The U.S. Department of Health and Human Services (HHS) makes block grants to states and local public and private agencies that administer preschool programs for children (Head Start [i]) and Child Care Programs [ii]. These programs include direct aid to low-income families for preschool attendance and childcare services. The grants can also cover Family Services Programs such as training, counseling, education, monitoring, and other programs to promote child education and health.
Head Start Qualification and Use
Children qualify for the Head Start program if they are under five years old and the family income is below the poverty threshold, or families can qualify based on participation in other public assistance programs such as the TANF, SSI, or SNAP programs. The Office of Head Start also states, “Programs may also accept a limited number of children who do not meet any of those eligibility criteria.” In the fiscal year 2020, the Head Start program served about 850,000 children [iii]. This compares to 3.0 million children in poverty in the United States, under five years old [v]. In the fiscal year 2023, the Head Start and Family Services Programs cost $15.0 billion [vi].
Child Care Qualification and Use
Here is a description from the Office of Child Care: “Subsidized child care services are available to eligible families through certificates (vouchers), or grants and contracts with providers. Under the law, States must establish eligibility policies, including a period of at least 12 months before eligibility is re-determined, that promote continuity of care for children and families. The program provides parents with the choice of a range of provider settings and types—including centers, family child care homes, relatives, and faith-based providers.”
The Child Care Program serves about 1.5 million children annually [iv]. In the fiscal year 2023, the Child Care Programs cost $26.5.billion [vii].
Entire Welfare System
Head Start and Child Care are two of thirteen welfare programs. See how they fit in the entire system on the Welfare Programs Page.
Improper Payments and Fraud
See the Welfare Fraud Page for Improper Payments for the Child Care and Head Start Programs.
History of the Head Start Program
Head Start began as part of President Lyndon Johnson’s “Great Society” programs [viii]. It started as as an eight-week summer program in 1965. It was envisioned as a catch-up program to teach low-income children what they needed to know to start kindergarten. However, experience showed that a short program couldn’t compensate for years of poverty. The following year it was authorized by Congress as a year-round program.
The Nixon Administration transferred Head Start to the Health and Human Services Agency in 1969. The Head Start Act of 1981 expanded the program. In 1994, the Early Head Start program was established to serve children from birth to three years of age, reflecting evidence that these years are critical to children’s development. The program was further revised when it was reauthorized in December 2007.
History of the Child Care Program
The Child Care Program is authorized under the Child Care and Development Block Grant Act (CCDBG), enacted under the Omnibus Budget Reconciliation Act of 1990 [ix]. The Personal Responsibility and Work Opportunity Act of 1996 amended and reauthorized the CCDBG and consolidated three federal childcare programs previously serving low-income families under the program formerly known as Aid to Families with Dependent Children.
See the Coronavirus Relief Bill for changes to the Program from legislation passed in 2021.
Head Start and Child Care Program costs over the years
The graph above shows Head Start and Child Care expenditures per year adjusted for the impacts of inflation (stated in 2022 dollars) [x]. The large increase in childcare costs in 2021 through 2023 is due to the expansion of benefits under Coronavirus relief legislation.
[i] For a description of the Head Start program and related data, see U.S. Department of Health and Human Services, Administration for Children and Families. Office of Head Start [Internet]. Retrieved August 4, 2023. Available here.
[ii] For a description of the Child Care Programs, see U.S. Department of Health and Human Services, Administration for Children and Families. Office of Child Care. [Internet]. Retrieved August 4, 2023. Available here.
[iii] U.S. Department of Health and Human Services, Administration for Children and Families. Head Start [Internet]. Head Start Program Facts – Fiscal Year 2021 [Internet]. Retrieved August 4, 2023. Available here.
[iv] U.S. Department of Health and Human Services, Administration for Children and Families, Office of Child Care, FY 2020 Preliminary Data Table 1 – Average Monthly Adjusted Number of Families and Children Served [Internet]. Retrieved August 4, 2023. Available here.
[v] U.S. Census Bureau. Table POV01. Below 100% of poverty. Retrieved August 4, 2023. Available here.
[vi] USGovernmentSpending.com [Internet]. Total for Payments to Children and Families Services Programs. Retrieved March 15, 2024. Available here.
[vii] Ibid. The total for Payments to States for the Child Care and Development Block Grant and the total for Child Care Entitlement to States.
[viii] U.S. Department of Health and Human Services, Administration for Children and Families. Office of Head Start. Head Start History. [Internet]. Retrieved August 4, 2023. Available here.
[ix] U.S. Department of Health and Human Services, Administration for Children and Families. Office of Child Care. OCC fact sheet [Internet]. Retrieved August 4, 2023. Available here.
[x] Data from USGovernmentSpending.com [Internet]. See methodology of inflation adjustment on the web page, Poverty and Spending Over the Years.