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FY 2005 Child Care and Related Appropriations

Published: December 6, 2005

The Consolidated Appropriations Act of 2005 provides fiscal year (FFY) 2005 funding for multiple Federal agencies. This law (Public Law 108-792) 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 0.8% across-the-board rescission that applies to domestic Federal programs subject to annual appropriation. A small additional rescission (.0069%) was made to CCDBG funding. Information on additional administrative reductions Departments will make to their programs is not included in this summary.

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

FFY 2005 Discretionary Child Care and Development Fund (CCDF). The FFY 2005 appropriations law authorizes $2.083 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 FFY 2005 CCDF Discretionary Funds. FFY 2005 CCDF Discretionary Funds include the following earmarks:

  • $19 million for child care resource and referral and school-aged child care activities, of which almost $1 million will be for the Child Care Aware toll free hotline.
  • $170 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.

FFY 2005 CCDF Mandatory and Matching. Mandatory and Matching funds under CCDF remain at the FFY 2004 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 $36 million is appropriated for Early Learning Opportunities Act grants— a six percent increase over 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 one percent ($68.5 million) increase for Head Start, bringing total funding to $6.843 billion for FFY 2005.

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 FFY 2005, 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 are earmarked for the Quality Child Care Initiative in Canton, Ohio ($99,200) and services to children and families at the Garrity Post Daycare Center in Brooklyn, New York ($496,000). Other earmarks may also include child care activities, although it is difficult to tell based on the descriptions in the appropriations law.

Substance Abuse and Mental Health Services. Within the larger Substance Abuse and Mental Health Services budget, the Center for Mental Health Services includes an earmark for the Managing Anger, Promoting Safety (MAPS) project, which focuses on child care settings in underserved communities in Mississippi ($99,200) and the creation of an early childhood development center in Louisville, Kentucky ($59,520).

U.S. Department of Education (ED)

Title I Grants to School Districts. The appropriation for ED includes $14.8 billion for Title I grants to local education agencies – nearly three percent ($400 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 FFY 2002, school districts used about two to three percent of Title I funds (approximately $200 million) to support preschool programs serving more than 300,000 children.

Early Reading First. This ED program received a $104 million appropriation—an 11 percent ($10 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 nearly $15 million for this initiative— approximately the same 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 $225 million for Even Start—a nine percent ($22 million) decrease below 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 seven.

21st Century Community Learning Centers. ED's 21st Century Community Learning Centers, which funds afterschool programs, received $991 million for FFY 2005 – approximately the same 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 remains approximately the same as last year at $441 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 $384 million for ED grants authorized by Part B of IDEA (approximately the same as last year). State education agencies use these funds to provide special education and related services for preschool-aged children with disabilities.

Individuals with Disabilities Education Act Grants. ED received $258 million—approximately the same as 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.

Ready-to-Learn Television. The appropriations law provides $23 million for Ready-to-Learn Television—a two percent increase compared to 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 almost $16 million (approximately the 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 $414 million (a three percent decrease) to promote systemic education reform, recognition programs, studies and evaluations, and a variety of other programs. Within the total funds provided for FFY 2005, the Conference Report earmarks amounts for specific early childhood development programs and afterschool programs. Notable is a $2 million earmark for Mississippi State University’s National Center on Rural Early Childhood Learning Initiatives.

Fund for the Improvement of Postsecondary Education. This ED program received almost $163 million (a four percent increase) 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.

Institute of Education Sciences or IES. This ED Institute received $527 million (a five percent 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 nearly $108 million (a one percent increase) 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.

Foundations for Learning Grants. This ED program received $992 million in FFY 2005 for grants to help eligible preschool-aged children become ready for school through activities that support emotional and social development. In FFY 2004, there was no funding and in FFY 2003 almost $1 million was appropriated for these grants.

U.S. Department of Justice (DOJ)

Juvenile Justice Programs. The appropriations law provides $384 million (a 40 percent increase) for DOJ's Juvenile Justice programs which fund a variety of initiatives for at-risk children and youth. Included in this amount is $102 million (a $23 million increase) for Discretionary Grants, and the Conference Report asks DOJ to use these funds, if warranted, to fund specific afterschool programs.

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

Community Development Block Grant. The appropriations law provides $4.7 billion ($191 million less than 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)

Employment and Training Services. The appropriations law includes a $250,000 earmark to City Year New Hampshire to expand out-of-school programs for at-risk children, and $200,000 for the At-Risk Out-of-School Youth Demonstration Project in San Jose, California.

Institute of Museum and Library Services

Museum and Library Services. The appropriation includes a $198,400 earmark for the Pittsburgh Children’s Museum in Pennsylvania for arts and afterschool programs for at-risk children.

Office of Personnel Management

The Conference Report includes narrative directing the Office of Personnel Management and General Services Administration, with technical assistance from the Government Accountability Office (GAO), to work collaboratively to collect data on Federal employee child care needs, analyze options to meet the identified needs, and provide the data and analysis to GAO. GAO is to report on their evaluation to the Committees on Appropriations. Also, the conferees express their interest in reevaluation of the efforts to inform low-income employees of programs to assist with child care expenses.


For carrying out sections 658A through 658R of the Omnibus Budget Reconciliation Act of 1981 (The Child Care and Development Block Grant Act of 1990), $2,099,729,000 shall be used to supplement, not supplant state general revenue funds for child care assistance for low-income families: Provided, That $19,120,000 shall be available for child care resource and referral and school-aged child care activities, of which $1,000,000 shall be for the Child Care Aware toll free hotline: Provided further, That, in addition to the amounts required to be reserved by the States under section 658G, $272,672,000 shall be reserved by the States for activities authorized under section 658G, of which $100,000,000 shall be for activities that improve the quality of infant and toddler care: Provided further, That $10,000,000 shall be for use by the Secretary for child care research, demonstration, and evaluation activities.

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