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This appendix describes the data and methodology used to estimate federal program and tax expenditures on children in "Kids' Share 2021: Report on Federal Expenditures on Children through 2020 and Future Projections" (ED616306). The following contents are included in this appendix: (1) Introduction; (2) Summary Table of Multipliers and Expenditures in 2018; (3)Income Security Programs; (4) Nutrition Programs; (5) Housing Programs; (6) Tax Programs; (7) Health Programs; (8) Social Services Programs; (9) Early Care and Education Programs; (10) Education Programs; (11) Training Programs; (12) Works Consulted; and (13) Acknowledgments.

Public spending on children represents an effort to invest in the nation's future by supporting children's healthy development and human potential. To inform policymakers, children's advocates, and the general public about how public funds are spent on children, this 15th edition of the annual "Kids' Share" report provides an updated analysis of federal expenditures on children from 1960 to 2020. This year's "Kids' Share" report also provides a view of public expenditures from the nation's initial responses to the COVID-19 pandemic. Our projections of federal expenditures on children through 2031 give a sense of how budget priorities were scheduled to unfold based on economic and legislative responses as of May 2021 but do not include legislation that might be enacted by the end of 2021. A few highlights of the chartbook: (1) Federal expenditures per child were significantly higher in 2020 than in 2019 and prior years, reflecting federal relief efforts in response to the pandemic. In 2020, the federal government spent about $7,800 per child younger than age 19. Federal expenditures are projected to surge even higher in 2021, to $10,700 per child, as the federal pandemic response continues, though under the law in place as of May 2021 they are scheduled to fall back to prepandemic levels; (2) COVID-19 relief bills enacted during the pandemic expanded assistance to children through three rounds of stimulus checks, an increase in the child tax credit (CTC), an education stabilization fund, expanded child care funding, increased nutritional assistance through the Supplemental Nutrition Assistance Program (SNAP), and increased federal funding for Medicaid. (3) Dozens of other children's programs and tax credits received smaller increases; Tax provisions and health programs remain the two largest categories of federal support for children in 2020, accounting for more than three-fifths of all federal expenditures on children. Spending on children through tax provisions is projected to spike dramatically in 2021 as a result of the stimulus checks administered through the tax code and a temporary increase in the CTC; (4) Despite increased dollar amounts spent on children in 2020, as a share of federal outlays, the $482 billion invested in children in 2020 fell to 7.4 percent of all federal outlays, down from roughly 9 percent in recent years as overall federal spending swelled in response to the pandemic. The children's share of the federal budget is projected to further decline slightly to 7.2 percent over the next decade, under laws in place as of May 2021; (5) Interest payments on the national debt are projected, under laws in place as of May 2021, to grow as a share of the budget, from 5 percent in 2020 to 12 percent by 2031, reflecting a higher national debt and projected rising interest rates; (6) As a share of the economy (GDP), federal outlays for children grew during the pandemic but by significantly less than other budget priorities. Federal spending during the pandemic grew from about 20 percent of GDP to a post-World War II high of 30 percent of GDP, with spending on children growing from around 2 percent to 2.3 percent of GDP; and (7) Over the next decade, all categories of spending on children as a share of GDP are projected to decline below prepandemic levels. Most categories also see declines or remain at similar levels in real dollars. [For the appendix, see ED616344. For the 2020 report, see ED607695.]

