• provide scholarships that enable preschool teachers employed in an early childhood education program to pursue a bachelor's degree in early childhood education or a closely related field;
• support preschool teachers employed in an early childhood education program to attain a credential, licensure, or endorsement that demonstrates competence in early childhood education if their bachelor's degree is not in that or a closely related field;
• increase the compensation of teachers who are making progress toward a degree in early childhood education or who have attained that degree; and
• provide ongoing professional development opportunities to preschool teachers and teacher assistants employed in an early childhood education program.

Requires each state that desires a grant to include a description of its comprehensive early childhood professional development system in its application.

Requires grant recipients to maintain their fiscal effort for the activities supported by the grant funds for a fiscal year at levels equal to or greater than their fiscal effort for such activities during the preceding fiscal year.