When compared to other industrialized countries, America ranks first in many areas, including military technology and Gross Domestic Product. However, in areas related to child welfare, America does not rate so high. American youngsters are frequently placed in physical danger and many begin school ill-prepared to learn. In March 1997, the Children's Defense Fund released 20 key facts about American children which illustrate the severe problems facing the youth of America. These facts are addressed in this report in terms of how to combat the problems. The first section of the report addresses the need for early childhood education. This section argues that large investments in education must be made at the early childhood level, noting that this investment has the potential not only to properly prepare children educationally, but to address social problems such as violence and delinquency; promote good health; develop children's social, physical, emotional, and psychological development; strengthen families; and provide a safe and caring environment. The report's second section addresses barriers to high-quality experiences, including poverty, participation rates, and quality of care. The third section addresses challenges for the future, including: providing a caring environment for children; addressing standards of quality; providing developmentally appropriate practice and learning environments; safe environments; engaging children; and an integrated curriculum. Contains 22 references. (SD)