Public spending on children is an investment in the nation's future, as it aims to support their healthy development and human potential. To inform policymakers, children's advocates, and the general public about how public funds are spent on children, this 14th edition of the annual "Kids' Share" report provides an updated analysis of federal expenditures on children from 1960 to 2019. This year's "Kids' Share" report also provides a baseline view of public expenditures before the COVID-19 pandemic. Our projections of federal expenditures on children through 2030 give a sense of how budget priorities were scheduled to unfold under the law before the pandemic and related economic and legislative responses. View a single-page formatted version of the report with text and charts side-by-side here (https://www.urban.org/sites/default/files/2020/07/27/kids_share_2020_chartbook_spread.pdf). A few highlights of the chartbook: (1) Federal expenditures per child were slightly higher in 2019 than in recent years, after adjusting for inflation. In 2019, the federal government spent about $6,700 per child younger than 19. The increase primarily reflects some delayed effects of the temporary expansion of the child tax credit enacted in the Tax Cut and Jobs Act (TCJA) of 2017; (2) As a share of federal spending, the $408 billion invested in children in 2019 remained at roughly 9 percent of all federal outlays for the second year in a row; (3) As a share of the economy, federal investments in children represented 1.9 percent of GDP, similar to last year but lower than other years in the past decade; (4) The child tax credit was the largest source of federal support for children in 2019, surpassing Medicaid, which had been the largest program for many years. More than three-fifths of federal expenditures on children are from tax provisions or health spending; (5) The share of federal expenditures on children targeted to families with low incomes has grown over time, reaching 57 percent in 2019; (6) Under prepandemic law, children's programs are projected to receive only two cents of every dollar of the projected $1.6 trillion increase in federal spending over the next decade; (7) Under prepandemic law, children's share of the federal budget is projected to drop from 9.2 percent to 7.3 percent over the next decade, as built-in spending on Social Security, Medicare, Medicaid, and interest payments on the debt consume a growing share of the budget; (8) The federal government spends nearly as much on interest payments on the debt as on children; and (9) Over the next decade, all categories of spending on children except health are projected to decline relative to GDP. Most categories also see declines or remain at similar levels in real dollars. [For the 2019 report, see ED607694.]

Public spending on children aims to support their healthy development and help them fulfill their human potential. As such, federal spending on children is an investment in the nation's future. To inform policymakers, children's advocates, and the general public about how public funds are spent on children, this 13th edition of the annual "Kids' Share" report provides an updated analysis of federal expenditures on children from 1960 to 2018. It also projects federal expenditures on children through 2029 to give a sense of how budget priorities may unfold absent changes to current law. A few highlights of the chartbook: (1) In 2018, the federal government spent about $6,200 per child younger than 19, less than in 2017 after adjusting for inflation. This decline is driven by a reduction in federal spending on education and nutrition programs and a temporary reduction in child-related tax credits; (2) As a share of the economy, federal investments in children fell to 1.9 percent of GDP in 2018, the lowest level in a decade; (3) Medicaid is the largest source of federal support for children, followed by the child tax credit and the earned income tax credit. More than three-fifths of federal expenditures on children are from health or tax provisions; (4) The share of federal expenditures for children targeted to low-income families has grown over time, reaching 61 percent in 2018; (5) Looking forward, children's programs are projected to receive only 3 cents of every dollar of the projected $1.5 trillion increase in federal spending over the next decade; (6) Assuming no changes to current law, the children's share of the budget is projected to drop from 9.2 percent to 7.5 percent over the next decade, as spending on Social Security, Medicare, Medicaid, and interest payments on the debt consume a growing share of the budget; (7) By 2020, the federal government is projected to spend more on interest payments on the debt than on children; and (8) Over the next decade, all categories of spending on children except health are projected to decline relative to GDP. Most categories also see declines or remain at similar levels in real dollars. [For the 2018 report, see ED607636.]

