Changing family dynamics over the past four decades, including rises in the numbers of working mothers and single-parent families, have created an increased need for affordable child care. Government response to this need has involved a number of stop-and-start policy approaches, which have led to a fractured child care system that makes it difficult for families to find quality, accessible, affordable care. Supporting child care for working families is important to both helping parents obtain and maintain employment and contributing to quality early childhood development, which in turn better prepares children to succeed in school. This policy analysis focuses on the child care subsidy program of the Child Care and Development Block Grant. Suggestions are made for improving the subsidy system to increase the number of eligible children served and the number of parents able to maintain employment. In addition, both affordability and quality of programs are addressed in terms of how the subsidy program can be a part of a comprehensive early childhood education system. The suggested proposal involves a three-phase approach to increase funding to serve more families who need child care, build capacity and quality of the child care market, and provide a universal system of child care. (author abstract)