Child Care and Development Fund, Report to Congress for Fiscal Years 2002 and 2003
TANF BLOCK GRANT FUNDS FOR CHILD CARE
PRWORA of 1996 allows States to transfer up to 30 percent of their TANF grant to CCDF or the Social Services Block Grant (SSBG). No more than 10 percent of the TANF grant may be transferred to SSBG, however. According to TANF Final Regulations, States may transfer current year TANF funds only. States may also spend a portion of their TANF block grant directly on child care services.
States used this flexibility greatly to support child care services. In FY 2002, 41 States transferred $2.1 billion in TANF funds to CCDF and spent approximately $1.6 billion in TANF funds directly on child care. In FY 2003, 41 States transferred $1.8 billion in TANF funds to CCDF and spent roughly $1.7 billion directly on child care services. Between TANF transfers and direct spending, States invested a total of $7.2 billion in TANF funds for child care in FY 2002 and FY 2003, which represents almost a third of all Federal and State child care funding through CCDF and TANF.