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Date: Monday, Sept. 30, 1996    
FOR IMMEDIATE RELEASE
Contact: Michael Kharfen (202)401-9215

HHS Releases New Child Care Funds To States And Grants To Improve Child Care Quality


HHS Secretary Donna E. Shalala announced today that the increased child care funds available to states under the newly enacted welfare law will be released tomorrow. Secretary Shalala also announced new grants to help states improve the health and safety of child care programs.

The child care block grant funds for fiscal year 1997 that begin to be released tomorrow will provide up to $1.92 billion to states, a significant increase over the estimated FY 1996 level of $1.35 billion.

"President Clinton signed into law a welfare bill that met his principles of work, parental responsibility and protections for children," said Secretary Shalala. "I'm pleased that the department is moving quickly to help states pro vide the affordable, accessible and quality child care which is critical to help move families from welfare to work."

HHS estimates, that depending on states' decisions, this increase in funds will enable states to serve about 230,000 additional children, in full-year, part-time child care slots.

Under the new welfare law, several federal child care programs were consolidated into the Child Care and Development fund, a single block grant to the states. This consolidation of funds makes it easier for states to plan for and access federal f unds, reduce administrative burdens, increase the number of children who can be served and improve the quality of child care programs.

Later this year, approximately $1 billion in discretionary child care funds will also be released to the states.

HHS is also awarding $2.5 million in grants to 42 states, the District of Columbia, Puerto Rico and the Republic of Palau this week to support and encourage the development of statewide strategies and planning for healthy, safe child care programs . The grants build upon the Healthy Child Care America Campaign launched by Secretary Shalala last year. The award of these grants is the product of a collaborative effort between two agencies in HHS: the Health Resources and Services Administration's M aternal and Child Health Bureau, which will administer the grants, and the Administration for Children and Families' Child Care Bureau.

The activities of the projects include formation of statewide Healthy Child Care Campaigns, investments in systems and services to increase child care capacity, programs to address children with special needs and the training of child care provide rs in health and safety. The projects are funded for three years.

"Under the department's vision of a reinvented government that works better together to serve America's children and families, this important collaborative effort among HHS agencies identified the crucial priority of health and safety in chil d care," said Secretary Shalala. "These grants will serve as a catalyst for state efforts to ensure parents have the choice for quality child care programs."


Note: HHS press releases are available on the World Wide Web at: www.hhs.gov.