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FY 2004 Child Care and Related Appropriations

Published: December 6, 2004

The Consolidated Appropriations Act of 2004 provides fiscal year (FY) 2004 funding for multiple Federal agencies. This law (Public Law 108-199) and its associated Conference Report (H.Rep. 108-401) contain several provisions related to child care and other care and education programs, which are summarized below. * The dollar amounts listed in this document reflect a 0.59% across-the-board rescission that applies to domestic Federal programs subject to annual appropriation.

U.S. Department of Health and Human Services (HHS)

FY 2004 Discretionary Child Care and Development Fund (CCDF). The FY 2004 appropriations law authorizes $2.087 billion in CCDF Discretionary Funds--approximately the same level as the previous year. The law requires that the entire amount of CCDF Discretionary Funds must be used to supplement, not supplant, State general revenue funds for child care assistance for low-income families.

Earmarks for FY 2004 CCDF Discretionary Funds. FY 2004 CCDF Discretionary Funds include the following earmarks:

  • $19 million for child care resource and referral and school-aged child care activities, of which $994,100 will be for the Child Care Aware toll free hotline.
  • $172 million for quality improvement activities, and $99 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.
  • Almost $10 million for HHS to use for child care research, demonstration, and evaluation activities.

FY 2004 CCDF Mandatory and Matching. Mandatory and Matching funds under CCDF remain at the FY 2003 level ($2.717 billion) under a series of temporary extensions while work to reauthorize the CCDF program continues. The Mandatory and Matching funding is not addressed in the appropriations law since it is "guaranteed" funding that is not subject to annual appropriation.

Early Learning Opportunities Act. Almost $34 million is appropriated for Early Learning Opportunities Act grants-approximately the same level as last 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.

Head Start. The appropriations law provides a $107 million increase for Head Start, raising total funding to $6.775 billion for FY 2004.

Social Services Block Grant (Title XX). The Social Services Block Grant (Title XX) continues to be funded at $1.7 billion (same as last year). For FY 2004, 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. Title XX funds a broad range of social services, and a small portion is used for child care.

Social Services and Income Maintenance Research. In addition to other research efforts, the Conference Report indicates that funds provided through the Administration for Children and Families includes: $200,000 for Lutheran Community Services in Burien, Washington to equip a child care center for families in need, and $500,000 for the Washington State Department of Health to implement the Bright Futures program to promote early childhood education and good health. (Other earmarks may also include child care activities, although it is difficult to tell based on the descriptions in the appropriations law).

Health Resources and Services. Within a larger budget for Health Resources and Services (administered by the Health Resources and Services Administration), the law includes an earmark of $580,000 to the City of Milwaukee Health Department in Milwaukee, Wisconsin for a pilot program providing health care services to at-risk children in day care.

U.S. Department of Education (ED)

Title I Grants to School Districts. The appropriation for ED includes $12.3 billion for Title I grants to local education agencies--a $650 million increase. Title I provides flexible funding to high-poverty school districts and schools that may be used for staff salaries, professional development, program materials, extended-time programs and other strategies for raising student achievement. In FY 2002, school districts used about 2 to 3 percent of Title I funds to support preschool programs.

Early Reading First. This ED program received a $94 million appropriation-a $20 million increase over last year. As a competitive grant initiative, Early Reading First awards funds to local entities that support early literacy efforts for preschool-aged children. Eligible applicants within low performing and high poverty school districts include local education agencies, public or private organizations acting or behalf of programs serving preschool-aged children (such as Head Start or child care), or consortia of entities.

Early Childhood Educator Professional Development. The appropriation law provides $15 million for this initiative--approximately the same level as last year. This ED program awards grants to improve the knowledge and skills of 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 are awarded competitively to partnerships consisting of relevant agencies. The program's authorizing statute lists State and local agencies administering the CCDF as potential members of such partnerships.

Even Start. The appropriation law includes $247 million for Even Start--approximately the same level as the previous year. This ED program supports family literacy programs that integrate early childhood education, adult education, parenting education, and literacy activities for low-income families with eligible parents and their children from birth through age 7.

21st Century Community Learning Centers. ED's 21st Century Community Learning Centers, which funds afterschool programs, received $999 million for FY 2004--approximately the same level as last year. Funds flow through formula grants to the States which award local grants to public and private entities (as well as directly to some existing local grantees through continuation funding).

Special Education Grants for Infants and Families. Funding increased by $10 million, for a total of $444 million for ED grants authorized by Part C of the Individuals with Disabilities Education Act (IDEA). States use these funds to provide early intervention services for infants and toddlers with disabilities and their families.

Special Education Preschool Grants. The appropriations law included $387 million for ED grants authorized by Part B of IDEA (approximately the same level as the previous year). State education agencies use these funds to provide special education and related services for preschool-aged children with disabilities.

Special Education Discretionary Grants. ED received $339 million-a $1 million increase over last year. ED's Office of Special Education Programs awards discretionary grants to institutions of higher education, State and local education agencies, and other private and public profit and non-profit organizations, to conduct research, training, technical assistance, and evaluation. Under funding for research and innovation, the Conference Report includes a few earmarks for specific early childhood and afterschool initiatives.