Public spending on children aims to support their healthy development, helping them fulfill their human potential. As such, federal spending on children is an investment in the nation's future. To inform policymakers, children's advocates, and the general public about how public funds are spent on children, this 12th edition of the annual "Kids' Share" report provides an updated analysis of federal expenditures on children from 1960 to 2017. It also projects federal expenditures on children through 2028 to give a sense of how budget priorities may unfold absent changes to current law. A few highlights of the chartbook: (1) In 2017, 9 percent of the federal budget (or $375 billion of $3.9 trillion) was spent on children younger than 19; (2) An additional $106 billion in tax reductions was targeted to families with children. Combining budget outlays and tax reductions, federal expenditures on children totaled $481 billion; (3) More than three-fifths of expenditures on children are from tax provisions or health programs. Medicaid is the largest source of federal support for children, followed by the earned income tax credit and the child tax credit; (4) The share of federal expenditures for children that is targeted to low-income families has grown over time, reaching 61 percent in 2017; (5) Looking forward, children's programs are projected to receive just one cent of every dollar of the projected $1.6 trillion increase in federal spending over the next decade; (6) Under current law, the children's share of the budget is projected to drop from 9.4 percent to 6.9 percent over the next decade, as spending on Social Security, Medicare, Medicaid, and interest payments on the debt consume a growing share of the budget; (7) By 2020, the federal government is projected to spend more on interest payments on the debt than on children; and (8) Over the next decade, every major category of spending on children (health, education, income security, and so on) is projected to decline relative to GDP. [The Peter G. Peterson Foundation helped sponsor this research. For the 2017 report, see ED607635.]

Public spending on children by federal, state, and local governments is an investment in the nation's future because it supports children's healthy development, helping them fulfill their potential. To help interested stakeholders assess the government's investment in children, this 11th edition of the annual "Kids' Share" report provides an updated analysis of federal expenditures on children from 1960 through 2016. It also projects federal expenditures on children through 2027 to give a sense of how budget priorities may unfold absent changes to current law. Highlights include the following: (1) In 2016, 10 percent of the federal budget (or $377 billion of $3.9 trillion in outlays) was spent on children; (2) An additional $108 billion in tax reductions was targeted to families with children. Combining outlays and tax reductions, federal expenditures on children totaled $486 billion; (3) Half of all federal expenditures on children comes from four spending and tax programs: Medicaid, the earned income tax credit, the child tax credit, and the dependent exemption; (4) The share of federal expenditures for children targeted to low-income families has increased over time, reaching 65 percent in 2016; (5) Children's programs are projected to receive just one cent of every dollar of the projected $1.5 trillion increase in federal spending over the next decade; (6) Under current law, the children's share of the budget is projected to drop from 9.8 to 7.5 percent over the next decade, as spending on Social Security, Medicare, Medicaid, and interest payments on the debt consumes a growing share of the budget; (7) By 2020, the federal government will spend more on interest payments on the debt than on children; and (8) Over the next decade, every major category of spending on children (e.g., health, education, and income security) is projected to decline relative to GDP. Increased understanding of how childhood circumstances affect lifelong outcomes has led to more public support for investment in children. Even so, spending on children is not always prioritized relative to other categories of the federal budget, which is why the "Kids' Share" report tracks government spending on children each year. This annual accounting of spending on children is important as Congress considers legislation introducing or amending individual children's programs or tax provisions, sets funding levels in annual appropriation bills, and debates broad tax and budgetary reform packages that may shift the level and composition of public resources invested in children. [The Peter G. Peterson Foundation helped sponsor this research. For the 2016 report, see ED607634.]

"Kids' Share 2016: Federal Expenditures on Children through 2015," a 10th annual report, looks comprehensively at federal spending and tax expenditures on children. Federal spending on children has remained fairly flat over the past four years, in real dollars. Broader budgetary forces will restrict spending on children over the next 10 years, despite an overall projected growth of over $1.5 trillion in federal spending. Over the next decade, outlays on children are projected to decline from 10 to 8 percent of the federal budget.

"Kids' Share 2015: Report on Federal Expenditures on Children in 2014 and Future Projections," an ninth annual report, looks comprehensively at federal spending and tax expenditures on children. Federal spending on children has remained fairly flat, in real dollars, over the past three years. Broader budgetary forces will continue to restrict spending on children over the next ten years, despite an overall projected growth of over $1.4 trillion in federal spending. Over the next decade, outlays on children are projected to decline from 10 to less than 8 percent of the federal budget. [For the 2014 report, see ED607691.]

"Kids Share 2014: Report on Federal Expenditures on Children through 2013," an eighth annual report, looks comprehensively at federal spending and tax expenditures on children. Total federal expenditures on children were up from 2012, but below spending in 2010. Broader budgetary forces will continue to restrict spending on children over the next ten years, despite an overall projected growth of over $1.4 trillion in federal spending. Over the next decade, outlays on children are projected to decline from 10 to 8 percent of the federal budget. [For the 2013 report, see ED607690.]

