This paper examines existing federal and state standards for the group care of infants and toddlers and offers suggestions for realistic and constructive child care policy for children and families in the 1980's. Particularly emphasized are the effects of day care environments on the psychological development of infants and toddlers and the differences between licensed and unlicensed child care facilities. Initially, a review of research which supports the necessity of day care standards is presented. Next, the current day care regulations at the federal and state levels are compared and data tabulated for individual state listings for staff and child ratio, group size, staff training, program content of child care centers, entry age, staff qualifications, and other factors). An analysis of existing regulations is provided which reveals deficiencies in the existing state day care regulations in mandating a safe and healthy day care environment for infants and toddlers. Finally, child care policy implications are discussed, including the need for enactment of Federal standards for day care, a national conference on day care, a government funded cost analysis of quality day care for the consumer, a national day care clearinghouse, the need for paid infant care leave, and parent education in selecting day care programs. (DST)