  $296.70/$258.00........  TCC rules............  1 month..............  Yes                  
Texas..............................  5, 6.................  $482.00; $916.00.......  TCC rules............  2 weeks/1 month......  Yes                  
Utah...............................  4....................  $410.70/$296.70........  TCC rules............  No...................  Yes                  
Vermont............................  5....................  $659.51................  TCC rules............  2 weeks/1 month......  Yes                  
Virginia...........................  4, 5, 6..............  $752.50/$593.40;         TCC rules............  2 weeks/1 month......  Yes                  
                                                             $2,500.00.                                                                                 
Washington.........................  5....................  $616.00/$476.08;         Different............  No...................  Yes                  
                                                             $1,206.15.                                                                                 
West Virginia......................  5....................  $300.00/$253.00;         TCC rules............  2 weeks/1 month......  Yes                  
                                                             $300.00.                                                                                   
Wisconsin..........................  2, 3, 5..............  $600.00/$500.00........  Different............  2 weeks/1 month......  Yes                  
Wyoming............................  5....................  $325.00................  TCC rules............  Up to 1 week.........  Yes                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Key to the code: 1 = Direct; 2 = Cash/voucher in advance; 3 = Cash reimbursement; 4 = Purchase of service; 5 = Certificate; 6 = Other.              
\2\ When two amounts are shown separated by a slash (/), the first amount is the statewide limit for children under 2. The second amount is the         
  statewide limit for children over 2. Statewide limits for handicapped/special needs children are followed by a semicolon (;) when different limits    
  apply.                                                                                                                                                
\3\ At State option, child care provided: for up to 2 weeks while participant is waiting to enter either approved education, training, or JOBS; OR for  
  up to 1 month if JOBS component activity is scheduled to begin within that period or to reserve child care arrangements which would otherwise be lost.
                                                                                                                                                        
 Source: Based on biennial supportive services plans filed in Administration for Children and Families Central Office as of February 6, 1996. Child Care
  Bureau, U.S. Department of Health and Human Services.                                                                                                 


TABLE 9-17.--JOBS PARTICIPANTS RECEIVING TITLE IV-A PAID CHILD CARE, BY AFDC PROGRAM STATUS AND BY STATE--FISCAL
                                                    YEAR 1994                                                   
----------------------------------------------------------------------------------------------------------------
                                      JOBS participants by AFDC Program (case) status, average monthly number   
                                  ------------------------------------------------------------------------------
              State                                                                         Not                 
                                       Total      Receiving    Receiving     Eligible    receiving       AFDC   
                                   participants   AFDC-basic    AFDC-UP    for AFDC-UP      AFDC      applicant 
----------------------------------------------------------------------------------------------------------------
Alabama..........................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Alaska...........................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Arizona..........................         1,362        1,335           23            0            4            0
Arkansas.........................           330          322            8            0            0            0
California.......................        15,463       14,096          953            0            0          414
Colorado.........................         2,248        2,022           17            5          198            6
Connecticut......................             4            4            0            0            0            0
Delaware.........................           112          109            1            0            2            0
District of Columbia.............         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Florida..........................         3,505        3,489            9            7            0            0
Georgia..........................         6,180        5,304           18            7          851            0
Guam.............................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Hawaii...........................           386          367           17            0            2            0
Idaho............................           342          314           27            0            1            0
Illinois.........................         6,992            0          164           56            0        6,772
Indiana..........................         2,767        1,985           17            0          736           29
Iowa.............................         2,494        2,250          186            0           41           17
Kansas...........................         1,447        1,110           16            0          321            0
Kentucky.........................         3,038            0          113            0            0        2,925
Louisiana........................         3,400        3,264           30            0          106            0
Maine............................         1,413        1,289          124            0            0            0
Maryland.........................         2,558        2,503            7            0           13           35
Massachusetts....................         6,471        6,361           14            0           48           48
Michigan.........................         7,264        6,681          243            0          268           72
Minnesota........................         2,760        2,452          211            0           97            0
Mississippi......................         1,789        1,779           10            0            0            0
Missouri.........................         2,896        2,703          193            0            0            0
Montana..........................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Nebraska.........................         1,853        1,727           41            9           73            3
Nevada...........................           213          188            0            0           25            0
New Hampshire....................           573          532           20            0           19            2
New Jersey.......................         3,687        3,304           26            0          357            0
New Mexico.......................         1,970        1,929           34            0            7            0
New York.........................        21,201       20,668          533            0            0            0
North Carolina...................         6,272        5,979          108            0          185            0
North Dakota.....................           634          616           18            0            0            0
Ohio.............................           371          371            0            0            0            0
Oklahoma.........................         2,926        2,901           22            0            0            3
Oregon...........................           418          388           20            0           10            0
Pennsylvania.....................        11,881       11,787           94            0            0            0
Puerto Rico......................           215          203            0            0           12            0
Rhode Island.....................         2,472        2,305           32            0          135            0
South Carolina...................           586          586            0            0            0            0
South Dakota.....................           499          488            0            0           11            0
Tennessee........................         3,283        3,070           29            5          179            0
Texas............................           636          487          133           16            0            0
Utah.............................           131          124            0            0            0            7
Vermont..........................           538          507           22            0            4            5
Virgin Islands...................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Virginia.........................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Washington.......................         7,806        6,570        1,236            0            0            0
West Virginia....................         (\1\)        (\1\)        (\1\)        (\1\)        (\1\)        (\1\)
Wisconsin........................           239          239            0            0            0            0
Wyoming..........................            29           29            0            0            0            0
                                  ------------------------------------------------------------------------------
    U.S. total...................       143,654      124,737        4,769          105        3,705      10,338 
----------------------------------------------------------------------------------------------------------------
\1\ Data not reported by the State.                                                                             
                                                                                                                
