The introduction to this analysis of the federal budget and investment in children in 1988 argues that American children are not physically, educationally, economically, or spiritually safe. The introduction also describes characteristics of the children; specifies a five-point policy agenda for 1988 that emphasizes preventive measures; and discusses 10 steps advocates can take in implementing the new agenda. Subsequent sections provide a description of the legislative agenda of the Children's Defense Fund (CDF) for the 100th Congress, the CDF's nonpartisan voting record of 1987, and an executive summary. Other sections focus on health, family income, homelessness and housing, food assistance, education, youth employment, prevention of adolescent pregnancy and development of youths' self-sufficiency, child care, Head Start, abused and neglected children and others with special needs, runaway youths and others in the juvenile justice system, and civil rights. In each major section, substantive discussion depicts the scope, causes, and effects of the problem; describes positive and negative aspects of current Federal programs; critiques the Reagan administration's proposals for 1989; and states the CDF's recommendations for action. Appendices provide extensive data on children, poverty, and federal programs; information about Congress; and lists of resource organizations and the staff of the CDF. (RH)