CHILD CARE ACTION NETWORK-Child Care & TANF Update

House Votes to Extend TANF and Child Care Another Six Months

The House yesterday approved a bill that will extend the TANF and Child Care
block grants for six months. This is necessary because both block grants
have not been "reauthoized" or re-approved. The authorization for both block
grants ran out at the end of federal fiscal 2002. Since then the Congress
has been extending both programs 3 months at a time. This extension would
run until the end of March 2004. Like previous extensions it does not change
either program and it does not add child care money.

As you may recall, a few weeks ago the Senate Finance Committee approved
their version of a TANF and Child Care reauthorization (see below) but there
is no time on the Senate floor before the end of the federal fiscal year
which is next week Tuesday.

There was talk that Senator Rick Santorum (R-PA) would hold up a TANF
extension unless he was able to attach "something", perhaps some provisions
making the work requirements more difficult or some funding for marriage
promotion.

Yesterday the Senate had to adopt an extension of federal funding to keep
the government running beyond October 1. This is due to the fact that the
new fiscal year starts on Wednesday and Congress must still pass almost all
of the 13 annual appropriations bills. During that debate on a temporary
extension of government funding (called a "CR" or continuing resolution)
Finance Committee Democrat and Ranking Member Senator Baucus (D-MT) received
a verbal commitment that the TANF extension would be adopted by the Senate
without delays such as proposals to alter the program.


CHILD CARE DEBATE

It is still not clear when and if the Senate will debate the TANF and Child
Care reauthorization year. Both reauthorizations are rolled into one piece
of legislation so the debate is joined between the two block grants. If the
Senate does not get to the legislation this year the bills roll over into
next year (they will not have to be re-passed by committees).  The Senate
must still act on remaining appropriations bills, they may attempt to pass
an energy bill and if House and Senate Conferees can compromise on a
Medicare prescription drug bill, all of these issues would take up
significant Senate floor time. We are waiting to find out when and if this
debate happens this year and will let you know immediately.

In the interim members of Congress must continue to hear about the need for
more child care funding. It should be emphasized that that need is great and
exists EVEN IF no changes are made to the TANF work requirements.

As you may recall the Senate Finance Committee includes virtually no
increase in child care funding as it is identical to the House bill
regarding child care. Both bills purport to spend "$1 billion" more on child
care. To refresh, this is how that $1 billion calculation is made:

Current mandatory chid care funding: $2.7 billion in 2003

In the House & Senate TANF/Child Care bills:

2004 $2.9 billion,
2005 $2.9 billion,
2006 $2.9 billion,
2007 $2.9 billion,
2008 $2.9 billion,

As you can see, the funds go up by $200 million next year and then are
frozen for the remaining 4 years of the bill. Under budget scoring that
one-time $200 million increase is multiplied by 5 years which equals $1
billion.

In reality, all states would receive a first year increase and nothing else
for the last 4 years. By comparison, in 1997 when this law went into effect,
states received an $800 million increase in year one and then approximately
$200 million in EACH year after that. Child care funding went from $1.1
billion in 1996 to $2.7 by 2002.

United States Senators must be urged to work with Senator Olympia Snowe
(R-ME) who has received a guarantee from Senate leadership that she will
offer the first amendment to the TANF legislation whenever that debate
begins. She is seeking between $5 to $6 billion more than the current bill.
It depends on how strong a vote she can get. Conservative Republican
Senator--especially--need to hear the message that they must support her
efforts and this increase.


HEAD START

Still no bipartisan bill or firm hearing date in the "HELP" (Health,
Education, Labor and Pensions) committee.  If a tentative date of October 1
does not take place (it is widely believed it will not) the following week
the Senate is off and the next date would likely be October 15.