Early Childhood Care and Education Programs in the 110th Congress: Background and Funding

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Early Childhood Care and Education

Programs in the 110th Congress: Background

and Funding

(name redacted)

Section Research Manager

(name redacted)

Specialist in Social Policy

February 7, 2008

Congressional Research Service

7-....

www.crs.gov

RL33805

CRS Report for Congress

Prepared for Members and Committees of Congress

Early Childhood Care and Education Programs in the 110th Congress

Summary

Federal support for child care and education comes in many forms, ranging from grant programs

to tax provisions. Some programs serve as specifically dedicated funding sources for child care

services (e.g., the Child Care and Development Block Grant, or CCDBG) or education programs

(e.g., Elementary and Secondary Education Act, Title I, Part A; Early Reading First; Even Start;

the 21st Century Community Learning Centers Program; the Early Childhood Educator

Professional Development program; and the Individuals with Disabilities Education Act—

Preschool Grants program and Infants and Toddlers program), while for others (e.g., Temporary

Assistance for Needy Families, or TANF), child care is just one of many purposes for which

funds may be used. In many cases, federal programs target low-income families in need of child

care, but in the case of certain tax provisions, the benefits reach middle- and upper-income

families as well. This report provides an overview of federal child care, early education, and

related programs, and their funding status.

Funding for many child care, early education, and related programs is provided each year as part

of the annual appropriations process for the Departments of Health and Human Services (HHS),

and Education (ED). Fiscal year (FY) 2007 appropriations bills for those departments did not

receive floor action in the House or Senate during the 109th Congress, despite the 2007 fiscal year

beginning on October 1, 2006. After three continuing resolutions (CRs) provided temporary

funding for government operations, a fourth CR, providing funding through the end of FY2007,

was ultimately signed into law (P.L. 110-5) on February 15, 2007, shortly after the President’s

budget request for FY2008 was released. For several but not all of the programs covered by this

report, the FY2007 funding levels mirrored those included in the FY2006 appropriations (P.L.

109-149). Funding for Head Start was increased, as was that for Early Reading First. Even Start

funding was cut, but not eliminated as had been proposed by the President.

The FY2008 appropriations process, which included a series of continuing resolutions that

provided temporary funding (at FY2007 levels) and a vetoed conference agreement (H.Rept. 110424), ultimately culminated in the Consolidated Appropriations Act of 2008 (H.R. 2764) being

signed into law (P.L. 110-161) by the President on December 26, 2007. The legislation includes

an across-the-board cut (1.747%) to the program funding level amounts contained in the act’s

language. (The levels included in this report reflect the across-the-board reduction.) On February

4, 2008, the President released his budget request for FY2009.

The 110th Congress has not addressed all of the expired (or soon expiring) reauthorizations in the

area of early childhood education and care. The CCDBG (expired with FY2002) remains funded

without authorization. No Child Left Behind was granted an automatic one-year extension

(through FY2008) under the General Education Provisions Act. Head Start reauthorization

legislation (H.R. 1429) was approved by this Congress in November 2007, and signed into law

(P.L. 110-134) by the President on December 12, 2007.

Congressional Research Service

Early Childhood Care and Education Programs in the 110th Congress

Contents

Federal Child Care and Early Education Programs and Tax Provisions ........................................1

Child Care and Development Block Grant (CCDBG) ............................................................1

Temporary Assistance for Needy Families (TANF)................................................................2

Child and Adult Care Food Program (CACFP) ......................................................................3

Social Services Block Grant (SSBG).....................................................................................3

Head Start.............................................................................................................................3

Elementary and Secondary Education Act (ESEA) Title I, Part A...........................................4

Early Reading First ...............................................................................................................4

The William F. Goodling Even Start Family Literacy Programs (Even Start) .........................5

Early Childhood Educator Professional Development............................................................5

Individuals with Disabilities Education Act (IDEA) Programs ...............................................5

Child Care Access Means Parents in School (CAMPIS) ........................................................6

Early Learning Fund/Early Learning Opportunities Act Program...........................................6

Dependent Care Tax Credit (DCTC)......................................................................................7

Dependent Care Assistance Program (DCAP)........................................................................7

FY2007 Appropriations...............................................................................................................9

FY2008 Appropriations...............................................................................................................9

Chronology of House and Senate FY2008 Appropriations Activity...................................... 10

FY2009 President’s Budget ....................................................................................................... 11

Tables

Table 1. Funding for Federal Early Childhood Care, Education, and Related Programs,

FY2003-FY2008......................................................................................................................7

Table 2. FY2008 Appropriations: Funding Levels in the President’s FY2008 Request,

