This paper examines trends in federal spending on children, assessing changes in spending between 1960-97 and classifying federal programs within eight budget categories: tax credits and exemptions (including the Earned Income Tax Credit and dependent exemption); income security (including Aid to Families with Dependent Children); nutrition (including Food Stamps); health (including Medicaid); education; housing; social services; and training. Federal spending on children grew 246 percent, from $48.6 billion to $168.5 billion, while the number of children grew just 9.7 percent. In terms of gross domestic product, this growth in spending is just 11 percent. Federal spending on poor children increased 23-fold. Until recently, programs that put money into parents' pockets lost ground to targeted, in-kind spending. The dependent exemption declined from 65 percent of all federal spending on children to 16 percent. Three new programs account for half of the increase in total spending on children (Earned Income Credit, Medicaid, and Food Stamps). Nutrition and health programs rank third and fourth among categories of spending on children. Federal education funds shifted from targeting children of military or government personnel toward targeting disadvantaged children. Spending on children increasingly shifted from broad-based middle class relief to programs designed for the poor. (SM)