Facts In Action

Congress recently finished its work on a federal tax bill (HR 1836) and it was signed by President George W. Bush. Although most advocates are concerned that the major tax cut included in the bill will ultimately threaten funding for early education and care programs, the final tax bill also includes improvements that will provide assistance to some low-income working families with children. The proposed measure makes the federal Child Tax Credit refundable. This means that for the first time, the Child Tax Credit will be available for all low-income working families earning $10,000 or more, regardless of whether they actually make a payment at tax time. Previously, parents who owed no taxes or received a refund on their federal taxes could not receive the credit. The new refundable Child Tax Credit improvements will be phased-in over the next few years.

In addition to the tax bill, several members of Congress and advocacy organizations have taken action to ensure that early education and care continues to be on the federal legislative agenda in the coming months. Below are some bills that have been filed in Congress to address issues of importance to the child care field.

• Sen. Jack Reed (D-RI) and Rep. Sanford Bishop, Jr. (D-GA) have introduced the Child Care Quality Incentive Act of 2001, a provision of $2.5 billion to establish a mandatory pool of $500 million each year under the Child Care and Development Block Grant to provide incentives to states to increase subsidy payment rates. For more information, contact USA Child Care at (703) 938-5531.

• Early education and care advocates are working together on comprehensive federal legislation dubbed, "The Act to Leave No Child Behind." The bill includes sections addressing health insurance for children, child care access and quality improvement, universal pre-kindergarten, income support for families, nutrition, family preservation, adoption, serving children with special needs, youth development, juvenile justice and gun safety. The bill (S940/HR1990) was filed on May 23, 2001. For more information, contact the Children's Defense Fund at (202) 628-8787 or on-line at www.childrensdefense.org.

• Senator Dodd (D-CT) and Representatives Miller (D-CA), Gilman (R-NY), Sanders (I-VT) and Kildee (D-MI) have filed FOCUS (Focus on Committed and Underpaid Staff for Children's Sake Act, S814/HR1650) a bill to improve the recruitment and retention of child care providers. The bill would provide $5 billion over five years to increase compensation for child care providers in the field and to provide scholarships to help child care providers improve their credentials. For more information, contact the Children's Defense Fund at (202) 628-8787 or on-line at www.childrensdefense.org.

Facts in Action, June 2001