"Kids' Share 2013: Federal Expenditures on Children in 2012 and Future Projections," a seventh annual report, looks comprehensively at federal spending and taxes on children. Federal outlays on children fell by 7 percent between 2011 and 2012, which is the greatest single-year drop since the early 1980s. While most of this decline is explained by the exhaustion of recession-related funds provided by ARRA [American Recovery and Reinvestment Act], broader budgetary forces will continue to restrict spending on children over the next ten years. Over the next decade, outlays on children are projected to decline from 10 percent to 8 percent of the federal budget. [For the 2012 report, see ED607688.]

"Kids' Share 2012: Report on Federal Expenditures on Children through 2011," a sixth annual report, looks comprehensively at trends over the past 50 years in federal spending and tax expenditures on children. Key findings suggest that the size and composition of expenditures on children have changed considerably, but children have not been a budget priority. In 2011, federal outlays on children fell for the first time since the early 1980s, dropping from $378 billion in 2010 to $376 billion. Over the next decade, outlays on children are projected to decline from 10 to 8 percent of the federal budget. [For the 2011 report, see ED607686.]

"Kids' Share 2011: Report on Federal Expenditures on Children through 2010," a fifth annual report, looks comprehensively at trends over the past 50 years in federal spending and tax expenditures on children. Key findings suggest that the size and composition of expenditures on children have changed considerably, but children have not been a budget priority. Federal expenditures on children in 2010, were 11 percent of the federal budget, slightly higher than in 2009. This increase is temporary, however, with the children's share of the budget expected to shrink to less than 8 percent by the end of the next decade. [For the 2010 report, see ED510966.]

How government spends money, and who benefits, reveals the priorities. How, then, do children fare in the competition for public resources? While families have long been the primary caregivers of children, all levels of government--local, state, and federal--invest in the growth and development of children, whether through education, family supports, or health and nutrition benefits. Knowing how that money is spent, and whether it is being put to good use, is crucial for creating effective public policy. To track government's investment in children, the Urban Institute and the Brookings Institution have documented historical, current, and projected levels of federal expenditures across more than 100 programs serving children. More recently, they have looked in-depth to highlight federal investment by age group. Analyses by age allow them to evaluate spending in light of what we know about child development and about policy priorities. They also reveal which federal programs and categories dominate spending for each age group. Federal officials and the interested public may not know which programs spend more or less on different groups of children. As part of these reports, they also integrate estimates of state and local spending from a report by researchers at the Rockefeller Institute. This brief provides an overarching view of investments in children and illuminates critical decision points and questions for policymakers. In this brief, the authors look at public investments "across" age groups, from birth through the elementary years and present the key findings. (Contains 3 figures and 1 table.) [Funding for this work was provided by the Strategic Knowledge Fund and the W.K. Kellogg Foundation. For "Federal Expenditures on Elementary-Age Children in 2008 (Ages 6 through 11)", see ED509356. For "Federal Expenditures on Pre-Kindergartners and Kindergartners in 2008 (Ages 3 through 5)", see ED509355.]

This report provides a first-time analysis of the nation's current investments in elementary-age children, defined as children ages 6 through 11. The authors consider over 100 federal programs through which the federal government allocates money to children, and subsequently estimate the amount spent on six- to eleven-year-old children. This report provides helpful information about what federal programs from which federal agencies make up total investments in elementary-age children. This can stimulate conversations about how the agencies relate to each other and how programs that may not primarily relate to this age group could best complement others and support public objectives. (Contains 3 tables, 9 figures, 2 boxes, and 10 notes.) [Funding for this work was provided by the Strategic Knowledge Fund and the W.K. Kellogg Foundation. For "Federal Expenditures on Pre-Kindergartners and Kindergartners in 2008 (Ages 3 through 5)", see ED509355. For "Public Investment in Children's Early and Elementary Years (Birth to Age 11)," see ED509354.]

