Mike,
The Catholic view is that they are entrusted to the mercy of God and since they have no personal sin from which to be purified, He could take them directly to Heaven, applying the atonement of Christ directly to their souls. They are in essence virtually martyrs as well, because of their innocence and disturbing end.
In the past, the Early Church speculated something they called Limbo since they hadn't met the criteria of Baptism and Christian initiation nor had personal sin worthy of condemnation.
In this place, souls would experience neither Heaven nor Hell but natural happiness.
This conjecture was never made doctrine nor has it stood the test of time.
Peace,
Bob Kirby
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