[House Report 108-184]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-184

======================================================================



 
                      SCHOOL READINESS ACT OF 2003

                                _______
                                

 June 26, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2210]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 2210) to reauthorize the Head Start Act 
to improve the school readiness of disadvantaged children, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``School Readiness Act of 2003''.

      TITLE I--HEAD START REAUTHORIZATION AND PROGRAM IMPROVEMENTS

SEC. 101. PURPOSE.

  Section 636 of the Head Start Act (42 U.S.C. 9831) is amended to read 
as follows:

``SEC. 636. STATEMENT OF PURPOSE.

  ``It is the purpose of this subchapter to promote school readiness by 
enhancing the development of low-income children, through educational 
instruction in prereading skills, premathematics skills, and language, 
and through the provision to low-income children and their families of 
health, educational, nutritional, social and other services that are 
determined, based on family needs assessments, to be necessary.''.

SEC. 102. DEFINITIONS.

  Section 637 of the Head Start Act (42 U.S.C. 9832) is amended as 
follows:
          (1) In paragraph (17) by striking ``, but for fiscal years'' 
        and all that follows down to the period.
          (2) By adding the following at the end thereof:
          ``(18) The term `eligible entities' means an institution of 
        higher education or other agency with expertise in delivering 
        training in early childhood development, family support, and 
        other assistance designed to improve the quality of early 
        childhood educations programs.
          ``(19) The term `homeless children' has the meaning given 
        such term in subtitle B of title VII of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11431 et seq.).''.

SEC. 103. AUTHORIZATION.

  Section 639 of the Head Start Act (42 U.S.C. 9834) is amended to read 
as follows:

``SEC. 639. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated for 
carrying out the provisions of this subchapter $6,870,000,000 for the 
fiscal year 2004 and such sums as may be necessary for fiscal years 
2005 through 2008.
  ``(b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available not more than 
$20,000,000 for fiscal year 2004, and such sums as may be necessary for 
each of fiscal years 2005 through 2008, to carry out such other 
research, demonstration, and evaluation activities, including 
longitudinal studies, under section 649.
          ``(1) not more than $7,000,000 for each of fiscal years 2004 
        through 2008 to carry out impact studies under section 649(g); 
        and
          ``(2) not more than $13,000,000 for fiscal year 2004, and 
        such sums as may be necessary for each of fiscal years 2005 
        through 2008, to carry out other research, demonstration, and 
        evaluation activities, including longitudinal studies, under 
        section 649.
  ``(c) Administrative Expenses.--There are authorized to be 
appropriated $5,000,000 for each of fiscal years 2004 through 2008 to 
assist participating States with the administrative expenses associated 
with implementing a program under section 643A.''.

SEC. 104. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE.

  Section 640 of the Head Start Act (42 U.S.C. 9835) is amended as 
follows:
          (1) In subsection (a)(2):
                  (A) By striking ``1998'' in subparagraph (A) and 
                inserting ``2003''.
                  (B) By amending subparagraph (B) to read as follows:
          ``(B) payments, subject to paragraph (7) to Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, and 
        the Virgin Islands of the United States;''.
          (2) By striking the last sentence of paragraph (2) of 
        subsection (a).
          (3)(A) By amending subsection (a)(2)(C) to read as follows:
          ``(C) training and technical assistance activities that are 
        sufficient to meet the needs associated with program expansion 
        and to foster program and management improvement as described 
        in section 648 of this subchapter, in an amount for each fiscal 
        year which is not less than one percent, and shall not exceed 2 
        percent, of the amount appropriated for such fiscal year, of 
        which--
                  ``(i) not less than 50 percent shall be made 
                available to local Head Start agencies to comply with 
                the standards described in section 641A(a)(1), of which 
                not less than 50 percent shall be used to comply with 
                the standards described in section 641A(a)(1)(B) and 
                for the uses described in clauses (iii), (iv), and 
                (vii) of subsection (a)(3)(B);
                  ``(ii) not less than 30 percent shall be made 
                available to support a State system of early childhood 
                education training and technical assistance;
                  ``(iii) not less than 20 percent shall be made 
                available to the Secretary to assist local programs in 
                meeting the standards described in section 641A(a)(1); 
                and
                  ``(iv) not less than $3,000,000 of the amount in 
                clause (iii) appropriated for such fiscal year shall be 
                made available to carry out activities described in 
                section 648(c)(4);''.
          (B) By inserting the following at the end of subsection 
        (a)(2):
``If less than 2 percent of the amount appropriated for such fiscal 
year is made available for the activities authorized in subparagraph 
(C), then the Secretary is authorized to use at least 25 percent of 
such funds to fund migrant and seasonal Head Start programs for 
expansion of services. If sufficient migrant and seasonal eligible 
children are not available to use such funds, then enrollment priority 
shall be given to other disadvantaged populations referred to in 
subparagraph (A).''.
          (4) In subsection (a)(3)(A) by inserting at the end thereof:
  ``(iii) After the reservation of amounts under paragraph 
(2)(including the 2 percent amount referred to in paragraph (2)(C)) and 
the 60 percent amount referred to in subparagraph (A) of this 
paragraph, a portion of the remaining funds shall be made available to 
expand services to underserved populations, such as children receiving 
services under the Early Head Start and Migrant and Seasonal Head Start 
programs.''.
          (5) In subsection (a)(3)(A)(i)(I) by striking ``1999'' and 
        all that follows down to the semicolon and inserting ``2004 
        through 2008''.
          (6) By amending subsection (a)(3)(B) to read as follows:
  ``(B) Funds reserved under this paragraph (referred to in this 
paragraph as `quality improvement funds') shall be used to accomplish 
any or all of the following goals:
          ``(i) Ensuring that Head Start programs meet or exceed 
        standards pursuant to section 641A(a)(1).
          ``(ii) Ensuring that such programs have adequate numbers of 
        qualified staff, and that such staff is furnished adequate 
        training, including developing skills to promote the 
        development of language skills, premathematic skills, and 
        prereading in young children and in working with children with 
        non-English language background, children referred by child 
        welfare services, and children with disabilities, when 
        appropriate.
          ``(iii) Developing and financing the salary scales described 
        under section 644(a) and section 653, in order to ensure that 
        salary levels and benefits are adequate to attract and retain 
        qualified staff for such programs.
          ``(iv) Using salary increases to improve staff 
        qualifications, and to assist with the implementation of 
        programs specifically designed to enable lead instructors to 
        become more effective educators, for the staff of Head Start 
        programs, and to encourage the staff to continually improve 
        their skills and expertise by informing the staff of the 
        availability of Federal and State incentive and loan 
        forgiveness programs for professional development.
          ``(v) Improving community-wide strategic planning and needs 
        assessments for such programs and collaboration efforts for 
        such programs, including collaborations to increase program 
        participation by underserved populations of eligible children.
          ``(vi) Ensuring that the physical environments of Head Start 
        programs are conducive to providing effective program services 
        to children and families, and are accessible to children with 
        disabilities and their parents.
          ``(vii) Ensuring that such programs have qualified staff that 
        can promote language skills and literacy growth of children and 
        that can provide children with a variety of skills that have 
        been identified, through scientifically based reading research, 
        as predictive of later reading achievement.
          ``(viii) Providing assistance to complete post-secondary 
        course work needed to attain baccalaureate degrees in early 
        childhood education.
          ``(ix) Making such other improvements in the quality of such 
        programs as the Secretary may designate.
          ``(x) To promote the regular attendance and stability of 
        highly mobile children, including migrant and homeless 
        children.''.
          (7) By amending subsection (a)(3)(C) to read as follows:
  ``(C) Quality improvement funds shall be used to carry out any or all 
of the following activities:
          ``(i)(I) Not less than one-half of the amount reserved under 
        this paragraph, to improve the compensation (including 
        benefits) of classroom teachers and other staff of Head Start 
        agencies providing instructional services and thereby enhancing 
        recruitment and retention of qualified staff, including 
        recruitment and retention pursuant to achieving the 
        requirements set forth in section 648A(a). The expenditure of 
        funds under this clause shall be subject to section 653. Salary 
        increases, in excess of cost-of-living allowance, provided with 
        such funds shall be subject to the specific standards governing 
        salaries and salary increases established pursuant to section 
        644(a).
          ``(II) If a Head Start agency certifies to the Secretary for 
        such fiscal year that part of the funds set aside under 
        subclause (I) to improve wages cannot be expended by such 
        agency to improve wages because of the operation of section 
        653, then such agency may expend such part for any of the uses 
        specified in this subparagraph (other than wages).
          ``(III) From the remainder of the amount reserved under this 
        paragraph (after the Secretary carries out subclause (I)), the 
        Secretary shall carry out any or all of the activities 
        described in clauses (ii) through (vii), placing the highest 
        priority on the activities described in clause (ii).
          ``(ii) To train classroom teachers and other staff to meet 
        the education standards described in section 641A(a)(1)(B), 
        through activities--
                  ``(I) to promote children's language and prereading 
                growth, through techniques identified through 
                scientifically based reading research;
                  ``(II) to promote the acquisition of the English 
                language for non-English background children and 
                families;
                  ``(III) to foster children's school readiness skills 
                through activities described in section 648A(a)(1); and
                  ``(IV) to educate and provide training necessary to 
                improve the qualifications particularly with respect to 
                such assistance to enable more instructors to meet the 
                degree requirements under section 648A(a)(2)(A) and to 
                support staff training, child counseling, and other 
                services necessary to address the problems of children 
                participating in Head Start programs, including 
                children from dysfunctional families, children who 
                experience chronic violence in their communities, and 
                children who experience substance abuse in their 
                families.
          ``(iii) To employ additional Head Start staff, including 
        staff necessary to reduce the child-staff ratio lead 
        instructors who meet the qualifications of section 648A(a) and 
        staff necessary to coordinate a Head Start program with other 
        services available to children participating in such program 
        and to their families.
          ``(iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and thereby 
        maintain or expand Head Start services.
          ``(v) To supplement amounts provided under paragraph (2)(C) 
        to provide training necessary to improve the qualifications of 
        the staff of the Head Start agencies, and to support staff 
        training, child counseling, and other services necessary to 
        address the problems of children participating in Head Start 
        programs, including children from dysfunctional families, 
        children who experience chronic violence in their communities, 
        and children who experience substance abuse in their families.
          ``(vi) To conduct outreach to homeless families in an effort 
        to increase the program participation of eligible homeless 
        children.
          ``(vii) Such other activities as the Secretary may designate.
          ``(viii) To conduct outreach to migrant and seasonal farm-
        working families and families with children with a limited 
        English proficiency.''.
          (8) In subsection (a)(4) by striking ``1998'' in subparagraph 
        (A) and inserting ``2003''.
          (9) In subsection (a)(5)(B)--
                  (A) by striking ``may'' and inserting ``shall''; and
                  (B) by inserting ``early childhood education'' after 
                ``regarding''.
          (10) By amending subsection (a)(5)(C) to read as follows:
  ``(C) In order to improve results for children, a State that receives 
a grant under subparagraph (B) shall--
          ``(i) appoint an individual to serve as the State Director of 
        Collaboration between--
                  ``(I) the appropriate regional office of the 
                Administration for Children and Families;
                  ``(II) the State educational agency;
                  ``(III) the State Department of Health and Human 
                Services;
                  ``(IV) the State agency that oversees child care;
                  ``(V) the State agency that assists children with 
                developmental disabilities;
                  ``(VI) the State Head Start Association;
                  ``(VII) the State network of child care resource and 
                referral agencies;
                  ``(VIII) local educational agencies;
                  ``(IX) community-based and faith-based organizations;
                  ``(X) State representatives of migrant and seasonal 
                Head Start programs;
                  ``(XI) State representatives of Indian Head Start 
                programs;
                  ``(XII) State and local providers of early childhood 
                education and child care; and
                  ``(XIII) other entities carrying out programs serving 
                low-income children and families in the State;
          ``(ii) ensure that the State Director of Collaboration holds 
        a position with sufficient authority and access to ensure that 
        the collaboration described in subparagraph (B) is effective 
        and involves a range of State agencies;
          ``(iii) involve the entities described in section clause (i) 
        to develop a strategic plan for the coordinated outreach to 
        identify eligible children and implementation strategies based 
        on a needs assessment conducted by the Office of the State 
        Director of Collaboration which shall include an assessment of 
        the availability of high quality prekindergarten services for 
        low-income children in the State. Such assessment shall be 
        completed within one year after the date of enactment of the 
        `School Readiness Act of 2003' and be updated on an annual 
        basis and shall be made available to the general public within 
        the State;
          ``(iv) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start services 
        with health care, welfare, child care, child protective 
        services, education, and community service activities, family 
        literacy services, activities relating to children with 
        disabilities (including coordination of services with those 
        State officials who are responsible for administering part C 
        and section 619 of the Individuals with Disabilities Education 
        Act), and services for homeless children (including 
        coordination of services with the Office of Coordinator for 
        Education of Homeless Children and Youth designated under 
        section 722 (g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Education Assistance Improvements Act of 2001;
          ``(v) consult with the chief State school officer, local 
        educational agencies, and representatives of local Head Start 
        agencies and providers of early childhood education and care in 
        unified planning regarding early care and education services at 
        both the State and local levels, including collaborative 
        efforts to develop school readiness standards; and
          ``(vi) consult with the chief State school officer, local 
        educational agencies, State child care administrators, State 
        human services administrators, representatives of local 
        resource and referral agencies, local early childhood councils, 
        providers of early childhood education and care and other 
        relevant State and local agencies, and representatives of the 
        State Head Start Associations to plan for the provision of 
        full-working-day, full calendar year early care and education 
        services for children.''.
          (11) By amending clause (i) of subsection (a)(5)(D) by 
        inserting ``and providers of services supporting early 
        childhood education and child care'' after ``Associations''.
          (12) By amending subsection (a)(6)(A) to read as follows:
  ``(A) From amounts reserved and allotted pursuant to paragraphs (2) 
and (4), the Secretary shall use, for grants for programs described in 
section 645A(a) of this subchapter, a portion of the combined total of 
such amounts equal to at least 10 percent for fiscal years 2004 through 
2008, of the amount appropriated pursuant to section 639(a), except as 
provided in subparagraph (B).''
          (13) By inserting the following before the period at the end 
        of subsection (f): ``, including models that leverage the 
        existing capacity and capabilities of the delivery system of 
        early childhood education and child care''.
          (14) By inserting the following after ``manner that will'' in 
        subsection (g)(2)(G): ``leverage the existing delivery systems 
        of such services and''.
          (15) By amending subsection (g)(2)(C) to read as follows:
          ``(C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and public agencies 
        serving children and families (including organizations and 
        agencies providing family support services and protective 
        services to children and families, and organizations serving 
        families in whose homes English is not the language customarily 
        spoken), and organizations and public entities serving children 
        with disabilities and homeless children (including the local 
        educational agency liaison designated under section 
        722(g)(1)(J)(ii) of the McKinney-Vento Homeless Education 
        Assistance Improvements Act of 2001);''.
          (16) By inserting in subsection (g)(2)(H) after ``serving the 
        community involved'' the following: ``, including the liaison 
        designated under section 722(g)(1)(J)(ii) of the McKinney-Vento 
        Homeless Education Assistance Improvements Act of 2001,''.
          (17) By adding the following new subsections at the end 
        thereof:
  ``(m) Enrollment of Homeless Children.--The Secretary shall by 
regulation prescribe policies and procedures to remove barriers to the 
enrollment and participation of eligible homeless children in Head 
Start programs. Such regulations shall require Head Start agencies to:
          ``(1) implement policies and procedures to ensure that 
        eligible homeless children are identified and prioritized for 
        enrollment,
          ``(2) allow homeless families to apply to, enroll in and 
        attend Head Start programs while required documents, such as 
        proof of residency, immunization and other medical records, 
        birth certificates and other documents, are obtained within a 
        reasonable time frame, and
          ``(3) coordinate individual Head Start centers and programs 
        with efforts to implement Subtitle VII-B of the McKinney-Vento 
        Homeless Assistance Act.
  ``(n) Savings Provision.--Nothing in this Act shall be construed to 
require a State to establish a program of early education for children 
in the State, to require any child to participate in a program of early 
education, to attend school, or to participate in any initial screening 
prior to participation in such program, except as provided under 
section 612(a)(3), (consistent with section 614(a)(1)(C)), of the 
Individuals with Disabilities Education Act.
  ``(o) Materials.--All curricula and instructional materials funded 
under this subchapter shall be scientifically based and age 
appropriate. Parents shall have the ability to inspect, upon request, 
any curricula or instructional materials.''.

SEC. 105. DESIGNATION OF AGENCIES.

  Section 641 of the Head Start Act (42 U.S.C. 9836) is amended as 
follows:
          (1) In subsection (a)--
                  (A) by inserting after ``community'' in the first 
                place it appears ``, including a community-based or 
                faith-based organization'';
                  (B) by inserting ``(1)'' after ``(a)'';
                  (C) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively; and
                  (D) by adding the following at the end thereof:
  ``(2) In order to be designated as a Head Start agency and to receive 
a grant under this subchapter, a grantee shall establish grantee-
determined goals for improving the school readiness of children 
participating in a program under this subchapter, which shall include 
goals for--
          ``(A) educational instruction in prereading, premathematical, 
        and language skills; and
          ``(B) the provision of health, educational, nutritional, 
        social, and other services.
  ``(3) In order to receive a grant subsequent to the initial grant 
provided following the date of enactment of this subchapter, the 
grantee shall demonstrate that it has met the goals described in 
paragraph (2).
  ``(4) Progress in meeting such goals shall not be measured primarily 
or solely by the results of assessments.''
          (2) By amending subsection (c) to read as follows:
  ``(c) In the administration of the provisions of this section, the 
Secretary shall, in consultation with the chief executive officer of 
the State involved if such State expends non-Federal funds to carry out 
Head Start programs, give priority in the designation of Head Start 
agencies to any local public or private nonprofit or for-profit agency 
which is receiving funds under any Head Start program on the date of 
the enactment of this Act that fulfills the program and financial 
management requirements, standards described in section 641A(a)(1), 
results-based performance measures developed by the Secretary under 
section 641A(b), or other requirements established by the Secretary.''.
          (3) By amending subsection (d) to read as follows:
  ``(d) If no entity in a community is entitled to the priority 
specified in subsection (c), then the Secretary may designate a Head 
Start agency from among qualified applicants in such community. In 
selecting from among qualified applicants for designation as a Head 
Start agency, the Secretary shall give priority to any qualified agency 
that functioned as a Head Start delegate agency in the community and 
carried out a Head Start program that the Secretary determines met or 
exceeded such performance standards and such results-based performance 
measures. In selecting from among qualified applicants for designation 
as a Head Start agency, the Secretary shall consider the effectiveness 
of each such applicant to provide Head Start services, based on--
          ``(1) any past performance of such applicant in providing 
        services comparable to Head Start services, including how 
        effectively such applicant provided such comparable services;
          ``(2) the capacity of such applicant to serve eligible 
        children with scientifically-based programs that promote school 
        readiness of children participating in the program;
          ``(3) the plan of such applicant to meet standards set forth 
        in section 641A(a)(1), with particular attention to the 
        standards set forth in subparagraphs (A) and (B) of such 
        section;
          ``(4) the plan of such applicant to provide comprehensive 
        health, nutritional, educational, social, and other services 
        needed to prepare children to succeed in school;
          ``(5) the plan of such applicant to coordinate the Head Start 
        program it proposes to carry out with other preschool programs, 
        including Early Reading First and Even Start programs under 
        title I, part B, subparts 1 and 2 of the Elementary and 
        Secondary Education Act of 1965; other preschool programs 
        carried out under title I of the Act; programs under part C and 
        section 619 of the Individuals with Disabilities Education Act; 
        State prekindergarten programs; and with the educational 
        programs such children will enter at the age of compulsory 
        school attendance;
          ``(6) the plan of such applicant to coordinate the Head Start 
        program it proposes to carry out with private entities with 
        resources available to assist the Head Start Program meet its 
        program needs;
          ``(7) the plan of such applicant--
                  ``(A) to seek the involvement of parents of 
                participating children in activities (at home and in 
                the center involved where practicable) designed to help 
                such parents become full partners in the education of 
                their children;
                  ``(B) to afford such parents the opportunity to 
                participate in the development, conduct, and overall 
                performance of the program at the local level;
                  ``(C) to offer (directly or through referral to local 
                entities, such as entities carrying out Even Start 
                programs under part B of chapter 1 of title I of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 2741 et seq.), public and school libraries, and 
                family support programs) to such parents--
                          ``(i) family literacy services; and
                          ``(ii) parenting skills training;
                  ``(D) to offer to parents of participating children 
                substance abuse counseling (either directly or through 
                referral to local entities), including information on 
                drug-exposed infants and fetal alcohol syndrome;
                  ``(E) at the option of such applicant, to offer 
                (directly or through referral to local entities) to 
                such parents--
                          ``(i) training in basic child development;
                          ``(ii) assistance in developing communication 
                        skills;
                          ``(iii) opportunities for parents to share 
                        experiences with other parents; or
                          ``(iv) any other activity designed to help 
                        such parents become full partners in the 
                        education of their children;
                  ``(F) to provide, with respect to each participating 
                family, a family needs assessment that includes 
                consultation with such parents about the benefits of 
                parent involvement and about the activities described 
                in subparagraphs (C) (D), and (E) in which such parents 
                may choose to become involved (taking into 
                consideration their specific family needs, work 
                schedules, and other responsibilities); and
                  ``(G) to extend out reach to fathers in order to 
                strengthen the role of fathers in families by working 
                directly with fathers and father-figures through such 
                activities as including fathers in home visits; 
                implementing father outreach efforts, providing 
                opportunities for direct father-child interactions; and 
                targeting increased male participation in the program;
          ``(8) the ability of such applicant to carry out the plans 
        described in paragraphs (2), (3), and (4);
          ``(9) other factors related to the requirements of this 
        subchapter;
          ``(10) the plan of such applicant to meet the needs of non-
        English background children and their families, including needs 
        related to the acquisition of the English language;
          ``(11) the plan of such applicant to meet the needs of 
        children with disabilities;
          ``(12) the plan of such applicant who chooses to assist 
        younger siblings of children who will participate in the 
        proposed Head Start program to obtain health services from 
        other sources;
          ``(13) the plan of such applicant to collaborate with other 
        entities carrying out early childhood education and child care 
        programs in the community; and
          ``(14) the plan of such applicant to meet the needs of 
        homeless children.''.

SEC. 106. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES AND 
                    PROGRAMS.

  Section 641A of the Head Start Act (42 U.S.C. 9836a) is amended as 
follows:
          (1) In subsection (a)(1)(B) by amending clause (ii) to read 
        as follows:
                  ``(ii) additional education standards to ensure that 
                the children participating in the program, at a minimum 
                develop and demonstrate--
                          ``(I) language skills;
                          ``(II) prereading knowledge and skills, 
                        including interest in and appreciation of 
                        books, reading and writing either alone or with 
                        others;
                          ``(III) premathematics knowledge and skills, 
                        including aspects of classification, seriation, 
                        number, spatial relations, and time;
                          ``(IV) cognitive abilities related to 
                        academic achievement;
                          ``(V) social and emotional development 
                        important for environments constructive for 
                        child development, early learning, and school 
                        success; and
                          ``(VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language.''.
          (2) By amending subsection (a)(2)(B) to read as follows:
                  ``(B) take into consideration--
                          ``(i) past experience with use of the 
                        standards in effect under this subchapter on 
                        October 27, 1998;
                          ``(ii) changes over the period since October 
                        27, 1998, in the circumstances and problems 
                        typically facing children and families served 
                        by Head Start agencies;
                          ``(iii) developments concerning best 
                        practices with respect to early childhood 
                        education and development, children with 
                        disabilities, family services, program 
                        administration, and financial management;
                          ``(iv) projected needs of an expanding Head 
                        Start program;
                          ``(v) guidelines and standards currently in 
                        effect or under consideration that promote 
                        child health services, and projected needs of 
                        expanding Head Start programs;
                          ``(vi) changes in the population of children 
                        who are eligible to participate in Head Start 
                        programs, including the language background and 
                        family structure of such children;
                          ``(vii) the need for, and state-of-the-art 
                        developments relating to, local policies and 
                        activities designed to ensure that children 
                        participating in Head Start programs make a 
                        successful transition to schools; and
                          ``(viii) the unique challenges faced by 
                        individual programs, including those that are 
                        seasonal or short term, and those that serve 
                        rural populations; and''.
          (3) In subsection (a)(2)(C)(ii) by striking all that follows 
        ``in effect on'' down to the period and inserting ``October 27, 
        1998''.
          (4) By amending subsection (b)(2) to read as follows:
          ``(2) Characteristics of measures.--The performance measures 
        developed under this subsection shall--
                  ``(A) be used to assess the impact of the various 
                services provided by Head Start programs and, to the 
                extent the Secretary finds appropriate, administrative 
                and financial management practices of such programs;
                  ``(B) be adaptable for use in self-assessment, peer 
                review, and program evaluation of individual Head Start 
                agencies and programs;
                  ``(C) be developed for other program purposes as 
                determined by the Secretary;
                  ``(D) be appropriate for the population served; and
                  ``(E) be reviewed no less than every 4 years, based 
                on advances in the science of early childhood 
                development.
        The performance measures shall include the performance 
        standards described in subsection (a)(1)(A) and (B).''.
          (5) By amending subsection (b)(4) to read as follows:
          ``(4) Educational measures.--Results based measures shall be 
        designed for the purpose of promoting the competencies of 
        children participating in Head Start programs specified in 
        subsection (a)(1)(B)(ii), with an emphasis on measuring those 
        competencies that have a strong scientifically-based 
        predictability of a child's school readiness and later 
        performance in school.''.
          (6) In subsection (c)(1)(C) by striking ``the standards'' and 
        inserting ``one or more of the performance measures developed 
        by the Secretary under subsection (b)''.
          (7) By amending subsection (c)(2) to read as follows:
          ``(2) Conduct of reviews.--The Secretary shall ensure that 
        reviews described in subparagraphs (A) through (C) of paragraph 
        (1)--
                  ``(A) that incorporate a monitoring visit, do so 
                without prior notice of the visit to the local agency 
                or program;
                  ``(B) are conducted by review teams that shall 
                include individuals who are knowledgeable about Head 
                Start programs and, to the maximum extent practicable, 
                the diverse (including linguistic and cultural) needs 
                of eligible children (including children with 
                disabilities) and limited-English proficient children 
                and their families;
                  ``(C) include as part of the reviews of the programs, 
                a review and assessment of program effectiveness, as 
                measured in accordance with the results-based 
                performance measures developed by the Secretary 
                pursuant to subsection (b) and with the standards 
                established pursuant to subparagraphs (A) and (B) of 
                subsection (a)(1);
                  ``(D) seek information from the communities and the 
                States involved about the performance of the programs 
                and the efforts of the Head Start agencies to 
                collaborate with other entities carrying out early 
                childhood education and child care programs in the 
                community;
                  ``(E) seek information from the communities where 
                Head Start programs exist about innovative or effective 
                collaborative efforts, barriers to collaboration, and 
                the efforts of the Head Start agencies and programs to 
                collaborate with the entities carrying out early 
                childhood education and child care programs in the 
                community;
                  ``(F) include as part of the reviews of the programs, 
                a review and assessment of whether a program is in 
                conformity with the income eligibility requirements, as 
                defined in section 645 and regulations promulgated 
                thereunder;
                  ``(G) include as part of the reviews of the programs, 
                a review and assessment of whether programs have 
                adequately addressed the population and community needs 
                (including populations of children with a limited 
                English proficiency and children of migrant and 
                seasonal farm-working families); and
                  ``(H) include as part of the review the extent to 
                which the program addresses the community needs and 
                strategic plan identified in section 640(g)(2)(C).''.
          (8) By amending so much of subsection (d)(1) as precedes 
        subparagraph (A) to read as follows:
          ``(1) Determination.--If the Secretary determines, on the 
        basis of a review pursuant to subsection (c), that a Head Start 
        agency designated pursuant to section 641 fails to meet the 
        standards described in subsection (a) or results-based 
        performance measures developed by the Secretary under 
        subsection (b), or fails to adequately address the community 
        needs and strategic plan identified in 640(g)(2)(C), the 
        Secretary shall--''
          (9) By amending subsection (d)(2) to read as follows:
          ``(2) Quality improvement plan.--
                  ``(A) Agency and program responsibilities.--In order 
                to retain a designation as a Head Start agency under 
                this subchapter, or in the case of a Head Start 
                Program, in order to continue to receive funds from 
                such agency, a Head Start agency, or Head Start program 
                that is the subject of a determination described in 
                paragraph (1) (other than an agency or program required 
                to correct a deficiency immediately or during a 90-day 
                period under clause (i) or (ii) of paragraph (1)(B)) 
                shall--
                          ``(i) develop in a timely manner, a quality 
                        improvement plan which shall be subject to the 
                        approval of the Secretary, or in the case of a 
                        program, the sponsoring agency, and which shall 
                        specify--
                                  ``(I) the deficiencies to be 
                                corrected;
                                  ``(II) the actions to be taken to 
                                correct such deficiencies; and
                                  ``(III) the timetable for 
                                accomplishment of the corrective 
                                actions specified; and
                          ``(ii) eliminate each deficiency identified, 
                        not later than the date for elimination of such 
                        deficiency specified in such plan (which shall 
                        not be later than 1 year after the date the 
                        agency or program received notice of the 
                        determination and of the specific deficiency to 
                        be corrected).
                  ``(B) Secretarial responsibility.--Not later than 30 
                days after receiving from a Head Start agency a 
                proposed quality improvement plan pursuant to 
                subparagraph (A), the Secretary shall either approve 
                such proposed plan or specify the reasons why the 
                proposed plan cannot be approved.
                  ``(C) Agency responsibility for program 
                improvement.--Not later than 30 days after receiving 
                from a Head Start program, a proposed quality 
                improvement plan pursuant to subparagraph (A), the 
                sponsoring agency shall either approve such proposed 
                plan or specify the reasons why the proposed plan 
                cannot be approved.''.
          (10) In subsection (d)(3) by inserting ``and programs'' after 
        ``agencies''.
          (11) Subsection (e) is amended to read as follows:
  ``(e) Summaries of Monitoring Outcomes.--Not later than 120 days 
after the end of each fiscal year, the Secretary shall publish a 
summary report on the findings of reviews conducted under subsection 
(c) and on the outcomes of quality improvement plans implemented under 
subsection (d), during such fiscal year. Such information shall be made 
available to all parents with students receiving assistance under this 
Act in a understandable and uniform format, and to the extent 
practicable, provided in a language that the parents can understand, 
and in addition, make the information widely available through public 
means such as distribution through public agencies, and at a minimum 
posting such information on the Internet immediately upon 
publication.''.