 Source: Administration for Children and Families, U.S. Department of Health and Human Services.                


  TABLE 9-18.--AFDC CHILDREN IN THE JOBS PROGRAM RECEIVING TITLE IV-A PAID CHILD CARE, BY PRIMARY TYPE OF CARE ARRANGEMENT AND STATE--FISCAL YEAR 1994  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Children by type of care arrangement (average monthly no.)                                     
                                                       --------------------------------------------------------------                                   
                                                         Care provided by a nonrelative in     Care provided by a                   Percent     Percent 
                                               Total   ------------------------------------        relative in                     children    provided 
                   State                     children                                      --------------------------   Unknown    in center     by a   
                                                          Center       Group      Child's      Group                                 care      relative 
                                                           care     family day     home      family day    Child's                                      
                                                                       care                     care         home                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama...................................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Alaska....................................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Arizona...................................       2,165       1,595         201           0          318           51           0        73.7        17.0
Arkansas..................................         531         365          31           0           58           58          19        68.7        21.8
California................................      24,938       8,808       9,467           0        6,048            0         615        35.3        24.3
Colorado..................................       3,649       2,251         694          60          377          257          10        61.7        17.4
Connecticut...............................           4           0           0           0            0            0           4         0.0         0.0
Delaware..................................         187         128          48           0            0            0          11        68.4         0.0
District of Columbia......................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Florida...................................       5,518       5,038         296          41           41           60          42        91.3         1.8
Georgia...................................       9,494       5,462       1,166         285        1,526        1,055           0        57.5        27.2
Guam......................................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Hawaii....................................         556         226          81          23          218            8           0        40.6        40.6
Idaho.....................................         561         251          56         103            0          134          17        44.7        23.9
Illinois..................................      10,680       2,300       1,858       2,417        2,627        1,478           0        21.5        38.4
Indiana...................................       4,705       2,183       1,194           0          680            0         648        46.4        14.5
Iowa......................................       4,257       1,135       2,083          63          907           69           0        26.7        22.9
Kansas....................................       2,387       1,017         708         185          117          122         238        42.6        10.0
Kentucky..................................       4,636       1,616         566         634            0          796       1,024        34.9        17.2
Louisiana.................................       5,429       2,477         120         467          230        2,135           0        45.6        43.6
Maine.....................................       2,204         398         740         300          212          151         403        18.1        16.5
Maryland..................................       4,418       1,279         952         364          278          722         823        28.9        22.6
Massachusetts.............................       9,191       7,172         474         616          498          431           0        78.0        10.1
Michigan..................................      12,083       3,350       2,004       1,656        1,893        2,618         562        27.7        37.3
Minnesota.................................       4,151       2,174       1,430          84          269           72         122        52.4         8.2
Mississippi...............................       2,728       1,390          17          58           10          280         973        51.0        10.6
Missouri..................................       4,818       2,010         949         746          810          132         171        41.7        19.6
Montana...................................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Nebraska..................................       3,284       1,596       1,299         129          189           71           0        48.6         7.9
Nevada....................................         366         122           7          87           23          127           0        33.3        41.0
New Hampshire.............................         831         386         186         129           81           29          20        46.5        13.2
New Jersey................................       5,288       3,101           0       2,109            0            0          78        58.6         0.0
New Mexico................................       3,238       1,068         545         204          658          763           0        33.0        43.9
New York..................................      38,503       7,850      19,115       4,650        4,483        1,790         615        20.4        16.3
North Carolina............................       9,109       5,836           0         765        2,412            0          96        64.1        26.5
North Dakota..............................         921         196         543           9          169            4           0        21.3        18.8
Ohio......................................         482         185         186           0          111            0           0        38.4        23.0
Oklahoma..................................       4,719       4,022         643          10           18            0          26        85.2         0.4
Oregon....................................         682           0         489           0          190            0           3         0.0        27.9
Pennsylvania..............................      19,318      10,110       5,299       1,868        1,075          541         425        52.3         8.4
Puerto Rico...............................         371          29         127          15          141           43          16         7.8        49.6
Rhode Island..............................       4,028       2,222         192         167          928          410         109        55.2        33.2
South Carolina............................       1,200         982         109           5           15           20          69        81.8         2.9
South Dakota..............................         722         234         341          39           56           52           0        32.4        15.0
Tennessee.................................       5,455       3,738         984           0          305            0         428        68.5         5.6
Texas.....................................       1,297           0           0           0            0            0       1,297         0.0         0.0
Utah......................................         172           0         172           0            0            0           0         0.0         0.0
Vermont...................................         903          11         191         329          176          196           0         1.2        41.2
Virgin Islands............................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Virginia..................................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Washington................................      11,433       5,298       2,351         915        1,313        1,556           0        46.3        25.1
West Virginia.............................       (\1\)       (\1\)       (\1\)       (\1\)        (\1\)        (\1\)       (\1\)       (\1\)       (\1\)
Wisconsin.................................         159           0         159           0            0            0           0         0.0         0.0
Wyoming...................................          25          12           0           0            0            0          13        48.0         0.0
                                           -------------------------------------------------------------------------------------------------------------
    U.S. totals...........................     231,796      99,623      58,073      19,532       29,460       16,231       8,877        43.0       19.7 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Data are applicable to the State, but not reported.                                                                                                 
                                                                                                                                                        
Source: Administration for Children and Families, U.S. Department of Health and Human Services.                                                         


