Omnibus Budget Reconciliation Act (P.L. 101-508)
1. Created the Child Care and Development Block Grant (CCDBG).
2. Established income eligibility limits of 75 percent of state median income (SMI).
3. Provided funds for quality improvement activities and for activities to increase the supply of child care; also provided discretionary funding to states.
Personal Responsibility and Work Opportunity Reconciliation Act, or PRWORA (P.L. 104-193)
1. Consolidated mandatory child care funds from four programs (the CCDBG and three separate programs for families receiving, at risk of receiving, or transitioning off Aid to Families with Dependent Children) under the Social Security Act and reauthorized discretionary funding for CCDBG; the consolidated funding became known as the Child Care and Development Fund (CCDF).
2. Required that mandatory child care funds be transferred to and administered by the lead agency in each state, tribe, and territory.
3. Increased the income eligibility limit to 85 percent of SMI.
Deficit Reduction Act (P.L. 109-171)
1. Increased mandatory child care funding to $2.917 billion a year for fiscal years 2006 through 2010.
American Recovery and Reinvestment Act (P.L. 111-5)
1. Provided emergency funding for state child care subsidy programs in response to the 2007 recession.
2. Awarded $2 billion in CCDBG funds to supplement state spending on child care assistance.
3. Set aside approximately $255 million of CCDBG funds to provide consumer education, increase parental choice, and improve the quality and availability of child care.
For a brief history of child care assistance programs before PRWORA, see “The New Child Care Block Grant: State Funding Choices and Their Implications ” by Sharon K. Long and Sandra J. Clark.