SEC. 107. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

  Section 642 of the Head Start Act (42 U.S.C. 9837(b)) is amended as 
follows:
          (1) By amending subsection (b) to read as follows:
  ``(b) In order to be so designated, a Head Start agency shall also--
          ``(1) establish a program with standards set forth in section 
        641A(a)(1), with particular attention to the standards set 
        forth in subparagraphs (A) and (B) of such section;
          ``(2) demonstrate capacity to serve eligible children with 
        scientifically-based curricula and other interventions that 
        help promote the school readiness of children participating in 
        the program;
          ``(3) establish effective procedures by which parents and 
        area residents concerned will be enabled to directly 
        participate in decisions that influence the character of 
        programs affecting their interests;
          ``(4) provide for their regular participation in the 
        implementation of such programs;
          ``(5) provide technical and other support needed to enable 
        parents and area residents to secure on their own behalf 
        available assistance from public and private sources;
          ``(6) seek the involvement of parents of participating 
        children in activities designed to help such parents become 
        full partners in the education of their children, and to afford 
        such parents the opportunity to participate in the development, 
        conduct, and overall performance of the program at the local 
        level;
          ``(7) conduct outreach to schools in which Head Start 
        children enroll, local educational agencies, the local business 
        community, community-based organizations, faith-based 
        organizations, museums, and libraries to generate support and 
        leverage the resources of the entire local community in order 
        to improve school readiness;
          ``(8) offer (directly or through referral to local entities, 
        such as entities carrying out Even Start programs under part B 
        of chapter 1 of title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 2741 et seq.)), to parents of 
        participating children, family literacy services and parenting 
        skills training;
          ``(9) offer to parents of participating children substance 
        abuse counseling (either directly or through referral to local 
        entities), including information on drug-exposed infants and 
        fetal alcohol syndrome;
          ``(10) at the option of such agency, offer (directly or 
        through referral to local entities), to such parents--
                  ``(A) training in basic child development;
                  ``(B) assistance in developing communication skills;
                  ``(C) opportunities to share experiences with other 
                parents;
                  ``(D) regular in-home visitation; or
                  ``(E) any other activity designed to help such 
                parents become full partners in the education of their 
                children;
          ``(11) provide, with respect to each participating family, a 
        family needs assessment that includes consultation with such 
        parents about the benefits of parent involvement and about the 
        activities described in paragraphs (4) through (7) in which 
        such parents may choose to be involved (taking into 
        consideration their specific family needs, work schedules, and 
        other responsibilities);
          ``(12) consider providing services to assist younger siblings 
        of children participating in its Head Start program to obtain 
        health services from other sources;
          ``(13) perform community outreach to encourage individuals 
        previously unaffiliated with Head Start programs to participate 
        in its Head Start program as volunteers; and
          ``(14)(A) inform custodial parents in single-parent families 
        that participate in programs, activities, or services carried 
        out or provided under this subchapter about the availability of 
        child support services for purposes of establishing paternity 
        and acquiring child support; and
          ``(B) refer eligible parents to the child support offices of 
        State and local governments.''.
          (2) Amend subsection (c) to read as follows:
  ``(c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering the 
State program carried out under the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.), and other early childhood 
education and development programs, including programs under subtitle 
VII-B of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431-
11435), Even Start programs under part B of chapter 1 of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2741 et 
seq.), and programs under Part C and section 619 of the Individuals 
with Disabilities Education Act (20 U.S.C. 1431-1445, 1419), and the 
Child Abuse Prevention and Treatment Act (42 U.S.C. 5106a), serving the 
children and families served by the Head Start agency to carry out the 
provisions of this subchapter.''.
          (3) In subsection (d) by redesignating paragraphs (2) through 
        (4) as paragraph (3) through (5) and inserting the following 
        new paragraph after paragraph (1):
  ``(2) In communities where both public prekindergarten programs and 
Head Start programs operate, a Head Start agency shall coordinate with 
the local educational agency or other public agency responsible for the 
operation of the prekindergarten program and providers of 
prekindergarten, including for outreach to identify eligible 
children.''.
  (5) In paragraph (3) (as redesignated) of subsection (d), strike 
``and'' at the end of subparagraph (A) and insert the following after 
subparagraph (A) and redesignate subparagraph (B) as (C):
                  ``(B) collaborating to increase the program 
                participation of underserved populations of eligible 
                children; and''.

SEC. 108. HEAD START ALIGNMENT WITH K-12 EDUCATION.

  Section 642A of the Head Start Act (42 U.S.C. 9837a) is amended as 
follows:
          (1) The heading is amended to read as follows:

``SEC. 642A. HEAD START ALIGNMENT WITH K-12 EDUCATION.''.

          (2) In paragraph (2) after ``social workers,'' insert the 
        following: ``McKinney-Vento liaisons as established under 
        section 722 (g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Education Assistance Improvements Act of 2001,''.
          (3) Add the following new paragraph after paragraph (2) and 
        redesignated paragraphs (3) through (7) as (4) through (8):
          ``(3) developing continuity of developmentally appropriate 
        curricula between Head Start and local educational agencies to 
        ensure an effective transition and appropriate shared 
        expectations for children's learning and development as they 
        make such transition to school;''.
          (4) Paragraph (6)(as redesignated by paragraph (3) of this 
        section) is amended to read as follows:
          ``(6) developing and implementing a family outreach and 
        support program in cooperation with entities carrying out 
        parental involvement efforts under Title I of the Elementary 
        and Secondary Education Act of 1965 and family outreach and 
        support efforts under subtitle VII-B of the McKinney-Vento 
        Homeless Assistance Act;''.
          (4) In paragraph (7)(as redesignated by paragraph (3) of this 
        section) by inserting ``and continuity in parental involvement 
        activities'' after ``developmental continuity''.
          (5) Strike ``and'' at the end of paragraph (7)(as 
        redesignated by paragraph (3) of this section) and strike the 
        period at the end of paragraph (8)(as redesignated by paragraph 
        (3) of this section) and insert a semicolon.
          (6) Add the following after paragraph (8):
          ``(9) helping parents to understand the importance of 
        parental involvement in a child's academic success while 
        teaching them strategies for maintaining parental involvement 
        as their child moves from Head Start to elementary school; and
          ``(10) developing and implementing a system to increase 
        program participation of underserved populations of eligible 
        children.''.

SEC. 109. ADMINISTRATIVE REQUIREMENTS AND STANDARDS.

  Section 644 of the Head Start Act (42 U.S.C. 9839) is amended in 
subsection (f)(2) by redesignating subparagraphs (A) through (E) as (B) 
through (F) and inserting the following new subparagraph before 
subparagraph (B) (as so redesignated):
          ``(A) a description of the consultation conducted by the Head 
        Start agency with the providers in the community demonstrating 
        capacity and capability to provide services under this Act, and 
        of the potential for collaboration with such providers and the 
        cost effectiveness of such collaboration as opposed to the cost 
        effectiveness of the purchase of a facility;''

SEC. 110. ELIGIBILITY.

  Section 645(a) of the Head Start Act (42 U.S.C. 9843) is amended as 
follows:
          (1) By striking ``to a reasonable extent'' in paragraph 
        (1)(B)(i) and inserting ``not to exceed 10 percent of the total 
        enrollment'' and by striking ``benefit from such programs'' and 
        inserting ``benefit from such programs, including children 
        referred by child welfare services,'' .
          (2) By adding the following new paragraph at the end thereof:
  ``(3) The amount of a basic allowance provided under section 403 of 
title 37, United States Code, on behalf of an individual who is a 
member of the uniformed services for housing that is acquired or 
constructed under the authority of subchapter IV of chapter 169 of 
title 10, United States Code, or any other related provision of law, 
shall not be considered to be income for purposes of determining the 
eligibility of a child of the individual for programs assisted under 
this subchapter.''.

SEC. 111. EARLY HEAD START PROGRAMS.

  (a) In General.--Section 645A of the Head Start Act (42 U.S.C. 9643) 
is amended as follows:
          (1) By amending paragraphs (4) and (5) of subsection (b) to 
        read as follows:
          ``(4) provide services to parents to support their role as 
        parents (including parenting skills training and training in 
        basic child development) and to help the families move toward 
        self-sufficiency (including educational and employment services 
        as appropriate);
          ``(5) coordinate services with services (including home-based 
        services) provided by programs in the State and programs in the 
        community (including programs for infants and toddlers with 
        disabilities) to ensure a comprehensive array of services (such 
        as health and mental health services, and family support 
        services);''.
          (2) By amending paragraph (8) of subsection (b) to read as 
        follows:
          ``(8) ensure formal linkages with the agencies and entities 
        described in section 644(b) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1444(b)) and providers of 
        early intervention services for infants and toddlers with 
        disabilities under the Individuals with Disabilities Education 
        Act (20 U.S.C. 1400 et seq.) and the agency responsible for 
        administering the Section 106 of the Child Abuse Prevention and 
        Treatment Act (42 U.S.C. 5106a); and''.
          (3) In subsection (g)(2)(B) by striking ``and'' at the end of 
        clause (iii), by striking the period at the end of clause (iv) 
        and inserting ``; and'' and by inserting the following at the 
        end:
                          ``(v) providing professional development 
                        designed to increase program participation for 
                        underserved populations of eligible 
                        children.''.
  (b) Migrant and Seasonal Programs.--Section 645A(d)(1) of the Head 
Start Act (42 US.C. 9643(d)(1)) is amended to read as follows:
          ``(1) entities operating Head Start programs under this 
        subpart, including migrant and seasonal Head Start programs; 
        and''.
  (c) Community- and Faith-Based Organizations.--Section 645A(d)(2) of 
the Head Start Act (42 US.C. 9643(d)(21)) is amended by inserting ``, 
including community- and faith-based organizations'' after ``entities'' 
in the second place it appears.

SEC. 112. TECHNICAL ASSISTANCE AND TRAINING.

  Section 648 of the Head Start Act (42 U.S.C. 9843) is amended as 
follows:
          (1) By inserting the following new subsection after 
        subsection (a) and redesignating subsections (b) through (e) as 
        subsections (c) through (f):
  ``(b) The Secretary shall make available to each State the money 
reserved in section 640(a)(2)(C)(ii) to support a State-based system 
delivering training and technical assistance that improves the capacity 
of Head Start programs within a State to deliver services in accordance 
with the Head Start standards in section 641A(a)(1), with particular 
attention to the standards set forth in subparagraphs (A) and (B) of 
such section. The Secretary shall--
          ``(1) ensure eligible entities within a State are chosen by 
        the Secretary, in consultation with the State Collaboration 
        Board described in section 640(a)(5)(C)(i), through a 
        competitive bid process;
          ``(2) ensure that existing agencies with demonstrated 
        expertise in providing high quality training and technical 
        assistance to improve the delivery of Head Start services, 
        including the State Head Start Association, State agencies, 
        migrant and seasonal Head Start programs operating in the 
        State, and other entities currently providing training and 
        technical assistance in early education, be included in the 
        planning and coordination of the State system of training and 
        technical assistance; and
          ``(3) encourage States to supplement the funds authorized in 
        section 640(a)(2)(C)(ii) with State, Federal, or local funds 
        other than Head Start funds, to expand activities beyond Head 
        Start agencies to include other providers of other early 
        childhood services within a State.''.
          (2) In subsection (d) (as redesignated):
                  (A) In paragraph (2), after ``disabilities'' insert 
                ``and for activities described in section 1221(b)(3) of 
                the Elementary and Secondary Education Act of 1965''.
                  (B) In paragraph (5) after ``assessment'' insert ``, 
                including the needs of homeless children and their 
                families''.
                  (C) By striking ``and'' at the end of paragraph (10), 
                by striking the period at the end of paragraph (11) and 
                inserting ``; and'' and by inserting the following at 
                the end:
          ``(12) assist Head Start agencies and programs in increasing 
        program participation of eligible homeless children.''.
          (3) In subsection (e) (as redesignated by paragraph (1)) by 
        inserting ``, including community- and faith-based 
        organizations'' after ``entities''.
          (4) By amending subsection (f) (as redesignated by paragraph 
        (1)) to read as follows:
  ``(f) The Secretary shall provide, either directly or through grants 
or other arrangements, funds from programs authorized under this 
subchapter to support an organization to administer a centralized child 
development and national assessment program leading to recognized 
credentials for personnel working in early childhood development and 
child care programs, training for personnel providing services to non-
English language background children (including services to promote the 
acquisition of the English language), training for personnel providing 
services to children determined to be abused or neglected, training for 
personnel providing services to children referred by or receiving child 
welfare services, training for personnel in helping children cope with 
community violence, and resource access projects for personnel working 
with disabled children.''.
          (5) Insert at the end of the section:
  ``(g) Helping Personnel Better Serve Migrant and Seasonal Farm-
working Communities and Homeless Families.--The Secretary shall 
provide, either directly or through grants, or other arrangements, 
funds for training of Head Start personnel in addressing the unique 
needs of migrant and seasonal working families, families with a limited 
English proficiency, and homeless families.
  ``(h) Authorized Activities.--The majority of funds expended under 
this section shall be used to provide high quality, sustained, 
intensive, and classroom-focused training and technical assistance in 
order to have a positive and lasting impact on classroom instruction. 
Funds shall be used to carry out activities related to any or all of 
the following:
          ``(1) Education and early childhood development.
          ``(2) Child health, nutrition, and safety.
          ``(3) Family and community partnerships.
          ``(4) Other areas that impact the quality or overall 
        effectiveness of Head Start programs.
  ``(i) Prohibition on Use of Funds.--Funds under this subchapter used 
for training shall be used for needs identified annually by a grant 
applicant or delegate agency in their program improvement plan, except 
that funds shall not be used for long-distance travel expenses for 
training activities available locally or regionally or for training 
activities substantially similar to locally or regionally available 
training activities.
  ``(j) Definition.--For purposes of this section, the term `eligible 
entities' means an institution of higher education or other entity with 
expertise in delivering training in early childhood development, family 
support, and other assistance designed to improve the delivery of Head 
Start services.''.

SEC. 113. STAFF QUALIFICATIONS AND DEVELOPMENT.

  Section 648A of the Head Start Act (42 U.S.C. 9843a) is amended as 
follows:
          (1) By amending paragraph (2) of subsection (a) to read as 
        follows:
          ``(2) Degree requirements.--
                  ``(A) In general.--The Secretary shall ensure that 
                not later than September 30, 2008, at least 50 percent 
                of all Head Start teachers nationwide in center-based 
                programs have--
                          ``(i) a baccalaureate, or advanced degree in 
                        early childhood education; or
                          ``(ii) a baccalaureate, or advanced degree in 
                        a field related to early childhood education, 
                        with experience in teaching preschool children.
                  ``(B) Progress.--Each Head State agency shall provide 
                to the Secretary a report indicating the number and 
                percentage of classroom instructors with child 
                development associate credentials and associate, 
                baccalaureate, or advanced degrees. The Secretary shall 
                compile all program reports and make them available to 
                the Committee on Education and the Workforce of the 
                United States House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions of 
                the United States Senate.
                  ``(C) Requirement for new Head Start teachers.--
                Within 3 years after the date of enactment of this 
                clause, the Secretary shall require that all Head Start 
                teachers nationwide in center-based programs hired 
                following the date of enactment of this subparagraph--
                          ``(i) have an associate, baccalaureate, or 
                        advanced degree in early childhood education;
                          ``(ii) have an associate, baccalaureate, or 
                        advanced degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children; or
                          ``(iii) be currently enrolled in a program of 
                        study leading to an associate degree in early 
                        childhood education and agree to complete 
                        degree requirements within 3 years from the 
                        date of hire.
                  ``(D) Service requirements.--The Secretary shall 
                establish requirements to ensure that individuals who 
                receive financial assistance under this Act in order to 
                comply with the requirements under section 648A(a)(2) 
                shall subsequently teach in a Head Start center for a 
                period of time equivalent to the period for which they 
                received assistance or repay the amount of the 
                funds.''.
          (2) By adding the following at the end thereof:
  ``(f) Professional Development Plans.--Every Head Start agency and 
program shall create, in consultation with an employee, a professional 
development plan for all full-time employees who provide direct 
services to children.''.

SEC. 114. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

  Section 649 of the Head Start Act (42 U.S.C. 9844) is amended as 
follows:
          (1) By amending subsection (a)(1)(B) to read as follows:
                  ``(B) use the Head Start programs to develop, test, 
                and disseminate new ideas and approaches for addressing 
                the needs of low-income preschool children (including 
                children with disabilities and children determined to 
                be abused or neglected) and their families and 
                communities (including demonstrations of innovative 
                non-center based program models such as home-based and 
                mobile programs), and otherwise to further the purposes 
                of this subchapter.''.
          (1) By striking paragraph (9) of subsection (d) and inserting 

        ``(9) Repealed.--''.
          (2) By striking clause (i) of subsection (g)(1)(A) and 
        redesignating clauses (ii) and (iii) as clauses (i) and (ii).
          (3) In subsection (g)(7)(C)(i) by striking ``1999'' and 
        inserting ``2003'', striking ``2001'' and inserting ``2005'', 
        and striking ``2003'' and inserting ``2006''.
          (4) By amending subsection (h) to read as follows:
  ``(h) NAS Study.--
          ``(1) In General.--The Secretary shall use funds allocated in 
        section 640(a)(2)(C)(iii) to contract with the National Academy 
        of Sciences for the Board on Children, Youth, and Families of 
        the National Research Council to establish an independent panel 
        of experts to review and synthesize research, theory and 
        applications in the social, behavioral and biological sciences 
        and shall make recommendations on early childhood pedagogy with 
        regard to each of the following:
                  ``(A) Age and developmentally appropriate Head Start 
                academic requirements and outcomes, including but not 
                limited to the domains in 641A(a)(B).
                  ``(B) Differences in the type, length, mix and 
                intensity of services necessary to ensure that children 
                from challenging family and social backgrounds 
                including: low-income children, children of color, 
                children with special needs, and children with limited 
                English proficiency enter kindergarten ready to 
                succeed.
                  ``(C) Appropriate assessments of young children for 
                the purposes of improving instruction, services, and 
                program quality, including systematic observation 
                assessment in a child's natural environment, parent and 
                provider interviews, and accommodations for children 
                with disabilities and appropriate assessments for 
                children with special needs, including English language 
                learners.
          ``(2) Composition.--The panel shall consist of multiple 
        experts in each of the following areas:
                  ``(A) Child development and education, including 
                cognitive, social, emotional, physical, approaches to 
                learning, and other domains of child development and 
                learning.
                  ``(B) Professional development, including teacher 
                preparation, to individuals who teach young children in 
                programs.
                  ``(C) Assessment of young children, including 
                screening, diagnostic and classroom-based instructional 
                assessment; children with special needs, including 
                children with disabilities and limited English 
                proficient children.
          ``(3) Timing.--The National Academy of Sciences and the Board 
        shall establish the panel not later than 90 days after the date 
        of enactment of this paragraph. The panel should complete its 
        recommendations within 18 months of its convening.
          ``(4) Application of Panel Report.--The results of the panel 
        study shall be used as guidelines by the Secretary to develop, 
        inform and revise, where appropriate, the Head Start education 
        performance measures and standards and the assessments utilized 
        in the Head Start program.''.

SEC. 115. REPORTS.

  Section 650 of the Head Start Act (42 U.S.C. 9845) is amended as 
follows:
          (1) The first sentence of subsection (a) is amended to read 
        as follows: ``At least once during every 2-year period, the 
        Secretary shall prepare and submit, to the Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor and Pensions of the 
        Senate, a report concerning the status of children (including 
        disabled, homeless, and non-English language background 
        children) in Head Start programs, including the number of 
        children and the services being provided to such children.''.
          (2) Paragraph (8) of subsection (a) is amended by inserting 
        ``, homelessness'' after ``background''.

SEC. 116. HEAD START NONDISCRIMINATION PROVISIONS.

  Section 654 of the Head Start Act (42 U.S.C. 9849) is amended to read 
as follows:

``SEC. 654. NONDISCRIMINATION PROVISIONS.

  ``(a)(1) The Secretary shall not provide financial assistance for any 
program, project, or activity under this subchapter unless the grant or 
contract with respect thereto specifically provides that no person with 
responsibilities in the operation thereof will discriminate with 
respect to any such program, project, or activity because of race, 
creed, color, national origin, sex, political affiliation, or beliefs.
  ``(2) Paragraph (1) shall not apply to a recipient of financial 
assistance under this subchapter that is a religious corporation, 
association, educational institution, or society, with respect to the 
employment of individuals of a particular religion to perform work 
connected with the carrying on by such corporation, association, 
educational institution, or society of its activities. Such recipients 
shall comply with the other requirements contained in this subsection.
  ``(b) No person in the United States shall on the ground of sex be 
excluded from participation in, be denied the benefits of, be subjected 
to discrimination under, or be denied employment in connection with any 
program or activity receiving assistance under this subchapter. The 
Secretary shall enforce the provisions of the preceding sentence in 
accordance with section 602 of the Civil Rights Act of 1964. Section 
603 of such Act shall apply with respect to any action taken by the 
Secretary to enforce such sentence. This section shall not be construed 
as affecting any other legal remedy that a person may have if such 
person is excluded from participation in, denied the benefit of, 
subjected to discrimination under, or denied employment (except as 
provided in subsection (a)(2)), in the administration of any program, 
project, or activity receiving assistance under this subchapter.
  ``(c) The Secretary shall not provide financial assistance for any 
program, project, or activity under this subchapter unless the grant or 
contract relating to the financial assistance specifically provides 
that no person with responsibilities in the operation of the program, 
project, or activity will discriminate against any individual because 
of a handicapping condition in violation of section 504 of the 
Rehabilitation Act of 1973, except as provided in subsection (a)(2).''.

SEC. 117. EFFECTIVE DATE.

  The amendments made by this Act shall be effective with respect to 
fiscal years beginning on and after October 1, 2003.

                 TITLE II--STATE DEMONSTRATION PROGRAM

SEC. 201. STATE DEMONSTRATION PROGRAM.

  The Head Start Act is amended by inserting after section 643 the 
following new section:

``SEC. 643A. STATE DEMONSTRATION PROGRAM.