TABLE 9-19.--NON-JOBS FAMILIES \1\ RECEIVING IV-A PAID CHILD CARE, WITH AND WITHOUT EARNED INCOME, BY AFDC PROGRAM STATUS AND BY STATE--FISCAL YEAR 1994
                                                                [Average monthly number]                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Families with earnings and            Families without earnings and 
                                                                          ------------------------------------------------------------------------------
                           State                                 Total     Receiving                                     Receiving                      
                                                             families \2\    AFDC-    Receiving   Applying       In        AFDC-    Receiving   Applying
                                                                             basic     AFDC-UP    for AFDC   transition    basic     AFDC-UP    for AFDC
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama....................................................         1,669      (\3\)      (\3\)      (\4\)        1,669          0          0      (\4\)
Alaska.....................................................           301         31          2      (\4\)          167         94          5      (\4\)
Arizona....................................................         4,180      1,973          0          0        2,178         29          0          0
Arkansas...................................................           461        204         13          0          156         87          0          0
California.................................................        32,539     21,433        889      (\4\)        1,635      8,122        460      (\4\)
Colorado...................................................         1,382        150      (\3\)      (\3\)        1,214      (\4\)      (\4\)      (\4\)
Connecticut................................................         4,263      (\3\)      (\3\)      (\4\)        1,670      (\3\)      (\3\)      (\4\)
Delaware...................................................         1,004        509          1      (\4\)          493      (\4\)      (\4\)      (\4\)
District of Columbia.......................................           158         76          0          0           82          0          0          0
Florida....................................................         9,051      2,699         10      (\4\)        6,341          0          0      (\4\)
Georgia....................................................         7,809      4,171          2          0        2,863        344         11          0
Guam.......................................................             4          0          0          0            4          0          0          0
Hawaii.....................................................           212        138          6          0           68          0          0          0
Idaho......................................................           497        222          3      (\4\)          157        116          0      (\4\)
Illinois...................................................        13,810      7,653        208      (\4\)        3,592      2,333         24      (\4\)
Indiana....................................................         6,737        409          4      (\4\)        2,480      3,789         56      (\4\)
Iowa.......................................................         1,901      1,498         68          0          335          0          0          0
Kansas.....................................................         (\3\)      (\3\)      (\3\)      (\3\)        (\3\)      (\3\)      (\3\)      (\3\)
Kentucky...................................................           879         10         36          0          778         53          2          0
Louisiana..................................................           930        103          0          0          591        240          0          0
Maine......................................................         4,825      4,114        403      (\3\)          308      (\3\)      (\3\)      (\3\)
Maryland...................................................         4,724      1,229      (\3\)      (\4\)          791      2,704      (\3\)      (\4\)
Massachusetts..............................................         6,816      2,604         33         98        4,081      (\3\)      (\3\)      (\3\)
Michigan...................................................         2,339      (\3\)        114          0        2,225          0          0          0
Minnesota..................................................         3,118        399         10      (\4\)        1,861        827         21      (\4\)
Mississippi................................................           401          0          0      (\4\)          401          0          0      (\4\)
Missouri...................................................         3,933        177          1      (\4\)        2,210      1,541          4      (\4\)
Montana....................................................         1,012        517         13      (\4\)          362        119          0      (\4\)
