This hearing was held to discuss issues related to the reauthorization of Project Head Start and the dependent care programs. Witnesses expressed the current administration's support for a 3-year reauthorization of Head Start, discussed the impact of the Gramm-Rudman-Hollings legislation, and described the Department of Health and Human Services' plans to increase the number of enrolled children. Program directors explained programs and services they offered, and discussed day-to-day issues such as increasing costs and problems in recruiting and retaining staff. They also discussed some positive aspects such as the cost-effectiveness of Head Start and the strength of parent involvement. A Head Start parent described the gains her child had made and her own classroom involvement. Other witnesses offered an overview of Head Start in Iowa and expressed the support of the National Head Start Association for a 5-year reauthorization with a $200 million increase in each year. The concluding panel addressed issues in the reauthorization of the dependent care program. Testimony indicated a critical need for child care services of all kinds, especially for low income working parents. Witnesses described school-based latchkey programs as cost-effective and in need of federal funds, and emphasized the importance of the Social Services Block Grant. (RH)