Sweeping changes in the economy, the makeup of the labor force, and family structure have altered both the family and the workplace, and have changed the way society must respond to family needs. The supply of child care is inadequate to meet families' child care needs, and many parents cannot afford to pay the full fees for child care. Public officials and corporate leaders have begun to look for ways to expand and improve child care in order to improve the quality of life in their communities and to serve the needs of their employees. Barriers to financing child care include: (1) inability of providers to secure long-term financing; (2) inflexible underwriting standards; and (3) banks' aversion to making small loans. Options for public funding of child care include state-, local-, and community-based initiatives that involve grants and loans, bonds, and employer tax credits; and initiatives, such as linkage ordinances and zoning bonuses, that target real estate developers. Options for private sector funding of child care include initiatives that involve bank loans, community development corporations, investment funds, pension fund investments, and employer funds and partnerships. Programs that exemplify the public and private initiatives are described. Appendices list major federal programs that impact child care and provide additional information on alternative financing mechanisms. A list of 18 references is provided. (SM)