Nebraska...................................................         1,521        545         14          2          388        560         10          2
Nevada.....................................................           508        176          0      (\4\)          331          0          0      (\4\)
New Hampshire..............................................         1,131        181         18      (\4\)          441        477         15      (\4\)
New Jersey.................................................         (\3\)      (\3\)      (\3\)      (\3\)        (\3\)      (\3\)      (\3\)      (\3\)
New Mexico.................................................         1,236        554          5      (\4\)          629         50      (\3\)      (\4\)
New York...................................................         7,641      4,784         42      (\4\)        2,815      (\4\)      (\4\)      (\4\)
North Carolina.............................................        12,761      9,620          5      (\4\)        3,137          0          0      (\4\)
North Dakota...............................................           405          6          0      (\4\)          301         98          0      (\4\)
Ohio.......................................................         4,423      1,516         46      (\4\)        1,687      1,105         23      (\4\)
Oklahoma...................................................         5,931      2,408          0         20        1,189      2,153         33        128
Oregon.....................................................         4,075      1,448         20         23        2,373          1          0        210
Pennsylvania...............................................        13,834      2,970      1,480      2,270        7,113      (\4\)      (\4\)      (\4\)
Puerto Rico................................................         (\4\)      (\4\)      (\4\)      (\4\)        (\4\)      (\4\)      (\4\)      (\4\)
Rhode Island...............................................           727        382          0          0          344          0          0          0
South Carolina.............................................         1,557      1,026          5      (\4\)          525          0          0      (\4\)
South Dakota...............................................           510        153          0          0          252        104          0          0
Tennessee..................................................        10,062      5,659         12      (\4\)        4,391          0          0      (\4\)
Texas......................................................         8,726      1,370          8      (\4\)        7,269         80          1      (\4\)
Utah.......................................................         4,824         29          0          0        1,240      3,552          0          3
Vermont....................................................         1,589        422         24         36          303        769         21         13
Virgin Islands.............................................            14         26          0          0            0          0          0          0
Virginia...................................................         2,844        412          1      (\4\)        1,486        939          6      (\4\)
Washington.................................................         4,202      2,831        114          0        1,234         19          3          2
West Virginia..............................................         1,740        560         29      (\4\)          634        492         25      (\4\)
Wisconsin..................................................         3,481      1,521        121          0        1,518        299         24          0
Wyoming....................................................         1,330        799         65      (\4\)          208        240          5      (\4\)
                                                            --------------------------------------------------------------------------------------------
    U.S. totals............................................       210,027     89,717      3,825      2,449       78,520     31,336        749       358 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ ``Total families'' may not equal the sum of the categories due to incomplete, inconsistent, or duplicated State reporting.                          
\2\ Data are reported for AFDC recipients who are employed or participating in a non-JOBS education and training program, tribal JOBS participants, and 
  families receiving transitional child care.                                                                                                           
\3\ Data are applicable to the State, but not reported.                                                                                                 
\4\ The State indicates that the data are not applicable.                                                                                               
                                                                                                                                                        
