Hi wiccanfishlover
I'm glad you responded so quickly. There are a few suggestions I can make that might help.
First, they don't need to reach the top to breathe, but they do need oxygen. If you can gradually fill the tank with clean, dechlorinated tap water, it would be a good start. If you can get an airstone just under the surface of the water, and adjust it to just move a little water, that would help too.
Another thing cory fry need is lots of water changes and that will be a big job with such a small tank. They are OK for now, but be prepared; they grow quickly. The biggest problem with cory fry is that they are in danger of bacterial infections. This can be caused by uneaten food, so the more water in the tank, and the more water changes you do, the better their chances of survival are.
Did you mean there is ammonia in your tap water? Or are you using water from your tank? This is not a good thing at all. Please try to find a source of water that is more pure.
If they have hatched in pH 6.4, that will be fine. It's almost always best not to fool around with the pH. A temperature of 70 is fine too, but once they get into a bigger tank, a little warmer temperature will speed up their metabolism and they will eat more and grow faster,
Don't worry about feeding them for at least 24 hours because they are absorbing their yolk sacs and will just be sitting still for a while. Cory fry are slow growers, so don't be in a hurry to move them in with other fish, even though they are small too. For their first few days you might want to give them LiquiFry or something similar. A better food, but one which will take a couple of weeks to culture, is microworms. All fry love them, so it you raise many, it would be worth the effort. If you put your location in your profile, I'll give you a link where you can order them since they are not available at lfs.
Is your tank bare bottomed, or do you have sand or gravel in it?
There are a few members who are raising cory fry right now, so if you look through some of the recent threads in this section of the forum, you will get a lot of information about how they are doing it, and I'm sure they will be posting here to help you too,
Best of luck with your babies!