Showing its continued determination to improve child care, the Senate Health, Education, Labor, and Pensions Committee passed a bill to re-authorize the Child Care Development Block Grant (CCDBG) program, increasing discretionary funding for child care subsidies by $1 billion next year. S.2758, known as the 2002 Access Act, was originally introduced by Senator Christopher Dodd (D-CT), Chairman of the Subcommittee for Children and Families.

Due to the strong support from Senator Dodd and the lobbying efforts of Rapoza Associates and the National Children's Facilities Network, S.2758 includes an authorization of a new program designed to provide much needed capital for the development of child care facilities serving low income children. Title II (Subtitle B) authorizes the Secretary of Health and Human Services to provide matching grants to non-profit intermediaries to assist home-based and center-based child care providers in acquiring, constructing, or improving facilities. In addition, intermediaries would be available to assist child care providers improve their business management and entrepreneurial skills in order to ensure the long-term viability of the centers as stable, quality business institutions. The legislation authorizes $50 million annually to fund grants through the program.

Low-income communities are two to three times less likely to have preschool programs than more affluent communities. As more Americans transition from welfare to work, shortages of child care space and equipment are expected to worsen. Without affordable child chare, the ability of parents to find and maintain stable employment is threatened. Over 65 percent of mothers with children under age six and 78 percent of mothers with children ages six to 13 are in the labor force today.

With strong experience in the communities they serve, non-profit intermediaries are well positioned to address the lack of child care centers nationwide. This new grant program draws from the community development model - using small, seed-money investments to leverage existing community resources. Although the match for federal funds is one-to-one, non-profits in this field have demonstrated their ability to leverage 3 to 8 times the required match.

S.2758 will be included in the welfare reform bill which is expected to be taken up on the Senate floor before the October recess. The Committee has also discussed trying to work out a compromise with the House, which has passed a bill similar to President Bush's proposal. The House bill provides level funding for child care, requires increased work requirements, and includes as marriage incentives. While there is some talk of a trying to work out the differences in conference, it is unlikely that a compromise bill could be agreed to by the end of the Congressional session this year.