Senate Committee Bill, House Bill, Vetoed Conference Agreement, and Final Bill ................. 10

Table 3. President’s FY2009 Funding Request Compared to FY2008 Appropriation .................. 11

Contacts

Author Contact Information ...................................................................................................... 12

Congressional Research Service

Early Childhood Care and Education Programs in the 110th Congress

Federal Child Care and Early Education Programs

and Tax Provisions

Several federal programs support child care, education, or related services, primarily for lowincome working families. In addition, the tax code includes provisions specifically targeted to

assist families with child care expenses. Descriptions of those programs and tax provisions

follow, as does Table 1, which shows funding (or obligations or tax expenditures, where

applicable and available) for the programs and tax provisions for the past five years. In many

cases, other Congressional Research Service (CRS) reports are referenced as sources for more

detailed information about individual programs.

Early childhood care and education programs still due to be reauthorized in the 110th Congress

include the Child Care and Development Block Grant and programs under the No Child Left

Behind Act (NCLBA). Legislation to reauthorize Head Start (H.R. 1429), a program whose

authorization expired with FY2003, was signed into law (P.L. 110-134) by the President on

December 12, 2007. All of these programs have continued to receive funding. The NCLBA

programs include Elementary and Secondary Education Act (ESEA) Title I, Part A, Early

Reading First, Even Start, and the Early Childhood Educator Professional Development program.

Programs for young children contained in the Individuals with Disabilities Education Act (IDEA),

such as the Preschool Grants program and the Infants and Toddlers program, are not up for

reauthorization in the 110th Congress. Readers should be aware that this report does not attempt to

cover all issues connected with each of those reauthorizations.

Child Care and Development Block Grant (CCDBG)1

The primary federal grant program funding child care is the CCDBG, which was created in 1990

and reauthorized (through FY2002) and substantially expanded in 1996, as part of welfare

reform. The CCDBG is overdue for reauthorization, and the 110th Congress has inherited this

unfinished task. (Although the 109th Congress completed legislation to provide the mandatory

funding portion for the CCDBG through FY2010, the CCDBG Act itself, which outlines the rules

of program, and includes the authorization level for discretionary funding, awaits reauthorization.

In the meantime, discretionary funding has been provided via the appropriations process.)

The CCDBG is administered by the Department of Health and Human Services (HHS), and

provides formula block grants to states, which use the grants to subsidize the child care expenses

of families with children under age 13, if the parents are working or in school, and family income

is less than 85% of the state median. (In practice, many states establish income eligibility levels

that are lower than this federal threshold.) Child care services are provided on a sliding fee scale

basis, and parents may choose to receive assistance through vouchers or certificates, which can be

used with a provider of the parents’ choice, including religious providers and relatives.

States receiving CCDBG funds must establish child care licensing standards, although federal law

does not dictate what these standards should be or what types of providers must be covered. In

addition, states must have health and safety requirements applicable to all providers receiving

For more information, see CRS Report RL30785, The Child Care and Development Block Grant: Background and

Funding, by (name redacted).

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Early Childhood Care and Education Programs in the 110th Congress

CCDBG subsidies that address prevention and control of infectious diseases, building and

physical premises safety, and health and safety training for care givers. However, federal law does

not dictate the specific contents of these requirements.

The CCDBG is funded through both discretionary and capped entitlement (mandatory) grants

(referred to in combination as the Child Care and Development Fund (CCDF)), and state

maintenance-of-effort (MOE) and matching requirements apply to part of the entitlement funds.2

States must use at least 4% of their total funds to improve the quality and availability of child

care, and according to statute, must target 70% of entitlement funds on welfare recipients working

toward self-sufficiency or families at risk of welfare dependency. However, because all families

falling below the 85% of state median income requirement can be categorized as “at risk,” the

70% targeting of the welfare or at-risk population does not necessarily mean welfare families

must be served. In theory, all funds may be used for low-income, non-welfare, working families.

However, state plans indicate that many states guarantee child care to welfare families. No more

than 5% of state allotments may be used for state administrative costs.

The FY2006 Appropriations Act for the Departments of Labor, HHS, and Education (P.L. 109149) included roughly $2.1 billion in discretionary funding for the CCDBG. (An across-the-board

rescission of 1% brought the precise total to $2.062 billion.) The fourth and final CR (P.L. 110-5)

covering FY2007 maintained discretionary funding at the $2.1 billion level. Mandatory (or

“entitlement”) CCDBG funding beginning in FY2003 through FY2005 was provided at the

FY2002 rate ($2.717 billion for the year), under a series of funding extensions. Ultimately, as

alluded to earlier, funding for a longer, five-year period (FY2006-FY2010) was included in the

Deficit Reduction Act of 2005, a budget spending reconciliation bill (S. 1932), which was signed

into law (P.L. 109-171) on February 8, 2006. This law provides $2.917 billion annually for each

of FY2006-2010.

