Over five years, the block grant would provide states with $36.3 billion.
"The block grant should not be cut too much at the beginning," he said.
Another would create a block grant from several dozen child care programs.
Under the block grant, states would lose Federal dollars if they spent more of their own.
The block grants serve more than 1 million participants each month.
The number of states allowed to take such block grants would be limited, but could increase to more than 20.
The plan required the additional $4.2 billion in block grants.
Also, the block grants would not necessarily increase in hard times.
The total payment, or block grant, would be $15.4 billion a year for the next five years.
Block grants were provided to the states, with $100 million in funding.