How government spends money, and who benefits, reveals our priorities. How, then, do children fare in the competition for public resources? This report looks at public investments across age groups, from birth through the elementary years. Key findings show that spending more than doubles per capita between the infant and toddler years and the elementary years. The increase is driven by growing state and local spending; the federal contribution is relatively stable across age groups. Findings also reveal that states and localities spend more money than the federal government does on children, except when it comes to the youngest children. (Contains 3 tables, 9 figures and 17 notes.) [This work was supported by the Strategic Knowledge Fund and co-funded by the W.K. Kellogg Foundation. For "Federal Expenditures on Elementary-Age Children in 2008 (Ages 6 through 11)" see, ED509356.]

Research suggests that investing in young children can help build a strong future workforce, improve children's educational success and health, and potentially reduce some of the social ills that drain the nation's resources and will. To have an informed conversation about future investments, it is important to start from an understanding of the baseline: What investments does this nation currently make in young children? Which programs and purposes are currently supported by federal investments, and which are not? This report provides such a baseline understanding and informs a national conversation about how best to invest the country's resources by examining federal expenditures on infants and toddlers, defined as children under age 3. The report looks at more than 100 programs through which the federal government spends money on children and calculates the amount spent on this population. These baseline estimates provide a place to start in gauging the priority the nation places on investing in very young children and in comparing the expenditure patterns to researchers' findings about investments that work. Furthermore, this report provides valuable information to a new presidential administration and Congress that will make critical budgetary decisions in troubled economic times. Given the developmental importance of children's early years, the interest in investing in young children (especially the most vulnerable), and the potential for return on this investment, the well-being of young children may figure more prominently in these future decisions. To inform these discussions, this report estimates federal expenditures on infants and toddlers and differentiates the key sources and types of funding that support them. In doing so, it brings into clearer focus the choices the nation faces in deciding how much to invest in its youngest citizens and how to make that investment. Data appendix with footnotes and references is included. (Contains 2 tables, 5 figures and 10 notes.) [This research was sponsored by the Irving Harris Foundation and The Buffett Early Childhood Fund.]

This report discusses the possibility of expanding the resource and finance data to be collected as part of the 1999-2000 Schools and Staffing Survey (SASS) of the National Center for Education Statistics (NCES). The proposal under consideration, which is being field tested in the fall of 1998 and winter of 1999, has two major components. The first is to collect more detailed information about staffing resources in the schools included in the SASS sample. This information would improve understanding of how schools allocate personnel resources, which account for more than 85% of expenditures at most school sites. A review of the options suggests that the data needed to conduct Resource Cost Model analyses of U.S. schools can be collected through the SASS without much increase in the burden on respondents. The second component is to gather expenditure data for individual schools in the SASS sample to permit analysis of expenditures at the school level. The analysis shows that it is possible to collect information by NCES function and object categories and to collect school-level data across a diverse array of districts. A drawback is that an instrument of the complexity needed to meet these two purposes is difficult and time consuming for the respondent. The final section of the paper discusses linking the staffing and expenditure data. Appendixes contain information about the development of the surveys and copies of the public school and private school surveys. (Contains 19 exhibits.) (SLD)

Data are not available to inform education policy discussion regarding how resources are allocated both within and among schools. This study was conducted to develop and pilot test a questionnaire that would collect school-level expenditure data. This report describes the three site visits and focus group conducted for this project, findings from pilot tests of two versions of questionnaires (one in seven districts and one in eight school districts), and the revised instrument, the "Public School Expenditure Survey." Both pilot instruments were developed as mailed questionnaires linked to the Schools and Staffing Survey. Collecting data by the functional categories defined by the National Center for Education Statistics was the challenge that was most clearly met by the developed instrument. The instrument also shows that it is possible to collect school-level data, but the drawback is that the instrument must be fairly complex and thus creates a burden for the respondent. One appendix contains the instrument, and the other explains common errors that cause data inconsistency. (SLD)

