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                          SECURITIES AND EXCHANGE COMMISSION
                                     Washington, D.C.
                                           20549

                                     ___________

                                      FORM 10-Q

                   Quarterly Report Pursuant to Section 13 or 15(d)
                        of the Securities Exchange Act of 1934

                                      __________

     For the 13 week period                      Commission File Number 1-4947-1
       ended April 29, 2000

                           J. C. PENNEY FUNDING CORPORATION
     ___________________________________________________________________________
                  (Exact name of registrant as specified in its charter)


                Delaware                                        51-0101524
     ___________________________________________________________________________
         (State or other jurisdiction of                   (I.R.S. Employer
          incorporation or organization)                  Identification No.)


     6501 Legacy Drive, Plano, Texas                           75024-3698
     ___________________________________________________________________________
     (Address of principal executive offices)               (Zip Code)


     Registrant's telephone number, including area code         972-431-1000
                                                          ______________________

                                   ___________________


     Indicate by check mark whether the registrant (1) has filed all reports
     required to be filed by Section 13 or 15(d) of the Securities Exchange Act
     of 1934 during the preceding 12 months (or for such shorter period that the
     registrant was required to file such reports), and (2) has been subject to
     such filing requirements for the past 90 days.

     Yes    x            No
          ______             ______

     Indicate the number of shares outstanding of each of the issuer's classes
     of common stock, as of the latest practicable date.

     500,000 shares of Common Stock of $100 par value, as of April 29, 2000.

     THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)
     (a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
     DISCLOSURE FORMAT.

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     PART I - FINANCIAL INFORMATION

     Item 1 - Financial Statements
              ____________________


     The following interim financial information of J. C. Penney Funding
     Corporation ("Funding"), a wholly owned subsidiary of J. C. Penney Company,
     Inc. ("JCPenney"), is unaudited; however, in the opinion of Funding, it
     includes all adjustments, consisting only of normal recurring accruals,
     necessary for a fair presentation.  The financial information should be
     read in conjunction with the audited financial statements included in
     Funding's Annual Report on Form 10-K for the 52 weeks ended January 29,
     2000.


     Statements of Income and Reinvested Earnings
     (Dollars in millions)


                                                       13 weeks ended
                                                   ____________________
                                                    April 29,    May 1,
                                                       2000       1999
                                                   __________  ________


     Interest earned from
          JCPenney and affiliates                   $      5    $   47


     Interest expense                                      3        31
                                                         ___       ___

     Income before income taxes                            2        16

     Income taxes                                          1         6
                                                        ____       ___

     Net income                                            1        10

     Reinvested earnings at
        beginning of period                            1,088     1,042
                                                       _____    ______

     Reinvested earnings at
          end of period                                1,089     1,052
                                                       =====    ======

                                          1
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     Balance Sheets
     (Dollars in millions)




                                                 April 29,    May 1,    Jan. 29,
                                                   2000        1999       2000
                                                 ________    ________   ________
     ASSETS

     Loans to JCPenney and affiliates            $  1,277   $ 3,217    $  1,588
                                                 ________   _______    ________
                                                 $  1,277   $ 3,217    $  1,588
                                                 ========   =======    ========

     LIABILITIES AND EQUITY OF JCPENNEY

     Short-term debt                             $     18   $ 1,995    $    330

     Due to JCPenney                                   25        25          25
                                                 ________   _______    ________
     Total liabilities                                 43     2,020         355

     Equity of JCPenney:
          Common stock (including
          contributed capital), par value
          $100:
          Authorized, 750,000 shares
          Issued, 500,000 shares                      145       145         145

     Reinvested earnings                            1,089     1,052       1,088
                                                   ______    ______      ______

     Total equity of JCPenney                       1,234     1,197       1,233
                                                   ______    ______      ______

                                                 $  1,277   $ 3,217    $  1,588
                                                 ========   =======    ========