Temporary Assistance for Needy Families (TANF)

TANF, created in the 1996 welfare reform law (P.L. 104-193), provides fixed block grants for

state-designed programs of time-limited and work-conditioned aid to needy families with

children. The original legislation provided $16.5 billion annually through FY2002, and after a

series of twelve temporary extensions, Congress included several welfare provisions (and

mandatory child care funding) in its spending budget reconciliation bill (S. 1932), which was

signed into law (P.L. 109-171) on February 8, 2006. The law maintains the TANF block grant at

$16.5 billion for FY2006-2010. Child care is one of many services for which states may use

TANF funding. In FY2006 (the most recent year for which data are available), HHS reports that

states spent $1.24 billion in federal TANF funds for child care within the TANF program, and

$2.23 billion in state TANF and separate state program (SSP) MOE funds. 3 In addition, states

may transfer up to 30% of their TANF allotments to CCDF, to be spent according to the rules of

the child care program (as opposed to TANF rules). The transfer from the FY2006 TANF

allotment to the CCDBG totaled $1.9 billion (representing 12% of the FY2006 TANF allotment).

For more detailed information on the CCDF financing structure and early spending trends (through FY2000), see CRS

Report RL31274, Child Care: Funding and Spending under Federal Block Grants, by (name redacted).

For more information on states’ use of TANF funds, see CRS Report RL32748, The Temporary Assistance for Needy

Families (TANF) Block Grant: A Primer on TANF Financing and Federal Requirements, by (name redacted).

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Child and Adult Care Food Program (CACFP)

The CACFP provides federal funds (in some cases commodities) for meals and snacks served in

licensed child care centers, family and group day care homes, and Head Start centers. Child care

providers that are exempt from state licensing requirements must comply with alternative state or

federal standards. Children under 12, migrant children under 15, and children with disabilities of

any age may participate, although most are preschoolers. Eligible providers are usually public and

private nonprofit organizations. The CACFP is an open-ended entitlement, administered by the

Department of Agriculture. For FY2008, obligations are estimated to be $2.289 billion, and

$2.172 in FY2007.4

Social Services Block Grant (SSBG)

Title XX of the Social Security Act authorizes Social Services Block Grants, which may be used

for social services at the states’ discretion. There are no federal income eligibility requirements,

targeting provisions, service mandates, or matching requirements. The most recently published

HHS analysis of state expenditures indicates over 9% of total SSBG expenditures made in

FY2005 ($241 million) were for child care in that year, a decrease from those made for child care

in FY2004 ($254 million). Title XX is a capped entitlement, and state allocations are based on

relative population size. It should be noted that although the SSBG has an entitlement ceiling,

appropriations may not always abide by it. For example, the ceiling in FY2001 was $1.7 billion;

however, Congress appropriated $1.725 billion for that year, despite the ceiling. Funding for the

SSBG has been held steady at $1.7 billion for the past seven years (most recently, for FY2008),

with states retaining authority to transfer up to 10% of their TANF block grants to the SSBG.

However, as part of the FY2006 appropriations, in addition to the regular SSBG funding, an

additional $550 million was provided in the Defense Appropriations Act (P.L. 109-148), targeted

for needs arising from the Gulf Coast Hurricanes of 2005. P.L. 110-28, signed into law on May

25, 2007, extends the availability of these funds for expenditure through FY2008, as a good

portion remained unspent prior to the end of FY2007, and without legislative action, would have

been returned to the Treasury.5

Head Start

Head Start provides comprehensive early childhood education and development services to lowincome preschool children, on a part- or full-day basis.6 After unsuccessful attempts in the 109th

Congress to reauthorize the Head Start program (whose authorization had expired with FY2003),

legislation reauthorizing the program through FY2012 was passed by the current Congress in

November 2007, and that bill, H.R. 1429/H.Rept. 110-439, was signed into law (P.L. 110-134) by

the President on December 12, 2007.7

See CRS Report RL33307, Child Nutrition and WIC Programs: Background and Recent Funding, by (name redacted).

See CRS Report 94-953, Social Services Block Grant (Title XX of the Social Security Act), by (name redacted).

For more information, see CRS Report RL30952, Head Start: Background and Issues, by (name redacted).

For more information on the history of House and Senate provisions leading up to the conference-approved version,

see CRS Report RL33968, Head Start Reauthorization: A Side-by-Side Comparison of House- and Senate-Passed

Versions of H.R. 1429 and Current Law, by (name redacted).

