This document provides an analysis of the federal government's funding of programs which aid children and families. The foreword begins by describing the crisis which children and families face in the U.S. and proceeds to outline a course of action to help correct the problems. Chapter 1 discusses the federal budget process and the changes in the process which have been brought about by Gramm-Rudman. Chapter 2 describes the Children's Defense Fund's Legislative Agenda for the 100th Congress. Chapter 3 covers the child-and-family-related legislation which was voted on in 1986 and the voting record of each member of Congress. Chapter 4 is a summary of chapters 5 through 16. These chapters each deal with a separate issue of concern to the CDF: health, family income, homelessness and housing, food assistance, education, youth employment, preventing adolescent pregnancy and building youth self-sufficiency, abused and neglected children and others with special needs, runaway youths and others in the juvenile justice system, child care, the Head Start Program, and civil rights. Each chapter includes an outline of the issue, an analysis of the federal government's response, the Reagan Administration's proposals for fiscal year 1988, and the CDF's legislative recommendations. The appendices include data on children, poverty, and federal programs; information about Congress; a list of child-and-family-related resource organizations; and a list of the CDF staff. (BN)