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Although research clearly demonstrates that investments in high quality early childhood services pay off for children, a report by the National Women's Law Center (NWLC) shows that states continue to woefully under-fund programs that help low-income families pay for child care.  The report observes that the problem is likely to get worse because new welfare to work requirements imposed by Congress early in 2006 increase the need for child care assistance.  NWLC's 50-state analysis, "State Child Care Assistance Policies 2006:  Gaps Remain, With New Challenges," compares child care assistance policies in 2006, 2005, and 2001 in four policy areas:  reimbursement rates for providers, income eligibility, waiting lists, and co-payment requirements.

The report found that states are particularly remiss in compensating providers that serve low-income children.  The number of states that adequately reimburse providers dropped from 22 in 2001 to 13 in 2005 and only 9 in 2006.  For example, Missouri's reimbursement rate in St. Louis for center care for four year olds is only $331 per month, although the federally recommended rate is $660 per month.  Center-based providers in Texas are reimbursed $520 per month for infant care, which is far below the federally recommended rate of $851 per month.

To view the report, visit: www.nwlc.org

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