The purpose of this analysis is to provide decision makers with a careful comparison of alternate regulatory approaches and requirements for federal day care programs. The proposed day care regulations and this analysis cover about one-fifth of federal funding for day care and an even smaller segment of the total day care market. Proposed regulations will apply to day care subsidized under various titles of the Social Security Act -- Title XX, Title IV-B, and Title IV-A (WIN) -- and under several Titles of the Elementary and Secondary Education Act. Privately funded day care is not covered unless 10% or more of the children enrolled are subsidized by one of the covered programs. Direct government (federal, state, and local) spending for the programs covered by the proposed regulations is estimated at about 500-600 million dollars per year. The average number of children served in centers covered by the proposed regulations was estimated by the National Day Care Study to be 400,000. In-home care is not directly affected by these regulations, and this analysis does not cover that portion of the day care market. A major portion of the analysis reports costs and benefits of alternative provider requirements. Implications for state agency and federal enforcement are discussed. Other issues and considerations are explored. The final section of the analysis briefly indicates the methodology employed. (RH)