 Source: Administration for Children and Families, U.S. Department of Health and Human Services.                                                        


   TABLE 9-20.--NON-JOBS AFDC FAMILIES \1\ RECEIVING IV-A PAID CHILD CARE, BY TYPE OF CARE ARRANGEMENT AND BY   
                                             STATE--FISCAL YEAR 1994                                            
----------------------------------------------------------------------------------------------------------------
                                                                        Families by type of care arrangement    
                                                                              (average monthly number)          
                                                                  ----------------------------------------------
                                                                    Care provided by      Care provided by a    
                         State                          Total \2\      a relative           nonrelative in      
                                                         families ----------------------------------------------
                                                                      In     Outside            Family          
                                                                   child's   child's  Child's  day care   Center
                                                                     home     home      home     home      care 
----------------------------------------------------------------------------------------------------------------
Alabama...............................................      (\3\)    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Alaska................................................        133       15        17        5        39       60
Arizona...............................................      2,002       23       118        5       216    1,639
Arkansas..............................................        293       24        18        3        36      213
California............................................     30,913    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Colorado..............................................        285        2         4        5        47      173
Connecticut...........................................      2,593    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Delaware..............................................        510        1        10        1       172      345
District of Columbia..................................      (\3\)    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Florida...............................................      2,709       26        23       19       158    2,483
Georgia...............................................      4,946      482       651      119       623    3,071
Guam..................................................          0        0         0        0         0        0
Hawaii................................................        144       17        24        7        93        3
Idaho.................................................        340       13        73       19       156       90
Illinois..............................................     10,218    1,327     2,757    2,379     1,646    2,110
Indiana...............................................      4,257      323       671      156     1,457    1,885
Iowa..................................................      2,089    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Kansas................................................      (\3\)    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Kentucky..............................................        123       11        31       16        21       52
Louisiana.............................................        686    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Maine.................................................      4,517      463       578      851     1,304    1,323
Maryland..............................................      3,933      207       172       83     1,849    1,623
Massachusetts.........................................      2,735       44        51      598       499    1,545
Michigan..............................................      (\3\)    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Minnesota.............................................      1,257       31        93       36       558      583
Mississippi...........................................          0        0         0        0         0        0
Missouri..............................................      1,731       18        90       44       688      945
Montana...............................................        646        8        50       30       358      201
Nebraska..............................................      1,133       24        68       39       473      531
Nevada................................................        176       16        14       16        33       98
New Hampshire.........................................        690       48       109       69       178      317
New Jersey............................................      (\3\)    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
New Mexico............................................        605       27        10        3         0        8
New York..............................................      4,826      127       648      210     2,461    1,382
North Carolina........................................      9,625      541     1,288       39       970    6,787
North Dakota..........................................        103        0        86        0        16        4
Ohio..................................................      2,690        0       103        2     1,101    1,484
Oklahoma..............................................      4,743        3        14       10       725    3,991
Oregon................................................      1,702      112       249      264       871      207
Pennsylvania..........................................      4,624    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
Puerto Rico...........................................      (\4\)    (\4\)     (\4\)    (\4\)     (\4\)    (\4\)
Rhode Island..........................................        382    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
South Carolina........................................      1,031    (\3\)     (\3\)    (\3\)     (\3\)    (\3\)
South Dakota..........................................        257       41        43       25        98       67
Tennessee.............................................      5,671       94       247       46       640    4,643
Texas.................................................         90        5         8        0         6       72
Utah..................................................      3,584    (\5\)     (\5\)      181     1,393    2,010
Vermont...............................................      1,286      119       152      153       519      344
Virgin Islands........................................         14        0         0        0         0       14
Virginia..............................................      1,882       64       175        9       624    1,034
Washington............................................      3,163      425       454      447       722    1,114
West Virginia.........................................      1,106        9       328        1       422      553
Wisconsin.............................................      1,963       80       217       61       803      804
Wyoming...............................................      1,413       96       168       54       555      540
                                                       ---------------------------------------------------------
    U.S. totals.......................................    129,819    4,866     9,812    6,005    22,530  44,348 
----------------------------------------------------------------------------------------------------------------
\1\ Data are reported for AFDC recipients who are employed or participating in a non-JOBS education and training
  program, and tribal JOBS participants.                                                                        
\2\ ``Total families'' may not equal the sum of the categories due to incomplete, inconsistent, or duplicative  
  State reporting.                                                                                              
\3\ Data are applicable to the State, but not reported.                                                         
\4\ The State indicates that the data are not applicable.                                                       
\5\ The State does not define ``type of care arrangements'' according to Federal reporting requirements.        
                                                                                                                