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Early Childhood Care and Education Programs in the 110th Congress

Despite the long period of overdue reauthorization, funding continued to be provided through the

appropriations process. Under current law, Head Start funds are provided directly by HHS to local

grantees, which must comply with detailed federal performance standards. The available data

show funded enrollment for Head Start in FY2006 to have totaled 909,201 children (10% of

whom were under age 3, participating in Early Head Start). After three continuing resolutions

(CR) had extended temporary funding for Head Start at its FY2006 annual rate, a fourth CR

(H.J.Res. 20), signed into law (P.L. 110-5) on February 15, 2007, ultimately provided funding for

the entirety of FY2007. This appropriations measure included $6.888 billion for Head Start, an

increase of approximately $100 million above the FY2006 level provided in “regular”8 Head Start

funds in the FY2006 HHS appropriations law. The Consolidated Appropriations Act 2008 (P.L.

110-161) includes $6.878 billion for the Head Start program, which reflects a decrease of $10

million compared to the FY2007 funding level.

Elementary and Secondary Education Act (ESEA) Title I, Part A

ESEA Title I, Part A, is the largest federal program serving disadvantaged children, particularly

school-age children. After Head Start, it is the largest program providing early education and care

to young children. The U.S. Department of Education estimates that approximately 2% of

children served by Title I each year are preschoolers. Preschool services are not separately funded

under Title I, Part A—such spending occurs if local educational agencies (LEAs) choose to use

some of their Title I funds for this purpose. The Consolidated Appropriations Act of 2008 (P.L.

110-161) provides $14.03 billion for Title I, Part A, an increase of almost $1.2 billion above the

FY2007 level of $12.84 billion in funding.

Early Reading First

The Early Reading First program, authorized by ESEA Title I, Part B, Subpart 2, supports local

efforts to enhance the school readiness of young children—particularly those from low-income

families—through scientific research-based strategies and professional development that are

designed to enhance the verbal skills, phonological awareness, letter knowledge, and pre-reading

skills of preschool age children.9 The program provides competitive grants to eligible local

educational agencies (LEAs) and to public or private organizations or agencies that are located in

eligible LEAs. The Department of Education may award grants for up to six years. Early Reading

First is funded at a level of $113 million for FY2008, $5 million less than the $118 million

provided for FY2007.

The Defense Appropriations Act (P.L. 109-148) included $90 million in additional funding for Head Start, to be used

specifically for grantees serving children displaced by the Gulf Coast hurricanes of 2005, and to help with the costs of

renovating Head Start facilities affected by the storms. Those funds were not be allocated according to the standard

Head Start formula due to the targeted purpose of the funding. As discussed below, the Head Start Bureau has taken

action to assess and address the needs of Head Start grantees in response to these hurricanes. Of the $90 million

appropriated, a total of $74 million was awarded, based on grantee requests. The remainder was returned to the

Treasury.

For more information, see CRS Report RL31241, Reading First and Early Reading First: Background and Funding,

by (name redacted).

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The William F. Goodling Even Start Family Literacy Programs

(Even Start)

The Even Start program is authorized by ESEA Title I, Part B, Subpart 3, and is intended to

integrate early childhood education, adult basic education, and parenting skills education into a

unified family literacy program. 10 The program provides grants to states which then distribute

them to eligible entities (consisting of a local education agency (LEA) in collaboration with a

community based organization). Even Start services generally serve children aged 0-7 and their

parents. Even Start services must include adult literacy instruction, early childhood education,

instruction to help parents support their child’s education, participant recruitment, screening of

parents, staff training, and home-based instruction.

The Even Start program, first authorized in 1989, grew rapidly in its first years, but it has been

subject to increasing criticism in recent years and has seen its funding decline in each year from

FY2003 through FY2008. The Education Department’s FY2007 CR operating plan provided $82

million in funding for the program, a cut of $17million from the FY2006 funding level of $99

million. As in the FY2007 budget request, the Administration requested no funding for the

program for FY2008. However, the Consolidated Appropriations Act of 2008 (P.L. 110-161)

provides $66 million for Even Start.

In advocating for the program’s elimination, the Administration contends that the program has not

demonstrated it has been effective in improving child and adult learning outcomes through the

integration of the four core services of adult education, parenting education, parent-child

activities, and early childhood education. The Administration argues that these conclusions are

supported by data from three national evaluations of Even Start.

