This hearing sought answers to two questions about child abuse in day care centers: (1) how can the Federal Government help States develop standards and procedures that will minimize the possibility of further incidents of abuse; and (2) how can prompt, coordinated, and effective action be assured when such incidents do occur? Attention is also given as to whether the transformation of the Title XX program into a block grant lessened Federal ability to ensure quality day care and whether the Reagan cuts in the Title XX budget have affected the ability of the States to provide the kind of social services that help day care providers spot all varieties of childhood troubles, including that of abuse. Other issues examined include specific proposals to prevent further incidents of abuse; the possibility of requiring criminal background checks of potential day care employees; how State licensing and contracting procedures may be used to prevent such incidents; and ways in which States can develop methods of coordinating the response of all the agencies responsible once an incident has been reported. Witnesses represented a broad range of expertise in child care, including experts in child development and witnesses familiar with the day care system as a whole. Testimony was provided, too, by State administrators responsible for the licensing and contracting of day care. Included in the text are the National Child Protection Act (H.R. 6207) and the Children's Defense Act of 1984 (H.R. 5486). (RH)