  ``(a) Grants.--
          ``(1) In general.--
                  ``(A) Eligible States.--In the case of each eligible 
                State that submits to the Secretary an application that 
                fulfills the requirements of this section, the 
                Secretary, from amounts appropriated under section 
                639(a), shall make a grant to the State to carry out a 
                State demonstration program under this section, except 
                that the Secretary shall not make such grants to more 
                than 8 eligible States.
                  ``(B) Determination.--The Secretary shall make awards 
                to those States that demonstrate--
                          ``(i) that the State standards generally meet 
                        or exceed the standards that ensure the quality 
                        and effectiveness of programs operated by Head 
                        Start agencies;
                          ``(ii) the capacity to deliver high quality 
                        early childhood education services to prepare 
                        children, including low-income children, for 
                        school; and
                          ``(iii)-success in improving the school 
                        readiness of children.
          ``(2) State eligibility.--A State shall be eligible to 
        participate in the program under this section if it meets each 
        of the following criteria:
                  ``(A) The State has an existing State supported 
                system providing public prekindergarten to children 
                prior to entry into kindergarten.
                  ``(B) The State has implemented standards for school 
                readiness that include standards for language, 
                prereading and premathematics development for 
                prekindergarten that are aligned with State 
                kindergarten through twelfth grade academic content 
                standards and which shall apply to all programs 
                receiving funds under this part or provides an 
                assurance that such standards will be aligned by the 
                end of the second fiscal year of participation.
                  ``(C) State and locally appropriated funds for 
                prekindergarten services and Head Start services in the 
                fiscal year immediately preceding the fiscal year for 
                which the State applies for the program under this 
                section shall not be less than 50 percent of the 
                Federal funds that the grantees in the State received 
                under this Act in the immediately preceding fiscal year 
                for services to Head Start eligible children, excluding 
                amounts for services provided under section 645A.
                  ``(D) The State has established a means for inter-
                agency coordination and collaboration in the 
                development of the plan under subsection (h).
  ``(b) Lead Agency.--A program under this section shall be 
administered by a State governmental entity designated by the Chief 
Executive Officer of the State as the lead State agency.
  ``(c) State Operation of Program.--The State may conduct all or any 
part of the program under this section (including the activities 
specified in subsection (g)) directly or by grant, contract, or 
cooperative agreement.
  ``(d) Transition.--
          ``(1) In general.--For 36 months after the effective date of 
        this section, the State shall continue to provide funds to each 
        local grantee who--
                  ``(A) was receiving funds under this subchapter, as 
                in effect prior to the date of enactment of this 
                section, and
                  ``(B) is serving the geographic area covered by the 
                plan in section 643A(h).
        Such continuing grants shall be made in accordance with the 
        terms of the grant made to the local grantee immediately prior 
        to such date of enactment. This paragraph shall not apply to a 
        grant applicant who has experienced substantial uncorrected 
        deficiencies on Department of Health and Human Services 
        monitoring reports during any year of the most recent 5-year 
        period, or to a grantee that, as determined by the State, does 
        not comply with the State plan described in subsection 643A(h) 
        submitted to the Secretary.
  ``(e) Federal Financial Assistance.--
          ``(1) Allocation of federal allotments to state programs.--
        From each total amount described in paragraph (2) allotted to a 
        State for a fiscal year, the Secretary shall pay to a State 
        with a program approved under this section for such fiscal year 
        an amount equal to--
                  ``(A) if the State program is statewide, 100 percent 
                of such total amount; and
                  ``(B) if the State program is limited to a geographic 
                area or areas, the sum of--
                          ``(i) an amount equal to the amount received 
                        by grantees in such geographic area or areas 
                        for the Federal fiscal year preceding the first 
                        fiscal year of the State program under this 
                        section; plus
                          ``(ii) an amount bearing the same ratio to 
                        the excess (if any) above the total amount for 
                        such preceding fiscal year as the number of 
                        children less than 5 years of age from families 
                        whose income is below the poverty line in the 
                        geographic area or areas included in the 
                        program bears to the total number of such 
                        children in the State (as determined using the 
                        same data used pursuant to section 
                        640(a)(4)(B)).
          ``(2) Funds allocated.--For purposes of paragraph (1), 
        amounts described in this paragraph are:
                  ``(A) Basic state allotments.--Amounts allotted to 
                States pursuant to section 640(a)(4), including amounts 
                reserved pursuant to section 640(a)(5), excluding 
                amounts for services provided under section 645A.
                  ``(B) State allotments of expansion funds.--Amounts 
                allotted to States pursuant to section 
                640(a)(3)(D)(i)(I) for program expansion.
                  ``(C) Quality improvement funds.--Quality improvement 
                funds (if any) reserved pursuant to section 640(a)(3).
                  ``(D) Training and technical assistance funds.--An 
                amount bearing the same ratio to the amount set aside 
                for training and technical assistance activities 
                pursuant to section 640(a)(2)(C)(i) and (ii) as the 
                State's share of amounts allotted under section 
                640(a)(4)(B) bears to the total amount so allotted (and 
                for purposes of subparagraph (A), such amount shall be 
                considered an amount allotted to the State for the 
                fiscal year).
          ``(3) Non-Federal match.--(A) In determining the amount of 
        Federal and non-Federal contributions for purposes of this 
        section, the amounts required to be expended by the State under 
        subsection (h)(14)(B) (relating to maintenance of effort) shall 
        be excluded.
          ``(B) Financial assistance made available to a State under 
        this subchapter shall be in an amount equal to 95 percent of 
        the total amount expended for such programs. The Secretary 
        shall require non-Federal contributions in an amount equal to 5 
        percent of the total amount expended under this subchapter for 
        such programs.
          ``(C) Non-Federal contributions may be made in cash or in 
        kind, fairly evaluated, including plant, equipment, or 
        services.
          ``(4) Combined operations with other early childhood 
        education programs.--A State may combine funds for a program 
        under this section with funds for other early childhood 
        programs serving children in the same age group, as long as all 
        applicable requirements of this subchapter are met with respect 
        to either--
                  ``(A) the entire combined program; or
                  ``(B) each child served in such combined program for 
                whom the services provided are funded from 
                appropriations under this subchapter or non-Federal 
                matching contributions under this subchapter.
          ``(5) Use of funds without regard to allotment purposes.--A 
        State may use funds received pursuant to this section for any 
        program purpose set forth in section 636, without regard to the 
        purposes for such funds specified in section 640.
          ``(6) Other funds.--Funds received under this section shall 
        not supplant any non-Federal, State or local funds that would 
        otherwise be used for activities authorized under this section 
        or similar activities carried out in the State.
  ``(f) Coordination and Choice.--
          ``(1) In general.--A State demonstration Program shall be 
        coordinated with the education programs of local educational 
        agencies in the State to ensure that the program is effectively 
        designed to develop in children in the program the knowledge 
        and behaviors necessary to transition successfully to 
        kindergarten and to succeed in school.
          ``(2) Programs concerned.--
                  ``(A) Required programs.--Such coordination shall 
                occur regarding the implementation of the following:
                          ``(i) The Early Reading First and Even Start 
                        programs under title I, part B, subparts 2 and 
                        3 of the Elementary and Secondary Education Act 
                        of 1965, and other preschool programs carried 
                        out under title I of that Act.
                          ``(ii) State prekindergarten programs.
                          ``(iii) The Ready-to-Learn Television Program 
                        under subpart 3 of Part D of title II of the 
                        Elementary and Secondary Education Act.
                  ``(B) Optional programs.--Such coordination may occur 
                regarding the implementation of the following:
                          ``(i) Programs under the Child Care and 
                        Development Block Grant Act.
                          ``(ii) Other publicly funded early childhood 
                        education programs.
          ``(3) Parental choice.--The program shall allow parents to 
        choose the preschool program for their child.
  ``(g) Required Services.--With funds under this section, the State 
shall provide services described in section 641A at least as extensive 
as were provided, and to at least as many low-income children and 
families in each fiscal year as were provided such services, with such 
funds in the base year in the State (or, if applicable, in the 
geographic area included in the State program). A program under this 
section shall include the following comprehensive activities designed 
to promote school readiness and success in school:
          ``(1) Child development and education.--Activities with 
        enrolled children that promote--
                  ``(A) cognitive development, language development, 
                prereading, and premathematics knowledge and skills;
                  ``(B) physical development, health, and nutrition 
                (including through coordination with, and referral of 
                children and families to local health service entities; 
                and
                  ``(C) social development important for environments 
                constructive for child development, early learning, and 
                school success.
          ``(2) Parent education and involvement.--Activities with the 
        parents of enrolled children directed at enhancing and 
        encouraging--
                  ``(A) involvement in, and ability to support, their 
                children's educational development;
                  ``(B) parenting skills and understanding of child 
                development; and
                  ``(C) ability to participate effectively in decisions 
                relating to the education of their children.
          ``(3) Social and family support services.--Activities 
        directed at securing appropriate social and family support 
        services for enrolled children and their families, primarily 
        through referral and coordination with local, State, and 
        Federal entities that provide such services.
          ``(4) Head start services.--For purposes of paragraph (1) 
        Head Start services furnished in a State program under this 
        section shall include all Head Start services, other than--
                  ``(A) Indian Head Start programs and migrant and 
                seasonal Head Start programs supported with funds 
                reserved under section 640(a)(2)(A); and
                  ``(B) Early Head Start services provided under 
                section 645A.
  ``(h) State Plan.--A State proposing to administer a program under 
this section shall submit a State plan to the Secretary. The State plan 
shall include the following:
          ``(1) Lead state agency.--The plan shall identify the entity 
        designated by the Chief Executive Officer of the State as the 
        lead State agency.
          ``(2) Geographic area.--The plan shall specify whether the 
        program is statewide, and, if it is not, identify the 
        geographic area or areas covered by the plan. A geographic area 
        may be a city, county, standard metropolitan statistical area, 
        or such other geographic area in the State.
          ``(3) Program period.--A State program under this section 
        shall be in effect for 5 Federal fiscal years.
          ``(4) Program description.--The plan shall describe the 
        services under subsection (f) to be provided in the program and 
        arrangements the State proposes to use to provide the services 
        specified in subsection (g), including how the State will 
        leverage existing delivery systems for such services.
          ``(5) Needs assessment.--The plan shall describe the results 
        of a State needs assessment and shall provide an assurance that 
        the State will use the results to identify the needs for early 
        childhood education services within a State or geographic area 
        to be served and is targeting services to those areas of 
        greatest need and to expand and improve services to 
        disadvantaged children in the State.
          ``(6) Assurance of compliance.--The plan shall provide an 
        assurance that the State program will comply with the 
        requirements of this section, including each of the following:
                  ``(A) Priority for low-income children.--Requirements 
                established pursuant to section 645(a) concerning the 
                eligibility and priority of individuals for 
                participation in Head Start programs.
                  ``(B) Continuation for existing providers.--An 
                applicant who received funds under this subchapter in 
                prior fiscal years and has not corrected any 
                substantial deficiencies identified in the past 5 years 
                shall not be eligible to receive any grants, contract, 
                or cooperative agreements under this section.
                  ``(C) Participation of children with disabilities.--
                Requirements pursuant to section 640(d) concerning Head 
                Start enrollment opportunities and services for 
                children with disabilities.
                  ``(D) Provisions concerning fees and copayments.--The 
                provisions of section 645(b) concerning the charging of 
                fees and the circumstances under which copayments are 
                permissible.
                  ``(E) Federal share; state and local matching.--The 
                provisions of section 640(b) limiting Federal financial 
                assistance for Head Start programs, and providing for 
                non-Federal contributions.
                  ``(F) Administrative costs.--The provisions of 
                section 644(b) limiting the share of program funds that 
                may be used for developing and administering a program.
                  ``(G) Federal property interest.--Applicable 
                provisions of this subchapter regarding the Federal 
                Government interest in property (including real 
                property) purchased, leased, or renovated with Federal 
                funds.
          ``(7) Identification of barriers.--The plan shall identify 
        barriers in the State to the effective use of Federal, State, 
        and local public funds, and private funds, for early education 
        and care that are available to the State on the date on which 
        the application is submitted.
          ``(8) State guidelines for school readiness.--The plan shall 
        include--
                  ``(A) a State definition of school readiness;
                  ``(B) a description of the State's general goals for 
                school readiness, including how the State intends to--
                          ``(i) promote and maintain ongoing 
                        communication and collaboration between 
                        providers of early care and education and local 
                        educational agencies in the State;
                          ``(ii) align early childhood and kindergarten 
                        curricula to ensure program continuity; and
                          ``(iii) ensure that children successfully 
                        transition to kindergarten.
          ``(9) Teacher qualifications.--The plan shall assure that the 
        qualifications and credentials for early childhood teachers 
        meet or exceed the standards in section 648A(a)(2)(A), (B), and 
        (C).
          ``(10) Professional development.--The plan shall provide a 
        description of the State plan for assuring the ongoing 
        professional development of early childhood educators and 
        administrators including how the State intends to--
                  ``(A) improve the competencies of early childhood 
                educators in meeting the cognitive and other 
                developmental needs of young children through effective 
                instructional strategies, methods, and skills;
                  ``(B) develop and implement initiatives to 
                effectively recruit and promote the retention of well-
                qualified early childhood educators;
                  ``(C) encourage institutions of higher education, 
                providers of community-based training, and other 
                qualified providers to develop high-quality programs to 
                prepare students to be early childhood education 
                professionals; and
                  ``(D) improve the quality of professional development 
                available to meet the needs of teachers that serve 
                preschool children.
          ``(11) Quality Standards.--The State shall describe the 
        State's standards, applicable to all agencies, programs, and 
        projects that receive funds under this subchapter, including a 
        description of--
                  ``(A) standards with respect to services required to 
                be provided, including health, parental involvement, 
                nutritional, social, transition activities described in 
                section 642(d) of this subchapter, and other services;
                  ``(B)(i) education standards to promote the school 
                readiness of children participating in a State program 
                under Title II of this subchapter; and
                  ``(ii) additional education standards to ensure that 
                the children participating in the program, at a minimum 
                develop and demonstrate--
                          ``(I) language skills;
                          ``(II) prereading knowledge and skills, 
                        including interest in and appreciation of 
                        books, reading and writing either alone or with 
                        others;
                          ``(III) premathematics knowledge and skills, 
                        including aspects of classification, seriation, 
                        number, spatial relations, and time;
                          ``(IV) cognitive abilities related to 
                        academic achievement;
                          ``(V) social development important for 
                        environments constructive for child 
                        development, early learning, and school 
                        success; and
                          ``(VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language;
                  ``(C) the State's minimum standards for early 
                childhood teacher credentials and qualifications;
                  ``(D) the student-teacher ratio for each age-group 
                served;
                  ``(E) administrative and financial management 
                standards;
                  ``(F) standards relating to the condition and 
                location of facilities for such agencies, programs, and 
                projects; and
                  ``(G) such other standards as the State finds to be 
                appropriate.
          ``(12) State accountability system.--
                  ``(A) In general.--The State plan shall--
                          ``(i) ensure that individual providers are 
                        achieving results in advancing the knowledge 
                        and behaviors identified by the State as 
                        prerequisites for kindergarten success; and
                          ``(ii) specify the measures the State will 
                        use to evaluate the progress toward achieving 
                        such results and the effectiveness of the State 
                        program under this section, and of individual 
                        providers in such program.
                  ``(B) Publication of results.--
                          ``(i) In general.--Subject to clause (ii), 
                        the results shall be made publicly available in 
                        the communities served by the program.
                          ``(ii) Confidentiality safeguards.--The 
                        system shall have in effect privacy safeguards 
                        ensuring that information on children included 
                        in data and results made public in accordance 
                        with clause (i) shall be in aggregated form, 
                        and shall not include information allowing 
                        identification of individual children.
          ``(13) Transition plan.--The initial State plan shall make 
        provision for transition from the direct Federal program under 
        section 640 to the demonstration program.
          ``(14) Cooperation with research studies.--The plan shall 
        provide assurances that the State will cooperate with research 
        activities described in section 649.
          ``(15) Maintenance of effort.--The State plan shall--
                  ``(A) contain a commitment to provide data, at such 
                times and in such format as the Secretary requires, 
                concerning non-Federal expenditures and numbers of 
                children and families served in preschool and Head 
                Start programs during the base year and each fiscal 
                year covered under the State plan, sufficient to 
                satisfy the Secretary that the State program will meet 
                its obligation with respect to the maintenance of 
                effort requirement under subparagraph (B); and
                  ``(B) assure that the resources (which may be cash or 
                in-kind) contributed by the State government to child 
                care for preschool-aged children and other preschool 
                programs, including Head Start, in the State (or, if 
                applicable, in the geographic area included in the 
                State program) for each fiscal year in which the 
                program under this section is in effect shall be in an 
                amount at least equal to the total amount of such State 
                governmental resources contributed to support such 
                programs in the State (or geographic area) for the base 
                year.
          ``(16) Training and Technical Assistance.--The State plan 
        shall describe the training and technical assistance activities 
        that shall provide high quality, sustained, intensive, and 
        classroom-focused training and technical assistance in order to 
        have a positive and lasting impact on classroom instruction.
  ``(i) Records, Reports and Audits.--The State agency administering 
the State program, and each entity participating as a Head Start 
service provider, shall maintain such records, make such reports, and 
cooperate with such audits as the Secretary may require for oversight 
of program activities and expenditures.
  ``(j) Inapplicability of Provisions Concerning Priority in Agency 
Designation.--The provisions of subsections (c) and (d) of section 641 
(concerning priority in designation of Head Start agencies, successor 
agencies, and delegate agencies) shall not apply to a State program 
under this section.
  ``(k) Consultation.--A State proposing to administer a program under 
this section shall submit, with the plan under this section, assurances 
that the plan was developed through timely and meaningful consultation 
with appropriate public and private sector entities, including--
          ``(1) representatives of agencies responsible for 
        administering early education and care programs in the State, 
        including Head Start providers;
          ``(2) parents;
          ``(3) the State educational agency and local educational 
        agencies;
          ``(4) early childhood education professionals;
          ``(5) kindergarten teachers and teachers in grades 1 through 
        4;
          ``(6) child welfare agencies;
          ``(7) child care resource and referral agencies;
          ``(8) child care providers; and
          ``(9) a wide array of persons interested in and involved with 
        early care and early education issues in the State, such as 
        representatives of--
                  ``(A) health care professionals;
                  ``(B) the State agency with responsibility for the 
                special supplemental nutrition program for women, 
                infants, and children established by section 17 of the 
                Child Nutrition Act of 1966;
                  ``(C) institutions of higher education;
                  ``(D) community-based and faith-based organizations;
                  ``(E) the business community;
                  ``(F) State legislators and local officials;
                  ``(G) museums and libraries;
                  ``(H) other relevant entities in the State; and
                  ``(I) other agencies that provide resources for young 
                children.
  ``(l) State Plan Submission.--An application shall be submitted by a 
State pursuant to this section to the Secretary, in consultation with 
the Secretary of Education, and shall be deemed to be approved by the 
Secretary unless the Secretary makes a written determination, prior to 
the expiration of a reasonable time beginning on the date on which the 
Secretary received the application, that the application is not in 
compliance with this section.
  ``(m) Treatment of Funds.--If a State or local government contributes 
its own funds to supplement activities carried out under the applicable 
programs, the State or local government has the option to separate out 
the Federal funds or commingle them. If the funds are commingled, the 
provisions of this subchapter shall apply to all of the commingled 
funds in the same manner, and to the same extent, as the provisions 
apply to the Federal funds.
  ``(n) Federal Oversight Authority; Corrective Action; Withdrawal of 
Approval.--
          ``(1) Federal oversight.--The Secretary shall retain the 
        authority to oversee the operation of the State program under 
        this section, including through review of records and reports, 
        audits, and onsite inspection of records and facilities and 
        monitoring of program activities and operations.
          ``(2) Correction of deficiencies.--If the Secretary 
        determines that a State program under this section 
        substantially fails to meet the requirements of this section, 
        the Secretary shall notify the State of the deficiencies 
        identified and require corrective action as follows:
                  ``(A) Deficiencies causing immediate jeopardy.--The 
                Secretary shall require immediate corrective action to 
                eliminate a deficiency that the Secretary finds 
                threatens the health or safety of staff or program 
                participants or poses a threat to the integrity of 
                Federal funds.
                  ``(B) Other deficiencies.--The Secretary, taking into 
                consideration the nature and magnitude of a deficiency 
                not described in subparagraph (A), and the time 
                reasonably required for correction, may--
                          ``(i) require the State to correct the 
                        deficiency within 90 days after notification 
                        under this paragraph; or
                          ``(ii) require the State to implement a 
                        quality improvement plan designed to correct 
                        the deficiency within one year from 
                        identification of the deficiency.
          ``(3) Withdrawal of approval.--If the deficiencies identified 
        under paragraph (2) are not corrected by the deadlines 
        established by the Secretary, the Secretary shall initiate 
        proceedings to withdraw approval of the State program under 
        this section.
          ``(4) Procedural rights.--A State subject to adverse action 
        under this subsection shall have the same procedural rights as 
        a Head Start agency subject to adverse action under section 
        641A.
  ``(o) Independent Evaluation.--
          ``(1) In General.--The Secretary shall contract with an 
        independent organization outside of the Department to design 
        and conduct a multi-year, rigorous, scientifically valid, 
        quantitative evaluation of the State demonstration program.
          ``(2) Process.--The Secretary shall award a contract within 
        180 days of the date of enactment of the School Readiness Act 
        of 2003, to an organization that is capable of designing and 
        carrying out an independent evaluation described in this 
        subsection.
          ``(3) Analysis.--The evaluation shall include an analysis of 
        each State participating in the State demonstration program, 
        including--
                  ``(A) A quantitative description of the State 
                prekindergarten program and Head Start programs within 
                such State, as such programs existed prior to 
                participation in the State demonstration program, 
                including:
                          ``(i) data on the characteristics of the 
                        children served, including the overall number 
                        and percentages of children served 
                        disaggregated by socioeconomic status, race and 
                        ethnicity of those served;
                          ``(ii) the quality and characteristics of the 
                        services provided to such children; and
                          ``(iii) the education attainment of 
                        instructional staff.
                  ``(B) A quantitative and qualitative description of 
                the State program after each year of participation in 
                the State demonstration, which shall include each of 
                the following:
                          ``(i) A description of changes in the 
                        administration of the State program, including 
                        the Head Start program, within such State.
                          ``(ii) The rate of progress of the State in 
                        improving the school readiness of disadvantaged 
                        children in the key domains of development.
                          ``(iii) Data as described in subparagraph 
                        (A), as updated annually.
                          ``(iv) The extent to which each State has met 
                        the goals established by such State with 
                        respect to annual goals as described under 
                        section 643(h)(10).
          ``(4) Report.--(A) The Secretary shall provide an interim 
        report on the progress of such evaluation and of the progress 
        of States participating in the State demonstration in 
        increasing the availability of high quality prekindergarten 
        services for low-income children not later than October 1, 2006 
        to the Committee on Education and the Workforce in the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions in the Senate.
          ``(B) The Secretary shall provide a final report to the 
        Committee on Education and the Workforce in the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions in the Senate, not later than October 1, 2007, 
        which shall include an overall evaluation of the State 
        demonstration program, including an assessment of its success 
        in increasing the overall availability of high quality 
        prekindergarten services for low income children in each of the 
        participating States as compared to a representative sample of 
        non-participating States.
  ``(p) Definition.--For purposes of this section, the term `base year' 
means the fiscal year 2003.''.

                                Purpose

    H.R. 2210, the School Readiness Act of 2003, amends and 
improves the Head Start Act to improve the school readiness of 
disadvantaged children, and for other purposes.

                            Committee Action


                         SUBCOMMITTEE HEARINGS

    On March 6, 2003, the Subcommittee on Education Reform held 
a hearing on Head Start: Working Toward Improved Results for 
Children. The hearing addressed the effectiveness of the Head 
Start program in preparing low-income children for school. The 
testifying witnesses included Dr. Wade Horn, Assistant 
Secretary of the Administration for Children and Families, 
Department of Health and Human Services, Washington, DC; 
Governor John Rowland of Connecticut; Ms. Nell Carvell, 
developer of the LEAP Curriculum used in the Cone Head Start 
Center of Dallas, Texas; Mr. Ron Herndon, Chairman of the 
National Head Start Association located in Arlington, Virginia, 
and Mr. Dwayne Crompton, Executive Director of the KCMC Child 
Development Corporation of Kansas City, Missouri.
    On June 3, 2003, the Subcommittee on Education Reform held 
a second hearing, discussing H.R. 2210, the School Readiness 
Act of 2003. Ms. Amy Wilkins, Executive Director of The Trust 
for Early Education, Washington, DC; Dr. Robert Lawrence, 
Assistant Director of Collaborative Services and Director of 
the Head Start State Collaboration Project in the Georgia 
Office of School Readiness of Atlanta, Georgia (accompanied by 
Ms. Daphne Haley, Director of the Pre-kindergarten Division of 
the Georgia Office of School Readiness of Atlanta, Georgia); 
and Ms. Helga Lemke, Executive Director of the Community Action 
Partnership of Sonoma County, in Santa Rosa, California all 
testified before the Subcommittee.

                           LEGISLATIVE ACTION

    On Tuesday, May 22, 2003, Representative Michael N. Castle, 
along with Representatives Boehner (R-OH), Brown (R-SC), 
Cunningham (R-CA), Isakson (R-GA), McKeon, (R-CA), Murphy (R-
PA), Regula (R-OH), and Wilson (R-SC) introduced H.R. 2210, the 
School Readiness Act of 2003, a bill to reauthorize the Head 
Start Act through 2008.
    On Thursday, June 12, 2003 the Subcommittee on Education 
Reform considered H.R. 2210 in legislative session and reported 
it favorably, as amended, to the Committee on Education and the 
Workforce. The rollcall vote was 11-9. The Subcommittee adopted 
the following amendments:
    1. An amendment in the nature of a substitute offered by 
Mr. Castle, adopted by a rollcall vote of 11-9. The substitute 
amendment contained technical and clarifying changes to both 
Title I and Title II of the base bill, as well as the 
following:
           Language declaring that monitoring visits 
        would be unannounced;
           Language clarifying that faith-based Head 
        Start providers may hire only those with similar 
        religious beliefs;
           A limitation of eight on the number of 
        states permitted to participate in the demonstration 
        program;
           A requirement that the education standards 
        developed by the states in the demonstration address 
        the same categories as in the Title I program;
           An elimination of the option to include 
        Early Head Start in the state demonstration; and
           A requirement that an interim report be 
        provided to Congress evaluating the progress made by 
        states participating in the demonstration toward 
        increasing the availability of high quality pre-school 
        to low-income children.
    2. An amendment offered by Mr. Osborne, adopted by voice 
vote. Mr. Osborne's amendment maintains and strengthens 
parental involvement as children transition from Head Start to 
kindergarten.
    3. An amendment offered by Mr. Upton, adopted by a roll 
call vote of 10-8. Mr. Upton's amendment extends the period of 
time for which current local Head Start grantees receive 
funding at the fiscal year 2003 level or higher. In the 
substitute, the time period is listed as one year. The 
amendment increases the hold harmless period to three years.
    4. An amendment offered by Mrs. Biggert, adopted by voice 
vote. Mrs. Biggert's amendment, through both allowable and 
required uses of funds, increases and improves Head Start 
services to homeless children by ensuring that grantees conduct 
outreach to the local homeless population and requiring 
coordination between grantees and school based coordinators 
authorized by the McKinney-Vento Homeless Education Improvement 
Act.
    5. Three amendments offered en bloc by Mr. Grijalva, 
adopted by voice vote. Mr. Grijalva's first amendment requires 
that in the periodic review of the Head Start grantee, an 
assessment be conducted regarding the extent to which the 
program has met community needs, particularly the needs of 
limited English proficient and migrant and seasonal 
populations. The second, as an allowable use of funds, directs 
local grantees to use quality improvement funds for outreach to 
limited English proficient and migrant and seasonal families. 
The third of Mr. Grijalva's amendments, as a required use of 
technical and training assistance funds, mandates that the 
Secretary provide funds for the training of Head Start 
personnel in addressing the unique needs of limited English 
proficient and migrant and seasonal families.
    6. Two amendments offered en bloc by Mr. Ehlers, adopted, 
as altered, by voice vote. Mr. Ehlers' first amendment further 
clarifies ``pre-mathematics knowledge and skills'' as used in 
education standards under the quality standards in both Title I 
and Title II. Mr. Ehlers' second amendment includes migrant and 
seasonal Head Start programs as Early Head Start eligible 
service providers, and also includes migrant and seasonal Head 
Start providers in the list of entities that must be consulted 
with when developing a state-wide system of training and 
technical assistance.
    7. An amendment offered by Mr. Platts, adopted by voice 
vote. Mr. Platts' amendment requires states participating in 
the demonstration described in Title II to have early childhood 
education standards that ``generally meet or exceed'' the 
national Head Start standards. In addition, the amendment 
requires standards for teacher qualifications that ``meet or 
exceed'' those outlined in the School Readiness Act of 2003.
    8. An amendment offered by Mrs. Davis of California, 
adopted by a roll call vote of 11-6. Mrs. Davis' amendment 
reinserts the wording containing ``social and emotional'' in 
the various places it was removed in the substitute.
    9. An amendment offered by Mr. Kind, adopted by voice vote. 
Mr. Kind's amendment, through a required use of funds, directs 
the Secretary to contract with the National Academy of 
Sciences' Board of Children, Youth, and Families of the 
National Research Council and the Institute of Medicine. The 
contract would establish an independent panel of experts to 
research and make recommendations on early childhood pedagogy. 
The Secretary shall use these recommendations where appropriate 
to revise Head Start education performance standards, measures, 
and assessments.
    10. An amendment offered by Mr. Van Hollen, adopted by 
voice vote. Mr. Van Hollen's amendment requires the creation of 
developmentally appropriate curricula between Head Start and 
the local educational agency to ensure an effective transition 
and appropriate shared expectations during the transition from 
Head Start programs to kindergarten.
    11. An amendment offered by Mr. Davis and Mr. Case, adopted 
11-9. This amendment strikes language replacing ``multi-
cultural nature of '' with ``variations of '' in the substitute 
referencing section 649. It also inserts ``including linguistic 
and cultural'' to describe issues about which the reviewers 
should have knowledge to effectively conduct reviews of Head 
Start programs.
    12. An amendment offered by Mrs. Majette, adopted by voice 
vote. Mrs. Majette's amendment requires consideration of both 
education standards and comprehensive services standards when 
designating agencies to be Head Start providers and when 
selecting providers to consult when creating a statewide system 
of training and technical assistance.
    On June 18-19, 2003 the Committee on Education and the 
Workforce considered H.R. 2210 in legislative session. On June 
19, 2003, the Committee reported the bill favorably, as 
amended, to the House of Representatives. The rollcall vote was 
27-20. The Committee adopted the following amendments:
    1. An amendment in the nature of a substitute offered by 
Mr. Castle, adopted by voice vote. The substitute amendment 
contained technical and clarifying changes to both Title I and 
Title II of the base bill, as well as the following:
           Language clarifying that no more than 10 
        percent of children who do not meet Head Start income 
        eligibility requirements may be served by the program;
           Language clarifying that nothing in the 
        School Readiness Act should be construed to require a 
        state to establish a program of early education for 
        children in the state or require any child to 
        participate in a program of early education;
           Language requiring all curricula and 
        instructional materials to be scientifically based, 
        age-appropriate, and provided to parents for inspection 
        upon their request;
           Language requiring the Secretary to consult 
        with a state's collaboration board when awarding state 
        training and technical assistance grants;
           Language addressing issues related to abused 
        or neglected children in need of Head Start services;
           Language clarifying that states 
        participating in the state demonstration program have 
        the option of separating or commingling state and 
        federal funds, and that all commingled early education 
        funds are to be treated as federal funds;
           Language requiring grantees participating in 
        the state option must comply with the state plan, even 
        during the three year hold harmless period; and
           Language stipulating that the three year 
        hold harmless period takes effect on the date of 
        enactment of the School Readiness Act.
    2. An amendment offered by Mrs. Biggert, adopted by voice 
vote. This amendment adds language restricting the use of 
training and technical assistance funds for long distance 
travel when similar training is available locally.
    3. An amendment offered by Mr. Ehlers, adopted by voice 
vote. This amendment, through an allowable use of funds, adds 
language giving migrant and seasonal Head Start programs 
priority in receiving money to serve additional children, if 
the budget for training and technical assistance money is less 
than 2 percent.
    4. An amendment offered by Mrs. Musgrave, adopted by voice 
vote. This amendment adds language requiring Head Start 
agencies to consult with local preschool and child care 
providers to assess the cost effectiveness of collaboration 
before deciding building or purchasing a new facility.
    5. An amendment offered by Mr. Tierney, adopted by voice 
vote. This amendment adds homeless families as one of the 
populations requiring specific outreach and training by Head 
Start programs and personnel.
    6. An amendment offered by Mr. Davis of Illinois, adopted 
by voice vote. This amendment requires grantees to extend 
outreach to fathers and conduct other activities performed in 
order to strengthen the role of fathers in families.
    7. An amendment offered by Mrs. Musgrave, adopted by voice 
vote. This amendment requires states, when submitting an 
application to participate in the state demonstration program, 
to include in their plan how they will leverage existing 
systems for the delivery of early childhood education services.

                                Summary


Purpose

    The School Readiness Act of 2003 reforms Head Start to 
improve the overall school readiness of disadvantaged children 
through an increased academic focus and the continued provision 
of health, nutrition, and other services.

                                TITLE I

Funding

    The School Readiness Act authorizes $6.87 billion for 
fiscal year 2004, and such sums as may be necessary for fiscal 
years 2005 through 2008. This is a $202 million increase over 
fiscal year 2003 levels. Of the total amount, $20 million is 
authorized for new or ongoing reports and evaluations of the 
Head Start program. An additional $5 million is authorized for 
each fiscal year from 2004 through 2008 to help Governors who 
develop and implement a coordinated state system for early 
childhood education.