Advocates of continuing the Even Start program argue that the goal of providing integrated

family literacy services to an extremely disadvantaged population is so important that the

program should not be eliminated. Furthermore, they argue that a thorough study of the impact of

legislatively mandated quality improvements to Even Start is needed, as well as a concerted effort

to improve the program through implementation of model programs and technical assistance.

Early Childhood Educator Professional Development

The Department of Education has provided competitive grants to partnerships to improve the

knowledge and skills of early childhood educators who work in communities that have high

concentrations of children living in poverty. FY2006 funding was $14.5 million, and in FY2007

the department reported an increase of $10,000, for a rounded total of $14.6 million in FY2007.

The program received no funding for FY2008.

Individuals with Disabilities Education Act (IDEA) Programs

The majority of IDEA funding for special education and related services (approximately 90%)

goes to school-age children via grants to states. However, IDEA also authorizes two state grant

For more information, see CRS Report RL30448, Even Start Family Literacy Programs: An Overview, by (name

redacted), and CRS Report RL33071, Even Start: Funding Controversy, by (name redacted).

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Early Childhood Care and Education Programs in the 110th Congress

programs for young children: an early intervention program for Infants and Toddlers with

disabilities (IDEA, Part C) and a Preschool program for children with disabilities (IDEA, Part

619).11 The Infants and Toddlers program serves disabled children from birth to two years of age,

and the Preschool program generally serves children ages 3 to 5.

The Infants and Toddlers program requires that states receiving grants create and maintain a

“statewide, comprehensive, coordinated, multidisciplinary, interagency system that provides early

intervention services for infants and toddlers with disabilities and their families.” Services focus

on children experiencing “developmental delay” with respect to physical, mental, or other

capacities, and their families. Services are detailed for each child and his or her family in an

Individualized Family Service Plan. Services are to be provided, to the maximum extent feasible,

in “natural environments,” including the home, with other infants and toddlers who are not

disabled.

States are eligible for Preschool grants under Section 619 of IDEA if they are eligible for grants

under IDEA, Part B, grants to states, and they make available free appropriate public education to

all disabled children 3 to 5 in the state. In recent years, all states qualified and received preschool

grants under this section. Since Part B grants to states are used to serve children with disabilities

as young as three years of age (as well as school-age children), Section 619 is not so much a

separate program as it is supplementary funding for services to this age group. In general, the

provisions, requirements, and guarantees under the grants to states program that apply to schoolage children with disabilities also apply to children in this age group. As a result, Section 619 is a

relatively brief section of the law, which deals mostly with the state and substate funding

formulas for the grants and state-level activities.

IDEA was reauthorized during the 108th Congress. IDEA, Part C, received $436 million in

funding for FY2008, the same level provided in FY2007 and FY2006. IDEA, Section 619, is

funded at a level of $374 million for FY2008, a decrease from the FY2007 level of $381 million.

Child Care Access Means Parents in School (CAMPIS)

Authorized under the Higher Education Act amendments of 1998, and first funded for FY1999 at

$5 million, the CAMPIS program is designed to support the participation of low-income parents

in post-secondary education through campus-based child care services. Discretionary grants of up

to four years in duration are awarded competitively to institutions of higher education, to either

supplement existing child care services, or to start a new program. Funding for FY2007 was

$15.8 million, the same level as in FY2006.

Early Learning Fund/Early Learning Opportunities Act Program

This HHS program (referred to by both names), authorized by the FY2001 Consolidated

Appropriations Act (P.L. 106-554) was last funded in FY2005 at $36 million. The FY2006

Appropriations Act includes no funding for this program. When funded, the program provided

grants to communities to enhance school readiness for children under five, specifically by funding

efforts to improve the cognitive, physical, social, and emotional development of these children.

For more information, see CRS Report RL31273, Individuals with Disabilities Education Act (IDEA): Early

Childhood Programs (Section 619 and Part C), by (name redacted).

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Early Childhood Care and Education Programs in the 110th Congress

Although authorized at $600 million, FY2002 funding for the program was set at $25 million;

FY2003 funding was set at $34 million (despite the President’s FY2003 budget proposal to

eliminate the program) and for FY2004, P.L. 108-199 included $34 million for the Early Learning

Fund.

Dependent Care Tax Credit (DCTC)

The DCTC is a non-refundable tax credit for employment-related expenses incurred for the care

of a dependent child under 13 or a disabled dependent or spouse, under Section 21 of the tax

code. 12 Beginning in tax year 2003, the Economic Growth and Tax Relief Reconciliation Act of

2001 (P.L. 107-16) increased the maximum credit rate to 35% of expenses up to $3,000 for one

child (for a credit of $1,050), and up to $6,000 for two or more children (for a credit of $2,100).

