Child Care Consolidation and Investment Act of 1996

Child Care Consolidation and Investment Act of 1996 - Amends the Child Care and Development Block Grant Act of 1990 to authorize appropriations for FY 1997 through 2001 for child care services for eligible children through the awarding of grants to States.

Requires (currently, authorizes) child care and development block grants for States.

Decreases from 25 to 20 percent the amount of funds to be reserved by States per fiscal year for activities to improve the quality of child care and to provide before- and after-school and early childhood development services. Directs States to reserve at least 50 percent of grant amounts for child care activities to support low-income working families. Requires State plans to assure that the availability of child care will be coordinated with AFDC requirements and to ensure that the parent of a dependent child is not required to undertake an education, job training or search, or employment requirement unless child care assistance is available.

Sets forth a matching requirement for States with respect to amounts that exceed amounts received in FY 1995.

Increases from 20 to 50 percent the minimum percentage of reserved amounts States must use to carry out specified activities to improve the quality of child care.

Directs the Secretary to establish a child care quality improvement incentive initiative to make funds available to States that demonstrate progress in the implementation of: (1) innovative teacher training programs; or (2) enhanced child care quality standards and licensing and monitoring procedures.

Decreases from 75 to 50 percent the minimum percentage of reserved amounts States must use to carry out early child development and before- and after-school services.

Requires amounts allotted to States under this Act to include the base amount such States received under the Child Care and Development Block Grant Act of 1990 and under AFDC provisions repealed under this Act.

Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act to repeal the AFDC, Job Opportunities and Basic Skills (JOBS) Training program, and transitional child care programs, as well as the at-risk child care program. Repeals the Child Development Assistance Associate Scholarship Assistance Act of 1985, and the authority for State dependent care grants under the Omnibus Budget Reconciliation Act of 1981.