In FY 1997, states made significant investments in child care services for families in response to this great need. States served an average of 1.25 million children per month, an increase from the 1 million children served in FY 1996. All states met the maintenance of effort and matching spending requirements for federal dollars. Overall, states obligated over 99 percent of federal funds. Yet, even with these substantial investments, there are still gaps in meeting the needs of working families.
Many states still maintain long waiting lists for services.
States are far from reaching all the children eligible for support. In a report released earlier this year on state child care programs, it was found that nearly all states set their eligibility levels below the federal ceiling. As states concentrate on moving families on welfare to work, many working families are not able to meet the eligibility for support. FY 1997 Highlights Children Served. Under the child care block grant in FY 1997, states served an average 1,247,856 children per month, a 25 percent increase from the estimated 1 million children served in FY 1996.