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               Researh Sevice





COVID-19: Child Care Grants in H.R. 7027

and H.R. 7327



July 22, 2020
The Coronavirus Dis ease 2019 (COVID- 19) pandemic has raised questions related to the fragility of the
child care market and the child care needs of working families. Monthly data from the Bureau of Labor
Statistics suggest that the number of child care workers dropped by roughly one-third between March and
April 2020, with the number of workers still down by about 22% in June. According to one survey fielded
from March 31 to April 4, a majority of parents reported their child care provider had closed or was
limiting hours or spaces due to COVID- 19. Nearly half of respondents were somewhat or very concerned
their provider would not re-open. Other estimates suggest that demand for child care among essential
workers may exceed supply.
Congress and the President have already enacted several child care-related provisions as part of the
federal COVID- 19 response. In addition, Congress has continued to debate the need for further legislation
to provide more or different federal support, introducing a number of bills that touch on these issues. On
July 17, the House Rules Committee ordered reported a specialrule (IRes. 1053) to provide for House
floor consideration of two such bills (IR. 7027 and IR. 7327).

Previously Enacted Legislation

The Coronavirus Aid, Relief, and Economic SecurityAct (CARES, P.L. 116-136) and the Families First
Coronavirus Response Act (FFCRA, P.L. 116-127) each included child care-related provisions.
The CARES Act appropriated $3.5 billion in supplemental discretionary funding for the Child Care and
Development Block Grant (CCDBG). These funds were in addition to FY2020 annual appropriations of
$5.8 billion. The CCDBG provides formula grants to states, territories, and tribes to subsidize the cost of
child care for low-income working families, as well as for other activities (e.g., improving the quality and
availability of care). The CARES Act waived some underlying requirements of the Child Care and
Development Block Grant Act, such as specifying that funds may be used to provide child care assistance
to essential workers regardless of their income. (Federal law typically limits eligibility to those with
incomes at or below 85% of the state median income, though most states set limits below the federal
threshold.)



                                                               Congressional Research Service
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