This report is the result of a 2-year study of existing day care and summer feeding programs sponsored by the USDA undertaken to provide background information, define the current status, determine restraints and make recommendations for improvement in such programs. A history of the creation of the Special Food Service Program for Children (SFSPC) and a description of the program's legislative and administrative framework are presented. Statistical evidence shows that despite greater resources the SFSPC is still not serving the large numbers of hungry preschool children that it could be feeding as part of the year-round day care component. Federal restraints which discourage participation and prevent appropriate implementation of both the year-round and summer feeding programs are delineated. On the basis of these findings, 21 recommendations are made which are designed to provide a blueprint for remedial action in the areas of fiscal responsibility, program eligibility, and participation conditions. (ED)