The FY 2001 Consolidated Appropriations Act (P.L. 106-554) enacts into law the provisions of several bills, including the HHS-Education-Labor Appropriations bill (H.R. 5656).* The new law contains several provisions related to child care and early care and education.

Additional FY 2001 Discretionary CCDF Funds. The FY 2001 appropriations law contains over $817 million in additional FY 2001 Discretionary CCDF funds. When added to the amount previously appropriated for FY 2001, total Discretionary CCDF funding is $2 billion. Two percent ($16 million) of the new FY 2001 Discretionary CCDF funds will be awarded to Tribes (in addition to the approximately $75 million in FY 2001 funds that were awarded to Tribes earlier this fiscal year). According to the Congressional conference report for the appropriations law, these additional funds must be used to supplement, not supplant, State and local child care funds. No match is required to draw down these Federal dollars.

Earmarks for FY 2001 Discretionary CCDF Funds. FY 2001 Discretionary CCDF funds include the following earmarks:

Advance Appropriation for FY 2002. In a departure from the past, the appropriations law did not include an advance appropriation for FY 2002 CCDF funds. However, the conference report notes that the conferees intend that funding for the child care block grant be at least the current level in FY 2002.

Early Learning Opportunities Act. $20 million is appropriated for HHS to implement a new program--the Early Learning Opportunities Act. Funds are to be used by local communities for developing, operating, or enhancing voluntary early learning programs that are likely to produce sustained gains in early learning.

Head Start. The appropriations law provides a $933 million increase for Head Start, raising total funding to $6.2 billion for FY 2001. These new funds will be used to expand enrollment and make significant improvements in quality, including providing professional development opportunities and enhancing wages and benefits for staff. ACF is strongly encouraging joint planning of services to families eligible for both Head Start and CCDF in order to provide full-day services and reach new populations.

21st Century Community Learning Centers. The U.S. Department of Education's 21st Century Community Learning Centers received a $392 million increase, bringing total funding to nearly $846 million for FY 2001. This funding includes over $20 million for after-school programs in specific communities that are named in the conference report. The conference report also requires the U.S. Department of Education to strongly encourage applications to be submitted jointly by a local educational agency and a community-based organization (such as child care providers, youth development organizations, museums, libraries, and Departments of Parks and Recreation). The Department of Education plans to make approximately 400 new grant awards with the additional funding. On January 3, 2001, the Department issued a Federal Register notice inviting applications. Applications are due by March 30, 2001. For more information see: http://www.ed.gov/21stcclc/apps.html.

Professional Development of Early Childhood Educators. The appropriation law provided $10 million for a new initiative to train early childhood educators and caregivers in high-poverty communities. The focus will be on professional development activities to further children's language and literacy skills to help prevent them from encountering reading difficulties once they enter school. We anticipate that the U.S. Department of Education will award these funds through a grant competition.

Loan Forgiveness for Child Care Providers. For the first time, funds have been provided ($1 million) to the U.S. Department of Education (ED) for a previously-authorized student financial assistance loan forgiveness program for child care providers. The conference report discusses plans to examine the estimated number of borrowers and amounts eligible to be forgiven to help make certain that sufficient funding is available for this program in the future. The conferees also direct ED to ensure that information about the availability and benefits of this program is provided to all potentially eligible borrowers.

Campus Child Care. Funding for campus-based child care (the U.S. Department of Education's Child Care Access Means Parents in School program) increased by $20 million to a total of $25 million.

Technical Assistance Grants. As part of Social Services and Income Maintenance Research, the appropriations law provides $2.5 million for grants to qualified private, non-profit intermediaries to demonstrate the provision of technical assistance to child care providers to improve the quality and supply of child care facilities in low income communities and to document the changes.

Title I. The appropriation for the U.S. Department of Education includes over $800 million in additional funding for Title I - Education for the Disadvantaged programs. This increase includes an additional $100 million for Even Start, raising the program's total appropriation to $250 million.

Child Care Safety and Health Grants. FY 2001 funds were not appropriated for the child care safety and health grants recently authorized by the Children's Health Act of 2000 (P.L. 106-310). However, the authorization remains in place with the possibility of future funding.

Child and Adult Care Food Program. The Miscellaneous Appropriations section (H.R. 5666) of P.L. 106-554 changed eligibility requirements for the U.S. Department of Agriculture's Child and Adult Care Food Program. Effective December 21, 2000 through September 30, 2001, a private organization (e.g., for-profit child care provider) can participate in the food program if at least 25 percent of the children served by the organization are eligible for free or reduced price lunch. (Previously, the law required that 25 percent of children receive Title XX Social Services Block Grant funds in order for a private organization to be eligible.)

Related Item: FY 2001 Allocation Tables for States/Territories and Tribes