There is overwhelming evidence that outdoor fossil-fuel derived air pollution has major effects on children’s health. The most robust evidence is related to pulmonary effects, including increased risk of pneumonia, suppression of lung growth, and the development of asthma. Emerging associations that need more evidence to be convincing are effects on the brain and endocrine system. Understanding of mechanisms has lagged behind these epidemiological data, but the recent observation that carbon particles are excreted in the urine of children offers an explanation for effects on organs remote from the lung. An integrated national policy is needed to reduce exposure of all children, but until this happens, there is emerging evidence that awareness of exposure hot spots may help to reduce exposures of the most vulnerable children.