Academic focus/school readiness

    The School Readiness Act establishes new quality standards 
that ensure children enrolled in the program develop and 
demonstrate: language skills; pre-reading knowledge, including 
an interest in and appreciation of books; reading and writing; 
pre-mathematics knowledge, such as recognition of numbers and 
counting; cognitive abilities related to academic achievement; 
and social development important for environments constructive 
for child development, early learning and school success. The 
School Readiness Act continues to require limited English 
proficient (LEP) children to make progress toward acquisition 
of the English language. It requires applicants to demonstrate 
the capacity to serve eligible children with scientifically 
based programs that promote school readiness and meet quality 
standards.

Teacher quality/professional development

    In response to consistent research findings that teacher 
quality directly affects child outcomes, the School Readiness 
Act of 2003 requires at least 50 percent of Head Start teachers 
nationwide to have a baccalaureate degree by September 30, 
2008, and all new Head Start teachers hired after three years 
from the date of enactment to have at least an associate degree 
or be enrolled in a program leading to a degree in early 
childhood education or related field. All Head Start grantees 
are required to create a professional development plan for each 
full-time employee who provides direct services to children.

Coordination and collaboration

    The School Readiness Act enhances coordination of Head 
Start with numerous public and private entities in an effort to 
generate support and leverage the resources of the entire local 
community to improve school readiness. Head Start grantees are 
asked to coordinate their programs with state pre-kindergarten 
and other publicly funded early childhood education programs, 
the chief state school officer, and local education agencies. 
The School Readiness Act also encourages Head Start 
collaboration with community- and faith-based organizations, 
state and local social service agencies, museums, libraries, 
and the private sector. State collaboration grants are to be 
funded in each state and be managed by a high-level official 
appointed by the Governor. The Director of State Collaboration 
is required to create a board that includes state and local 
entities involved in providing services to low-income children 
and their families. The board will work with the Director of 
State Collaboration to assess community needs and implement 
activities to improve statewide coordination and collaboration 
of early childhood education.

Training and technical assistance (T&TA)

    The School Readiness Act changes the training and technical 
assistance (T&TA) set-aside from at least 2 percent to at least 
1 percent, but no more than 2 percent, to provide additional 
flexibility with program dollars. Of the total amount reserved 
for T&TA, 50 percent is directed to local Head Start agencies 
for use in complying with performance standards; 30 percent 
will support state networks providing early childhood education 
training; and 20 percent is provided to the Secretary to assist 
local Head Start programs in meeting the performance standards.
    The School Readiness Act authorizes the use of funds to 
develop a coordinated statewide system of training and 
technical assistance. States are encouraged, but not required, 
to supplement Head Start funds with additional state funds to 
leverage the T&TA infrastructure for use by other early 
childhood educators. The entity designated to provide T&TA at 
the state level is to be selected by the Secretary, in 
consultation with the collaboration board under the direction 
of the State Director of Collaboration, by a competitive bid 
process.

                                TITLE II

    Title II of H.R. 2210 authorizes a state demonstration 
program to allow a limited number of states the opportunity to 
integrate preschool programs with Head Start to create a 
seamless system of early education and care with the goal of 
ensuring that all participating children are prepared to 
succeed in school.

Eligibility

    The state demonstration is limited to 8 states with a 
proven investment in early childhood education and an 
established, pre-existing preschool system with school 
readiness guidelines and quality standards. In order to be 
eligible a state would need to demonstrate that it:
           Currently invests in Head Start or state 
        pre-kindergarten programs at a funding level that is 
        equal to at least half of the state's head start 
        allotment;
           Has existing pre-K state standards aligned 
        with state K-12 education standards (a state with pre-
        existing standards may be eligible if such standards 
        are not aligned with state K-12 standards if the state 
        agrees to realign standards within two years);
           Has existing professional development 
        criteria for early childhood educators; and
           Has an established means of inter-agency 
        coordination.

Participation

    Eligible states would be required to submit a plan to the 
Secretary of Health and Human Services that would describe how 
the state intends to coordinate Head Start programs with other 
publicly funded early education programs, including state 
preschool programs, Early Reading First, Even Start, and Title 
I preschool activities. States would be encouraged, but not 
required, to coordinate child care programs that receive 
funding under the Child Care and Development Block Grant and 
other child care services with the above programs.

Commitment to state funding for early childhood education

    A state participating in the demonstration program would be 
required to maintain or expand its financial commitment to 
early childhood education. To qualify for participation, a 
state must invest at a level that is equal to at least half of 
the state's Head Start allotment. States would be restricted 
from displacing current spending on early childhood education 
with funds received by the state to support Head Start. 
Participating states would not be permitted to use federal or 
state early childhood education funds for anything other than 
Head Start and other early education programs. States that 
participate in the demonstration project must remain committed 
to investing non-federal dollars in early childhood education 
at the state level through maintenance of effort (MOE) based on 
fiscal year 2003 spending and a 5 percent state match 
requirement from any non-federal sources (in addition to the 
MOE). For the purposes of the state match, in-kind 
contributions such as professional development and building 
space may be considered as state spending, but states could not 
include dollars spent from federal block grants (for example, 
TANF or CCDBG) or other federal sources in their calculation of 
state spending on early childhood education.

Quality standards

    In order to participate in the state demonstration program, 
states must have standards for school readiness and 
comprehensive services that ``generally meet or exceed'' the 
federal Head Start standards. These state standards that meet 
or exceed Head Start standards are required in the following 
areas:
           Services to be provided (including health, 
        parental involvement, nutritional, social and 
        transition);
           Education standards to promote school 
        readiness;
           Administrative financial management;
           The condition and location of facilities 
        operating programs; and
           Other standards the state determines to be 
        appropriate.
    States must require that their early childhood teachers 
meet or exceed federal Head Start standards: all new hires must 
have an associate degree by 2005 and half of all teachers have 
a bachelor degree by 2008. Finally, states must continue to 
provide the same level of comprehensive services, including 
health and nutrition services, parental involvement and social 
and family support services.

Protection for current grantees

    Current grantees that have not experienced substantial and 
uncorrected deficiencies on HHS monitoring reports within the 
past 5 years would continue to receive funding for three years 
after the date of enactment of the School Readiness Act of 
2003. In order to continue providing services in a state 
participating in the demonstration program, grantees must 
adhere to all state plan requirements of that state.

Evaluation

    The bill authorizes an independent evaluation of the state 
demonstration program designed and conducted by an independent 
advisory committee to produce findings on the success of the 
demonstration in improving the quality of services provided and 
the progress of the state in improving the school readiness of 
disadvantaged children. An interim report is due to Congress by 
October 1, 2006 and a final report by October 1, 2007.

                            Committee Views


                                OVERVIEW

    Head Start was established in 1965 by President Lyndon B. 
Johnson as part of the War on Poverty and is one of the 
nation's most popular domestic programs. The program provides 
educational and other support services to prepare extremely 
low-income children for school. Strengthening early childhood 
education programs, including Head Start, is one of President 
George W. Bush's top domestic policy agenda items. Head Start 
is the federal government's largest effort to prepare the 
nation's most disadvantaged children for school.
    Head Start provides a range of services, including 
education, nutrition, health, and parent training, to over 20 
million preschool children and their families living in 
poverty. Federal Head Start funds are provided directly to 
local grantees, rather than through states. Programs are 
locally designed and administered by a network of about 1,500 
public and private nonprofit agencies, or grantees. Grantees 
are required to reserve at least ten percent of their slots for 
children with disabilities. In 1994, Early Head Start was 
established to serve pre-natal mothers and infants and toddlers 
under the age of three.
    The School Readiness Act of 2003, H.R. 2210, reforms Head 
Start to improve the overall school readiness of disadvantaged 
children through an increased focus on academic performance. 
Improving school preparedness and teacher quality are key 
components of H.R. 2210. These goals are critical given the new 
requirements of the No Child Left Behind Act, which mandates 
that children read on grade level by the end of third grade.
    The School Readiness Act closely mirrors the 
Administration's Head Start plan that builds upon the themes 
and conceptual framework for early childhood education outlined 
in the Good Start, Grow Smart plan introduced by the President 
last year. It includes a state demonstration program that would 
allow 8 eligible states with pre-existing state pre-
kindergarten programs to integrate Head Start into their state-
run system of early childhood education. However, the School 
Readiness Act would not move the program's administrative 
functions from the Department of Health and Human Services to 
the Department of Education as proposed by the President.

         ENHANCING THE SCHOOL READINESS OF HEAD START CHILDREN

    Knowledge about children's learning has expanded greatly 
during the past two decades. Research in the neurobiological 
and behavioral sciences suggests the importance of a child's 
experiences during the first years of life for healthy brain 
development. From birth through age five, children rapidly 
develop the capabilities on which subsequent development 
builds. According to child development expert Dr. T. Berry 
Brazeleton, ``A child's experiences in the first months and 
years of life determine whether he or she will enter school 
eager to learn or not.''
    Given all that has been learned about the development of 
young children, there is not a single definition of school 
readiness that is consistently used across this country. A 
group of researchers at the Frank Porter Graham Child 
Development Center at the University of North Carolina have 
defined school readiness as the condition of children when they 
enter school, and the capacity of schools to educate the 
children enrolled. According to the research team, ``the 
readiness puzzle can only be solved if the two pieces fit 
together'' (Bailey, 1999).
    While the resources to fund Head Start are significant, 
results have sometimes been mixed. Studies indicate that 
children who are enrolled in Head Start make some progress, but 
are still lagging far behind the national average in school 
readiness. A recent publication by the U.S. Department of 
Health and Human Services (HHS), Strengthening Head Start: What 
the Research Shows, provides an in-depth analysis of the 
outcomes for children and families served by the Head Start 
program. Based on data from the Family and Child Experiences 
Survey (FACES), the HHS analysis concludes that both higher and 
lower achieving Head Start children have low scores on school 
readiness evaluations overall and show limited progress after 
completion of the Head Start program. In other words, Head 
Start children enter and leave the program with below-average 
skills and knowledge levels (HHS, 2003).
    These data indicate that Head Start children are entering 
kindergarten without the crucial knowledge levels that have 
been proven to be excellent predictors of later school success. 
The problems that so many of these children will experience 
later in their academic careers are beginning well before they 
enter school. The importance of all children achieving academic 
parity upon entry into kindergarten is critical since children 
who start behind have been shown to stay behind.
    To accomplish the goal of ensuring that Head Start children 
develop the cognitive competencies necessary to succeed, the 
School Readiness Act significantly enhances program emphasis on 
cognitive development and school readiness, while retaining the 
commitment to providing comprehensive social services. It is 
the Committee's view that Head Start, a program to enhance 
school readiness, has historically placed an unbalanced 
emphasis on providing health and social services to children 
and their families, which has resulted in Head Start children 
not making the cognitive gains necessary to begin school with 
an equal opportunity to succeed. The Committee recognizes the 
importance of all domains of development in order for a child 
to be school ready, however Head Start is not making good on 
its promise if Head Start children are not fully prepared to 
enter school.
    A critical component of school readiness is the attainment 
of pre-reading abilities. As such, Head Start programs should 
provide children from low income families a high-quality, oral 
language and literature-rich environment. Through scientific 
research, much has been learned about the way children learn to 
read, and the strong foundation that is important before 
children are given formal reading instruction in kindergarten 
and first grade. Consistent with the Early Reading First 
initiative launched as part of the No Child Left Behind Act, 
Head Start must play a pivotal role in this effort. In addition 
to caring for the emotional and social needs of children under 
their care, Head Start programs must encourage and promote 
cognitive development activities along with professional 
development for teachers and staff based on scientific research 
in reading.
    Children who have poor beginning reading skills are less 
likely to develop better reading skills through their school 
careers. There are several generalizations about reading 
instruction that should be taken into account by Head Start 
teachers. For example, if children can correctly identify 
letters of the alphabet before they enter kindergarten, it is 
more likely that they will learn to read words in school faster 
than children who do not possess this knowledge. Experimental 
findings consistently confirm that children's knowledge of the 
alphabet is a strong predictor of their later progress in 
learning to read words accurately, quickly and automatically. 
Professional development and instructional activities should 
include an understanding of semiotic concepts, a term to 
describe the general theory of signs and symbols that represent 
written language, comprised of syntactics, semantics and 
pragmatics.
    Head Start programs, in seeking to achieve the best pre-
reading outcomes for children, are encouraged to access 
scientific, research-based screening tools in order to assist 
Head Start children by fashioning activities and instruction to 
meet their specific needs. One such screening tool is the 
National Center for Learning Disabilities' Get Ready to Read! 
pre-reading program. This allows teachers to screen four-year-
olds to determine their familiarity with pre-reading concepts 
and provide parents, early childhood teachers, and caregivers 
with research-based information about how to build young 
children's pre-reading abilities.
    The Committee also recognizes the importance of pre-
mathematics skills for young children. Promoting pre-
mathematics and pre-science knowledge and abilities is 
important for school readiness. These competencies may be 
promoted through early science and math experiences, including 
observing with senses, predicting, inferring, defining and 
controlling variables, working in teams, and communicating 
discoveries. Examples of science and math experiences may 
include planting different seeds, with various types of growing 
medium, light, and water; building towers with various block 
sizes; employing ramps and different balls; watching ice melt 
in different environments, etc.
    The School Readiness Act updates the Head Start quality 
standards and performance measures to reflect scientific 
advances relating to the core areas of competence fundamental 
to children's school readiness. The new quality standards will 
require Head Start teachers to ensure that children enrolled in 
the program develop and demonstrate the following: language 
skills; pre-reading knowledge, including an interest in and 
appreciation of books, reading and writing either alone or with 
others; pre-mathematics knowledge, such as recognition of 
numbers and counting; cognitive abilities related to academic 
achievement; and, social development important for environments 
constructive for child development, early learning and school 
success. Additionally, the School Readiness Act eliminates the 
previous educational performance measures that were arbitrary 
and misaligned with the school readiness competencies specified 
under the quality and educational standards section.
    Finally, the School Readiness Act continues to require 
limited English proficient (LEP) children to make progress 
toward acquisition of the English language, and requires Head 
Start grantees to demonstrate the capacity to serve eligible 
children with scientifically based programs that promote school 
readiness and meet quality standards.
    While the statutory improvements of H.R. 2210 are expected 
to raise the cognitive abilities of Head Start children, the 
Committee believes that the Head Start performance measures 
defined in regulations by the Secretary of Health and Human 
Services also need revision. The performance standards provided 
in regulations appear to be in many cases redundant, 
burdensome, and not measurable. Additionally, the regulations 
disproportionately address health and social development 
relative to standards for cognitive development and learning. 
For this reason, H.R. 2210 requires that the results-based 
performance measures be updated no less than every four years, 
based on advances in the science of early childhood 
development.

                            TEACHER QUALITY

    According to the National Research Council report, Eager to 
Learn, all preschool programs should have a teacher with at 
least a bachelor's degree in early childhood education or a 
related field (National Research Council, 2000). Well-educated 
teachers are a key to early childhood program quality and 
outcomes for children. Research consistently demonstrates a 
link between the learning potential of children and the level 
of education and training of classroom teachers. A lack of 
professional preparation and low compensation affect a host of 
outcomes that may hamper a child's readiness to enter 
kindergarten.
    Since its inception, the Head Start program has been 
providing training and professional development to its workers. 
Today, a certified Child Development Associate, or CDA, is 
required in every Head Start classroom, and half of all Head 
Start teachers have at least an associate's degree in child 
development or a related field. This is good progress, but we 
can do better. Improved academic achievement in Head Start 
simply cannot be accomplished without well-qualified Head Start 
teachers who are trained in evidence-based literacy techniques 
and understand the importance of a language-rich, interactive 
environment for children.
    Research clearly shows that teachers with a minimum of a 
bachelor's degree and specialized training in early childhood 
development are significantly more engaged with children, less 
critical, and less detached from students in their classrooms 
than teachers with less formal education. Research also 
demonstrates that higher teacher qualifications directly 
translate into better results for children in critical areas of 
development, including the attainment of the competencies 
needed to be successful in school.
    The School Readiness Act requires that a greater number of 
Head Start teachers are adequately trained and educated in 
early childhood development, particularly in effectively 
providing pre-reading, language, and pre-mathematics 
instruction. This is a critical goal in order for Head Start 
children to become adequately prepared for kindergarten. In the 
1998 reauthorization, Congress required that 50 percent of Head 
Start teachers acquire a minimum of an associate degree by 
2003--a goal that Head Start has successfully met.
    The School Readiness Act of 2003 sets a new target for 
teacher qualifications. It requires that by three years after 
enactment all newly hired Head Start teachers have at least an 
associate degree or be enrolled in a program leading to an 
associate degree within three years. Additionally, it would 
require that half of all Head Start teachers nationwide have a 
minimum of a baccalaureate degree by 2008. This revised 
requirement has been praised by several groups who advocate on 
behalf of young children, including the Trust for Early 
Education, the Children's Defense Fund, the National 
Association for the Education of Young Children, Fight Crime 
Invest in Kids, and the National Institute for Early Education 
Research.
    H.R. 2210 also requires all Head Start grantees to create a 
professional development plan for all full-time employees who 
provide direct educational services to children. The Committee 
believes that this activity will result in high quality 
professional development that directly benefits the individual 
instructor, Head Start students, and the overall program.

                             ACCOUNTABILITY

    While 85 percent of Head Start grantees provide quality 
services according to the latest monitoring report issued by 
the U.S. Department of Health and Human Services, there are 
some grantees that are not fulfilling their obligation to 
ensure that our nation's neediest children enter school with 
the knowledge they need to succeed. This is evidenced by the 
approximately 170 Head Start programs that have been terminated 
by the Department due to concerns over their quality over the 
past 10 years.
    The Committee believes the current Head Start monitoring 
system is not adequate to ensure that programs are consistently 
delivering the level of high quality services necessary for 
children to advance in all areas of development. Evidence that 
program quality varies greatly is a concern of Congress and of 
high performing grantees that are negatively impacted by the 
poor quality of lower performing grantees. It is the 
Committee's view that the scheduled triennial review process, 
coupled with an automatic renewal of grants on an annual basis, 
does not provide adequate assurances to the Congress and the 
public about Head Start program operations. Therefore the 
School Readiness Act requires that triennial reviews occur on 
an unscheduled basis. It is the Committee's view that 
unscheduled reviews will help to ensure that all programs are 
performing at the highest levels possible at all times.
    The School Readiness Act also requires that grantees 
develop annual program goals and demonstrate that these goals 
are met as a condition of re-funding. Continuation of funding, 
which is now automatic, will be contingent on grantees 
achieving grantee-determined goals for quality improvement. The 
Committee included this new provision to ensure that Head Start 
grantees and the programs under them strive for and are held 
accountable for continuous quality improvement.
    The School Readiness Act also requests an analysis of the 
income eligibility of participating children as part of the 
program reviews. While this is currently a fairly common 
practice, the Committee feels that adding specific statutory 
authority will help to better ensure that Head Start services 
are being targeted to those children who are most in need of 
them.
    To help ensure that Head Start programs are providing the 
highest quality services to students, the School Readiness Act 
also allows the U.S. Department of Health and Human Services to 
contract out for activities associated with the monitoring of 
Head Start grantees. Monitoring is an important part of the 
Department's responsibility for overseeing Head Start. In order 
to ensure the integrity of the monitoring process, the 
Committee believes HHS should be allowed to contract out 
monitoring responsibilities to impartial third parties. With an 
independent evaluator in place, the Committee and the public 
can be assured that the monitoring process will not be 
influenced, even unintentionally, by the personal relationships 
between grantees and the regional offices that they rely on for 
guidance and assistance.

                     THE NATIONAL REPORTING SYSTEM

    Based on authority in current law, the National Reporting 
System (NRS) was developed by the Department of Health and 
Human Services to provide a much needed accountability system 
for Head Start. The NRS is a brief, standardized test given at 
the beginning and end of each program year to assess on a 
limited set of language and literacy indicators all four and 
five year olds in the Head Start program. The assessment is in 
the final stage of development and is scheduled to enter the 
field this summer. The primary purpose of the assessment is to 
have a common measurement instrument to evaluate how well 
individual Head Start programs and grantees are doing in 
preparing children for school.
    There is general agreement by childhood development experts 
on the use of assessments, and children are assessed regularly 
in nearly every preschool program around the country, including 
in all Head Start classrooms. Currently, Head Start children 
participate in assessments that are locally designed and 
implemented. In some cases, these assessments may be useful to 
inform the instructional needs of individual children, but they 
can not be used to evaluate and compare rates of progress and 
the readiness of children in Head Start programs nationwide.
    The new national assessment is generally focused on 
evaluating children's competencies in pre-reading, pre-
mathematics, and language skills, and is conducted by teachers 
familiar with the children in a play-based, interactive or 
observational manner. According to the Administration, the 
assessment takes approximately 15-20 minutes per child and will 
occur at the beginning and end of each year in Head Start prior 
to kindergarten.
    It is the Committee's view that a stronger accountability 
system is needed to ensure that Head Start children are 
prepared for school, but many Committee Members continue to 
have concerns about specific aspects of the NRS. Currently, 
there are many unanswered questions concerning the study 
design, content, administration, and use of test results. 
Furthermore, the Committee urges the Administration to develop 
an accountability system that addresses all aspects of a 
child's development, instead of narrowly focusing on only 
certain domains of school readiness. The Committee believes 
that an open dialogue is needed among HHS, Congress, and the 
Head Start community.
    Despite these outstanding issues, the Committee does not 
recommend suspending the development of a much needed 
accountability system. The Committee is confident that the 
Administration will work in good faith with all Members of 
Congress and the public to address concerns about the new 
accountability system.

                HEAD START ALIGNMENT WITH K-12 EDUCATION

    The landmark No Child Left Behind Act dramatically reformed 
the Elementary and Secondary Education Act of 1965 by 
increasing resources and demanding results from our nation's 
educational system. More specifically, the law required a 
narrowing of the achievement gap that exists between 
disadvantaged students and their more advantaged peers so that 
all children are able to read on grade level by the end of the 
third grade.
    Research shows that children who read well in the early 
grades are far more successful in later years. According to the 
National Institute for Child Health and Development, school 
readiness consists of a broad set of competencies. These 
academic and social competencies that define school readiness 
start developing long before children enter the elementary 
classroom. However, studies show that many children enter 
school without the necessary knowledge and abilities to 
succeed. States report that between 20 percent to nearly half 
of all children entering school are not prepared to succeed in 
school. Evidence further suggests that children who start 
behind tend to stay behind. For these reasons, the Committee 
recognizes the importance of coordinating preschool programs, 
including Head Start, with K-12 education goals. It is critical 
that Head Start programs work closely with local educational 
agencies to coordinate curricula and facilitate a smooth 
transition from Head Start into school.
    The Language Enrichment Activities Program, or LEAP, 
developed for the Cone Head Start Center in Dallas has proven 
that the right curriculum and a strong relationship with a 
community's local elementary school can successfully strengthen 
the cognitive and communications skills of low-income children. 
Children attending the Cone Head Start Center have proven that 
children from low-income families can perform at levels 
comparable to children from a higher socioeconomic level when 
given a quality preschool experience that includes a strong 
curriculum aligned with the K-12 system.
    In an effort to ensure that all children are proficient 
readers by a young age, the No Child Left Behind Act dedicates 
significant resources to reading programs such as Early Reading 
First and Reading First. These programs establish clear and 
specific expectations for what can and should happen for all 
students by insisting that they have the necessary language, 
cognitive, and early reading skills for continued success in 
school.
    The Committee recognizes that the No Child Left Behind Act 
and Head Start share the same goal of ensuring that all of our 
nation's students are able to succeed in school. Therefore the 
School Readiness Act updates the Head Start performance 
standards in accordance with the latest scientifically based 
research regarding the knowledge children need to have in order 
to be successful in school.
    The School Readiness Act also helps to ensure a seamless 
system of education for children of all ages by requiring 
states to consult with their chief state school officer, local 
educational agencies, and local Head start agencies when 
developing school readiness standards and general plans for the 
coordinated delivery of early care and education services at 
both the state and local level.

           INCREASED NEED FOR COORDINATION AND COLLABORATION

    Head Start is one of many federal and state programs that 
together provide approximately $23 billion in funding for 
childcare and preschool education. Because many of these 
programs have developed independently, it is often difficult to 
coordinate these programs to best serve the needs of eligible 
children and families.
    The Committee is concerned that the fragmented service 
delivery system that has resulted from uncoordinated programs 
can hinder program improvement and prevent needy children and 
families from obtaining the full array of services for which 
they qualify. Therefore the School Readiness Act attempts to 
improve the coordination of programs in order to reduce the 
duplication of services, prevent under enrollment, and allow 
gaps in services for needy children and families to be more 
easily addressed. The Committee remains convinced that the more 
efficient use of resources will result in the expansion and 
improvement of services for more eligible children.
    The Committee has been impressed by the ongoing efforts of 
some Head Start programs and a select number of states to 
coordinate programs. For example, the Committee heard testimony 
from Connecticut Governor John Rowland regarding Connecticut's 
School Readiness and Child Day Care Program, which provides 
high quality preschool services for Head Start age children in 
the state. This program links preschools with health care 
services, parent employment programs, family resource centers 
and local elementary schools. As a result, approximately 97 
percent of children enrolled in the program receive health care 
through the state's free or low-cost health plan for children.
    The testimony of Robert Lawrence, the Assistant Director of 
Collaborative Services and Director of the Head Start State 
Collaboration Project within the Georgia Office of School 
Readiness, also provided the Committee with critical 
information about the excellent job the state of Georgia has 
done when it comes to bringing together a variety of entities 
to improve results for children. One example can be seen in the 
Georgia Professional Development Initiative, which is a 
partnership between the Office of School Readiness, the Georgia 
Department of Technical and Adult Education, the Georgia Child 
Care Council, the Department of Human Resources, the Georgia 
Early Learning Initiative, the Region IV Administration for 
Children and Families and Quality Assist, Inc. The purpose of 
this initiative is to assist staff that work in Head Start, 
pre-kindergarten and other early care and education programs to 
complete their education and improve their qualifications to 
work with young children.
    In an effort to replicate the efforts of states like 
Connecticut and Georgia, H.R. 2210 authorizes the Secretary to 
award a collaboration grant annually to each state. This will 
ensure that all states are engaged in the necessary 
coordination and collaboration of services. Specifically the 
legislation enhances coordination of Head Start with other 
entities serving children in the state, including: state pre-
kindergarten and other publicly funded early childhood 
education programs, public elementary and secondary schools, 
community and faith-based organizations, museums, and libraries 
in an effort to improve outcomes for children and leverage the 
resources of local communities in order to improve school 
readiness.
    The Committee feels strongly that the Director of State 
Collaboration should be a position of significant authority, 
appointed by the Governor and preferably located within the 
Office of the Governor. This centralized authority will allow 
for a more comprehensive coordination of services statewide, 
which will assist in providing ``wrap-around'' child care 
services and health care and employment services that are 
critical to the working poor.
    In an effort to engage all community stakeholders, the 
School Readiness Act specifies that a variety of new entities 
must participate in state collaboration activities. Some of 
these entities include: state and local educational agencies, 
state Departments of Health and Human Services, representatives 
of the state Head Start association, representatives from the 
state network of child care resource and referral agencies, and 
community and faith-based organizations. The addition of these 
entities will allow all states to develop a more seamless 
system for the provision of services to needy children and 
families, as well as leveraging the experience and expertise of 
a variety of organizations and individuals.

                   TRAINING AND TECHNICAL ASSISTANCE

    The School Readiness Act changes the training and technical 
assistance set-aside from ``at least two percent'' in current 
law to ``at least one percent, but no more than two percent.'' 
This change will provide additional flexibility with program 
dollars to allow a greater number of eligible children to be 
served. It is estimated that a one percent reduction in 
training and technical assistance funding would create 10,500 
additional slots for Head Start eligible children. A reduction 
in training and technical assistance dollars would continue to 
provide adequate funding for these activities (about $70 
million per year) and help to ensure that these funds are spent 
responsibly. The current statutory requirement to spend at 
least two percent on training and technical assistance 
(approximately $165 million) has resulted in the ineffective, 
even questionable use of these funds.
    The School Readiness Act also restricts the use of training 
and technical assistance funds for travel expenditures 
associated with attending conferences when similar training and 
technical assistance is not available locally. It is the 
Committee's view that occasional travel may be necessary, but 
that excessive travel to Head Start conferences or events is 
generally not an appropriate or effective use of training and 
technical assistance funds. Whenever possible, Head Start 
programs should utilize local or regionally based training 
opportunities and should restrict travel to occasions when an 
identified training need cannot be met through local or 
regional resources. All training and technical assistance 
expenditures should be consistent with the training and 
technical assistance needs identified in a grantee's annual 
plan for training and technical assistance.
    The Committee believes that better information is needed on 
how funds for training and technical assistance are spent, and 
better accountability mechanisms for their use are needed. The 
Committee urges the Department of Health and Human Services to 
require better data reporting on the use of training and 
technical assistance dollars so that Congress has access to 
more complete information when assessing the amount of funds 
needed for this purpose. Better data reporting also will help 
the Department and Congress identify the most effective uses of 
these funds so that Head Start instructors and administrators 
are gaining the knowledge needed to improve program management 
and the delivery of services to children and their families.
    The School Readiness Act for the first time would direct 
one-half of all training and technical assistance dollars to 
local grantees so that programs have a reliable source of 
funding for training and technical assistance activities. The 
training and technical assistance budget also authorizes thirty 
percent of training and technical assistance funding to assist 
states in developing a coordinated statewide system of training 
and technical assistance through a competitive grant system, 
and provides the Secretary adequate flexibility to conduct 
appropriate federal training and technical assistance to help 
individual programs meet the Head Start quality standards.
    It is the Committee's view that directing specific 
percentages of funding to the local, state, and federal level 
will help to ensure that each critical component of the 
training and technical assistance system receives adequate 
funding. The Committee believes that half of these funds are 
appropriately directed to the local level so that grantees can 
assess and meet their unique needs for program improvement. 
Funding at the state level is provided to ensure that Head 
Start programs in each state have a resource available to 
provide information and guidance. The state-level provider of 
training and technical assistance will be awarded by 
competitive grant and may be an institution of higher education 
or other entity with experts available to assist grantees or 
individual programs. This state-based assistance will fill Head 
Start resource needs that were previously filled through 
regional contracts provided by the Department of Health and 
Human Services. The Committee strongly encourages states to 
supplement Head Start training and technical assistance funds 
with state funds to expand the state training and technical 
assistance system. By leveraging the infrastructure put in 
place using Head Start dollars, supplemental state funds could 
make the system available to the broader early childhood 
educator community.