 Source: Administration for Children and Families, U.S. Department of Health and Human Services.                


  TABLE 9-21.--FAMILIES RECEIVING TRANSITIONAL CHILD CARE BY TYPE OF CARE ARRANGEMENT AND BY STATE--FISCAL YEAR 
                                                      1994                                                      
----------------------------------------------------------------------------------------------------------------
                                                  Families by type of care arrangement (average monthly number) 
                                                ----------------------------------------------------------------
                                                               Care provided by a         Care provided by a    
                                                                    relative                nonrelative in      
                     State                       Total \1\ -----------------------------------------------------
                                                  families                Outside               Family          
                                                            In child's    child's    Child's   day care   Center
                                                               home         home       home      home      care 
----------------------------------------------------------------------------------------------------------------
Alabama........................................      1,754          11          232       32        315    1,165
Alaska.........................................        167           2           15        2         64       91
Arizona........................................      2,178          43          174        9        212    1,740
Arkansas.......................................        168          29           16        2         17      105
California.....................................      1,635       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
Colorado.......................................      1,256          56           58       15        219      461
Connecticut....................................      1,670       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
Delaware.......................................        493           1           12        1        153      343
District of Columbia...........................      (\2\)       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
Florida........................................      6,341          63           62       32        645    5,539
Georgia........................................      2,880         272          455       83        376    1,693
Guam...........................................          4           2            1        0          0        0
Hawaii.........................................         68           0           17        0         42       13
Idaho..........................................        157           6           27        6         73       58
Illinois.......................................      3,592         375          871      570        771    1,006
Indiana........................................      2,480         195          413       84        949      954
Iowa...........................................        446           0            0        0        141      305
Kansas.........................................      (\2\)       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
Kentucky.......................................        934          73          167      150         27      517
Louisiana......................................      1,407       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
Maine..........................................        308          24           38       40         99      106
Maryland.......................................        790          79           83       28        320      281
Massachusetts..................................      4,081          64           79      516        326    3,095
Michigan.......................................      2,339         143          524      248        736      688
Minnesota......................................      1,861          78          208       70      1,015      698
Mississippi....................................        401          48           92        7         63      192
Missouri.......................................      2,210          26          215       69        916    1,085
Montana........................................        362           4           28       16        204      113
Nebraska.......................................        390           9           30       17        184      150
Nevada.........................................        329          93           26       76         24      136
New Hampshire..................................        441          27           54       44        117      213
New Jersey.....................................      (\2\)       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
New Mexico.....................................        629         140          136       40        136      211
New York.......................................      2,815          14          182       15      1,094    1,511
North Carolina.................................      3,137         225          707       64        242    1,907
North Dakota...................................        301           4           79        3        183       36
Ohio...........................................      1,687           0           70        1        643      973
Oklahoma.......................................      1,189           0            7        3        213      967
Oregon.........................................      2,373         183          276      377      1,159      379
Pennsylvania...................................      9,209       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
Puerto Rico....................................      (\3\)       (\3\)        (\3\)    (\3\)      (\3\)    (\3\)
Rhode Island...................................        344          17           59       11         30      242
South Carolina.................................        525       (\2\)        (\2\)    (\2\)      (\2\)    (\2\)
South Dakota...................................        252          26           53       13        132       41
Tennessee......................................      4,391         151          278       47        613    3,303
Texas..........................................      7,269         503          401        2        439    6,060
Utah...........................................      1,240       (\4\)        (\4\)       66        496      678
Vermont........................................        303          21           19       32        157       75
Virgin Islands.................................          0           0            0        0          0        0
Virginia.......................................      2,024         108          254       23        629    1,037
Washington.....................................      1,302         137          179      127        327      532
West Virginia..................................        634           0          184        0        235      301
Wisconsin......................................      1,518          62          168       47        620      621
Wyoming........................................        205          19           29       11         85       62
                                                ----------------------------------------------------------------
    U.S. totals................................     82,489       3,333        6,978    2,999     15,441  39,683 
----------------------------------------------------------------------------------------------------------------
\1\ ``Total families'' may not equal the sum of the categories due to incomplete, inconsistent, or duplicated   
  State reporting.                                                                                              
\2\ Data are applicable to the State, but not reported.                                                         
\3\ The State indicates that the data are not applicable.                                                       
\4\ The State does not define ``type of care arrangements'' according to Federal reporting requirements.        
                                                                                                                
