This paper presents an analysis of early factors influencing children's growth and development and makes recommendations for federal action to insure that all children are provided with the same basic opportunity to develop to their potential. The analysis of the situation includes discussions on: (1) the importance of circumstances during early development; (2) development-fostering experience and the nature and consequences of slum rearing; (3) the new importance of competence in our society, (4) increased urbanization, (5) existing efforts to supply children with the appropriate environment, and (6) specific problems with suggestions for action and investigation. Recommendations discussed include establishing: (1) a federal office for children; (2) the priority of young children's needs in community and state governments; (3) neighborhood programs; (4) a program to pick up where Head Start leaves off; (5) federal matching of state funds for child welfare; (6) programs to train professional and subprofessional personnel to work with young children; and (7) increased federal support for research concerned with child development. (SB)