A webinar on January 14 was hosted by Olivia Golden, child welfare policy maker and fellow at the Institute, to discuss the extent of public expenditures spent on children.  In 2008, of the over $2,983 billion in federal outlays, approximately $295 billion (or 9.9 percent) was spent on children.  Even though the American Reinvestment and Recovery Act (AARA) included substantial increases for children, the increases in other portions of the federal budget will reduce the percent of spending on children to  8.2 percent of the national budget.    The speakers for the webinar predict that as ARRA expires, spending on Social Security, Medicare and Medicaid is expected to increase and the interest on the debt rises, researchers predict that spending on children will significantly decrease if current policies are unchanged.  The discussion also presented information that state and local governments provide 68 percent of the public spending on children, with the federal government accounting for the remaining 32 percent. Across age groups of children, birth to 18 the spending varies greatly between federal and state and local governments. 

The largest federal programs for children in 2008 were:  Medicaid, Child Tax Credit, Earned Income Tax Credit, Supplemental Nutrition Program of Women, Infants and Children (WIC), Supplemental Nutrition Assistance Program (Food Stamps) and the IDEA (Individuals with Disabilities Education Act).  It is interesting to note that key development needs for children such as education and health are addressed through federal spending to some degree based on the age of the child.    Across all age groups, the largest federal investment is in tax credits and other tax expenditures.  More than three quarters (or 77 percent) of the spending for infants and toddlers comes from the federal government.  For pre-kindergartners and kindergartener, the federal government and the state and local governments each contribute about half, 47 and 53 percent respectively. By the time children are elementary age, state and local governments provide the vast majority of the investment (73 percent), relative to the much smaller portion provided by the federal government (27 percent).  Across all age group, the key funding players of federal programs are Medicaid, food and nutrition programs and Temporary Assistance to Needy Families (TANF).