States Have Slowed Their Use of TANF Funds for Child Care in the Last Year

Publication Date: September 2002

Publisher: Center for Law and Social Policy

Author(s): Tanya Rakpraja; Rachel Schumacher

Research Area: Social conditions

Type: Report

Coverage: United States

Abstract:

Between 1997 and 2000, states relied on increasing amounts of freed-up funds from their Temporary Assistance for Needy Families (TANF) block grant to respond to demands for child care assistance and to the need for child care quality investments. By the end of fiscal year 2000, states redirected more TANF funds to their child care subsidy programs than was available through the federal Child Care and Development Fund (CCDF) that year $3.89 billion vs. $3.5 billion. The situation began to change in 2001, however.

This paper examines 2001 TANF spending data, which show that the steady growth in use of TANF funds for child care has stopped. It also offers thoughts on the outlook for 2002 and implications for reauthorization.

Supplementary files include PDFs of Tables 1 and 2.