Federal Investments in Children: When? Where? How much?

A series of reports released last month from the Brookings Institution and the Urban Institute examines federal spending on children, and makes a few predictions (such as the one above) on what spending trends to expect in the future. Much like the Urban Institute’s annual Kid’s Share report, these studies examine how much the federal government is spending on programs that direct funds towards children.

 

Six major federal programs direct dollars to children or families with children ages 3 to 5: Three tax programs (such as the “dependent” exemption that comes with having children), Head Start, Medicaid, and the Supplemental Nutrition Assistance Program (most commonly food stamps). About half of the federal government’s spending on this age group consisted of in-kind (or, non-cash) services, such as health benefits and education.

 

The picture is similar for elementary-age kids: Tax programs, Medicaid, and child nutrition programs comprise most federal spending. On average, the federal government spent $2,863 per elementary-age child in 2004, and $3,149 on the average 3-to-5 year old. State-level spending, however, is far greater for elementary-age kids. When state and federal spending are combined, the government spends an average of $6,702 per child ages 3 to 5, and $10,783 per child ages 6-to-11. The reports predict that, as states encounter budget shortfalls, these numbers will fluctuate greatly in the coming years.

 

Comparing federal spending on children to spending on the elderly puts these numbers in harsh perspective: In 2004, the government spent more on the elderly by a ratio of roughly 7 to 1 when measured on a per capita basis, with average spending of $21,144 per person age 65 and older. That far surpasses the average $3,149 spent on a child between the ages of 3 and 5.

 

Interested in reading more? The reports are available online, separated by age: 3 through 5, 6 through 11, and birth through 11.