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Early Childhood Care and Education Programs: Background and Funding (CRS Report for Congress)

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Release Date Revised May 16, 2016
Report Number R40212
Report Type Report
Authors Karen E. Lynch, Analyst in Social Policy; Gail McCallion, Specialist in Social Policy
Source Agency Congressional Research Service
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Summary:

The federal government has a long history of investing in early childhood care and education. As early as the 1930s, the government was supporting nursery schools for low-income children. Over time, the federal role in early childhood care and education has evolved and today's federal investments in this area come in many forms. For instance, such investments Stretch across multiple federal agencies and congressional committee jurisdictions. Agencies include the Department of Health and Human Services (HHS), the Department of Education (ED), the Department of the Interior (DOI), the Department of Agriculture (USDA), and the Internal Revenue Service (IRS). Vary from targeted to flexible funding streams, from grant programs to tax provisions. Some programs exclusively offer early childhood services (e.g., Head Start), while others are broad-based funding streams for which such services are among many allowable uses (e.g., Temporary Assistance for Needy Families). Often have differing policy goals, target populations, program services, and administrative rules. Some target a particular service (e.g., home visiting, child care), while others target a particular population (e.g., special needs children, working parents). Many programs target low-income families, but some programs and tax provisions also benefit middle- and upper-income families. Currently, some of the largest federal investments in targeted early childhood programs come from HHS, through programs such as Head Start ($8.6 billion in FY2015) and the Child Care and Development Block Grant ($5.4 billion in combined mandatory and discretionary funding in FY2015). Two child care-related tax provisions (combining to account for an estimated $5.5 billion in FY2015) and the USDA's Child and Adult Care Food Program (estimated at $3.1 billion in FY2015) also provide substantial financial contributions to federal early childhood initiatives. By comparison, funding for targeted early childhood programs at ED and DOI tends to be lower, on average, typically falling below the billion dollar mark for any one program. In recent years, both Congress and the Obama Administration have demonstrated interest in early childhood issues. The President has proposed the creation of new early childhood programs (e.g., Preschool for All), as well as reforms to existing programs. In some cases, these proposals have been taken up by Congress, leading to new funding for early childhood initiatives in annual appropriations acts (e.g., Preschool Development Grants). However, over the same period, some early childhood programs have seen funding decreases (e.g., the Individuals with Disabilities Education Act (IDEA) preschool program) or been eliminated altogether (e.g., Even Start). Of note, several early childhood care and education programs are due for possible reauthorization in the 114th Congress, including Head Start, mandatory child care funding authorized in Section 418 of the Social Security Act, and the IDEA Part C early intervention program for infants and toddlers. In addition, the 114th Congress may consider early childhood care and education issues in the context of possible reauthorization of the Elementary and Secondary Education Act. Congress may also take an interest in the Administration's implementation of the reauthorization law (P.L. 113-186) for the Child Care and Development Block Grant (CCDBG) that was enacted in November 2014, substantively overhauling existing program rules for the first time since 1996.