                     FUNDS FOR QUALITY IMPROVEMENT

    The School Readiness Act provides greater support for 
improving program quality by significantly increasing the 
percentage of new dollars that must be spent on quality 
improvement. Research has demonstrated that the experiences of 
young children greatly affect all aspects of their development, 
including cognitive development. The level of commitment to 
quality improvement demonstrated in the School Readiness Act is 
critical if Head Start is to succeed in improving the school 
readiness of participating children.
    In an effort to ensure that Head Start programs are of the 
highest possible quality, and to ensure that funds are 
available to assist Head Start reach new goals for teacher 
quality, the School Readiness Act requires the Secretary of 
Health and Human Services to reserve 60 percent of all new Head 
Start funds for purposes of quality improvement. Not less than 
half of that 60 percent must be used to increase teacher 
salaries and assist programs in recruiting and retaining 
quality staff. Funds also be spent on other functions that have 
been determined to improve program performance, such as 
providing ongoing professional development based on the latest 
early childhood research on curriculum and teaching methods, or 
improving communication with and outreach to families and 
external partners. The remaining 40 percent of new funds is to 
be used to expand Head Start services to more eligible 
children.

                         FACILITIES MANAGEMENT

    The Committee understands that Head Start grantees may be 
experiencing difficulties in meeting the Department's grant 
period for facility related funding in situations where 
grantees are governed by an alternate fiscal year. In these 
cases where a grantee is awarded funds after the start of its 
fiscal year, grantees have been faced with a limited time 
period in which to obligate funds. Such grantees are working 
under an inadequate time period in order to meet all 
environmental and permitting review and approval processes 
required at the local or state level. Under current rules, a 
grantee has to submit a formal grant application to carry over 
funds, which could take as long as five or six months to 
receive federal regional approval. In order to meet this 
process, the Committee recommends that the Department consider 
providing up to 24 months to grantees that are able to 
demonstrate the need for a longer time period.
    The Committee understands that many current portable 
facilities being used by Head Start grantees are well over 30 
years old and are deteriorating to the point of no longer being 
suitable. The costs of continuing to repair these aging 
facilities is significant, particularly in tight markets, often 
exceeding the cost of replacing these facilities. The Committee 
encourages the Department to work closely with grantees to 
explore innovative solutions to this problem.
    The Committee also urges the Department to evaluate the 
location of Head Start facilities to ensure that services are 
located in the areas of most need and are conveniently located 
to the population served by Head Start. The Committee 
recognizes that over time low-income communities may shift 
locations, particularly within urban areas, and that in some 
cases Head Start programs have not moved along with the 
population. In an effort to reduce the chronic under-enrollment 
experienced by approximately seven percent of Head Start 
programs nationwide, the Committee encourages the Department to 
use its resources efficiently by re-locating programs to areas 
with the greatest need, and/or reducing funding for programs 
that continue to operate under-capacity.

                         FAITH-BASED INITIATIVE

    Approximately five percent of Head Start programs are 
operated by faith-based organizations. The School Readiness Act 
of 2003 amends the Head Start Act to provide consistent 
requirements for a religious organization with respect to the 
employment of individuals of a particular religion to perform 
work connected with activities for which they receive Head 
Start funding. This incorporates the exemption in hiring by 
religious organizations contained in Title VII of the Civil 
Rights Act. Currently under federal law, religious 
organizations may hire on a religious basis, and any federal 
legislation governing federal social service funds should 
continue to protect the rights of religious organizations to 
hire on a religious basis when they take part in federal social 
service efforts. However, often these faith-based organizations 
have been excluded from delivering services for which the 
federal government commits substantial resources--most simply 
because they have a religious name or identity. President 
George W. Bush has called on his Administration and Congress to 
remove these barriers.
    Faith-based organizations cannot be expected to sustain 
their religious mission without the ability to employ 
individuals who share the tenets and practices of their faith 
because it is that faith that motivates them to serve their 
neighbors in trouble. In Bowen v. Kendrick the United States 
Supreme Court upheld a program allowing federal funds to be 
given to faith-based organizations for family counseling, 
including faith-based organizations that required their 
employees to follow religious directives. Without the right to 
continue to hire on a religious basis, religious organizations 
are likely to simply withdraw from federal social service 
efforts altogether, to the detriment of people in need 
everywhere.
    There is a long history of making social service 
legislation more inclusive by extending the Title VII 
exemptions in various federal programs. During the Clinton 
Administration, four separate pieces of legislation were signed 
that explicitly allow religious organizations providing social 
services to make employment decisions based on religion, 
including the Welfare Reform Act of 1996 and the Community 
Services Block Grant Act of 1998. The School Readiness Act of 
2003 would simply make Head Start consistent with the 
legislation governing other major social service programs. 
Further, in May of 2003, the House approved almost identical 
language in the Workforce Reinvestment and Adult Education Act 
of 2003.
    The Committee believes that members of faith-based 
organizations should enjoy the same right to associate with 
those sharing their unique vision, as other, non-religious but 
certainly ideological groups currently enjoy.

                   HEAD START RESEARCH AND EVALUATION

    There is an ongoing need for high quality research about 
the effectiveness of Head Start. During the last 
reauthorization, the Congress took a giant step forward by 
commissioning a national study on the impact of Head Start 
services. This study will be the first of its kind to provide 
valuable data comparing the outcomes of children in Head Start 
with similar children who do not participate in this program. 
The Family and Child Experiences Survey (known as FACES) also 
can provide valuable information on program performance over 
time, yet it is not designed to assess the overall quality or 
success of Head Start relative to other preschool programs 
serving a similar population. The Committee eagerly awaits data 
from the National Head Start Impact Study, which is expected to 
demonstrate the value of Head Start. In addition to current 
research, with input from the Head Start community, research 
needs should be continually assessed so that Congress can 
identify ways in which Head Start can be strengthened to best 
meet the needs of the children it serves.
    The Committee supports a one-time directive to the Board of 
Children, Youth, and Families of the National Research Council 
to establish an independent panel of experts to review the 
current body of early childhood research. This review is needed 
to determine age and developmentally appropriate academic 
standards and measurable benchmarks for achievement, the types 
of services (including classroom instruction) necessary to 
ensure school readiness, and appropriate methods to assess 
child progress in preparing for school. This study also is 
needed to ensure a well-informed approach to developing school 
readiness standards and will assist states in the process of 
developing and/or implementing such standards.

         IMPORTANCE OF PARENTAL INVOLVEMENT AND FAMILY LITERACY

    Because parents are a child's first teachers, parental 
involvement is a critical factor in determining a child's 
educational success. For many children, particularly low-income 
children who are eligible for Head Start, having involved 
parents who are engaged in their education is critical to their 
future success.
    This Committee recognizes the valuable role that parental 
involvement plays in the success of the Head Start program. The 
parental involvement requirements in Title I are mirrored in 
Title II. These provisions are further strengthened by a new 
provision to ensure that Head Start grantees actively encourage 
parents to take a strong interest in their children's lives and 
education. Head Start programs would help parents learn 
strategies to maintain parental involvement in their children's 
academic progression as the child transitions from Head Start 
to elementary school.
    Efforts to improve family literacy also are an important 
component of Head Start. Family literacy activities are 
critical to ensure parental involvement in their child's 
education, which is significantly challenged if parents cannot 
read themselves. In keeping with the goal of improving school 
readiness and valuing the role of parents in their children's 
education, the Committee bill renews its support for training 
and technical assistance in the area of family literacy 
services. Since the 1998 reauthorization of Head Start, 
grantees have received exemplary service from the Head Start 
Family Literacy Project. As a result, more than 5,000 Head 
Start staff has received training in providing comprehensive 
family literacy services and nearly 20,000 children's books 
have been placed in Head Start classrooms. The Committee 
commends the work of the Head Start Bureau and the National 
Center for Family Literacy in its conduct of the Head Start 
Family Literacy Project. Not only have program grantees found 
the project's training and technical assistance useful, but 
evaluations have proven the merit of this important work. The 
Committee encourages the Secretary to ensure the continuity of 
these important services so that Head Start children will be 
better prepared for school and Head Start parents will be 
better able to fulfill their role as their child's first and 
best teacher.

                            EARLY HEAD START

    Neurological research suggests that the age of birth to 
three is the most critical period for a child's brain growth. 
According to many brain researchers, the development between 
the prenatal period and the first years of life is more 
extensive than previously thought and susceptible to long-
lasting early environmental influences (Moughty, 2003). The 
ground-breaking report Starting Points: Meeting the Needs of 
Our Youngest Children cites, ``Babies raised by caring, 
attentive adults in safe, predictable environments are better 
learners than those raised with less attention in less secure 
settings'' (Carnegie Corporation of New York, 1994).
    Currently, 10 percent of Head Start funds are allocated 
specifically for funding the Early Head Start program. Since 
infants and toddlers have different needs than three and four 
year olds, operating Early Head Start programs require 
different environments and specialized expertise in working 
with very young children. The Committee recognizes that Early 
Head Start serves a significantly smaller proportion of young 
children relative to the regular Head Start program, and that 
increased resources are necessary to provide these services to 
greater numbers of infants and toddlers. The Committee agrees 
that Early Head Start services are critically important, but 
does not increase the set-aside for Early Head Start because to 
do so would take funding away from the general Head Start 
program, thereby reducing services for eligible three and four 
year olds. However, as levels of funding appropriated for Head 
Start grow over time, so will the overall amount of funds 
available for Early Head Start. The School Readiness Act, for 
the first time, directs the Department of Health and Human 
Services to give priority to Early Head Start and other 
underserved populations of Head Start-eligible children when 
allocating Head Start expansion funds.
    The Committee is encouraged by the positive effects of 
Early Head Start on child development and parent self-
sufficiency, as documented in the evaluation mandated by 
Congress and completed in 2002. The strong and careful 
implementation effort from Early Head Start's inception, 
supported by a robust training and technical assistance 
presence, contributed to these positive outcomes. Given the 
continued demands on the program as well as the additional 
professional development requirements, a strong training and 
technical assistance effort should be sustained over time.

                  UNDERSERVED AND AT-RISK POPULATIONS

    While all children served by Head Start are economically 
and academically in need, there are some subgroups of the 
eligible Head Start population that are particularly at-risk, 
and often underserved. The children of migrant and seasonal 
workers are one of the most underserved populations of Head 
Start eligible children. According to the National Migrant and 
Seasonal Head Start Association less than 19 percent of the 
eligible children of migrant and seasonal workers receive Head 
Start services. The School Readiness Act attempts to increase 
the participation of the children of migrant and seasonal 
workers by specifying that they shall receive priority for at 
least 25 percent of the funds that are used to expand the 
number of eligible children served.
    In an effort to address the unique challenges faced by 
American Indian and Alaska Native students, the School 
Readiness Act includes representatives of Tribal Head Start 
programs serving large numbers of American Native and Alaska 
Native children as participants in state level collaboration 
and coordination of services. Increased input from tribal 
programs that serve large numbers of American Indian and Alaska 
Native students will allow for a better understanding of the 
unique needs of these students.
    Homeless children also face substantial barriers when it 
comes to gaining and maintaining access to Head Start services. 
The Department of Education's fiscal year 2000 Report to 
Congress on the Education of Homeless Children and Youth 
identified Head Start as a program presenting significant 
barriers to access for homeless children. The School Readiness 
Act attempts to address this issue by increasing efforts to 
conduct outreach to homeless families, and leveraging the 
experience of the homeless liaisons in public schools that are 
required under the McKinney-Vento Homeless Education 
Improvement Act. This coordination assists in identifying 
barriers to serving homeless children and facilitates a smooth 
transition when homeless children move from Head Start to 
elementary schools. The School Readiness Act also addresses the 
issue of required paperwork, which is one of the biggest 
barriers to enrolling homeless children in Head Start. Homeless 
families often have difficulty producing the necessary 
documents, such as birth certificates and immunization records. 
The School Readiness Act models provisions in the No Child Left 
Behind Act, that allow eligible homeless students to enroll in 
Head Start while those documents are being obtained. This will 
allow needy children to begin accessing critical Head Start 
services at the earliest possible opportunity.
    Through the comprehensive services provided to young 
children and their families, Head Start and Early Head Start 
programs can play an important role in preventing the abuse and 
neglect of children and in protecting children and ameliorating 
the affects of maltreatment they may have already suffered. 
Ensuring that children are ready to learn means ensuring that 
children are safe at home and receive the kind of nurturing and 
care that all children deserve.
    Research shows that abused and neglected children are more 
likely to suffer poor prospects for success in school; sexually 
abused and neglected children are at a higher risk for academic 
failure; that maltreatment appears to be an additional factor 
over and above poverty that affects the academic achievement of 
children; and a higher frequency of academic difficulties and 
school behavior problems is reported among abused children.
    The Committee recognizes that abused and neglected children 
and children at-risk of maltreatment are in need of preventive 
services and may benefit from Head Start and Early Head Start 
services. The School Readiness Act builds upon provisions 
already existing in the Head Start statute that provide for (1) 
home-based services to Head Start children and their families, 
(2) staff training in working with children who experience 
violence, (3) training to parents in parenting skills and basic 
child development, and (4) collaboration with other agencies 
and organizations involved in child and family services.

                    THE STATE DEMONSTRATION PROGRAM

    A 1999 study by the General Accounting Office (GAO) 
identified 69 federal programs that provided or supported 
education and care for children under five in fiscal year 1999. 
According to the GAO:

          When multiple agencies manage multiple early 
        childhood education and care programs, mission 
        fragmentation and program overlap occur. This in turn 
        creates the potential for duplication and service gaps. 
        Though sometimes necessary to meet federal priorities, 
        mission fragmentation and program overlap can create an 
        environment in which programs do not serve participants 
        as efficiently and effectively as possible. To address 
        inefficiencies that may arise under these 
        circumstances, policymakers could choose to coordinate, 
        integrate, or consolidate programs.

    For years, experts in early childhood education and child 
development have been calling for a seamless system of early 
childhood education that integrates the existing patchwork of 
programs that includes Head Start, Title I pre-kindergarten, 
child care, and state pre-kindergarten. The emergence of state 
pre-K programs has lead to the duplication of services and 
often inconsistent standards for program quality.
    State investment in pre-kindergarten initiatives has 
increased significantly in the past ten years as Governors and 
the public have recognized the importance of early education in 
preparing children for school. Some of those states have 
developed innovative programs and made significant investments 
so that early education experiences are available for young 
children, especially those most at risk of school failure. 
These steps have been taken by a number of states to ensure 
that their pre-kindergarten programs offer the high quality, 
comprehensive supports that children and families need (Blank, 
Schulman, and Ewen, 1999). Today, at least 40 states and the 
District of Columbia have begun to offer preschool programs for 
children under five.
    Program quality of state-run preschools often varies and 
further investments are needed to ensure that children enter 
school ready to succeed (Blank, Schulman, and Ewan, 1999). The 
Committee disagrees with the common characterization that all 
state funded pre-kindergarten programs are low quality. In 
fact, 27 states have higher teacher education requirements than 
Head Start, 28 states have teacher-child ratios that are as low 
or lower than Head Start, 23 states have group size limits that 
are as low or lower than Head Start, and 19 states offer 
nutrition, health screening, and family support services 
(Education Week, 2002). In addition, several states are making 
significant investments in their preschool programs. For 
example, a recent analysis by the Trust for Early Education 
indicates that New Jersey spends over 250 percent of their 
state allotment for Head Start, and several other states 
including North Carolina (over 220 percent), Georgia (over 150 
percent), Indiana (over 126 percent), and the District of 
Columbia (over 121 percent) also are making significant state 
investments in early childhood education.
    Since the passage of the No Child Left Behind Act, 
Governors have an even greater stake in ensuring the school 
readiness of children since that Act holds states accountable 
for the academic achievement of children beginning at the end 
of the third grade. Governors currently oversee K-12 education; 
childcare programs operating under the Child Care and 
Development Block Grant; Title I and state-run preschool; and a 
variety of other social services programs, including Temporary 
Assistance to Needy Families and Medicaid, which are utilized 
by Head Start families. However, because states have no 
authority over the Head Start program, coordination can be 
challenging and occurs only if individual grantees within a 
state agree to work with these other players within the larger 
state system. In his testimony, Rowland stated:

          I commend the President for this [state 
        demonstration] initiative and would like to announce 
        that Connecticut wants to be the first state to accept 
        the challenge. We believe that Connecticut has taken a 
        number of steps that are consistent with the 
        President's vision of a coordinated system of early 
        childhood services. This includes clear standards and 
        expectations, greater access for children from low 
        income families, and a system of greater accountability 
        that focuses on preparing children for school . . . 
        Today in Connecticut, children who are born into low 
        income households have access to readiness programs 
        that can help them to overcome the effects of poverty 
        and develop skills that give them a greater chance of 
        success in school and in life.

    Evidence shows that most grantees do establish a variety of 
collaborative relationships with other entities within a state 
offering services to Head Start children and families. However, 
under current law Head Start grantees remain autonomous and so 
are under no legal obligation to take direction from a state 
government. Likewise, Governors have no ability to set 
consistent standards for all preschool programs unless they 
agree to conform to the Head Start standards.
    This fragmented service delivery hinders improvements that 
can affect a child's school readiness. Diverse sources, 
including the National Governors Association, the U.S. General 
Accounting Office and the publication Education Weekly, have 
reported on the problems and effects of fragmentation. The lack 
of coordination of early childhood programs can result in 
overlapping programs and duplication of services, under 
enrollment and gaps in services, missed opportunities to raise 
the overall quality of childhood experiences, and fewer full-
day, full-year slots to serve the needs of working families.
    The Committee believes that federal, state, and local 
government, along with its partners in the private sector, 
should be moving towards an integrated, seamless system for 
early childhood education and care. Ms. Amy Wilkins, Executive 
Director of Trust for Early Education, states in her testimony 
before the Committee, ``The significance of state funded 
programs serving a similar universe of children is a reality 
that Head Start policy must recognize.''
    According to a 2001 report by the Foundation for Child 
Development, one effective system is more efficient than 
several separate systems with regulatory, administrative, and 
other gaps, redundancies, and other inconsistencies.

          Head Start, child care, and education should work 
        together to develop the federal supports and incentives 
        for states to create unified preschool education 
        systems that link their existing public education 
        systems. To the maximum extent possible, the federal 
        government should promote system integration and be 
        itself a model of the collaboration across sectors that 
        is needed to create a unified system of preschool 
        education in every state (Mitchell, 2001).

    This sentiment recently was echoed by Dr. James Gallagher, 
an early childhood expert and researcher at the Frank Porter 
Graham Child Development Center, University of North Carolina, 
who commented about the proposed state demonstration program at 
a Brookings Institution event. ``The original concept of 
designing a comprehensive and integrative state program to 
serve children of preschool ages that would prepare them 
socially and cognitively for school, is a sound one in my 
view.'' A paper authored by Gallagher and colleague, Dr. Dick 
Clifford, discusses the needed infrastructure for early 
childhood and, said Gallagher, ``I am still inclined to believe 
that this infrastructure may hold the key to bringing these 
programs together in an efficient and economical way.''
    As states further develop preschool programs, the federal 
government should partner with states to create and to deliver 
high quality early education programs. The federal government 
should offer significant financial incentives, and as a 
condition of federal funding should require state maintenance 
of effort and non-supplantation (Mitchell, 2001).
    Only states that have demonstrated an ability to 
effectively deliver high-quality preschool services to children 
should be eligible to participate in the demonstration program. 
These states have made the financial investments necessary to 
build the capacity to administer a high quality, comprehensive, 
and seamless system of early education and care within their 
state. There are several states that are well positioned to 
participate in the Head Start demonstration program, while 
others must make further progress in order to build this 
capacity.
    In testimony before the Subcommittee on Education Reform, 
Ms. Amy Wilkins of the Trust for Early Education explained:

          We must begin to explore ways in which a federal-
        state partnership can increase the availability of 
        high-quality early learning programs for all children, 
        but most especially for poor children. With this Head 
        Start reauthorization, Congress has the power to 
        improve the school readiness of children enrolled in 
        Head Start and begin to explore how to leverage the 
        quality of state funded pre-kindergarten programs 
        (2003).

    The Committee concurs with testimony from the Trust for 
Early Education that a federal-state partnership should be 
carefully designed and that the demonstration proposed in H.R. 
2210 should only be available to states that have mature, high-
quality programs. The state demonstration program included in 
Title II of the School Readiness Act limits the number of 
states that can participate in the demonstration program to 
eight and sets eligibility requirements that restrict 
participation to states that have built the capacity needed to 
successfully integrate Head Start with state-level initiatives. 
Among the criteria to participate, states must have school 
readiness standards aligned with K-12 education standards, 
invest at least half in state dollars relative to amounts 
received by the state in federal Head Start dollars, meet or 
exceed minimum qualifications for early childhood teachers 
currently authorized under Title I, generally meet or exceed 
Head start performance standards, and have an established means 
for inter-agency coordination.
    The Committee recognizes that the state demonstration must 
provide states flexibility to evolve into a seamless system 
while ensuring sufficient time for transition to that new 
system. The Committee also believes that states participating 
in the demonstration program will need, in most circumstances, 
to rely on existing Head Start programs and other service 
providers that make up the current early education delivery 
system. It is the Committee's view that when possible, states 
participating in the demonstration program should continue to 
utilize existing providers that are providing high quality 
services in an effort to minimize the potential effects on 
service provision to children and families. For this reason, 
states participating in the demonstration program are required 
to continue funding existing Head Start providers at current 
levels for a period of at least three years from the date of 
enactment of this Act. This occurs, provided that the programs 
demonstrate results in preparing children for school. A hold 
harmless period of three years provides a reasonable time 
period for transitioning from the current Head Start program in 
demonstration states when such transitions are determined to be 
necessary. A three-year transition assures current grantees 
that they will continue as grantees provided that they continue 
to be in compliance with all program standards, and assures 
parents and their children that they can continue to work with 
the same Head Start teachers and administrators, which eases 
potential transition worries for parents and children.
    The School Readiness Act of 2003 requires states 
participating in the demonstration program to have high 
quality, state-developed standards that ensure the school 
readiness of children in their early childhood program. 
Following introduction of this legislation, the Committee 
received criticism that states participating in the 
demonstration program could implement quality standards for 
Head Start children that were lower than those required by the 
federal Head Start program. For this reason, the Committee 
adopted an amendment by Representative Platts that requires 
states participating in the demonstration program to have 
standards that generally meet or exceed federal Head Start 
standards. The Committee believes this language will provide 
states flexibility to use their own state standards provided 
that these standards do not fall below those standards required 
by Head Start.
    Requiring states to comply with all of the federal Head 
Start standards, both in statute and in regulation, would 
dramatically decrease the flexibility that states will have 
under the demonstration program. There are hundreds of 
performance standards, many of which are not measurable and 
have little direct effect on program quality. The state 
demonstration concept is to allow participating states the 
flexibility to innovate beyond what is currently allowed under 
the law. Limiting this ability by requiring demonstration 
states to enact the Head Start performance standards would 
dramatically decrease the value of the demonstration program 
and diminish the value of the data received by participating 
states.
    While Head Start is a good program, the Head Start 
standards are not the ``gold standard'' as some assert. 
According to a 2002 report by Education Week, 27 states already 
have higher teacher education requirements than Head Start, 28 
states have teacher-child ratios that are as low or lower than 
Head Start, 23 states have group size limits that are as low or 
lower than Head Start, and 19 states offer comprehensive 
programs that include nutrition, health screening, and family 
support services.
    The School Readiness Act requires the U.S. Department of 
Health and Human Services to commission a well-designed, 
independent evaluation of the state demonstration program. This 
evaluation should provide the information needed by Congress to 
determine the success of the state demonstration program and 
should be made available in sufficient time to inform the next 
reauthorization of the Head Start program. The evaluation calls 
for a quantitative description of the state's early childhood 
education activities prior to participation in the 
demonstration program and a description of changes resulting 
from the state demonstration, including a state's rate of 
progress in improving the school readiness of disadvantaged 
children.
    The state demonstration plan marks the first major reform 
proposal for Head Start since the program began in 1965. Some 
contend that Congress is trying to fix a ``non-existent'' 
problem, but this Committee disagrees. School readiness 
evaluations show that Head Start children continue to lag 
significantly behind their more advantaged peers, and 
maintaining the status quo should not be acceptable to this 
Congress. In the words of Committee Chairman John A. Boehner, 
``We, as a nation, are letting them down.'' The state 
demonstration will give 8 qualified states, on a trial basis, 
the tools to fix the fragmented delivery system in early 
childhood education. If states are willing to commit to high 
standards and funding for early childhood education, then the 
federal government should not prevent such states from 
integrating Head Start with their own early education programs. 
Unless Congress is willing to take the next step in early 
childhood education for those states that are ready, we are 
doing something less than giving disadvantaged children the 
best start they deserve.

                               References

Bailey, Don. ``Pre-K At Issue,'' ED, Volume 5, Number 1. Frank 
        Porter Graham Child Development Center, University of 
        North Carolina at Chapel Hill. Chapel Hill, N.C. 2001.
Blank, Helen et al. Executive Summary, Seeds of Success: State 
        Prekindergarten Initiatives 1998-1999. Children's 
        Defense Fund. Washington, D.C. September 1999.
Eager to Learn. National Research Council. Washington, D.C. 
        2000.
Early Education and Care, Overlap Indicates Need to Assess 
        Crosscutting Programs. Report to the Chairman, 
        Subcommittee on Oversight of Government Management, 
        Restructuring, and the District of Columbia, United 
        States Senate. General Accounting Office. April 2000.
Gallagher, Dr. James. The Implementation of Preschool Program 
        Change. Frank Porter Graham Child Development Center, 
        University of North Carolina at Chapel Hill. Chapel 
        Hill, N.C. May 2003.
Lawrence, Dr. Robert. Testimony. Hearing held by the 
        Subcommittee on Education Reform, Committee on 
        Education and the Workforce, United States House of 
        Representatives. Washington, D.C. June 3, 2003.
Mitchell, Anne W. Education for All Young Children: The Role of 
        States and the Federal Government in promoting 
        Prekindergarten and Kindergarten. The Foundation for 
        Child Development. New York. April 2001.
Moughty, Sarah. The Zero-to-Three Debate: A Cautionary Look at 
        Turning Science Into Policy. Online Article. 2003. 
        http://www.pbs.org/wgbh/pages/frontline/shows/
        teenbrain/science/zero.html
Quality Counts 2002: Building Blocks for Success. Education 
        Week, Volume XXI, Number 17. Education Week/Pew 
        Charitable Trusts. Bethesda, Maryland. January 10, 
        2002.
Report on Head Start Monitoring Fiscal Year 2000. United States 
        Department of Health and Human Services. Washington, 
        D.C. 2000.
Rowland, Governor John. Testimony. Hearing held by the 
        Subcommittee on Education Reform, Committee on 
        Education and the Workforce, United States House of 
        Representatives. Washington, D.C. March 6, 2003.
Starting Points: Meeting the Needs of Our Youngest Children. 
        Carnegie Corporation of New York. New York. 1994.
Strengthening Head Start: What the Research Shows. United 
        States Department of Health and Human Services. 
        Washington, D.C. 2003.
Wilkins, Amy. Testimony. Hearing held by the Subcommittee on 
        Education Reform, Committee on Education and the 
        Workforce, United States House of Representatives. 
        Washington, D.C. June 3, 2003.

                      Section-by-Section Analysis


Section 1. Short title

    Cites the short title as the ``School Readiness Act of 
2003.''

      TITLE I--HEAD START REAUTHORIZATION AND PROGRAM IMPROVEMENTS


Section 101. Purpose

    Amends Section 636 of the Head Start Act (42 U.S.C. 9831). 
Sets forth the purpose of Title I and Title II of this bill.

