Child Care for Low Income Families


Table 3: Federal Child Care Program Features


AFDC Child Care

Purpose: To assist AFDC families with child care to the extent that it is necessary for employment or state-approved education and training

Target Population: AFDC recepients who accept or retain employment or are in state-approved education or training activity

Funding: Open-ended federal entitlement to recipients; requires state matching funds

Fiscal 1992: $621,727,109 [Combined federal and state expenditures.]


Transitional Child Care

Purpose: To provide up to 12 months of child care to working AFDC recipients upon loss of eligibility for AFDC due to an increase in hours or of earnings from employment

Target Population: Families that received AFDC in 3 of last 6 months and are no longer eligible for AFDC due to an increase in hours or of earnings from employment

Funding: Open-ended federal entitlement to recipients; requires state matching funds

Fiscal 1992: $133,594,923 [Combined federal and state expenditures.]


At-Risk Child Care

Purpose: To provide child care to non-AFDC working families who would be at risk of AFDC dependence if child care were not provided

Target Population: An optional state program for low- income families at risk of AFDC dependence and needing child care to continue working

Funding: Capped entitlement to states; requires state matching funds

Fiscal 1992: $599,050,901 [Combined federal and state expenditures.]


Child and Development Block Grant

Purpose: To increase availability and affordibility of child care for low-income families as well as to help states provide, expand, and improve the quality of child care for all families

Target Population: Families at or below 75% of state median income, to enable them to work or participate in approved education and training, or to provide child care for protective service cases [Children in state custody due to abuse or neglect]

Funding: Block grant to states; no match required

Fiscal 1992: $798,249,375 [The "lead agency" is designated by the governor and responsibility can be assigned to a non-IV-A Agency.]


Source: U.S. General Accounting Office, 1994b.
Return to Chapter 5, "The Issues in Brief" section.
Return to Chapter 5, "Access and Affordability of Child Care" section.
Return to the Child Care for Low-Income Families Table of Contents.