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May 2003

ShareChild Care: Recent State Policy Changes Affecting the Availability of Assistance for Low-Income Families

GAO-03-588

With passage of welfare reform in 1996, child care assistance has become a significant strategy for helping recipients of Temporary Assistance for Needy Families (TANF) move into the workforce and for helping other families stay off welfare.

The Congress provided states with more child care funding and with flexibility to allocate child care monies among three groups at risk: (1) TANF families participating in work-related activities, (2) families that recently transitioned off TANF (transitioning families), and (3) other low-income working families.

Since 1996, many states have expanded their programs of child care assistance with funds from the federal Child Care and Development Fund (CCDF) and TANF; however, their policies may have changed somewhat in recent years, given state budget shortfalls and other factors.

In view of the pending reauthorization of welfare and child care legislation, you asked us to provide information about states child care assistance programs for low-income families.

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