The passing of H.R. 1473 on April 8, 2011 cut more than $38.5 billion from grants and funding compared to the FY 2010.  The measure included a 0.2 percent across-the-board reduction to non-defense discretionary accounts, although some programs were reduced by a higher percentage or eliminated in total. Head Start and Child Care and Development Block Grant each gained 4.5 percent over the FY 2010 levels, a surprise to many advocates.

The major mandatory grant programs that support state and local government operations were reduced by 0.5 percent overall. Child Support Enforcement Administrative Costs realized an 11.9 percent increase, which includes administrative costs, incentive payments, and access and visitation grants.  Title IV-E Adoption Assistance increased by 1.7 percent or $42 million over FY 2010 appropriations.  However, Title IV-E Foster Care saw a reduction in the appropriation by 11.4 percent, presumably due to the national decline of children in the foster care system.  Other programs that were reduced included Supplemental Nutrition Assistance Program (SNAP), by 5.8 percent or $200 million, and Temporary Assistance for Needy Families (TANF), by 0.6 percent or $107 million.  Mandatory programs that are funded at the same level as in FY 2010, with no reductions include: Social Services Block Grant, Child Care Entitlements to States, Independent Living and Promoting Safe and Stable Families.

The impact of these reductions may require amending contracts or reducing services, even though in some states, the blow will be very small.  The effect of these reductions are complicated in many states with ongoing budget shortfalls this year and projected for FY 2012.  Many state legislatures are grappling with current year budget woes; reductions now identified in discretionary and mandatory grants through H.R. 1473 will significantly impair these states’ ability to maintain staff and provide critical services.