Section 102. Definitions

    Amends Section 637 of the Head Start Act (42 U.S.C. 9832). 
Modifies and adds to the definitions under this act.

Section 103. Authorization

    Amends Section 639 of the Head Start Act (42 U.S.C. 9834). 
Authorizes funds to carry out this act, including specific 
programs and administrative expenses.

Section 104. Allotment of funds; limitations on assistance

    Amends Section 640 of the Head Start Act (42 U.S.C. 9835). 
Designates the purposes and percentages for funding. Adds 
language outlining agencies that are necessary for 
collaboration. Strikes language discussing past studies that 
are no longer applicable. Adds language giving migrant and 
seasonal Head Start programs priority in receiving money for 
serving additional children, if the appropriations for training 
and technical assistance money are less than 2 percent.

Section 105. Designation of agencies

    Amends Section 641 of the Head Start Act (42 U.S.C. 9836). 
Adds language naming faith-based organizations as eligible 
grantees. Declares that grantees must establish goals for 
enhancing the school readiness of children participating in 
that program. Adds details and further requirements for the 
plans submitted by grantees.

Section 106. Quality standards; monitoring of Head Start agencies and 
        programs

    Amends Section 641A of the Head Start Act (42 U.S.C. 
9836a). Changes the quality standards, adds specific dates of 
reference, and adds language requiring the review to assess 
grantees compliance with income eligibility requirements and to 
seek information regarding general collaboration efforts, and 
efforts to address the needs of the children of limited English 
proficient and migrant and seasonal farm-working families.

Section 107. Powers and functions of Head Start agencies

    Amends Section 642 of the Head Start Act (42 U.S.C. 
9837(b)). Adds language requiring the grantees to establish a 
program with standards referenced in Section 641A, demonstrate 
capacity to serve children with scientifically-based curricula, 
conduct outreach to various organizations to generate support 
and coordinate the recruitment of children.

Section 108. Head Start alignment with K-12 education

    Amends the heading for Section 642A of the Head Start Act 
(42 U.S.C. 9837a). Changes the heading to read as follows: 
``Sec. 642A. Head Start Alignment with K-12 Education.''. Adds 
language to include McKinney-Vento liaisons among the school 
staff to be communicated.

Section 109. Administrative requirements and standards

    Amends Section 644 of the Head Start Act (42 U.S.C. 9839). 
Adds language requiring Head Start Agencies to consult with 
local early education and child care providers regarding the 
cost effectiveness of collaboration versus the cost 
effectiveness of the purchase of a new facility.

Section 110. Eligibility

    Amends Section 645(a) of the Head Start Act (42 U.S.C. 
9843). Adds language that prohibits military housing to count 
as income in determining a child's eligibility to enroll in a 
Head Start program.

Section 111. Early Head Start programs

    Amends Section 645A of the Head Start Act (42 U.S.C. 9843). 
Adds language to include migrant and seasonal Head Start 
programs as an eligible service provider for Early Head Start.

Section 112. Technical assistance and training

    Amends Section 648 of the Head Start Act (42 U.S.C. 9843). 
Adds language allowing, depending on a State's financial 
contribution, a state-based system that delivers training and 
technical assistance to both Head Start Agencies (including 
migrant and seasonal Head Start programs), and other providers 
of early childhood services in the state. Adds language 
requiring the Secretary to provide funds for training Head 
Start personnel in addressing the unique needs of homeless 
families, migrant and seasonal farm working families, and 
families with limited English proficiency. Also adds language 
disallowing training and technical assistance funds to be used 
for long distance travel when similar training is available 
locally.

Section 113. Staff qualifications and development

    Amends Section 648A of the Head Start Act (42 U.S.C. 
9843a). Adds language requiring Head Start teachers to do the 
following: all have an associate degree or be enrolled in a 
program working towards that degree within three years of 
enactment, 50% to have a Baccalaureate degree by September 
30th, 2008, and those that have received financial assistance 
under Section 648A to teach in a Head Start Center for an 
amount of time equal to the time period in which they received 
financial assistance. Also requires all Head Start agencies to 
create professional development plans for all full-time 
employees who provide direct services to children.

Section 114. Research, demonstrations, and evaluation

    Amends Section 649 of the Head Start Act (42 U.S.C. 9844). 
Eliminates language regarding the Secretary's activities in 
relation to conducting research, demonstration, and evaluation. 
Eliminates additional language regarding a study comparing the 
experiences of Head Start children to those who did not 
participate in a Head Start program. Adds language requiring 
the Secretary to contract with the National Academy of Sciences 
and the National Research Council to establish an independent 
panel of experts to research and make recommendations on early 
childhood pedagogy, derived from the research. The Secretary 
shall use these recommendations where appropriate in relation 
to Head Start education performance standards, measures, and 
assessments.

Section 115. Reports

    Amends Section 650 of the Head Start Act (42 U.S.C. 9845). 
Adds language requiring the Secretary to include the status of 
homeless children in his bi-annual report to the Committee on 
Education and the Workforce (House of Representatives), and to 
the Committee on Health, Education, Labor, and Pensions 
(Senate).

Section 116. Head Start nondiscrimination provisions

    Amends Sections 654 of the Head Start Act (42 U.S.C. 9849). 
Adds language restoring the right of religious organizations to 
take religion into consideration when making hiring decisions, 
in accordance with Title VII of the Civil Rights Act of 1964.

Section 117. Effective date

    Sets forth the effective date of the act and states that 
amendments made by the act shall apply to fiscal years 
beginning on and after October 1, 2003.

                 TITLE II--STATE DEMONSTRATION PROGRAM


Section 201. State demonstration program

    Amends the Head Start Act by inserting a new section (643A) 
describing the State Demonstration program, including details 
regarding the grants, eligibility, operation, funding, 
coordination and choice, required services, plan, consultation, 
federal oversight, and evaluation.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 2210 amends and improves the Head Start Act to 
improve the school readiness of disadvantaged children. The 
bill does not prevent legislative branch employees' coverage 
under this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 2210 amends and improves the Head Start Act to 
improve the school readiness of disadvantaged children. As 
such, the bill does not contain any unfunded mandates.


                             Correspondence

                                  House of Representatives,
                                     Washington, DC, June 19, 2003.
Hon. John Boehner,
Chair, Education and the Workforce Committee,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: Due to a pressing commitment, I was late 
for the continuation of the Full Committee markup of H.R. 2210 
and missed the votes on the remaining amendments and final 
passage. I ask that you include in the record that I would have 
voted for the amendments offered by my Democratic colleagues 
and would have voted against final passage.
    Thank you for your consideration of this request.
            Sincerely,
                                            Ruben Hinojosa,
                                                Member of Congress.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 2210 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 25, 2003.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2210, the School 
Readiness Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Donna Wong.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 2210--School Readiness Act of 2003

    Summary: H.R. 2210 would reauthorize the Head Start program 
through 2008. The program is currently authorized through 2003 
by the Head Start Act.
    CBO estimates that authorizations under the bill would 
total $6.9 billion in 2004 and about $35.9 billion over the 
2004-2008 period, assuming that annual levels are adjusted for 
inflation when specific annual authorizations are not provided. 
(Without such inflation adjustments, the authorization would 
total about $34.4 billion over the 2004-2008 period.) CBO 
estimates that appropriation of the authorized levels would 
result in additional outlays of $31.8 billion over the 2004-
2008 period, assuming annual adjustments for inflation (and 
about $30.7 billion without adjustments for inflation). 
Enacting H.R. 2210 would not affect direct spending or 
receipts.
    H.R. 2210 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments. State and local governments that offer 
prekindergarten or Head Start programs may be eligible for some 
of the grant assistance authorized in the bill. Any costs 
incurred by those public entities would be conditions for 
receiving federal aid.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 2210, with inflation adjustments for 
the two components of the bill, is shown in the following 
table. The costs of this legislation fall within the budget 
function 500 (education, training, employment, and social 
services).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2003    2004    2005    2006    2007    2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Budget authority \1\........................................   6,668   1,400       0       0       0       0
    Estimated outlays...........................................   6,609   3,931     936     123      14       0
Proposed changes:
    Head Start:
        Estimated authorization level...........................       0   6,870   7,016   7,161   7,320   7,479
        Estimated outlays.......................................       0   3,572   6,602   7,016   7,235   7,394
    Administrative expenses for state demonstration program:
        Authorization level.....................................       0       5       5       5       5       5
        Estimated outlays.......................................       0       3       5       5       5       5
    Total proposed changes:
        Estimated authorization level...........................       0   6,875   7,021   7,166   7,325   7,484
        Estimated outlays.......................................       0   3,575   6,607   7,020   7,240   7,399
Total spending under H.R. 2210:
    Estimated authorization level...............................   6,668   8,275   7,021   7,166   7,325   7,484
    Estimated outlays...........................................   6,609   7,506   7,543   7,143   7,254   7,399
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated that year for the Head Start program including an advance of $1.4
  billion for the 2002 academic year. The 2004 level is the amount appropriated in an advance appropriation for
  the 2003 academic year.

Note.--Components may not sum to totals because of rounding.

    Basis of estimate: H.R. 2210 would reauthorize the Head 
Start program through 2008. The program is currently authorized 
through 2003 by the Head Start Act. For this estimate, CBO 
assumes that the bill will be enacted near the start of fiscal 
year 2004, that the estimated amounts shown in the table will 
be appropriated for each year, and that outlays will follow 
historical spending patterns.
    H.R. 2210 would authorize additional appropriations of $6.9 
billion in 2004. CBO estimates that this bill would authorize 
total funding of $35.9 billion over the 2004-2008 period 
assuming that ``such sums'' amounts provided after 2004 are 
adjusted for inflation. If the authorized amounts are 
appropriated, outlays would increase by $3.6 billion in the 
first year and by $31.8 billion over the five-year period.
    The above table presents CBO's estimates for the two 
components of the bill. The amounts authorized for 
administrative expenses for states are specified in each year. 
For the overall Head Start program, CBO's estimate of 
authorized levels is the authorized amount for 2004 with that 
amount inflated in later years.

Head Start

    H.R. 2210 would revise and reauthorize the Head Start 
program. The program provides comprehensive child development 
services to low-income children. Services include education, 
health, nutrition, and social services with the overall goal of 
increasing the school readiness of young children in low-income 
families.
    Currently, Head Start grants are awarded directly to local 
grantees that can be either public or private, for profit or 
nonprofit organizations, or public school systems. The bill 
would create a state demonstration program that would allow up 
to eight states to receive the same amount of total funds that 
local grantees would be eligible to receive under the basic 
program and to coordinate Head Start with existing 
prekindergarten programs. Eligible states would have to meet 
certain criteria including specific standards and services, as 
well as maintain preexisting funding levels.
    The bill would authorize the appropriation of $6.87 billion 
in 2004 and such sums as may be necessary in 2005 through 2008 
for the overall Head Start program. CBO estimates that total 
authorizations for the 2004-2008 period would be about $35.8 
billion, assuming adjustments for inflation, with resulting 
outlays of $31.8 billion over those five years.
    Funding for this program currently is provided on a 
program-year basis through appropriations in two separate 
fiscal years: a current fiscal year appropriation and an 
advance appropriation available October 1 of the next fiscal 
year. Although the program has been funded by two separate 
appropriations since 2001, funding does not need to be 
authorized separately because all of the funds for a program 
year could be provided in one appropriation. The program is 
funded at $6.668 billion for academic year 2003-2004 ($5.268 
billion in 2003 and $1.4 billion in 2004).

Administrative expenses related to state demonstration program

    The bill also would authorize $5 million a year for 2004 
through 2008 for administrative expenses associated with 
implementing the new state demonstration program. CBO estimates 
that providing those amounts would result in outlays of $22 
million over the next five years.
    Intergovernmental and private-sector impact: H.R. 2210 
contains on intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. State and local governments that offer 
prekindergarten or Head Start programs may be eligible for some 
of the grant assistance authorized in the bill. Any costs 
incurred by those public entities would be conditions for 
receiving federal aid.
    Estimate prepared by: Federal costs: Donna Wong; Impact on 
state, local, and tribal governments: Gregory Waring; impact on 
the private sector: Nabeel Alsalam.
    Estimatee approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House rule XIII, the 
goal of H.R. 2210 is to improve the Head Start Act to improve 
the school readiness of disadvantaged children. The Committee 
expects the Department of Health and Human Services to comply 
with H.R. 2210 and implement the changes to the law in 
accordance with the changes.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 2210. The 
Committee believes that the amendments made by this bill, which 
authorize appropriations for Head Start programs, are within 
Congress' authority under Article I, section 8, clause 1 of the 
Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2210. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                             HEAD START ACT


                   TITLE VI--HUMAN SERVICES PROGRAMS


  Subtitle A--Authorizations Savings for Fiscal Years 1982, 1983, and 
1984

           *       *       *       *       *       *       *



CHAPTER 8--COMMUNITY SERVICES PROGRAMS

           *       *       *       *       *       *       *



                   Subchapter B--Head Start Programs


                              SHORT TITLE

  Sec. 635. This subchapter may be cited as the ``Head Start 
Act''.

[SEC. 636. STATEMENT OF PURPOSE.

  [It is the purpose of this subchapter to promote school 
readiness by enhancing the social and cognitive development of 
low-income children through the provision, to low-income 
children and their families, of health, educational, 
nutritional, social, and other services that are determined, 
based on family needs assessments, to be necessary.]

SEC. 636. STATEMENT OF PURPOSE.

  It is the purpose of this subchapter to promote school 
readiness by enhancing the development of low-income children, 
through educational instruction in prereading skills, 
premathematics skills, and language, and through the provision 
to low-income children and their families of health, 
educational, nutritional, social and other services that are 
determined, based on family needs assessments, to be necessary.

                              DEFINITIONS

  Sec. 637. For purposes of this subchapter:
          (1) * * *

           *       *       *       *       *       *       *

          (17) The term ``State'' means a State, the 
        Commonwealth of Puerto Rico, the District of Columbia, 
        Guam, American Samoa, the Virgin Islands of the United 
        States, and the Commonwealth of the Northern Mariana 
        Islands[, but for fiscal years ending before October 1, 
        2001 (and fiscal year 2002, if the legislation 
        described in section 640(a)(2)(B)(iii) has not been 
        enacted before September 30, 2001), also means the 
        Federated States of Micronesia, the Republic of the 
        Marshall Islands, and the Republic of Palau].
          (18) The term ``eligible entities'' means an 
        institution of higher education or other agency with 
        expertise in delivering training in early childhood 
        development, family support, and other assistance 
        designed to improve the quality of early childhood 
        educations programs.
          (19) The term ``homeless children'' has the meaning 
        given such term in subtitle B of title VII of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 
        et seq.).

           *       *       *       *       *       *       *


                    [AUTHORIZATION OF APPROPRIATIONS

  [Sec. 639. (a) There are authorized to be appropriated for 
carrying out the provisions of this subchapter such sums as may 
be necessary for fiscal years 1999 through 2003.
  [(b) From the amount appropriated under subsection (a), the 
Secretary shall make available--
          [(1) for each of fiscal years 1999 through 2003 to 
        carry out activities authorized under section 642A, not 
        more than $35,000,000 but not less than the amount that 
        was made available for such activities for fiscal year 
        1998;
          [(2) not more than $5,000,000 for each of fiscal 
        years 1999 through 2003 to carry out impact studies 
        under section 649(g); and
          [(3) not more than $12,000,000 for fiscal year 1999, 
        and such sums as may be necessary for each of fiscal 
        years 2000 through 2003, to carry out other research, 
        demonstration, and evaluation activities, including 
        longitudinal studies, under section 649.]

SEC. 639. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated for 
carrying out the provisions of this subchapter $6,870,000,000 
for the fiscal year 2004 and such sums as may be necessary for 
fiscal years 2005 through 2008.
  (b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available not more 
than $20,000,000 for fiscal year 2004, and such sums as may be 
necessary for each of fiscal years 2005 through 2008, to carry 
out such other research, demonstration, and evaluation 
activities, including longitudinal studies, under section 649.
          (1) not more than $7,000,000 for each of fiscal years 
        2004 through 2008 to carry out impact studies under 
        section 649(g); and
          (2) not more than $13,000,000 for fiscal year 2004, 
        and such sums as may be necessary for each of fiscal 
        years 2005 through 2008, to carry out other research, 
        demonstration, and evaluation activities, including 
        longitudinal studies, under section 649.
  (c) Administrative Expenses.--There are authorized to be 
appropriated $5,000,000 for each of fiscal years 2004 through 
2008 to assist participating States with the administrative 
expenses associated with implementing a program under section 
643A.

             ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE

  Sec. 640. (a)(1) * * *
  (2) The Secretary shall reserve 13 percent of the amount 
appropriated for each fiscal year for use in accordance with 
the following order of priorities--
          (A) Indian Head Start programs, services for children 
        with disabilities, and migrant and seasonal Head Start 
        programs, except that there shall be made available for 
        each fiscal year for use by Indian Head Start programs 
        and by migrant and seasonal Head Start programs, on a 
        nationwide basis, not less than the amount that was 
        obligated for use by Indian Head Start programs and by 
        migrant and seasonal Head Start programs for fiscal 
        year [1998] 2003;
          [(B) payments, subject to paragraph (7)--
                  [(i) to Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, 
                and the Virgin Islands of the United States;
                  [(ii) for fiscal years ending before October 
                1, 2001, to the Federated States of Micronesia, 
                the Republic of the Marshall Islands, and the 
                Republic of Palau; and
                  [(iii) if legislation approving renegotiated 
                Compacts of Free Association for the 
                jurisdictions described in clause (ii) has not 
                been enacted before September 30, 2001, for 
                fiscal year 2002 to those jurisdictions;
        according to their respective needs, except that such 
        amount shall not exceed one-half of 1 percent of the 
        sums appropriated for any fiscal year;
          [(C) training and technical assistance activities 
        which are sufficient to meet the needs associated with 
        program expansion and to foster program and management 
        improvement activities as described in section 648 of 
        this subchapter, in an amount for each fiscal year 
        which is not less than 2 percent of the amount 
        appropriated for such fiscal year, of which not less 
        than $3,000,000 of the amount appropriated for such 
        fiscal year shall be made available to carry out 
        activities described in section 648(c)(4);]
          (B) payments, subject to paragraph (7) to Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and the Virgin Islands of the United 
        States;
          (C) training and technical assistance activities that 
        are sufficient to meet the needs associated with 
        program expansion and to foster program and management 
        improvement as described in section 648 of this 
        subchapter, in an amount for each fiscal year which is 
        not less than one percent, and shall not exceed 2 
        percent, of the amount appropriated for such fiscal 
        year, of which--
                  (i) not less than 50 percent shall be made 
                available to local Head Start agencies to 
                comply with the standards described in section 
                641A(a)(1), of which not less than 50 percent 
                shall be used to comply with the standards 
                described in section 641A(a)(1)(B) and for the 
                uses described in clauses (iii), (iv), and 
                (vii) of subsection (a)(3)(B);
                  (ii) not less than 30 percent shall be made 
                available to support a State system of early 
                childhood education training and technical 
                assistance;
                  (iii) not less than 20 percent shall be made 
                available to the Secretary to assist local 
                programs in meeting the standards described in 
                section 641A(a)(1); and
                  (iv) not less than $3,000,000 of the amount 
                in clause (iii) appropriated for such fiscal 
                year shall be made available to carry out 
                activities described in section 648(c)(4);

           *       *       *       *       *       *       *

No funds reserved under this paragraph or paragraph (3) may be 
combined with funds appropriated under any other Act if the 
purpose of combining funds is to make a single discretionary 
grant or a single discretionary payment, unless such funds 
appropriated under this subchapter are separately identified in 
such grant or payment and are used for the purposes of this 
subchapter. [No Freely Associated State may receive financial 
assistance under this subchapter after fiscal year 2002.] If 
less than 2 percent of the amount appropriated for such fiscal 
year is made available for the activities authorized in 
subparagraph (C), then the Secretary is authorized to use at 
least 25 percent of such funds to fund migrant and seasonal 
Head Start programs for expansion of services. If sufficient 
migrant and seasonal eligible children are not available to use 
such funds, then enrollment priority shall be given to other 
disadvantaged populations referred to in subparagraph (A).
  (3)(A)(i) In order to provide assistance for activities 
specified in subparagraph (C) directed at the goals specified 
in subparagraph (B), the Secretary shall reserve, from the 
amount (if any) by which the funds appropriated under section 
639(a) for a fiscal year exceed the adjusted prior year 
appropriation, a share equal to the sum of--
          (I) 60 percent of such excess amount for fiscal year 
        [1999, 50 percent of such excess amount for fiscal year 
        2000, 47.5 percent of such excess amount for fiscal 
        year 2001, 35 percent of such excess amount for fiscal 
        year 2002, and 25 percent of such excess amount for 
        fiscal year 2003] 2004 through 2008; and

           *       *       *       *       *       *       *

  (iii) After the reservation of amounts under paragraph 
(2)(including the 2 percent amount referred to in paragraph 
(2)(C)) and the 60 percent amount referred to in subparagraph 
(A) of this paragraph, a portion of the remaining funds shall 
be made available to expand services to underserved 
populations, such as children receiving services under the 
Early Head Start and Migrant and Seasonal Head Start programs.
  [(B) Funds reserved under this paragraph (referred to in this 
paragraph as ``quality improvement funds'') shall be used to 
accomplish any or all of the following goals:
          [(i) Ensuring that Head Start programs meet or exceed 
        performance standards pursuant to section 
        641A(a)(1)(A).
          [(ii) Ensuring that such programs have adequate 
        numbers of qualified staff, and that such staff are 
        furnished adequate training, including developing 
        skills in working with children with non-English 
        language background and children with disabilities, 
        when appropriate.
          [(iii) Ensuring that salary levels and benefits are 
        adequate to attract and retain qualified staff for such 
        programs.
          [(iv) Using salary increases to improve staff 
        qualifications, and to assist with the implementation 
        of career development programs, for the staff of Head 
        Start programs, and to encourage the staff to 
        continually improve their skills and expertise by 
        informing the staff of the availability of Federal and 
        State incentive and loan forgiveness programs for 
        professional development.
          [(v) Improving community-wide strategic planning and 
        needs assessments for such programs and collaboration 
        efforts for such programs.
          [(vi) Ensuring that the physical environments of Head 
        Start programs are conducive to providing effective 
        program services to children and families, and are 
        accessible to children with disabilities and their 
        parents.
          [(vii) Ensuring that such programs have qualified 
        staff that can promote language skills and literacy 
        growth of children and that can provide children with a 
        variety of skills that have been identified, through 
        scientifically based reading research, as predictive of 
        later reading achievement.
          [(viii) Making such other improvements in the quality 
        of such programs as the Secretary may designate.
  [(C) Quality improvement funds shall be used to carry out any 
or all of the following activities:
          [(i)(I) Not less than one-half of the amount reserved 
        under this paragraph, to improve the compensation 
        (including benefits) of classroom teachers and other 
        staff of Head Start agencies and thereby enhance 
        recruitment and retention of qualified staff, including 
        recruitment and retention pursuant to achieving the 
        requirements set forth in section 648A(a). The 
        expenditure of funds under this clause shall be subject 
        to section 653. Preferences in awarding salary 
        increases, in excess of cost-of-living allowances, with 
        such funds shall be granted to classroom teachers and 
        staff who obtain additional training or education 
        related to their responsibilities as employees of a 
        Head Start program.
          [(II) If a Head Start agency certifies to the 
        Secretary for such fiscal year that part of the funds 
        set aside under subclause (I) to improve wages cannot 
        be expended by such agency to improve wages because of 
        the operation of section 653, then such agency may 
        expend such part for any of the uses specified in this 
        subparagraph (other than wages).
          [(III) From the remainder of the amount reserved 
        under this paragraph (after the Secretary carries out 
        subclause (I)), the Secretary shall carry out any or 
        all of the activities described in clauses (ii) through 
        (vii), placing the highest priority on the activities 
        described in clause (ii).
          [(ii) To train classroom teachers and other staff to 
        meet the education performance standards described in 
        section 641A(a)(1)(B), through activities--
                  [(I) to promote children's language and 
                literacy growth, through techniques identified 
                through scientifically based reading research;
                  [(II) to promote the acquisition of the 
                English language for non-English background 
                children and families;
                  [(III) to foster children's school readiness 
                skills through activities described in section 
                648A(a)(1); and
                  [(IV) to provide training necessary to 
                improve the qualifications of the staff of the 
                Head Start agencies and to support staff 
                training, child counseling, and other services 
                necessary to address the problems of children 
                participating in Head Start programs, including 
                children from dysfunctional families, children 
                who experience chronic violence in their 
                communities, and children who experience 
                substance abuse in their families.
          [(iii) To employ additional Head Start staff, 
        including staff necessary to reduce the child-staff 
        ratio and staff necessary to coordinate a Head Start 
        program with other services available to children 
        participating in such program and to their families.
          [(iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and 
        thereby maintain or expand Head Start services.
          [(v) To supplement amounts provided under paragraph 
        (2)(C) to provide training necessary to improve the 
        qualifications of the staff of the Head Start agencies, 
        and to support staff training, child counseling, and 
        other services necessary to address the problems of 
        children participating in Head Start programs, 
        including children from dysfunctional families, 
        children who experience chronic violence in their 
        communities, and children who experience substance 
        abuse in their families.
          [(vi) Such other activities as the Secretary may 
        designate.]
  (B) Funds reserved under this paragraph (referred to in this 
paragraph as ``quality improvement funds'') shall be used to 
accomplish any or all of the following goals:
          (i) Ensuring that Head Start programs meet or exceed 
        standards pursuant to section 641A(a)(1).
          (ii) Ensuring that such programs have adequate 
        numbers of qualified staff, and that such staff is 
        furnished adequate training, including developing 
        skills to promote the development of language skills, 
        premathematic skills, and prereading in young children 
        and in working with children with non-English language 
        background, children referred by child welfare 
        services, and children with disabilities, when 
        appropriate.
          (iii) Developing and financing the salary scales 
        described under section 644(a) and section 653, in 
        order to ensure that salary levels and benefits are 
        adequate to attract and retain qualified staff for such 
        programs.
          (iv) Using salary increases to improve staff 
        qualifications, and to assist with the implementation 
        of programs specifically designed to enable lead 
        instructors to become more effective educators, for the 
        staff of Head Start programs, and to encourage the 
        staff to continually improve their skills and expertise 
        by informing the staff of the availability of Federal 
        and State incentive and loan forgiveness programs for 
        professional development.
          (v) Improving community-wide strategic planning and 
        needs assessments for such programs and collaboration 
        efforts for such programs, including collaborations to 
        increase program participation by underserved 
        populations of eligible children.
          (vi) Ensuring that the physical environments of Head 
        Start programs are conducive to providing effective 
        program services to children and families, and are 
        accessible to children with disabilities and their 
        parents.
          (vii) Ensuring that such programs have qualified 
        staff that can promote language skills and literacy 
        growth of children and that can provide children with a 
        variety of skills that have been identified, through 
        scientifically based reading research, as predictive of 
        later reading achievement.
          (viii) Providing assistance to complete post-
        secondary course work needed to attain baccalaureate 
        degrees in early childhood education.
          (ix) Making such other improvements in the quality of 
        such programs as the Secretary may designate.
          (x) To promote the regular attendance and stability 
        of highly mobile children, including migrant and 
        homeless children.
  (C) Quality improvement funds shall be used to carry out any 
or all of the following activities:
          (i)(I) Not less than one-half of the amount reserved 
        under this paragraph, to improve the compensation 
        (including benefits) of classroom teachers and other 
        staff of Head Start agencies providing instructional 
        services and thereby enhancing recruitment and 
        retention of qualified staff, including recruitment and 
        retention pursuant to achieving the requirements set 
        forth in section 648A(a). The expenditure of funds 
        under this clause shall be subject to section 653. 
        Salary increases, in excess of cost-of-living 
        allowance, provided with such funds shall be subject to 
        the specific standards governing salaries and salary 
        increases established pursuant to section 644(a).
          (II) If a Head Start agency certifies to the 
        Secretary for such fiscal year that part of the funds 
        set aside under subclause (I) to improve wages cannot 
        be expended by such agency to improve wages because of 
        the operation of section 653, then such agency may 
        expend such part for any of the uses specified in this 
        subparagraph (other than wages).
          (III) From the remainder of the amount reserved under 
        this paragraph (after the Secretary carries out 
        subclause (I)), the Secretary shall carry out any or 
        all of the activities described in clauses (ii) through 
        (vii), placing the highest priority on the activities 
        described in clause (ii).
          (ii) To train classroom teachers and other staff to 
        meet the education standards described in section 
        641A(a)(1)(B), through activities--
                  (I) to promote children's language and 
                prereading growth, through techniques 
                identified through scientifically based reading 
                research;
                  (II) to promote the acquisition of the 
                English language for non-English background 
                children and families;
                  (III) to foster children's school readiness 
                skills through activities described in section 
                648A(a)(1); and
                  (IV) to educate and provide training 
                necessary to improve the qualifications 
                particularly with respect to such assistance to 
                enable more instructors to meet the degree 
                requirements under section 648A(a)(2)(A) and to 
                support staff training, child counseling, and 
                other services necessary to address the 
                problems of children participating in Head 
                Start programs, including children from 
                dysfunctional families, children who experience 
                chronic violence in their communities, and 
                children who experience substance abuse in 
                their families.
          (iii) To employ additional Head Start staff, 
        including staff necessary to reduce the child-staff 
        ratio lead instructors who meet the qualifications of 
        section 648A(a) and staff necessary to coordinate a 
        Head Start program with other services available to 
        children participating in such program and to their 
        families.
          (iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and 
        thereby maintain or expand Head Start services.
          (v) To supplement amounts provided under paragraph 
        (2)(C) to provide training necessary to improve the 
        qualifications of the staff of the Head Start agencies, 
        and to support staff training, child counseling, and 
        other services necessary to address the problems of 
        children participating in Head Start programs, 
        including children from dysfunctional families, 
        children who experience chronic violence in their 
        communities, and children who experience substance 
        abuse in their families.
          (vi) To conduct outreach to homeless families in an 
        effort to increase the program participation of 
        eligible homeless children.
          (vii) Such other activities as the Secretary may 
        designate.
          (viii) To conduct outreach to migrant and seasonal 
        farm-working families and families with children with a 
        limited English proficiency.

