Number: RL30081 Title: CHILD CARE SUBSIDIES: FEDERAL GRANTS AND TAX BENEFITS FOR WORKING FAMILIES Authors: Thomas Gabe, Bob Lyke, and Karen Spar, Domestic Social Policy Division Abstract: To help working parents with child care expenses, Congress has authorized both federal grants and tax provisions. Grants are provided through a consolidated Child Care and Development Fund (CCDF), and the tax provisions are the child and dependent care tax credit (DCTC) and the dependent care assistance program (DCAP). The latter allows families to exclude from their gross income employer assistance for child care. This report describes these federal provisions, including their histories and policy justifications, and examines the subsidies that families might receive under the combination of the CCDF and DCTC (the more common tax benefit). The report concludes by identifying potential issues for further analysis. Pages: 49 Date: Updated March 15, 1999