Data on private school finance are not available to inform educational policy discussions about private education. Because of interest in private school finances, the National Center for Education Statistics (NCES) contracted with the Pelavin Research Center of the American Institutes for Research to explore the feasibility of collecting data through a new instrument developed with the assistance of private school administrators and association representatives. Development efforts began with focus group interviews with 28 private school administrators regarding budgets and accounting practices. Three preliminary versions were developed, one of which was preferred by private school association members at a meeting convened by the NCES. After refinement by a technical work group, the developed questionnaire was sent to eight schools for an initial pilot test and nine more for a second test. Fourteen schools responded, and specific suggestions by their administrators resulted in modifications to the survey, which has been designed to be part of the NCES Schools and Staffing Survey. The current survey asks for information about school finances, including information about noncash contributions, and takes about 1.5 hours to complete. This report includes sections on the background of survey development, major findings of the pilot tests, and a description of the survey instrument. The final survey product is attached as an appendix. (Contains four exhibits.) (SLD)

Relatively little is known about private school finance in the United States. Since this lack of data impoverishes educational policy discussions that compare public and private schools, a strategy, was developed to collect finance data from private schools. High-quality data can be used to determine the total amount spent on elementary and secondary education in the United States, and can inform debates on the relative cost per student of various approaches to educational service delivery. The report focuses on the extreme diversity among private schools and the strategies needed to develop accurate data in the face of such diversity. The text looks at the existing data on private school finances, major components of expenditures, and implications of data collection. It surveys the types of expenditures found in 28 private schools, taking care to articulate expenditures related to instruction-related activities, administration, physical plant, and other services. The report also describes some administrators' reactions to the finance survey, including initial resistance by some and a listing of the potential benefits of such a survey. Some of the implications of the data collected, including a proposed framework for organizing the survey statistics, are presented. Four appendixes include: three survey instruments and a table showing schools in focus groups and site visits. (RJM)

Poor children in the United States start school at a disadvantage in terms of their early skills, behaviors, and health. Fewer than half (48 percent) of poor children are ready for school at age five, compared to 75 percent of children from families with moderate and high income, a 27 percentage point gap. This paper examines the reasons why poor children are less ready for school and evaluates three interventions for improving their school readiness. Poverty is one of several risk factors facing poor children. Mothers living in poverty are often unmarried and poorly educated, they have higher rates of depression and poor health than more affluent mothers, and they demonstrate lower parenting skills in certain dimensions. In fact, the gap in school readiness shrinks from 27 percentage points to 7 percentage points after adjusting for demographic, health, and behavioral differences between poor and moderate- and higher-income families. Even so, poverty remains an important influence on school readiness, partly through its influence on many of the observed differences between poor and more affluent families. Higher levels of depression and a more punitive parenting style, for example, may result from economic stress and so models controlling for these factors may understate the full effects of poverty on school readiness. In addition to poverty, key influences on school readiness include preschool attendance, parenting behaviors, parents' education, maternal depression, prenatal exposure to tobacco, and low birth weight. For example, the likelihood of being school ready is 9 percentage points higher for children attending preschool, controlling for other family characteristics, and is 10 percentage points lower for children whose mothers smoke during pregnancy and also 10 percentage points lower for children whose mothers score low in supportiveness during parent-child interactions. These findings suggest a diverse set of policy interventions that might improve children's school readiness, ranging from smoking cessation programs for pregnant women to parenting programs, treatments for maternal depression, income support programs and expansion of preschool programs. Preschool programs offer the most promise for increasing children's school readiness, according to a simple simulation that models the effects of three different interventions. Expanding preschool programs for four-year olds has more direct effects on school readiness at age five than either smoking cessation programs during pregnancy or nurse home visiting programs to pregnant women and infants, the two other alternatives considered. Appended are: (1) Measurement of School Readiness; (2) Independent Variables; and (3) Regression Results. (Contains 2 tables, 7 figures and 9 footnotes.)