           *       *       *       *       *       *       *

  (4) Subject to section 639(b), the Secretary shall allot the 
remaining amounts appropriated in each fiscal year among the 
States, in accordance with latest satisfactory data so that--
          (A) each State receives an amount which is equal to 
        the amount the State received for fiscal year [1998] 
        2003; and

           *       *       *       *       *       *       *

  (5)(A) * * *
  (B) From the reserved sums, the Secretary [may] shall award a 
collaboration grant to each State to facilitate collaboration 
regarding early childhood education activities carried out in 
the State under this subchapter, and other activities carried 
out in, and by, the State that are designed to benefit low-
income children and families and to encourage Head Start 
agencies to collaborate with entities involved in State and 
local planning processes (including the State lead agency 
administering the financial assistance received under the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.) and the entities providing resource and referral services 
in the State) in order to better meet the needs of low-income 
children and families.
  [(C) A State that receives a grant under subparagraph (B) 
shall--
          [(i) appoint an individual to serve as a State 
        liaison between--
                  [(I) the appropriate regional office of the 
                Administration for Children and Families and 
                agencies and individuals carrying out Head 
                Start programs in the State; and
                  [(II) agencies (including local educational 
                agencies) and entities carrying out programs 
                serving low-income children and families;
          [(ii) involve the State Head Start Association in the 
        selection of the individual, and involve the 
        association in determinations relating to the ongoing 
        direction of the collaboration;
          [(iii) ensure that the individual holds a position 
        with sufficient authority and access to ensure that the 
        collaboration described in subparagraph (B) is 
        effective and involves a range of State agencies;
          [(iv) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start 
        services with health care, welfare, child care, 
        education, and community service activities, family 
        literacy services, activities relating to children with 
        disabilities (including coordination of services with 
        those State officials who are responsible for 
        administering part C and section 619 of the Individuals 
        with Disabilities Education Act (20 U.S.C. 1431-1445, 
        1419)), and services for homeless children;
          [(v) include representatives of the State Head Start 
        Association and local Head Start agencies in unified 
        planning regarding early care and education services at 
        both the State and local levels, including 
        collaborative efforts to plan for the provision of 
        full-working-day, full calendar year early care and 
        education services for children; and
          [(vi) encourage local Head Start agencies to appoint 
        a State level representative to represent Head Start 
        agencies within the State in conducting collaborative 
        efforts described in subparagraphs (B) and (D), and in 
        clause (v).]
  (C) In order to improve results for children, a State that 
receives a grant under subparagraph (B) shall--
          (i) appoint an individual to serve as the State 
        Director of Collaboration between--
                  (I) the appropriate regional office of the 
                Administration for Children and Families;
                  (II) the State educational agency;
                  (III) the State Department of Health and 
                Human Services;
                  (IV) the State agency that oversees child 
                care;
                  (V) the State agency that assists children 
                with developmental disabilities;
                  (VI) the State Head Start Association;
                  (VII) the State network of child care 
                resource and referral agencies;
                  (VIII) local educational agencies;
                  (IX) community-based and faith-based 
                organizations;
                  (X) State representatives of migrant and 
                seasonal Head Start programs;
                  (XI) State representatives of Indian Head 
                Start programs;
                  (XII) State and local providers of early 
                childhood education and child care; and
                  (XIII) other entities carrying out programs 
                serving low-income children and families in the 
                State;
          (ii) ensure that the State Director of Collaboration 
        holds a position with sufficient authority and access 
        to ensure that the collaboration described in 
        subparagraph (B) is effective and involves a range of 
        State agencies;
          (iii) involve the entities described in section 
        clause (i) to develop a strategic plan for the 
        coordinated outreach to identify eligible children and 
        implementation strategies based on a needs assessment 
        conducted by the Office of the State Director of 
        Collaboration which shall include an assessment of the 
        availability of high quality prekindergarten services 
        for low-income children in the State. Such assessment 
        shall be completed within one year after the date of 
        enactment of the ``School Readiness Act of 2003'' and 
        be updated on an annual basis and shall be made 
        available to the general public within the State;
          (iv) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start 
        services with health care, welfare, child care, child 
        protective services, education, and community service 
        activities, family literacy services, activities 
        relating to children with disabilities (including 
        coordination of services with those State officials who 
        are responsible for administering part C and section 
        619 of the Individuals with Disabilities Education 
        Act), and services for homeless children (including 
        coordination of services with the Office of Coordinator 
        for Education of Homeless Children and Youth designated 
        under section 722 (g)(1)(J)(ii) of the McKinney-Vento 
        Homeless Education Assistance Improvements Act of 2001;
          (v) consult with the chief State school officer, 
        local educational agencies, and representatives of 
        local Head Start agencies and providers of early 
        childhood education and care in unified planning 
        regarding early care and education services at both the 
        State and local levels, including collaborative efforts 
        to develop school readiness standards; and
          (vi) consult with the chief State school officer, 
        local educational agencies, State child care 
        administrators, State human services administrators, 
        representatives of local resource and referral 
        agencies, local early childhood councils, providers of 
        early childhood education and care and other relevant 
        State and local agencies, and representatives of the 
        State Head Start Associations to plan for the provision 
        of full-working-day, full calendar year early care and 
        education services for children.
  (D) Following the award of collaboration grants described in 
subparagraph (B), the Secretary shall provide, from the 
reserved sums, supplemental funding for collaboration grants--
          (i) to States that (in consultation with their State 
        Head Start Associations and providers of services 
        supporting early childhood education and child care) 
        develop statewide, regional, or local unified plans for 
        early childhood education and child care that include 
        the participation of Head Start agencies; and

           *       *       *       *       *       *       *

  (6)[(A) From amounts reserved and allotted pursuant to 
paragraphs (2) and (4), the Secretary shall use, for grants for 
programs described in section 645A(a), a portion of the 
combined total of such amounts equal to 7.5 percent for fiscal 
year 1999, 8 percent for fiscal year 2000, 9 percent for fiscal 
year 2001, 10 percent for fiscal year 2002, and 10 percent for 
fiscal year 2003, of the amount appropriated pursuant to 
section 639(a), except as provided in subparagraph (B).] (A) 
From amounts reserved and allotted pursuant to paragraphs (2) 
and (4), the Secretary shall use, for grants for programs 
described in section 645A(a) of this subchapter, a portion of 
the combined total of such amounts equal to at least 10 percent 
for fiscal years 2004 through 2008, of the amount appropriated 
pursuant to section 639(a), except as provided in subparagraph 
(B).

           *       *       *       *       *       *       *

  (f) The Secretary shall establish procedures to enable Head 
Start agencies to develop locally designed or specialized 
service delivery models to address local community needs, 
including models that leverage the existing capacity and 
capabilities of the delivery system of early childhood 
education and child care.
  (g)(1) * * *
  (2) For the purpose of expanding Head Start programs, in 
allocating funds to an applicant within a State, from amounts 
allotted to a State pursuant to subsection (a)(4), the 
Secretary shall take into consideration--
          (A) * * *

           *       *       *       *       *       *       *

          [(C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and public 
        agencies serving children and families (including 
        organizations serving families in whose homes English 
        is not the language customarily spoken), and 
        organizations and public entities serving children with 
        disabilities;]
          (C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and public 
        agencies serving children and families (including 
        organizations and agencies providing family support 
        services and protective services to children and 
        families, and organizations serving families in whose 
        homes English is not the language customarily spoken), 
        and organizations and public entities serving children 
        with disabilities and homeless children (including the 
        local educational agency liaison designated under 
        section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Education Assistance Improvements Act of 2001);

           *       *       *       *       *       *       *

          (G) the extent to which the applicant proposes to 
        foster partnerships with other service providers in a 
        manner that will leverage the existing delivery systems 
        of such services and enhance the resource capacity of 
        the applicant; and
          (H) the extent to which the applicant, in providing 
        services, plans to coordinate with the local 
        educational agency serving the community involved, 
        including the liaison designated under section 
        722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Education Assistance Improvements Act of 2001, and with 
        schools in which children participating in a Head Start 
        program operated by such agency will enroll following 
        such program, regarding such services and the education 
        services provided by such local educational agency.

           *       *       *       *       *       *       *

  (m) Enrollment of Homeless Children.--The Secretary shall by 
regulation prescribe policies and procedures to remove barriers 
to the enrollment and participation of eligible homeless 
children in Head Start programs. Such regulations shall require 
Head Start agencies to:
          (1) implement policies and procedures to ensure that 
        eligible homeless children are identified and 
        prioritized for enrollment,
          (2) allow homeless families to apply to, enroll in 
        and attend Head Start programs while required 
        documents, such as proof of residency, immunization and 
        other medical records, birth certificates and other 
        documents, are obtained within a reasonable time frame, 
        and
          (3) coordinate individual Head Start centers and 
        programs with efforts to implement Subtitle VII-B of 
        the McKinney-Vento Homeless Assistance Act.
  (n) Savings Provision.--Nothing in this Act shall be 
construed to require a State to establish a program of early 
education for children in the State, to require any child to 
participate in a program of early education, to attend school, 
or to participate in any initial screening prior to 
participation in such program, except as provided under section 
612(a)(3), (consistent with section 614(a)(1)(C)), of the 
Individuals with Disabilities Education Act.
  (o) Materials.--All curricula and instructional materials 
funded under this subchapter shall be scientifically based and 
age appropriate. Parents shall have the ability to inspect, 
upon request, any curricula or instructional materials.

                   DESIGNATION OF HEAD START AGENCIES

  Sec. 641. (a)(1) The Secretary is authorized to designate as 
a Head Start agency any local public or private nonprofit or 
for-profit agency, within a community, including a community-
based or faith-based organization, which [(1)] (A) has the 
power and authority to carry out the purposes of this 
subchapter and perform the functions set forth in section 642 
within a community; and [(2)] (B) is determined by the 
Secretary (in consultation with the chief executive officer of 
the State involved, if such State expends non-Federal funds to 
carry out Head Start programs) to be capable of planning, 
conducting, administering, and evaluating, either directly or 
by other arrangements, a Head Start program.
  (2) In order to be designated as a Head Start agency and to 
receive a grant under this subchapter, a grantee shall 
establish grantee-determined goals for improving the school 
readiness of children participating in a program under this 
subchapter, which shall include goals for--
          (A) educational instruction in prereading, 
        premathematical, and language skills; and
          (B) the provision of health, educational, 
        nutritional, social, and other services.
  (3) In order to receive a grant subsequent to the initial 
grant provided following the date of enactment of this 
subchapter, the grantee shall demonstrate that it has met the 
goals described in paragraph (2).
  (4) Progress in meeting such goals shall not be measured 
primarily or solely by the results of assessments.

           *       *       *       *       *       *       *

  [(c)(1) In the administration of the provisions of this 
section (subject to paragraph (2)), the Secretary shall, in 
consultation with the chief executive officer of the State 
involved if such State expends non-Federal funds to carry out 
Head Start programs, give priority in the designation of Head 
Start agencies to any local public or private nonprofit or for-
profit agency which is receiving funds under any Head Start 
program on the date of the enactment of this Act unless the 
Secretary determines that the agency involved fails to meet 
program and financial management requirements, performance 
standards described in section 641A(a)(1), results-based 
performance measures developed by the Secretary under section 
641A(b), or other requirements established by the Secretary.
  [(2) If there is no agency of the type referred to in 
paragraph (1) because of any change in the assistance furnished 
to programs for economically disadvantaged persons, the 
Secretary shall, in consultation with the chief executive 
officer of the State if such State expends non-Federal funds to 
carry out Head Start programs, give priority in the designation 
of Head Start agencies to any successor agency that is 
operating a Head Start program in substantially the same manner 
as the predecessor agency that did receive funds in the fiscal 
year preceding the fiscal year for which the determination is 
made.
  [(3) Notwithstanding any other provision of this subsection, 
the Secretary shall not give such priority to any agency with 
respect to which financial assistance has been terminated, or 
an application for refunding has been denied, under this 
subchapter by the Secretary after affording such agency 
reasonable notice and opportunity for a full and fair hearing 
in accordance with section 646(a)(3).
  [(d) If no entity in a community is entitled to the priority 
specified in subsection (c), then the Secretary may designate a 
Head Start agency from among qualified applicants in such 
community. In selecting from among qualified applicants for 
designation as a Head Start agency, the Secretary shall give 
priority to any qualified agency that functioned as a Head 
Start delegate agency in the community and carried out a Head 
Start program that the Secretary determines met or exceeded 
such performance standards and such results-based performance 
measures. In selecting from among qualified applicants for 
designation as a Head Start agency, the Secretary shall 
consider the effectiveness of each such applicant to provide 
Head Start services, based on--
          [(1) any past performance of such applicant in 
        providing services comparable to Head Start services, 
        including how effectively such applicant provided such 
        comparable services;
          [(2) the plan of such applicant to provide 
        comprehensive health, nutritional, educational, social, 
        and other services needed to aid participating children 
        in attaining their full potential;
          [(3) the plan of such applicant to coordinate the 
        Head Start program it proposes to carry out, with other 
        preschool programs, including Even Start programs under 
        part B of chapter 1 of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2741 et 
        seq.) and programs under part C and section 619 of the 
        Individuals with Disabilities Education Act (20 U.S.C 
        1431-1445, 1419), and with the educational programs 
        such children will enter at the age of compulsory 
        school attendance;
          [(4) the plan of such applicant--
                  [(A) to seek the involvement of parents of 
                participating children in activities (at home 
                and in the center involved where practicable) 
                designed to help such parents become full 
                partners in the education of their children;
                  [(B) to afford such parents the opportunity 
                to participate in the development, conduct, and 
                overall performance of the program at the local 
                level;
                  [(C) to offer (directly or through referral 
                to local entities, such as entities carrying 
                out Even Start programs under part B of chapter 
                1 of title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 2741 et seq.), 
                public and school libraries, and family support 
                programs) to such parents--
                          [(i) family literacy services; and
                          [(ii) parenting skills training;
                  [(D) to offer to parents of participating 
                children substance abuse counseling (either 
                directly or through referral to local 
                entities), including information on drug-
                exposed infants and fetal alcohol syndrome;
                  [(E) at the option of such applicant, to 
                offer (directly or through referral to local 
                entities) to such parents--
                          [(i) training in basic child 
                        development;
                          [(ii) assistance in developing 
                        communication skills;
                          [(iii) opportunities for parents to 
                        share experiences with other parents; 
                        or
                          [(iv) any other activity designed to 
                        help such parents become full partners 
                        in the education of their children; and
                  [(F) to provide, with respect to each 
                participating family, a family needs assessment 
                that includes consultation with such parents 
                about the benefits of parent involvement and 
                about the activities described in subparagraphs 
                (C) (D), and (E) in which such parents may 
                choose to become involved (taking into 
                consideration their specific family needs, work 
                schedules, and other responsibilities);
          [(5) the ability of such applicant to carry out the 
        plans described in paragraphs (2), (3), and (4);
          [(6) other factors related to the requirements of 
        this subchapter;
          [(7) the plan of such applicant to meet the needs of 
        non-English background children and their families, 
        including needs related to the acquisition of the 
        English language;
          [(8) the plan of such applicant to meet the needs of 
        children with disabilities;
          [(9) the plan of such applicant who chooses to assist 
        younger siblings of children who will participate in 
        the proposed Head Start program to obtain health 
        services from other sources; and
          [(10) the plan of such applicant to collaborate with 
        other entities carrying out early childhood education 
        and child care programs in the community.]
  (c) In the administration of the provisions of this section, 
the Secretary shall, in consultation with the chief executive 
officer of the State involved if such State expends non-Federal 
funds to carry out Head Start programs, give priority in the 
designation of Head Start agencies to any local public or 
private nonprofit or for-profit agency which is receiving funds 
under any Head Start program on the date of the enactment of 
this Act that fulfills the program and financial management 
requirements, standards described in section 641A(a)(1), 
results-based performance measures developed by the Secretary 
under section 641A(b), or other requirements established by the 
Secretary.
  (d) If no entity in a community is entitled to the priority 
specified in subsection (c), then the Secretary may designate a 
Head Start agency from among qualified applicants in such 
community. In selecting from among qualified applicants for 
designation as a Head Start agency, the Secretary shall give 
priority to any qualified agency that functioned as a Head 
Start delegate agency in the community and carried out a Head 
Start program that the Secretary determines met or exceeded 
such performance standards and such results-based performance 
measures. In selecting from among qualified applicants for 
designation as a Head Start agency, the Secretary shall 
consider the effectiveness of each such applicant to provide 
Head Start services, based on--
          (1) any past performance of such applicant in 
        providing services comparable to Head Start services, 
        including how effectively such applicant provided such 
        comparable services;
          (2) the capacity of such applicant to serve eligible 
        children with scientifically-based programs that 
        promote school readiness of children participating in 
        the program;
          (3) the plan of such applicant to meet standards set 
        forth in section 641A(a)(1), with particular attention 
        to the standards set forth in subparagraphs (A) and (B) 
        of such section;
          (4) the plan of such applicant to provide 
        comprehensive health, nutritional, educational, social, 
        and other services needed to prepare children to 
        succeed in school;
          (5) the plan of such applicant to coordinate the Head 
        Start program it proposes to carry out with other 
        preschool programs, including Early Reading First and 
        Even Start programs under title I, part B, subparts 1 
        and 2 of the Elementary and Secondary Education Act of 
        1965; other preschool programs carried out under title 
        I of the Act; programs under part C and section 619 of 
        the Individuals with Disabilities Education Act; State 
        prekindergarten programs; and with the educational 
        programs such children will enter at the age of 
        compulsory school attendance;
          (6) the plan of such applicant to coordinate the Head 
        Start program it proposes to carry out with private 
        entities with resources available to assist the Head 
        Start Program meet its program needs;
          (7) the plan of such applicant--
                  (A) to seek the involvement of parents of 
                participating children in activities (at home 
                and in the center involved where practicable) 
                designed to help such parents become full 
                partners in the education of their children;
                  (B) to afford such parents the opportunity to 
                participate in the development, conduct, and 
                overall performance of the program at the local 
                level;
                  (C) to offer (directly or through referral to 
                local entities, such as entities carrying out 
                Even Start programs under part B of chapter 1 
                of title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 2741 et seq.), 
                public and school libraries, and family support 
                programs) to such parents--
                          (i) family literacy services; and
                          (ii) parenting skills training;
                  (D) to offer to parents of participating 
                children substance abuse counseling (either 
                directly or through referral to local 
                entities), including information on drug-
                exposed infants and fetal alcohol syndrome;
                  (E) at the option of such applicant, to offer 
                (directly or through referral to local 
                entities) to such parents--
                          (i) training in basic child 
                        development;
                          (ii) assistance in developing 
                        communication skills;
                          (iii) opportunities for parents to 
                        share experiences with other parents; 
                        or
                          (iv) any other activity designed to 
                        help such parents become full partners 
                        in the education of their children;
                  (F) to provide, with respect to each 
                participating family, a family needs assessment 
                that includes consultation with such parents 
                about the benefits of parent involvement and 
                about the activities described in subparagraphs 
                (C) (D), and (E) in which such parents may 
                choose to become involved (taking into 
                consideration their specific family needs, work 
                schedules, and other responsibilities); and
                  (G) to extend out reach to fathers in order 
                to strengthen the role of fathers in families 
                by working directly with fathers and father-
                figures through such activities as including 
                fathers in home visits; implementing father 
                outreach efforts, providing opportunities for 
                direct father-child interactions; and targeting 
                increased male participation in the program;
          (8) the ability of such applicant to carry out the 
        plans described in paragraphs (2), (3), and (4);
          (9) other factors related to the requirements of this 
        subchapter;
          (10) the plan of such applicant to meet the needs of 
        non-English background children and their families, 
        including needs related to the acquisition of the 
        English language;
          (11) the plan of such applicant to meet the needs of 
        children with disabilities;
          (12) the plan of such applicant who chooses to assist 
        younger siblings of children who will participate in 
        the proposed Head Start program to obtain health 
        services from other sources;
          (13) the plan of such applicant to collaborate with 
        other entities carrying out early childhood education 
        and child care programs in the community; and
          (14) the plan of such applicant to meet the needs of 
        homeless children.

           *       *       *       *       *       *       *


SEC. 641A. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES AND 
                    PROGRAMS.

  (a) Quality Standards.--
          (1) Establishment of standards.--The Secretary shall 
        establish by regulation standards, including minimum 
        levels of overall accomplishment, applicable to Head 
        Start agencies, programs, and projects under this 
        subchapter, including--
                  (A) * * *
                  (B)(i) * * *
                  [(ii) additional education performance 
                standards to ensure that the children 
                participating in the program, at a minimum--
                          [(I) develop phonemic, print, and 
                        numeracy awareness;
                          [(II) understand and use language to 
                        communicate for various purposes;
                          [(III) understand and use 
                        increasingly complex and varied 
                        vocabulary;
                          [(IV) develop and demonstrate an 
                        appreciation of books; and
                          [(V) in the case of non-English 
                        background children, progress toward 
                        acquisition of the English language.]
                  (ii) additional education standards to ensure 
                that the children participating in the program, 
                at a minimum develop and demonstrate--
                          (I) language skills;
                          (II) prereading knowledge and skills, 
                        including interest in and appreciation 
                        of books, reading and writing either 
                        alone or with others;
                          (III) premathematics knowledge and 
                        skills, including aspects of 
                        classification, seriation, number, 
                        spatial relations, and time;
                          (IV) cognitive abilities related to 
                        academic achievement;
                          (V) social and emotional development 
                        important for environments constructive 
                        for child development, early learning, 
                        and school success; and
                          (VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language.

           *       *       *       *       *       *       *

          (2) Considerations in developing standards.--In 
        developing the regulations required under paragraph 
        (1), the Secretary shall--
                  (A) * * *
                  [(B) take into consideration--
                          [(i) past experience with use of the 
                        standards in effect under this 
                        subchapter on the date of enactment of 
                        this section;
                          [(ii) changes over the period since 
                        the date of enactment of this Act in 
                        the circumstances and problems 
                        typically facing children and families 
                        served by Head Start agencies;
                          [(iii) developments concerning best 
                        practices with respect to early 
                        childhood education and development, 
                        children with disabilities, family 
                        services, program administration, and 
                        financial management;
                          [(iv) projected needs of an expanding 
                        Head Start program;
                          [(v) guidelines and standards 
                        currently in effect or under 
                        consideration that promote child health 
                        services, and projected needs of 
                        expanding Head Start programs;
                          [(vi) changes in the population of 
                        children who are eligible to 
                        participate in Head Start programs, 
                        including the language background and 
                        family structure of such children; and
                          [(vii) the need for, and state-of-
                        the-art developments relating to, local 
                        policies and activities designed to 
                        ensure that children participating in 
                        Head Start programs make a successful 
                        transition to public schools; and]
                  (B) take into consideration--
                          (i) past experience with use of the 
                        standards in effect under this 
                        subchapter on October 27, 1998;
                          (ii) changes over the period since 
                        October 27, 1998, in the circumstances 
                        and problems typically facing children 
                        and families served by Head Start 
                        agencies;
                          (iii) developments concerning best 
                        practices with respect to early 
                        childhood education and development, 
                        children with disabilities, family 
                        services, program administration, and 
                        financial management;
                          (iv) projected needs of an expanding 
                        Head Start program;
                          (v) guidelines and standards 
                        currently in effect or under 
                        consideration that promote child health 
                        services, and projected needs of 
                        expanding Head Start programs;
                          (vi) changes in the population of 
                        children who are eligible to 
                        participate in Head Start programs, 
                        including the language background and 
                        family structure of such children;
                          (vii) the need for, and state-of-the-
                        art developments relating to, local 
                        policies and activities designed to 
                        ensure that children participating in 
                        Head Start programs make a successful 
                        transition to schools; and
                          (viii) the unique challenges faced by 
                        individual programs, including those 
                        that are seasonal or short term, and 
                        those that serve rural populations; and
                  (C)(i) * * *
                  (ii) ensure that any such revisions in the 
                performance standards will not result in the 
                elimination of or any reduction in the scope or 
                types of health, education, parental 
                involvement, nutritional, social, or other 
                services required to be provided under such 
                standards as in effect on [the date of 
                enactment of the Coats Human Services 
                Reauthorization Act of 1998] October 27, 1998.

           *       *       *       *       *       *       *

  (b) Results-Based Performance Measures.--
          (1) * * *
          [(2) Characteristics of measures.--The performance 
        measures developed under this subsection shall--
                  [(A) be used to assess the impact of the 
                various services provided by Head Start 
                programs and, to the extent the Secretary finds 
                appropriate, administrative and financial 
                management practices of such programs;
                  [(B) be adaptable for use in self-assessment, 
                peer review, and program evaluation of 
                individual Head Start agencies and programs, 
                not later than July 1, 1999; and
                  [(C) be developed for other program purposes 
                as determined by the Secretary.
        The performance measures shall include the performance 
        standards described in subsection (a)(1)(B)(ii).]
          (2) Characteristics of measures.--The performance 
        measures developed under this subsection shall--
                  (A) be used to assess the impact of the 
                various services provided by Head Start 
                programs and, to the extent the Secretary finds 
                appropriate, administrative and financial 
                management practices of such programs;
                  (B) be adaptable for use in self-assessment, 
                peer review, and program evaluation of 
                individual Head Start agencies and programs;
                  (C) be developed for other program purposes 
                as determined by the Secretary;
                  (D) be appropriate for the population served; 
                and
                  (E) be reviewed no less than every 4 years, 
                based on advances in the science of early 
                childhood development.
        The performance measures shall include the performance 
        standards described in subsection (a)(1)(A) and (B).

           *       *       *       *       *       *       *

          [(4) Educational performance measures.--Such results-
        based performance measures shall include educational 
        performance measures that ensure that children 
        participating in Head Start programs--
                  [(A) know that letters of the alphabet are a 
                special category of visual graphics that can be 
                individually named;
                  [(B) recognize a word as a unit of print;
                  [(C) identify at least 10 letters of the 
                alphabet; and
                  [(D) associate sounds with written words.]
          (4) Educational measures.--Results based measures 
        shall be designed for the purpose of promoting the 
        competencies of children participating in Head Start 
        programs specified in subsection (a)(1)(B)(ii), with an 
        emphasis on measuring those competencies that have a 
        strong scientifically-based predictability of a child's 
        school readiness and later performance in school.

           *       *       *       *       *       *       *

  (c) Monitoring of Local Agencies and Programs.--
          (1) In general.--In order to determine whether Head 
        Start agencies meet standards established under this 
        subchapter and results-based performance measures 
        developed by the Secretary under subsection (b) with 
        respect to program, administrative, financial 
        management, and other requirements, the Secretary shall 
        conduct the following reviews of designated Head Start 
        agencies, and of the Head Start programs operated by 
        such agencies:
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Followup reviews including prompt return 
                visits to agencies and programs that fail to 
                meet [the standards] one or more of the 
                performance measures developed by the Secretary 
                under subsection (b).

