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CRS Congressional Research Service The Library of Congress Washington, D.C. 20540 Statement of Gene Falk of the Congressional Research Service Before the Subcommittee on Human Resources House Committee on Ways and Means Hearing on Federal Resources Available for Child Care March 16, 1999 It is an honor to be asked to appear before this subcommittee to discuss the finances of the block grant program of Temporary Assistance for Needy Families, (TANF), the Child Care and Development Fund (CCDF), and the Welfare-to-Work grant program. Though the CCDF specifically provides federal funds for child care, states and localities may also fund child care services directly from the TANF and welfare-to-work programs. Additionally, states have the option to transfer up to 30% of the TANF block grant to the CCDF. TANF and CCDF are relatively new programs, created in the 1996 welfare reform law, and the information we have is based on only their first 2 years. The Welfare-to-Work grant program was added to TANF in the Balanced Budget Act of 1997. Therefore, the available information shows early trends in these programs. CCDF and TANF Spending Trends Chart 1 shows the trends in federal spending for CCDF and TANF, and compares them with spending in their predecessor programs in FY1995 and FY1996. The 1996 welfare reform law significantly increased federal funding for the programs consolidated into the CCDF. Federal outlays for CCDF did not rise significantly in

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    "ocrText": "CRS\nCongressional Research Service\nThe Library of Congress\nWashington, D.C. 20540\nStatement of Gene Falk\nof the Congressional Research Service\nBefore the Subcommittee on Human Resources\nHouse Committee on Ways and Means\nHearing on Federal Resources Available for Child Care\nMarch 16, 1999\nIt is an honor to be asked to appear before this subcommittee to discuss the\nfinances of the block grant program of Temporary Assistance for Needy Families,\n(TANF), the Child Care and Development Fund (CCDF), and the Welfare-to-Work\ngrant program. Though the CCDF specifically provides federal funds for child care,\nstates and localities may also fund child care services directly from the TANF and\nwelfare-to-work programs. Additionally, states have the option to transfer up to 30%\nof the TANF block grant to the CCDF.\nTANF and CCDF are relatively new programs, created in the 1996 welfare\nreform law, and the information we have is based on only their first 2 years. The\nWelfare-to-Work grant program was added to TANF in the Balanced Budget Act of\n1997. Therefore, the available information shows early trends in these programs.\nCCDF and TANF Spending Trends\nChart 1 shows the trends in federal spending for CCDF and TANF, and\ncompares them with spending in their predecessor programs in FY1995 and FY1996.\nThe 1996 welfare reform law significantly increased federal funding for the programs\nconsolidated into the CCDF. Federal outlays for CCDF did not rise significantly in"
}