                                          2
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     Consolidated Statements of Cash Flows
     (Dollars in millions)



                                                       13 weeks ended
                                                   ____________________
                                                    April 29,    May 1,
                                                       2000       1999
                                                   __________  ________
     Operating Activities

     Net income                                     $     1    $    10
     (Increase)Decrease in loans to
         JCPenney                                       311        (88)
     (Decrease)Increase in amount due to
         JCPenney                                         0          7
                                                    ________   ________
                                                        312        (71)
                                                    ________   ________

     Financing Activities

     Increase (Decrease) in short-term debt            (312)        71
                                                    ________   ________

     Increase in cash                                     0          0
     Cash at beginning of year                            0          0
                                                    ________   ________
     Cash at end of first quarter                   $     0    $     0
                                                    ========   ========

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     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
             CONDITION AND RESULTS OF OPERATIONS.

     Funding derives earnings on loans to JCPenney under the terms of the loan
     agreement which provides for unsecured loans to be made by Funding to
     JCPenney.  Additionally, in order to maintain Funding's income at defined
     coverage ratios, Funding s income is supplemented by charges to JCPenney.
     The income of Funding is designed to cover Funding's fixed charges
     (interest expense) at a coverage ratio mutually agreed upon by Funding and
     JCPenney.  The earnings to fixed charges coverage ratio has historically
     been at least one and one-half times.

     Funding issues commercial paper through Credit Suisse First Boston
     Corporation, J.P. Morgan Securities Inc.,  Merrill Lynch Money Markets
     Inc., and Morgan Stanley Dean Witter to corporate and institutional
     investors in the domestic market.  The commercial paper is guaranteed by
     JCPenney on a subordinated basis.  The commercial paper is rated "A2" by
     Standard & Poor's Corporation, "P2" by Moody's Investors Service, and "F2"
     by Fitch Investors Service, Inc.

     Funding's borrowing levels have been substantially reduced as a result of
     loan repayments by JCPenney in connection with the sale of JCPenney's
     credit card receivables and credit facilities to General Electric Capital
     Corporation (GECC) on December 6, 1999.  JCPenney used a part of the
     proceeds to repay a portion of its loan from Funding.  Funding in turn used
     the proceeds to pay down its short term commercial paper debt.

     For the first quarter of 2000, income, expenses, and provision for taxes
     decreased as compared with the first quarter of 1999, as a result of lower
     average borrowing levels. Borrowing levels averaged $208 million during the
     2000 first quarter as compared with $2,397 million during the comparable
     1999 period.  At the end of the first quarter of 2000, borrowing levels
     were $18 million as compared with $1,995 million at the end of the first
     quarter of 1999.  For the first quarter of 2000, average interest rates
     increased 101 basis points as compared with the same period in 1999.

     Subsequent Events
     _________________

          On May 2, 2000, the Company announced that it was exploring strategic
     alternatives related to its J. C. Penney Direct Marketing Services, Inc.
     (DMS) subsidiary, including, but not limited to, a sale or joint venture of
     the business. It is currently expected that the DMS transaction will be
     completed by the end of fiscal 2000, and that proceeds will be used to pay
     down debt and repurchase common stock.

                                          4
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     PART II - OTHER INFORMATION



               Item 6.  Exhibits and Reports on Form 8-K
                        ________________________________

                    (a) Exhibits

                        The following document is filed as an exhibit to
                        this report:

                        27  Financial Data Schedule for the three months ended
                            April 29, 1999.


                    (b) Reports on Form 8-K
                        ___________________

                        None

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                                      SIGNATURES
                                      __________


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
     registrant has duly caused this report to be signed on its behalf by the
     undersigned thereunto duly authorized.








                              J. C. PENNEY FUNDING CORPORATION




                              By: /s/ W. J. Alcorn
                              ______________________________________
                                      W. J. Alcorn
                                      Controller
                                      (Principal Accounting Officer)


     Date:  June 12, 2000

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