Ready-to-Learn Television. The appropriations law provides $23 million for Ready-to-Learn Television-the same as last year. This program supports educational television programming for children and families and a variety of related activities, including the development and dissemination of education and training materials for parents, child care providers, and other educators.

Campus Child Care. The law appropriates $16 million (same as last year) to be awarded to institutions of higher education for campus-based child care through ED's Child Care Access Means Parents in School program.

Fund for the Improvement of Education. ED's Fund for the Improvement of Education received $428 million (a $44 million decrease) to promote systemic education reform, recognition programs, studies and evaluations, and a variety of other programs. Within the total funds provided for FY 2004, the Conference Report earmarks amounts for specific early childhood development programs and afterschool programs.

Fund for the Improvement of Postsecondary Education. This ED program received $154 million (a $17 million decrease) to support innovative educational reform projects that can serve as national models for the improvement of postsecondary education. The Conference Report earmarks funding for a number of early childhood education programs and training initiatives at specific colleges and institutions listed in the Report.

Education of Native Hawaiians. This ED program received $33 million (a $2 million increase) to develop innovative education programs to assist Native Hawaiians. As part of this year's appropriation, the Conference Report directs ED to provide at least $1 million for early childhood education (a doubling of last year's earmark).

Institute of Education Sciences or IES. This ED Institute received $476 million (a $29 million increase) for its three Centers: the National Center for Education Research (NCER); the National Center for Education Evaluation and Regional Assistance (NCEE); and the National Center for Education Statistics (NCES). All three centers have some activities focusing on early education and preschool programs.

National Institute on Disability and Rehabilitation Research or NIDRR. This ED Institute received $107 million (a $2 million decrease) to improve the lives of persons of all ages with disabilities through a program of research, demonstration projects, and related activities--including training, capacity building, coordination, and collaboration projects.

Loan Forgiveness for Child Care Providers. This ED program received no funding for FY 2004. In prior years, this initiative had received $1 million for student financial assistance loan forgiveness for child care providers.

Foundations for Learning Grants. This ED program received no funding for FY 2004. Last year almost $1 million was appropriated for grants to help eligible preschool-aged children become ready for school through activities that support emotional and social development.

U.S. Department of Agriculture (USDA)

Child and Adult Care Food Program. Since FY 2001, annual appropriations law had provided for revised eligibility requirements for private organizations under the Child and Adult Care Food Program. This year, however, the provision has been included in separate legislation that temporarily extends the child nutrition programs pending reauthorization. The revised requirements allow a private organization (e.g., for-profit child care provider) to 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 FY 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.)

U.S. Department of Justice (DOJ)

Juvenile Justice Programs. The appropriations law provides $274 million (a $77 million increase) for DOJ's Juvenile Justice programs which fund a variety of initiatives for at-risk children and youth. Included in this amount is $79 million (a $10 million decrease) for Discretionary Grants, and the Conference Report asks DOJ to use these funds, if warranted, to fund specific afterschool programs. Also included is $84 million in State formula grants that the Conference Report asks State officials, if warranted, to use for a number of afterschool programs mentioned in the report.

Crime Identification Technology Act. Within the funds appropriated, the Conference Report provides $2.5 million for the Alaska Criminal Justice Information System for a broader effort that is expected to include the capability to provide background checks on potential child care workers for child care providers and families with the permission of the job applicant.

Edward Byrne Grants. This program funds law enforcement assistance. The Conference Report requires DOJ to consider a proposal to award $100,000 to the Cathedral City, California Police Department for an afterschool program.

Safe Schools Initiative. This initiative received $4.6 million for programs aimed at preventing violence in public schools. Within this amount, the Conference Report asks DOJ to consider a proposal to award $200,000 for the Merit School of Music's afterschool program.

U. S. Department of Housing and Urban Development (HUD)

Community Development Block Grant. The appropriations law provides $4.9 billion (approximately same as last year) for the Community Development Block Grant to support a wide range of services to expand opportunity in vulnerable communities. This amount includes funding for economic development initiatives which the Conference Report indicates should be used to fund a number of targeted projects (listed in the report), including the construction or renovation of facilities.

U.S. Department of Labor (DOL)

Job Corps. The appropriations law includes $1.5 billion (approximately same as last year) for Job Corps-- a comprehensive residential education and job training program for at-risk youth, ages 16 through 24. The Conference Report includes a $300,000 earmark for the Vermont Child Care Industry and Careers Council for a Childcare Apprenticeship Project.

Institute of Museum and Library Services

Museum and Library Services. The appropriation includes a $100,000 earmark for the Pittsburgh Children's Museum in Pennsylvania for arts and afterschool programs for at-risk children.

District of Columbia Appropriations

Federal Payment to the Office of the Chief Financial Officer of the District of Columbia. These funds to support economic development and infrastructure in Washington, DC include an earmark of $100,000 to the National Child Research Center for the establishment of early childhood education programs.

Prepared by the Child Care Bureau/AW 4/2/2004


* Full text of legislation can be found on the Library of Congress' Thomas web-site at http://thomas.loc.gov/.