The 35% rate applies to taxpayers with adjusted gross incomes of $15,000 or less. The rate

decreases by 1% for each additional $2,000 increment (or portion thereof) in income until the rate

reaches 20% for taxpayers with incomes over $43,000. The Department of the Treasury estimates

tax expenditures for the DCTC will be $3.1 billion for tax year 2006.

Dependent Care Assistance Program (DCAP)

Under Section 129 of the tax code, payments made by a taxpayer’s employer for dependent care

assistance may be excluded from the employee’s income and, therefore, not be subject to federal

income tax or employment taxes. 13 The maximum exclusion is $5,000. Section 125 of the tax

code allows employers to include dependent care assistance, along with other fringe benefits, in

nontaxable flexible benefit or “cafeteria” plans. The Department of the Treasury estimates that tax

expenditures associated with the DCAP will be $660 million in tax year 2006.

Table 1. Funding for Federal Early Childhood Care, Education, and Related

Programs, FY2003-FY2008

($ in millions)

Program

(Federal Admin. Agency)

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

CCDBG -discretionary portion (HHS)

2,086h

2,087k

2,083l

2,062m

2,062

2,062t

CCDBG -entitlement portion (HHS)

2,717i

2,917n

2,917

Child and Adult Care Food (USDA)

1,915b

2,056b

2,134b

2,141b

2,172b

2,289u

Social Services Block Grant (HHS)

1,700c

1,700c,p

1,700

Head Start (HHS)

6,668d

6,775j,k

6,843j,l

6,786m,o

6,888r

6,878t,v

Even Start (ED)

248h

247k

225l

99m

82s

66t

IDEA Infants and Families (ED)

434h

444k

441l

436m

436s

436t

IDEA Preschool Grants (ED)

387h

388k

385l

381m

381s

374t

TANFa (HHS)

See CRS Report RS21466, Dependent Care: Current Tax Benefits and Legislative Issues, by (name redacted) and

(name redacted).

Ibid.

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Early Childhood Care and Education Programs in the 110th Congress

Program

(Federal Admin. Agency)

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

Early Learning Fund / ELOA (HHS)

34h

34k

36l

Early Reading First (ED)

75h

94k

104l

103m

118s

113t

Early Childhood Educator Professional

Development (ED)

15h

15k

15l

14.5m

14.6s

Child Care Access Means Parents in School

(ED)

16h

16k

16l

15.8m

15.8s

16t

2,707f

3,207f

3,338f

3,060q

3,190q

600q

660q

Tax Provisions

Dependent Care Tax Credit (Treasury)

Dependent Care Assistance Program

(Treasury)

Source: Table prepared by the Congressional Research Service (CRS).

Note: The Elementary and Secondary Education Act (ESEA) Title I, Part A (ED) is not included here because it

primarily serves school-age disadvantaged children, and because reliable data on expenditures for preschoolers

are not available. However, the U.S. Department of Education has estimated that approximately 2% of children

served by Title I each year are preschoolers. These preschool services are not separately funded under Title I,

Part A, but rather are spent for this purpose at the discretion of local educational agencies (LEAs). Preschool

spending data are not collected. Total ESEA Title I, Part A funding is $14.03 billion in FY2008; was $12.84 billion

in FY2007; $12.74 billion in FY2006; $12.74 billion in FY2005; $12.34 billion in FY2004; and $11.69 billion in

FY2003.

TANF funds ($16.5 billion annually) may be used for child care, but are not specifically appropriated as such.

HHS reports that states spent $1.3 billion in federal TANF funds for child care within the TANF program in

FY2005 (the most recent data available). Also, the FY2005 transfer from the FY2005 TANF allotment to the

CCDBG totaled $2.0 billion (representing 12% of the FY2005 TANF allotment).

Obligations (actual for 2002-2006; estimated for 2007), Department of Agriculture.

Total SSBG appropriation amount shown. In FY2004 (the most recent expenditure data available), $254

million in SSBG expenditures was for child care. In FY2003, the comparable figure was $165 million, and in

FY2002, it was $205 million.

Of the $6.668 billion, $5.268 billion was available for FY2003, and $1.4 billion was available in FY2004. The

$5.268 billion was exempt from rescissions (or “offsets”) included in P.L. 108-7. However, the advance

appropriation of $1.4 billion for FY2004, included in P.L. 108-7, was subject to the 0.59% rescission included

in the FY2004 appropriations law (P.L. 108-199).

This amount excludes $3 million in unobligated funds transferred to the Program Administration account to

help offset a $3.7 million rescission in administrative and related expenses pursuant to section 803 of the

FY2002 Supplemental Appropriations Act.

