Children and youth vary in their developmental health due to differences in family economic security and exposure to toxic stress. The economic downturn has increased the challenges facing low-income children. The American Recovery and Reinvestment Act of 2009 (ARRA) and the President's first budget made significant down-payments on investments in protecting and promoting the well-being of these children. Some of those investments are temporary and must be built into baselines going forward. Many other promising avenues for policy change could be implemented through reauthorization of Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) and Elementary and Secondary Education Act (ESEA). Further, a new era of experimentation in innovative program and policies is recommended for when the economy recovers. (Contains 1 table and 7 notes.)