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1 1 (September 20, 2023)

handle is hein.crs/govemwy0001 and id is 1 raw text is: S\Congressional ____ R .fesearch Service What Is the Child Care Funding Cliff? September 20, 2023 Recently, the possibility of a child care funding cliff has received considerable attention from Congress, stakeholder groups, and the media. At issue is whether the child care market (and the families who rely on it) will be negatively affected by expiring one-time COVID-19-related investments in child care. Background The main federal child care program supporting low-income working families is the Child Care and Development Fund (CCDF). The CCDF receives both discretionary appropriations via the Child Care and Development Block Grant (CCDBG) and mandatory appropriations via the Child Care Entitlement to States (CCES). Funds are allotted by formula to lead agencies for states, territories, and tribes. Lead agencies generally must spend these combined funds according to CCDBG Act rules. Table 1 presents child care funding for FY2019-FY2023. During this period, regular CCDF appropriations increased by $3.4 billion (+42%). These increases were largely driven by the CCDBG, which saw 53% growth in regular nominal appropriations between FY2019 and FY2023. In addition, multiple one-time appropriations were enacted during this period in response to disasters and the COVID-19 pandemic. Several substantial COVID-19-related appropriations in FY2020 and FY2021 sought to stabilize the child care market and support families through the pandemic, including * $3.5 billion in FY2020 discretionary supplemental CCDBG appropriations in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136); * $10.0 billion in FY2021 discretionary supplemental CCDBG appropriations in the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSA; P.L. 116-260, Division M); * $15.0 billion in FY2021 one-time mandatory appropriations for the CCDBG in the American Rescue Plan Act (ARPA; P.L. 117-2); and * $24.0 billion in FY2021 one-time mandatory appropriations for a new Child Care Stabilization grant program in ARPA. The CARES and CRRSA supplemental appropriations were to prevent, prepare for, and respond to coronavirus. Funds could be used under regular CCDBG authorities (e.g., to subsidize child care or improve the quality and supply of care), though additional provisions clarified, expanded, or otherwise Congressional Research Service https://crsreports.congress.gov IN12243 CRS INSIGHT Prepared for Members and Committees of Congress

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