The culmination of a year-long bipartisan national initiative on child care policy, this committee report makes specific policy recommendations for the federal government based on hearings held in 3 cities and receiving the testimony of 160 witnesses from 22 states. An introduction summarizes demographic trends and present policies regarding child care, and gives examples of child care initiatives. Recommendations for Congress include revising current income tax credits and exemptions; improving current training and licensing requirements for child care providers; improving leave and personnel policies of private employers; restoring funds to child care services; developing incentives for private employers to expand child care options; and encouraging the use of public schools for preschool and school-age day care. The major part of the report details the committee's findings. Part one describes the need for child care for infants, preschool children, school-age children, and children with special needs. Part two describes the current child care effort of the private sector and of local, state, and federal governments. Part three considers important issues in protecting children in out-of-home care, such as caregiver training and certification, disease prevention, child abuse, and parental involvement. Part four includes six appendices giving statistics on child care and listing organizations that helped the committee, 1983-84 hearings and facility site visits, hearing witnesses, and references. Additional views of some committee members are also included. (CB)