Prior tax year actual expenditures reported in (Internal Revenue Service) IRS publication 1304 Table 3.3—in

other words, $3.338 billion in tax expenditures in tax year 2004.

Actual tax expenditures associated with DCAP are not reported/collected on/from tax returns.

Amount reflects rescission included in P.L. 108-7.

Funding for TANF and the mandatory portion of CCDBG funding for FY2003, FY2004, and FY2005 was

provided (at the FY2002 rates) through a series of temporary extensions.

In FY2004, $1.4 billion was advance appropriated for the following year. In FY2005, $1.389 billion of the

$6.843 billion was advance appropriated for FY2006.

These discretionary programs were subject to an across-the-board rescission of 0.59% included in P.L. 108199. For the larger programs, the listed amount reflects the rescission, whereas for the smaller programs,

the use of rounding in the table masks the decrease in the actual appropriation.

Congressional Research Service

Early Childhood Care and Education Programs in the 110th Congress

The omnibus appropriations law (P.L. 108-447) included an across-the-board rescission of 0.8% for these

discretionary programs. The numbers in the table reflect the offset. (For the smaller programs, the use of

rounding in the table masks the decrease in the actual appropriation.)

m. This amount reflects the 1% across-the-board rescission that applies to discretionary programs included in

this appropriations act (P.L. 109-149).

P.L. 109-171 provides $2.917 billion for mandatory child care funding in each of fiscal years 2006-2010.

Of the $6.786 billion (post-rescission), $1.386 billion became available in FY2007. In addition to the amount

shown in the table, the Defense Appropriations Act (P.L. 109-148) provided $90 million in additional

funding for Head Start, to be used specifically for grantees serving children displaced by last year’s Gulf

Coast hurricanes, and to help with costs of renovating Head Start facilities affected by the storms.

In addition to the $1.7 billion appropriated in the Labor, HHS, Education law (P.L. 109-148), the Defense

Appropriations Act (P.L. 109-149) provided $550 million in SSBG funds, specifically targeted for needs

arising from the Gulf Coast Hurricanes of 2005.

Department of Treasury estimates of tax expenditures. Amounts reflect estimates for the prior tax year,

that is, $600 million in tax year 2005 and $660 million in tax year 2006, taken from FY2008 President’s

Budget.

The FY2009 budget documents are the source for the $6.888 billion figure.

Figures taken from the Department of Education table showing “FY2007 CR Operating levels.” The fourth

and final continuing resolution (CR) making appropriations for FY2007 was enacted February 15, 2007 (P.L.

110-5).

This amount reflects the 1.747% across-the-board rescission that applies under P.L. 110-161.

Figures taken from the U.S. Department of Agriculture’s 2008 Explanatory Notes to P.L. 110-161,

submitted to the appropriations committees.

Of the $6.878 billion, $1.389 billion becomes available in FY2009.

Estimates will be added to table upon release of the FY2009 President’s Budget.

FY2007 Appropriations

The FY2007 appropriations process consisted of four continuing resolutions, the last of which

(H.J.Res. 20), signed into law (P.L. 110-5) on February 15, 2007, extended through the entirety of

FY2007. The final CR language specified a dollar amount for Head Start—$6.889 billion—

approximately $100 million more than the regular funding provided for FY2006. (Regular funds

totaled $6.786 billion in FY2006 and do not include the supplemental funding that was provided

to target needs arising from the 2005 Gulf hurricanes.)

FY2008 Appropriations

Fiscal Year 2008 began without appropriations bills for the year having been completed. The

process extended almost a full quarter into FY2008, with continuing resolutions providing

temporary funding during the time it took for the House, Senate, and President to come to

agreement on a bill. Ultimately, the President signed the Consolidated Appropriations Act of 2008

(H.R. 2764/P.L. 110-161) on December 26, 2007, but only after first vetoing a conference

agreement submitted by Congress (H.Rept. 110-424). The funding levels that appear in the act

(with few exceptions) are subject to an across-the-board reduction of 1.747%. All FY2008

appropriation amounts referenced in this report reflect the across-the-board cut.

Congressional Research Service

Early Childhood Care and Education Programs in the 110th Congress

Chronology of House and Senate FY2008 Appropriations Activity

On June 27, 2007, the Senate Appropriations Committee reported a bill (S. 1720/S.Rept. 110-107)

to make appropriations for the Departments of Labor, HHS, and Education. The full Senate did

not take up that legislation but later approved the H.R. 3043 conference agreement (subsequently

vetoed by the President). H.R. 3043 was initiated in the House (see below).

The House Appropriations Committee approved its Labor-HHS-Education bill (H.R.