 Source: Administration for Children and Families, U.S. Department of Health and Human Services.                


   TABLE 9-22.--STATE ALLOCATIONS UNDER THE CHILD CARE AND DEVELOPMENT  
                          BLOCK GRANT, 1996-97                          
                     [By fiscal years, in thousands]                    
------------------------------------------------------------------------
                                         1996 actual      1997 estimate 
------------------------------------------------------------------------
Alabama.............................            18,724               388
Alaska..............................             1,764                37
Arizona.............................            17,129               355
Arkansas............................            11,007               228
California..........................           111,466             2,309
Colorado............................            10,233               212
Connecticut.........................             6,685               138
Delaware............................             1,954                40
District of Columbia................             1,832                38
Florida.............................            46,307               959
Georgia.............................            29,755               616
Hawaii..............................             3,389                70
Idaho...............................             4,738                98
Illinois............................            34,888               723
Indiana.............................            16,716               346
Iowa................................             8,540               177
Kansas..............................             8,234               171
Kentucky............................            16,602               344
Louisiana...........................            24,687               511
Maine...............................             3,584                74
Maryland............................            12,217               253
Massachusetts.......................            13,320               276
Michigan............................            27,035               560
Minnesota...........................            12,476               258
Mississippi.........................            16,062               333
Missouri............................            16,865               349
Montana.............................             2,973                62
Nebraska............................             5,123               106
Nevada..............................             3,825                79
New Hampshire.......................             2,375                49
New Jersey..........................            17,247               357
New Mexico..........................             8,741               181
New York............................            53,197             1,102
North Carolina......................            26,046               540
North Dakota........................             2,152                45
Ohio................................            32,495               673
Oklahoma............................            14,095               292
Oregon..............................             9,228               191
Pennsylvania........................            30,267               627
Rhode Island........................             2,517                52
South Carolina......................            16,767               347
South Dakota........................             2,919                60
Tennessee...........................            19,291               400
Texas...............................            85,978             1,781
Utah................................             8,694               180
Vermont.............................             1,587                33
Virginia............................            17,819               369
Washington..........................            14,717               305
West Virginia.......................             7,142               148
Wisconsin...........................            13,809               286
Wyoming.............................             1,505                31
Puerto Rico.........................            23,087               478
                                     -----------------------------------
      Subtotal......................           899,807            18,642
                                     ===================================
Territories.........................             4,662                96
Tribes..............................            27,973               382
Discretionary.......................             2,200  ................
                                     -----------------------------------
      Total.........................           934,642       19,120 \1\ 
------------------------------------------------------------------------
\1\ Of the $956 million appropriated in fiscal year 1997, $19 million   
  will be obligated immediately to support resource and referral        
  programs and before and after school services. The remaining $937     
  million was advance appropriated for fiscal year 1998.                
                                                                        
 Source: Administration for Children and Families, U.S. Department of   
  Health and Human Services.                                            

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