Children throughout the United States continue to be negatively impacted by the lingering effects of the Great Recession, with children in some states more hard hit than others. The impact of the recession on children can be hard to see. Some economic statistics ignore children, while others come out with a long time delay. This updated issue brief tracks the economic well-being of children during the recession with three state-by-state indicators: children with an unemployed parent, individuals receiving nutrition assistance benefits, and child poverty. (Contains 3 figures, 4 tables, 1 map and 18 endnotes.)

This study uses data from the Early Childhood Longitudinal Study-Birth (ECLS-B) Cohort to estimate associations between two important indicators of family socioeconomic status--family income and maternal education--and children's school readiness measured by academic skills, behavior, and physical health at school entry. We find large gaps in our measures of school readiness across groups of children defined by family income and maternal education. Such differences are much smaller, however, when potential confounds are included as controls in regressions. In multivariate models, we find significant, but modest, links between household income and measures of children's achievement and behavior, but not health. Specifically, our estimates imply that an additional $1,000 of average income throughout early childhood would result in about a 0.015 standard deviation in reading and math scores for children in low-income families, with smaller effects in children's behaviors. With respect to maternal education, we find higher levels of education predict higher achievement and physical health, but not behavior. Our estimates imply that an additional year of school would increase math and reading scores by 0.06 to 0.09 standard deviations. The paper concludes with a discussion of the challenge of developing effective policies to increase family income and maternal education. Appended are: (1) School Readiness by Selected Non-SES Characteristics; (2) Regressions of School Readiness on Income: Full Results for Panel B of Table 3; (3) Regressions of School Readiness on Maternal Education: Full Results for Table 4, Panel C; and (4) Regression Results for Comprehensive Model that Includes Covariates that Are Themselves Predicted by Income or Education. (Contains 8 tables, 9 figures and 21 notes.)

While the American Dream remains a unifying cultural tenet for an increasingly diverse society, it may be showing signs of wear. Growing income inequality and slower growth suggest that now is an important moment to review the facts about opportunity and mobility in America and to attempt to answer the basic question: Is the American Dream alive and well? This report summarizes research and provides new evidence on both the extent of intergenerational mobility in the United States and the factors that influence it. In sum, the research reviewed herein leads us to the view that the glass is half empty and half full. The American Dream is alive if somewhat frayed. Chapter I of this report provides new data on how today's families are faring relative to their parents. Most of the historical analysis, detailed in Chapter II, reveals that there has been no strong trend in relative mobility since about 1970, although a few studies suggest that relative mobility may have declined. The international comparisons analyzed in Chapter III reveal that there is less relative mobility in the United States than in many other rich countries. Chapter IV, which reviews the current data on wealth and its effects on intergenerational mobility, concludes that parent-child wealth correlations are similar to parent-child income correlations but that each generation does have a reasonable shot at accumulating assets. Finally, chapters V, VI, and VII look beyond the story for all families to examine how mobility may have varied for men and women, for blacks and whites, and for immigrants and native-born Americans. Appended are: (1) The PSID Sample and Family Income; (2) Non-Cash Contributions to Family Economic Well-Being; (3) Four-Part Typology of Economic Mobility of Sons and Daughters; (4) Four-Part Typology: Economic Mobility of White and Black Families; and (5) Research Literature on Black-White Differences in Intergenerational Income Mobility. (Each chapter contains tables, figures, notes, and resources.)

This report provides the key findings on the public spending on children through 2008. They are: (1) Spending on children increased under the American Recovery and Reinvestment Act (ARRA) and other stimulus spending, but not proportionately to other federal spending. As ARRA expires, we project that spending on children will decline, assuming no change in current policies; (2) Total public investment (federal, state, and local) grows substantially as children get older; (3) States and localities spent more money than the federal government did on children in 2004, except when it came to the youngest children; and (4) Key developmental needs, such as education and health care, are addressed to some extent by the federal government for each age group. (Contains 2 figures and 1 table.) [Additional funding for this research was provided by the Strategic Knowledge Fund, co-funded by the Foundation for Child Development and the W.K. Kellogg Foundation.)