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A markup of the Fiscal Year 2001 Treasury, Postal and General Government spending bill scheduled for Tuesday will include an extension of the federal child care subsidy for lower-income government employees, according to a spokeswoman for Jim Kolbe, R-Ariz., chairman of the House Appropriations Subcommittee on Treasury, Postal Service and General Government.

The news comes as several agencies struggle to enroll participants in their programs. The child care legislation was included in last year's budget as a one-year pilot program. It permits agencies to use appropriated funds to help lower-income employees cover the costs of child care in licensed child care centers.

Agencies in the early stages of implementation have cited timing as a major detriment to the effort. Although the bill was passed in September 1999, regulations to implement the proposal were not finalized until March of this year, leaving open the possibility that employees would find their benefits discontinued within six months of signing up if advocates failed to ensure renewal of the subsidy.

Some agencies, particularly the General Services Administration, began the planning process upon passage of the bill last year, so they were able to enroll employees immediately after the approval of final regulations by the Office of Personnel Management. However, even these early birds have had difficulty translating the law into reality.

"Our administrator was very supportive, and everything has gone well," said Bonnie Storm, child care policy advisor at GSA, where only 41 of 500 eligible employees have chosen to participate. "But people are reluctant to sign up, because it's still only a six-month provision at this point. We would like to see it go for a much longer period."

At GSA, families must meet a total income threshold to qualify for child care support. For families with one child, the threshold is $35,000. The rate goes up in $3,000 increments for each additional child.

Other agencies offering subsidies under the pilot include the Labor Department, the Substance Abuse and Mental Health Services Administration at the Department of Health and Human Services, and OPM, all of which employ sliding scales similar to GSA's. The Defense Department has had authority to subsidize child care since 1989.

For more information on the legislation, see OPM's online guide: Implementing Child Care Legislation.