In this report of a hearing on the effects on children and youth of President Reagan's proposed budget cuts of means-tested entitlement programs, Linda S. McMahon, Associate Commissioner of the Office of Family Assistance, and Robert E. Leard, Acting Administrator of the Food and Nutrition Service at the Department of Agriculture, present the President's funding requests and explain the reasoning behind the funding levels they are requesting. Areas to be funded are Aid to Families with Dependent Children; and the food stamp, school lunch, school breakfast, child care, summer food, women, infants and children, food distribution, and special dairy distribution programs. Analyses and critiques of the priorities set forth in the fiscal 1984 budget are presented by the following: Nancy Amidei, Director of the Food Research and Action Center; Dr. Leon H. Ginsberg, President of the American Public Welfare Association; Robert Greenstein, Director of the Center on Budget and Policy Priorities; and the Hon. Ted Weiss, Chairman of the Subcommittee on Intergovernmental Relations and Human Resources. The report also contains additional information submitted for the record by Amidei, Ginsberg, Leard, McMahon, the National Association of Home Builders, and Weiss. (CMG)