The current status of and future prospects for the nation's children and their families are discussed in this progress report by the director of the Office of Child Development. Successes of the Head Start program are noted, with particular mention of the parent involvement component. Other early intervention programs are cited, many of which report favorable findings. Investigations of societal and familial factors involved in attitudes toward the family are described, and statistics are given on working mothers, divorce rates, teenage mothers, birth defects, urbanization, family mobility, unemployment and other factors. It is noted that the establishment of experimental Parent Child Development Centers (PCDC's) has demonstrated the value of parental training in the first years of life, when followed by preschool group experiences in which parent and child continue to work closely together. The Houston model PCDC program is described briefly to illustrate how educational-social intervention can improve the functioning of children and their families. Also described are the results of extensive evaluative research indicating significant benefits of PCDC programs to both parents and children. The proposed network of omnibus Neighborhood Family Development Centers is discussed, including cost calculations and bureaucratic obstacles to implementation (Author/BF)