Child abuse reports continue to increase at a steady rate despite the absence of significant new funding to States for investigation or service provision. In 1996 child abuse reports increased slightly, exceeding 3.1 million. Although a decrease in the number of substantiated cases occurred, nearly 1 million new cases entered child protective service caseloads last year. For the third consecutive year, the proportion of cases that involved various forms of maltreatment were essentially the same among the reported and substantiated cases, suggesting that a greater number of neglect cases and fewer child sexual abuse cases entered the system last year compared to prior years. Of substantiated cases, approximately 70 percent received some form of service, and 18 percent of the substantiated cases in those States able to provide these data involved the use of foster care. Although the data suggest a decrease in the number of child abuse fatalities, the number of these cases continues to be disturbing. An estimated 1,046 children were killed last year as a result of child abuse or neglect. Despite the increased implementation of child death review committees and administrative attention to child abuse fatalities, it is not clear that a consistent and meaningful decline in such fatalities is being achieved. Although 40 percent of the respondents indicated that their agency had experienced increased State funding between 1995 and 1996, these increases were relatively small and may well be offset by the decline in funding expected from Federal sources. Further, changes in welfare policy at both the Federal and State levels are expected to impact both the number of families in need of support services as well as the overall rate of maltreatment. 3 tables, 2 figures, and 8 references