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FY 2002 Child Care and Related Appropriations

Published: December 6, 2002

Public Law 107-116 enacts into law the fiscal year (FFY) 2002 appropriations for the Departments of Health and Human Services (HHS), Education (ED) and Labor.* The new law contains several provisions related to child care and early care and education.

FFY 2002 Discretionary Child Care and Development Fund (CCDF). The FFY 2002 appropriations law authorizes $2.1 billion in Discretionary Funds--an increase of $100 million over the previous year. The law requires that the entire amount of Discretionary Funds must be used to supplement, not supplant, State general revenue funds for child care assistance for low-income families. An additional $2.7 billion in Mandatory and Matching funds were pre-appropriated, making a total of $4.8 billion in Federal CCDF funding available this year.

Earmarks for FFY 2002 Discretionary CCDF Funds. FFY 2002 Discretionary CCDF funds include the following earmarks:

  • $19.12 million for child care resource and referral and school-age child care activities, of which $1 million will be for the Child Care Aware toll free hotline.
  • Over $172 million for quality improvement activities, and $100 million to improve the quality of infant and toddler care. These quality dollars are in addition to the four percent minimum that States must use for quality.
  • $10 million for HHS to use for child care research, demonstration, and evaluation activities.

Early Learning Opportunities Act. $25 million is appropriated for the Early Learning Opportunities Act (ELOA) --a $5 million increase over the previous year. Funds are to be used by local communities for developing, operating, or enhancing voluntary early learning programs that are likely to produce sustained gains in early learning. The Child Care Bureau will announce a competition for ELOA grants in the Spring of 2002.

Head Start. The appropriations law provides a $338 million increase for Head Start, raising total funding to over $6.5 billion for FFY 2002.

21st Century Community Learning Centers. ED's 21st Century Community Learning Centers received a $154 million increase, bringing total funding to $1 billion for FFY 2002. The recent reauthorization of the Elementary and Secondary Education Act (P.L. 107-110) revised this program so that funds will now be awarded through State Education Agencies. In addition, the range of entities eligible to receive funding has been expanded from local educational agencies and schools to also include community-based organizations, other public and private entities, and consortia of entities. Thus child care organizations, among others, could now be eligible.

Early Reading First. This new ED program, which was authorized by P.L. 107-110, received a $75 million appropriation. As a competitive grant initiative, it will support early literacy efforts for preschool-aged children. Eligible applicants include certain local educational agencies, public or private organizations acting on behalf of programs serving preschool-aged children (such as Head Start or child care), or consortia of entities. A related new initiative--Reading First--will provide grants to assist States and local educational agencies in establishing research-based reading programs for children in kindergarten through grade three ($900 million total, $195 million of which is advanced for FFY 2003).

Early Childhood Educator Professional Development. The appropriation law provides $15 million (a $5 million increase over last year) for this initiative. As authorized by P.L.107-110, this ED program awards grants to improve the knowledge and skills of early childhood educators who are working in early childhood programs that are located in high-need communities and serve concentrations of children from low-income families. Funds will be awarded competitively to partnerships consisting of relevant agencies. The law lists State and local agencies administering the CCDF as potential members of such partnerships.

Loan Forgiveness for Child Care Providers. The appropriations law includes $1 million (the same amount as the previous year) for ED's student financial assistance loan forgiveness program for child care providers.

Campus Child Care. The law appropriates $25 million (the same amount as the previous year) for campus-based child care through the Child Care Access Means Parents in School program. The Conference Report encourages ED to work with colleges and universities and relevant organizations to heighten awareness and increase utilization of the financial assistance available.

Special Education Grants for Infants and Families. Funding increased by $33 million, for a total of $417 million for grants authorized by Part C of the Individuals with Disabilities Education Act (IDEA). States use these funds to provide services for infants and toddlers with disabilities and their families.

Special Education Preschool Grants. Funding remained level at $390 million for grants authorized by Part B of IDEA. State education agencies use these funds to serve preschool-aged children with disabilities.

Ready-to-Learn Television. The appropriations law provides $22 million for Ready-to-Learn Television that supports the development of educational television programming for children and families. As authorized by P.L. 107-110, these ED funds may support a variety of activities, including the development and dissemination of education and training materials for parents, child care providers, and other educators.

Social Services Block Grant (Title XX). The Social Services Block Grant (Title XX) received $1.7 billion, a $25 million decrease. For FFY 2002, the appropriations law allows States to transfer up to 10 percent of Temporary Assistance for Needy Families (TANF) funds to Title XX. The overall limit on the percentage of TANF funds that can be transferred to CCDF and Title XX is 30 percent.

Child and Adult Care Food Program. The Department of Agriculture's appropriations law (P.L. 107-76) extends the revised eligibility requirements for private organizations under the Child and Adult Care Food Program. Effective through September 30, 2002, a private organization (e.g., for-profit child care provider) can participate in the food program if at least 25 percent of the children served by the organization are eligible for free or reduced price lunch. (Prior to FFY 2001, the law required that 25 percent of children receive Title XX Social Services Block Grant funds in order for a private organization to be eligible.)

* Full text of bills can be found on the Library of Congress' Thomas web-site at http://thomas.loc.gov/. Enter the bill number in the search function near the top of the page. The bill number for the appropriations law (P.L. 107-116) is H.R. 3061. The bill number for the Elementary and Secondary Education Act reauthorization (No Child Left Behind Act; P.L. 107-110) is H.R.1.