3043/H.Rept. 110-231) on July 11, 2007, by voice vote, and the full House passed H.R. 3043, as

amended, on July 19, 2007, by a vote of 276-140. On July 17, 2007, the same day the House floor

debate of H.R. 3043 began, the Office of Management and Budget (OMB) issued a Statement of

Administration Policy stating its opposition to the bill and threatened a presidential veto if

ultimately presented to the President.

On November 8, 2007, H.R. 3043 (H.Rept. 110-424), the bill containing appropriations for Labor,

HHS, and Education was sent to the President. On November 13, President Bush vetoed the bill,

and on November 15, an attempt to override the veto failed in the House by a vote of 277-141

(two-thirds majority required).

In December, the House and Senate turned to H.R. 2764 (originally introduced as the StateForeign Operations Appropriations Act for FY2008) as a vehicle for the omnibus appropriations

measure. An amended version of H.R. 2764 became the Consolidated Appropriations Act of 2008

and was agreed to and signed into law by the President on December 26, 2007. The explanatory

statement accompanying the bill (and substituting for a conference report) provides for the

aforementioned across-the-board cut of 1.747% to most programs and services funded by the bill.

Table 2 shows the funding levels approved, in chronological order, by the Senate Appropriations

Committee for S. 1720, by the House for its version, H.R. 3043, by the House and Senate as part

of the conference agreement accompanying H.R. 3043 (which was subsequently vetoed by the

President), and ultimately, the funding levels approved by the President and signed into law (P.L.

110-161). All final funding levels reflect the across-the-board reduction of 1.747%.

Table 2. FY2008 Appropriations: Funding Levels in the President’s FY2008 Request,

Senate Committee Bill, House Bill, Vetoed Conference Agreement, and Final Bill

($ in millions)

President’s

Request

FY2008

Senate

Appropriations

Committee-Passed

Bill

(S. 1710)

HousePassed

Bill

(H.R.

3043)

Conference

Agreement

(H.Rept. 110424)

vetoed

CCDBG

discretionary (HHS)

2,062

2,137

2,095

2,062

SSBG (HHS)

1,200

1,700

Head Start (HHS)

6,789

7, 089

6,964

7,042

6,878

Even Start (ED)

IDEA Infants and

Families (ED)

423

450

436

443

436

Program

Congressional Research Service

Final (P.L.

110-161;

includes

1.747% cut)

Early Childhood Care and Education Programs in the 110th Congress

Program

President’s

Request

FY2008

Senate

Appropriations

Committee-Passed

Bill

(S. 1710)

HousePassed

Bill

(H.R.

3043)

Conference

Agreement

(H.Rept. 110424)

vetoed

Final (P.L.

110-161;

includes

1.747% cut)

IDEA Preschool

(ED)

381

374

Early Childhood

Educator

Professional

Development (ED)

Early Reading First

(ED)

118

115

113

Child Care Access

Means Parents in

School (CAMPIS)

(ED)

Source: Table prepared by the Congressional Research Service (CRS).

FY2009 President’s Budget

The Administration released its proposed budget for FY2009 on February 4, 2009. As shown in

Table 3, the President’s funding request for most of the early childhood care and education

programs discussed in this report mirror the funding levels provided for FY2008. Exceptions

include a proposed $149 million increase for the Head Start program, and a $500 million decrease

for the Social Services Block Grant (SSBG). In addition to the proposed cut for the coming year,

the budget also proposes a plan to eliminate the SSBG entirely in FY2010. For FY2009, the

Administration again proposes to eliminate the Even Start program, as well as funding for Early

Childhood Educator Professional Development.

Table 3. President’s FY2009 Funding Request Compared to FY2008 Appropriation

($ in millions)

FY2008

Appropriation

President’s Request

FY2009

CCDBG discretionary (HHS)

2,062

SSBG (HHS)

1,700

1,200

Head Start (HHS)

6,878

7,027

Even Start (ED)

IDEA Infants and Families (ED)

436

IDEA Preschool (ED)

374

Program

Early Childhood Educator Professional Development

(ED)

Congressional Research Service

Early Childhood Care and Education Programs in the 110th Congress

FY2008

Appropriation

President’s Request

FY2009

Early Reading First (ED)

113

Child Care Access Means Parents in School (CAMPIS)

(ED)

Program

Sources: Table based on budget figures provided in FY2009 Budget Justifications for the Departments of Health

and Human Services and Education.

Author Contact Information

(name redacted)

Section Research Manager

/redacted/@crs.loc.gov, 7-....

Congressional Research Service

(name redacted)

Specialist in Social Policy

/redacted/@crs.loc.gov, 7-....

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