Nine percent of young U.S. children live in deep poverty, with state rates ranging from 17 percent in Mississippi to 4 percent in Utah. The families of these children have incomes below 50 percent of the federal poverty line, or less than $10,289 for a family of one parent and two children. Understanding more about the early health and development of young children in deep poverty and related risk factors can inform policies tailored to this group of vulnerable families. The National Academy of Sciences report, "Roadmap to Reducing Child Poverty" (see ED604930) examines two policy packages that meet the goal of reducing both poverty and deep poverty by 50 percent. These packages include an increased minimum wage, a child allowance, and housing assistance. Based on an earlier examination of young children and families in deep poverty (see ED578993), the National Center for Children in Poverty (NCCP) has recommended a mix of policies to increase family income and ensure immediate and longer-term supports for children's healthy development in the family and in early care and education settings. This report presents new analyses with more recent data that highlight the needs of young children and families in deep poverty, along with updated recommendations. Key sections of the report are: (1) A description of methods; (2) Findings that show: (a) Differences in health and development indicators across income groups; (b) Differences in family and community factors across income groups; (c) Racial/ethnic disparities in young children's experience of deep poverty; (3) Summary; and (4) Recommendations.