In the area of child care, several federal funding sources have been consolidated into two basic block grants. Previously, Texas received most of its child care funds through the Child Care Development Block Grant and Title IV-A of the Social Security Act. The block grants were 100 percent federally funded and primarily targeted low-income families. The Child Care Development Block Grant will be essentially unchanged, and will give a slight boost to Texas' federal funding. Child care funding in Title IV-A of the Social Security Act will be replaced with a second mandatory block grant.
States can choose to base funding on one of three years.
For Texas, fiscal 1995 produced the most funding. Once all states have drawn their mandatory child care funds, the remainder of the federal appropriation will be placed in a fund from which states can draw a share. While matching child care funds are increasing, eligibility for child care services has broadened to families making 85 percent or less of the state's median income. If state appropriations for child care remain about the same for the upcoming biennium, Texas will meet the 100 percent MOE requirement. In past years, initiatives by the Comptroller's office have produced funds from local school districts, community colleges, cities, counties, and other public and non-profit entities.