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Welfare Bill Under-Funds Child
Care by Over $10 Billion

Rep. McDermott Reveals Findings from the Non-Partisan Congressional Budget Office Showing Huge Shortfall in Child Care Funding

WASHINGTON -Representative Jim McDermott (D-WA), today released findings from the Congressional Budget Office (CBO) that shows Republicans are over $10 billion short of providing the funding necessary under their own proposed new welfare bill. HR 240 mandates new work requirements, but the bill ignores how working mothers will provide childcare. The independent and non-partisan CBO calculates that $11.6 billion is needed over the next five years, but the Republicans are proposing $1 billion.

"The Republican plan requires mothers to be away from home, but ignores how a working mother would provide safe and secure care for her children," McDermott said.

"The Majority has shut its wallet and shut the doors on providing opportunities for women to work their way out of welfare and toward economic security. Is a mother supposed to hope and pray her children are safe? That’s what the Republican proposal calls for."

McDermott noted the proposal burdens States with a huge un-funded mandate.

"I fear this will lead to steep cuts in day care assistance for the working poor, meaning affordable child care will be out of the reach of even more families.

CBO estimates the cost of implementing the new work requirements in HR 240 to be $8.3 billion over 5 years. While CBO splits this cost between new work and new childcare expenses, States would likely have to cut welfare expenditures on childcare for the non-welfare population in order to meet the new work costs. CBO also estimates that simply maintaining the same number of child care slots as provided by all Federal funding in 2004 will cost an additional $3.3 billion over the next 5 years (to cover the cost of inflation).