Federal child care funding for low-income families: how much is needed?

Setting a dollar amount for government spending on child care is a major issue in reauthorizing the 1996 welfare reform law. Two key components in pending Congressional proposals involve the Temporary Assistance for Needy Families block grant and the Child Care and Development Fund, which together provide the bulk of government child care funding for low income working families, whether or not these families are directly involved in the welfare system. The choices for Congress involved in setting an appropriate child care funding level are complex and fraught with questions about quality and cost tradeoffs. This issue brief provides background on current child care use, arrangements, and cost, as well as research findings on the measurement of quality in child care programs.