The New Child Care Block Grant

Brief

The New Child Care Block Grant

State Funding Choices and Their Implications

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) eliminates federal child care entitlements and consolidates the major sources of federal child care subsidies for low-income children into a single block grant to states. The new block grant provides the potential for substantially greater child care funding depending on the options adopted by states. This analysis examines the funding options states have under PRWORA and the decisions states must make regarding their need for child care assistance.

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