           *       *       *       *       *       *       *

          [(2) Conduct of reviews.--The Secretary shall ensure 
        that reviews described in subparagraphs (A) through (C) 
        of paragraph (1)--
                  [(A) are performed, to the maximum extent 
                practicable, by employees of the Department of 
                Health and Human Services who are knowledgeable 
                about Head Start programs;
                  [(B) are supervised by such an employee at 
                the site of such Head Start agency;
                  [(C) are conducted by review teams that shall 
                include individuals who are knowledgeable about 
                Head Start programs and, to the maximum extent 
                practicable, the diverse (including linguistic 
                and cultural) needs of eligible children 
                (including children with disabilities) and 
                their families;
                  [(D) include as part of the reviews of the 
                programs, a review and assessment of program 
                effectiveness, as measured in accordance with 
                the results-based performance measures 
                developed by the Secretary pursuant to 
                subsection (b) and with the performance 
                standards established pursuant to subparagraphs 
                (A) and (B) of subsection (a)(1); and
                  [(E) seek information from the communities 
                and the States involved about the performance 
                of the programs and the efforts of the Head 
                Start agencies to collaborate with other 
                entities carrying out early childhood education 
                and child care programs in the community.]
          (2) Conduct of reviews.--The Secretary shall ensure 
        that reviews described in subparagraphs (A) through (C) 
        of paragraph (1)--
                  (A) that incorporate a monitoring visit, do 
                so without prior notice of the visit to the 
                local agency or program;
                  (B) are conducted by review teams that shall 
                include individuals who are knowledgeable about 
                Head Start programs and, to the maximum extent 
                practicable, the diverse (including linguistic 
                and cultural) needs of eligible children 
                (including children with disabilities) and 
                limited-English proficient children and their 
                families;
                  (C) include as part of the reviews of the 
                programs, a review and assessment of program 
                effectiveness, as measured in accordance with 
                the results-based performance measures 
                developed by the Secretary pursuant to 
                subsection (b) and with the standards 
                established pursuant to subparagraphs (A) and 
                (B) of subsection (a)(1);
                  (D) seek information from the communities and 
                the States involved about the performance of 
                the programs and the efforts of the Head Start 
                agencies to collaborate with other entities 
                carrying out early childhood education and 
                child care programs in the community;
                  (E) seek information from the communities 
                where Head Start programs exist about 
                innovative or effective collaborative efforts, 
                barriers to collaboration, and the efforts of 
                the Head Start agencies and programs to 
                collaborate with the entities carrying out 
                early childhood education and child care 
                programs in the community;
                  (F) include as part of the reviews of the 
                programs, a review and assessment of whether a 
                program is in conformity with the income 
                eligibility requirements, as defined in section 
                645 and regulations promulgated thereunder;
                  (G) include as part of the reviews of the 
                programs, a review and assessment of whether 
                programs have adequately addressed the 
                population and community needs (including 
                populations of children with a limited English 
                proficiency and children of migrant and 
                seasonal farm-working families); and
                  (H) include as part of the review the extent 
                to which the program addresses the community 
                needs and strategic plan identified in section 
                640(g)(2)(C).
  (d) Corrective Action; Termination.--
          [(1) Determination.--If the Secretary determines, on 
        the basis of a review pursuant to subsection (c), that 
        a Head Start agency designated pursuant to section 641 
        fails to meet the standards described in subsection (a) 
        or results-based performance measures developed by the 
        Secretary under subsection (b), the Secretary shall--]
          (1) Determination.--If the Secretary determines, on 
        the basis of a review pursuant to subsection (c), that 
        a Head Start agency designated pursuant to section 641 
        fails to meet the standards described in subsection (a) 
        or results-based performance measures developed by the 
        Secretary under subsection (b), or fails to adequately 
        address the community needs and strategic plan 
        identified in 640(g)(2)(C), the Secretary shall--
                  (A) * * *

           *       *       *       *       *       *       *

          [(2) Quality improvement plan.--
                  [(A) Agency responsibilities.--In order to 
                retain a designation as a Head Start agency 
                under this subchapter, a Head Start agency that 
                is the subject of a determination described in 
                paragraph (1) (other than an agency required to 
                correct a deficiency immediately or during a 
                90-day period under clause (i) or (ii) of 
                paragraph (1)(B)) shall--
                          [(i) develop in a timely manner, 
                        obtain the approval of the Secretary 
                        regarding, and implement a quality 
                        improvement plan that specifies--
                                  [(I) the deficiencies to be 
                                corrected;
                                  [(II) the actions to be taken 
                                to correct such deficiencies; 
                                and
                                  [(III) the timetable for 
                                accomplishment of the 
                                corrective actions specified; 
                                and
                          [(ii) eliminate each deficiency 
                        identified, not later than the date for 
                        elimination of such deficiency 
                        specified in such plan (which shall not 
                        be later than 1 year after the date the 
                        agency received notice of the 
                        determination and of the specific 
                        deficiency to be corrected).
                  [(B) Secretarial responsibility.--Not later 
                than 30 days after receiving from a Head Start 
                agency a proposed quality improvement plan 
                pursuant to subparagraph (A), the Secretary 
                shall either approve such proposed plan or 
                specify the reasons why the proposed plan 
                cannot be approved.]
          (2) Quality improvement plan.--
                  (A) Agency and program responsibilities.--In 
                order to retain a designation as a Head Start 
                agency under this subchapter, or in the case of 
                a Head Start Program, in order to continue to 
                receive funds from such agency, a Head Start 
                agency, or Head Start program that is the 
                subject of a determination described in 
                paragraph (1) (other than an agency or program 
                required to correct a deficiency immediately or 
                during a 90-day period under clause (i) or (ii) 
                of paragraph (1)(B)) shall--
                          (i) develop in a timely manner, a 
                        quality improvement plan which shall be 
                        subject to the approval of the 
                        Secretary, or in the case of a program, 
                        the sponsoring agency, and which shall 
                        specify--
                                  (I) the deficiencies to be 
                                corrected;
                                  (II) the actions to be taken 
                                to correct such deficiencies; 
                                and
                                  (III) the timetable for 
                                accomplishment of the 
                                corrective actions specified; 
                                and
                          (ii) eliminate each deficiency 
                        identified, not later than the date for 
                        elimination of such deficiency 
                        specified in such plan (which shall not 
                        be later than 1 year after the date the 
                        agency or program received notice of 
                        the determination and of the specific 
                        deficiency to be corrected).
                  (B) Secretarial responsibility.--Not later 
                than 30 days after receiving from a Head Start 
                agency a proposed quality improvement plan 
                pursuant to subparagraph (A), the Secretary 
                shall either approve such proposed plan or 
                specify the reasons why the proposed plan 
                cannot be approved.
                  (C) Agency responsibility for program 
                improvement.--Not later than 30 days after 
                receiving from a Head Start program, a proposed 
                quality improvement plan pursuant to 
                subparagraph (A), the sponsoring agency shall 
                either approve such proposed plan or specify 
                the reasons why the proposed plan cannot be 
                approved.
          (3) Training and technical assistance.--The Secretary 
        shall provide training and technical assistance to Head 
        Start agencies and programs with respect to the 
        development or implementation of such quality 
        improvement plans to the extent the Secretary finds 
        such provision to be feasible and appropriate given 
        available funding and other statutory responsibilities.
  [(e) Summaries of Monitoring Outcomes.--Not later than 120 
days after the end of each fiscal year, the Secretary shall 
publish a summary report on the findings of reviews conducted 
under subsection (c) and on the outcomes of quality improvement 
plans implemented under subsection (d), during such fiscal 
year. Such report shall be widely disseminated and available 
for public review in both written and electronic formats.]
  (e) Summaries of Monitoring Outcomes.--Not later than 120 
days after the end of each fiscal year, the Secretary shall 
publish a summary report on the findings of reviews conducted 
under subsection (c) and on the outcomes of quality improvement 
plans implemented under subsection (d), during such fiscal 
year. Such information shall be made available to all parents 
with students receiving assistance under this Act in a 
understandable and uniform format, and to the extent 
practicable, provided in a language that the parents can 
understand, and in addition, make the information widely 
available through public means such as distribution through 
public agencies, and at a minimum posting such information on 
the Internet immediately upon publication.

              POWERS AND FUNCTIONS OF HEAD START AGENCIES

  Sec. 642. (a) * * *
  [(b) In order to be so designated, a Head Start agency shall 
also--
          [(1) establish effective procedures by which parents 
        and area residents concerned will be enabled to 
        directly participate in decisions that influence the 
        character of programs affecting their interests;
          [(2) provide for their regular participation in the 
        implementation of such programs;
          [(3) provide technical and other support needed to 
        enable parents and area residents to secure on their 
        own behalf available assistance from public and private 
        sources;
          [(4) seek the involvement of parents of participating 
        children in activities designed to help such parents 
        become full partners in the education of their 
        children, and to afford such parents the opportunity to 
        participate in the development, conduct, and overall 
        performance of the program at the local level;
          [(5) offer (directly or through referral to local 
        entities, such as entities carrying out Even Start 
        programs under part B of chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 2741 et seq.)), to parents of participating 
        children, family literacy services and parenting skills 
        training;
          [(6) offer to parents of participating children 
        substance abuse counseling (either directly or through 
        referral to local entities), including information on 
        drug-exposed infants and fetal alcohol syndrome;
          [(7) at the option of such agency, offer (directly or 
        through referral to local entities), to such parents--
                  [(A) training in basic child development;
                  [(B) assistance in developing communication 
                skills;
                  [(C) opportunities to share experiences with 
                other parents;
                  [(D) regular in-home visitation; or
                  [(E) any other activity designed to help such 
                parents become full partners in the education 
                of their children;
          [(8) provide, with respect to each participating 
        family, a family needs assessment that includes 
        consultation with such parents about the benefits of 
        parent involvement and about the activities described 
        in paragraphs (4) through (7) in which such parents may 
        choose to be involved (taking into consideration their 
        specific family needs, work schedules, and other 
        responsibilities);
          [(9) consider providing services to assist younger 
        siblings of children participating in its Head Start 
        program to obtain health services from other sources;
          [(10) perform community outreach to encourage 
        individuals previously unaffiliated with Head Start 
        programs to participate in its Head Start program as 
        volunteers; and
          [(11)(A) inform custodial parents in single-parent 
        families that participate in programs, activities, or 
        services carried out or provided under this subchapter 
        about the availability of child support services for 
        purposes of establishing paternity and acquiring child 
        support; and
          [(B) refer eligible parents to the child support 
        offices of State and local governments.
  [(c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering 
the State program carried out under the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and other early childhood education and development programs, 
including Even Start programs under part B of chapter 1 of 
title I of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 2741 et seq.) and programs under part C and section 
619 of the Individuals with Disabilities Education Act (20 
U.S.C 1431-1445, 1419), serving the children and families 
served by the Head Start agency to carry out the provisions of 
this subchapter.]
  (b) In order to be so designated, a Head Start agency shall 
also--
          (1) establish a program with standards set forth in 
        section 641A(a)(1), with particular attention to the 
        standards set forth in subparagraphs (A) and (B) of 
        such section;
          (2) demonstrate capacity to serve eligible children 
        with scientifically-based curricula and other 
        interventions that help promote the school readiness of 
        children participating in the program;
          (3) establish effective procedures by which parents 
        and area residents concerned will be enabled to 
        directly participate in decisions that influence the 
        character of programs affecting their interests;
          (4) provide for their regular participation in the 
        implementation of such programs;
          (5) provide technical and other support needed to 
        enable parents and area residents to secure on their 
        own behalf available assistance from public and private 
        sources;
          (6) seek the involvement of parents of participating 
        children in activities designed to help such parents 
        become full partners in the education of their 
        children, and to afford such parents the opportunity to 
        participate in the development, conduct, and overall 
        performance of the program at the local level;
          (7) conduct outreach to schools in which Head Start 
        children enroll, local educational agencies, the local 
        business community, community-based organizations, 
        faith-based organizations, museums, and libraries to 
        generate support and leverage the resources of the 
        entire local community in order to improve school 
        readiness;
          (8) offer (directly or through referral to local 
        entities, such as entities carrying out Even Start 
        programs under part B of chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 2741 et seq.)), to parents of participating 
        children, family literacy services and parenting skills 
        training;
          (9) offer to parents of participating children 
        substance abuse counseling (either directly or through 
        referral to local entities), including information on 
        drug-exposed infants and fetal alcohol syndrome;
          (10) at the option of such agency, offer (directly or 
        through referral to local entities), to such parents--
                  (A) training in basic child development;
                  (B) assistance in developing communication 
                skills;
                  (C) opportunities to share experiences with 
                other parents;
                  (D) regular in-home visitation; or
                  (E) any other activity designed to help such 
                parents become full partners in the education 
                of their children;
          (11) provide, with respect to each participating 
        family, a family needs assessment that includes 
        consultation with such parents about the benefits of 
        parent involvement and about the activities described 
        in paragraphs (4) through (7) in which such parents may 
        choose to be involved (taking into consideration their 
        specific family needs, work schedules, and other 
        responsibilities);
          (12) consider providing services to assist younger 
        siblings of children participating in its Head Start 
        program to obtain health services from other sources;
          (13) perform community outreach to encourage 
        individuals previously unaffiliated with Head Start 
        programs to participate in its Head Start program as 
        volunteers; and
          (14)(A) inform custodial parents in single-parent 
        families that participate in programs, activities, or 
        services carried out or provided under this subchapter 
        about the availability of child support services for 
        purposes of establishing paternity and acquiring child 
        support; and
          (B) refer eligible parents to the child support 
        offices of State and local governments.
  (c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering 
the State program carried out under the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and other early childhood education and development programs, 
including programs under subtitle VII-B of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11431-11435), Even Start 
programs under part B of chapter 1 of title I of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 2741 et seq.), 
and programs under Part C and section 619 of the Individuals 
with Disabilities Education Act (20 U.S.C. 1431-1445, 1419), 
and the Child Abuse Prevention and Treatment Act (42 U.S.C. 
5106a), serving the children and families served by the Head 
Start agency to carry out the provisions of this subchapter.
  (d)(1) * * *
  (2) In communities where both public prekindergarten programs 
and Head Start programs operate, a Head Start agency shall 
coordinate with the local educational agency or other public 
agency responsible for the operation of the prekindergarten 
program and providers of prekindergarten, including for 
outreach to identify eligible children.
  [(2)] (3) A Head Start agency may take steps to coordinate 
with the local educational agency serving the community 
involved and with schools in which children participating in a 
Head Start program operated by such agency will enroll 
following such program, including--
          (A) collaborating on the shared use of transportation 
        and facilities; [and]
                  (B) collaborating to increase the program 
                participation of underserved populations of 
                eligible children; and
          [(B)] (C) exchanging information on the provision of 
        noneducational services to such children.
  [(3)] (4) In order to promote the continued involvement of 
the parents of children that participate in Head Start programs 
in the education of their children upon transition to school, 
the Head Start agency shall--
          (A) * * *

           *       *       *       *       *       *       *

  [(4)] (5) The Secretary, in cooperation with the Secretary of 
Education, shall--
          (A) * * *

           *       *       *       *       *       *       *


[SEC. 642A. HEAD START TRANSITION.]

SEC. 642A. HEAD START ALIGNMENT WITH K-12 EDUCATION.

  Each Head Start agency shall take steps to coordinate with 
the local educational agency serving the community involved and 
with schools in which children participating in a Head Start 
program operated by such agency will enroll following such 
program, including--
          (1) * * *
          (2) establishing channels of communication between 
        Head Start staff and their counterparts in the schools 
        (including teachers, social workers, McKinney-Vento 
        liaisons as established under section 722 (g)(1)(J)(ii) 
        of the McKinney-Vento Homeless Education Assistance 
        Improvements Act of 2001, and health staff) to 
        facilitate coordination of programs;
          (3) developing continuity of developmentally 
        appropriate curricula between Head Start and local 
        educational agencies to ensure an effective transition 
        and appropriate shared expectations for children's 
        learning and development as they make such transition 
        to school;
          [(3)] (4) conducting meetings involving parents, 
        kindergarten or elementary school teachers, and Head 
        Start program teachers to discuss the educational, 
        developmental, and other needs of individual children;
          [(4)] (5) organizing and participating in joint 
        transition-related training of school staff and Head 
        Start staff;
          [(5) developing and implementing a family outreach 
        and support program in cooperation with entities 
        carrying out parental involvement efforts under title I 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6301 et seq.);]
          (6) developing and implementing a family outreach and 
        support program in cooperation with entities carrying 
        out parental involvement efforts under Title I of the 
        Elementary and Secondary Education Act of 1965 and 
        family outreach and support efforts under subtitle VII-
        B of the McKinney-Vento Homeless Assistance Act;
          [(6)] (7) assisting families, administrators, and 
        teachers in enhancing educational and developmental 
        continuity and continuity in parental involvement 
        activities between Head Start services and elementary 
        school classes; [and]
          [(7)] (8) linking the services provided in such Head 
        Start program with the education services provided by 
        such local educational agency[.];
          (9) helping parents to understand the importance of 
        parental involvement in a child's academic success 
        while teaching them strategies for maintaining parental 
        involvement as their child moves from Head Start to 
        elementary school; and
          (10) developing and implementing a system to increase 
        program participation of underserved populations of 
        eligible children.

           *       *       *       *       *       *       *


SEC. 643A. STATE DEMONSTRATION PROGRAM.

  (a) Grants.--
          (1) In general.--
                  (A) Eligible States.--In the case of each 
                eligible State that submits to the Secretary an 
                application that fulfills the requirements of 
                this section, the Secretary, from amounts 
                appropriated under section 639(a), shall make a 
                grant to the State to carry out a State 
                demonstration program under this section, 
                except that the Secretary shall not make such 
                grants to more than 8 eligible States.
                  (B) Determination.--The Secretary shall make 
                awards to those States that demonstrate--
                          (i) that the State standards 
                        generally meet or exceed the standards 
                        that ensure the quality and 
                        effectiveness of programs operated by 
                        Head Start agencies;
                          (ii) the capacity to deliver high 
                        quality early childhood education 
                        services to prepare children, including 
                        low-income children, for school; and
                          (iii)-success in improving the school 
                        readiness of children.
          (2) State eligibility.--A State shall be eligible to 
        participate in the program under this section if it 
        meets each of the following criteria:
                  (A) The State has an existing State supported 
                system providing public prekindergarten to 
                children prior to entry into kindergarten.
                  (B) The State has implemented standards for 
                school readiness that include standards for 
                language, prereading and premathematics 
                development for prekindergarten that are 
                aligned with State kindergarten through twelfth 
                grade academic content standards and which 
                shall apply to all programs receiving funds 
                under this part or provides an assurance that 
                such standards will be aligned by the end of 
                the second fiscal year of participation.
                  (C) State and locally appropriated funds for 
                prekindergarten services and Head Start 
                services in the fiscal year immediately 
                preceding the fiscal year for which the State 
                applies for the program under this section 
                shall not be less than 50 percent of the 
                Federal funds that the grantees in the State 
                received under this Act in the immediately 
                preceding fiscal year for services to Head 
                Start eligible children, excluding amounts for 
                services provided under section 645A.
                  (D) The State has established a means for 
                inter-agency coordination and collaboration in 
                the development of the plan under subsection 
                (h).
  (b) Lead Agency.--A program under this section shall be 
administered by a State governmental entity designated by the 
Chief Executive Officer of the State as the lead State agency.
  (c) State Operation of Program.--The State may conduct all or 
any part of the program under this section (including the 
activities specified in subsection (g)) directly or by grant, 
contract, or cooperative agreement.
  (d) Transition.--
          (1) In general.--For 36 months after the effective 
        date of this section, the State shall continue to 
        provide funds to each local grantee who--
                  (A) was receiving funds under this 
                subchapter, as in effect prior to the date of 
                enactment of this section, and
                  (B) is serving the geographic area covered by 
                the plan in section 643A(h).
        Such continuing grants shall be made in accordance with 
        the terms of the grant made to the local grantee 
        immediately prior to such date of enactment. This 
        paragraph shall not apply to a grant applicant who has 
        experienced substantial uncorrected deficiencies on 
        Department of Health and Human Services monitoring 
        reports during any year of the most recent 5-year 
        period, or to a grantee that, as determined by the 
        State, does not comply with the State plan described in 
        subsection 643A(h) submitted to the Secretary.
  (e) Federal Financial Assistance.--
          (1) Allocation of federal allotments to state 
        programs.--From each total amount described in 
        paragraph (2) allotted to a State for a fiscal year, 
        the Secretary shall pay to a State with a program 
        approved under this section for such fiscal year an 
        amount equal to--
                  (A) if the State program is statewide, 100 
                percent of such total amount; and
                  (B) if the State program is limited to a 
                geographic area or areas, the sum of--
                          (i) an amount equal to the amount 
                        received by grantees in such geographic 
                        area or areas for the Federal fiscal 
                        year preceding the first fiscal year of 
                        the State program under this section; 
                        plus
                          (ii) an amount bearing the same ratio 
                        to the excess (if any) above the total 
                        amount for such preceding fiscal year 
                        as the number of children less than 5 
                        years of age from families whose income 
                        is below the poverty line in the 
                        geographic area or areas included in 
                        the program bears to the total number 
                        of such children in the State (as 
                        determined using the same data used 
                        pursuant to section 640(a)(4)(B)).
          (2) Funds allocated.--For purposes of paragraph (1), 
        amounts described in this paragraph are:
                  (A) Basic state allotments.--Amounts allotted 
                to States pursuant to section 640(a)(4), 
                including amounts reserved pursuant to section 
                640(a)(5), excluding amounts for services 
                provided under section 645A.
                  (B) State allotments of expansion funds.--
                Amounts allotted to States pursuant to section 
                640(a)(3)(D)(i)(I) for program expansion.
                  (C) Quality improvement funds.--Quality 
                improvement funds (if any) reserved pursuant to 
                section 640(a)(3).
                  (D) Training and technical assistance 
                funds.--An amount bearing the same ratio to the 
                amount set aside for training and technical 
                assistance activities pursuant to section 
                640(a)(2)(C)(i) and (ii) as the State's share 
                of amounts allotted under section 640(a)(4)(B) 
                bears to the total amount so allotted (and for 
                purposes of subparagraph (A), such amount shall 
                be considered an amount allotted to the State 
                for the fiscal year).
          (3) Non-Federal match.--(A) In determining the amount 
        of Federal and non-Federal contributions for purposes 
        of this section, the amounts required to be expended by 
        the State under subsection (h)(14)(B) (relating to 
        maintenance of effort) shall be excluded.
          (B) Financial assistance made available to a State 
        under this subchapter shall be in an amount equal to 95 
        percent of the total amount expended for such programs. 
        The Secretary shall require non-Federal contributions 
        in an amount equal to 5 percent of the total amount 
        expended under this subchapter for such programs.
          (C) Non-Federal contributions may be made in cash or 
        in kind, fairly evaluated, including plant, equipment, 
        or services.
          (4) Combined operations with other early childhood 
        education programs.--A State may combine funds for a 
        program under this section with funds for other early 
        childhood programs serving children in the same age 
        group, as long as all applicable requirements of this 
        subchapter are met with respect to either--
                  (A) the entire combined program; or
                  (B) each child served in such combined 
                program for whom the services provided are 
                funded from appropriations under this 
                subchapter or non-Federal matching 
                contributions under this subchapter.
          (5) Use of funds without regard to allotment 
        purposes.--A State may use funds received pursuant to 
        this section for any program purpose set forth in 
        section 636, without regard to the purposes for such 
        funds specified in section 640.
          (6) Other funds.--Funds received under this section 
        shall not supplant any non-Federal, State or local 
        funds that would otherwise be used for activities 
        authorized under this section or similar activities 
        carried out in the State.
  (f) Coordination and Choice.--
          (1) In general.--A State demonstration Program shall 
        be coordinated with the education programs of local 
        educational agencies in the State to ensure that the 
        program is effectively designed to develop in children 
        in the program the knowledge and behaviors necessary to 
        transition successfully to kindergarten and to succeed 
        in school.
          (2) Programs concerned.--
                  (A) Required programs.--Such coordination 
                shall occur regarding the implementation of the 
                following:
                          (i) The Early Reading First and Even 
                        Start programs under title I, part B, 
                        subparts 2 and 3 of the Elementary and 
                        Secondary Education Act of 1965, and 
                        other preschool programs carried out 
                        under title I of that Act.
                          (ii) State prekindergarten programs.
                          (iii) The Ready-to-Learn Television 
                        Program under subpart 3 of Part D of 
                        title II of the Elementary and 
                        Secondary Education Act.
                  (B) Optional programs.--Such coordination may 
                occur regarding the implementation of the 
                following:
                          (i) Programs under the Child Care and 
                        Development Block Grant Act.
                          (ii) Other publicly funded early 
                        childhood education programs.
          (3) Parental choice.--The program shall allow parents 
        to choose the preschool program for their child.
  (g) Required Services.--With funds under this section, the 
State shall provide services described in section 641A at least 
as extensive as were provided, and to at least as many low-
income children and families in each fiscal year as were 
provided such services, with such funds in the base year in the 
State (or, if applicable, in the geographic area included in 
the State program). A program under this section shall include 
the following comprehensive activities designed to promote 
school readiness and success in school:
          (1) Child development and education.--Activities with 
        enrolled children that promote--
                  (A) cognitive development, language 
                development, prereading, and premathematics 
                knowledge and skills;
                  (B) physical development, health, and 
                nutrition (including through coordination with, 
                and referral of children and families to local 
                health service entities; and
                  (C) social development important for 
                environments constructive for child 
                development, early learning, and school 
                success.
          (2) Parent education and involvement.--Activities 
        with the parents of enrolled children directed at 
        enhancing and encouraging--
                  (A) involvement in, and ability to support, 
                their children's educational development;
                  (B) parenting skills and understanding of 
                child development; and
                  (C) ability to participate effectively in 
                decisions relating to the education of their 
                children.
          (3) Social and family support services.--Activities 
        directed at securing appropriate social and family 
        support services for enrolled children and their 
        families, primarily through referral and coordination 
        with local, State, and Federal entities that provide 
        such services.
          (4) Head start services.--For purposes of paragraph 
        (1) Head Start services furnished in a State program 
        under this section shall include all Head Start 
        services, other than--
                  (A) Indian Head Start programs and migrant 
                and seasonal Head Start programs supported with 
                funds reserved under section 640(a)(2)(A); and
                  (B) Early Head Start services provided under 
                section 645A.
  (h) State Plan.--A State proposing to administer a program 
under this section shall submit a State plan to the Secretary. 
The State plan shall include the following:
          (1) Lead state agency.--The plan shall identify the 
        entity designated by the Chief Executive Officer of the 
        State as the lead State agency.
          (2) Geographic area.--The plan shall specify whether 
        the program is statewide, and, if it is not, identify 
        the geographic area or areas covered by the plan. A 
        geographic area may be a city, county, standard 
        metropolitan statistical area, or such other geographic 
        area in the State.
          (3) Program period.--A State program under this 
        section shall be in effect for 5 Federal fiscal years.
          (4) Program description.--The plan shall describe the 
        services under subsection (f) to be provided in the 
        program and arrangements the State proposes to use to 
        provide the services specified in subsection (g), 
        including how the State will leverage existing delivery 
        systems for such services.
          (5) Needs assessment.--The plan shall describe the 
        results of a State needs assessment and shall provide 
        an assurance that the State will use the results to 
        identify the needs for early childhood education 
        services within a State or geographic area to be served 
        and is targeting services to those areas of greatest 
        need and to expand and improve services to 
        disadvantaged children in the State.
          (6) Assurance of compliance.--The plan shall provide 
        an assurance that the State program will comply with 
        the requirements of this section, including each of the 
        following:
                  (A) Priority for low-income children.--
                Requirements established pursuant to section 
                645(a) concerning the eligibility and priority 
                of individuals for participation in Head Start 
                programs.
                  (B) Continuation for existing providers.--An 
                applicant who received funds under this 
                subchapter in prior fiscal years and has not 
                corrected any substantial deficiencies 
                identified in the past 5 years shall not be 
                eligible to receive any grants, contract, or 
                cooperative agreements under this section.
                  (C) Participation of children with 
                disabilities.--Requirements pursuant to section 
                640(d) concerning Head Start enrollment 
                opportunities and services for children with 
                disabilities.
                  (D) Provisions concerning fees and 
                copayments.--The provisions of section 645(b) 
                concerning the charging of fees and the 
                circumstances under which copayments are 
                permissible.
                  (E) Federal share; state and local 
                matching.--The provisions of section 640(b) 
                limiting Federal financial assistance for Head 
                Start programs, and providing for non-Federal 
                contributions.
                  (F) Administrative costs.--The provisions of 
                section 644(b) limiting the share of program 
                funds that may be used for developing and 
                administering a program.
                  (G) Federal property interest.--Applicable 
                provisions of this subchapter regarding the 
                Federal Government interest in property 
                (including real property) purchased, leased, or 
                renovated with Federal funds.
          (7) Identification of barriers.--The plan shall 
        identify barriers in the State to the effective use of 
        Federal, State, and local public funds, and private 
        funds, for early education and care that are available 
        to the State on the date on which the application is 
        submitted.
          (8) State guidelines for school readiness.--The plan 
        shall include--
                  (A) a State definition of school readiness;
                  (B) a description of the State's general 
                goals for school readiness, including how the 
                State intends to--
                          (i) promote and maintain ongoing 
                        communication and collaboration between 
                        providers of early care and education 
                        and local educational agencies in the 
                        State;
                          (ii) align early childhood and 
                        kindergarten curricula to ensure 
                        program continuity; and
                          (iii) ensure that children 
                        successfully transition to 
                        kindergarten.
          (9) Teacher qualifications.--The plan shall assure 
        that the qualifications and credentials for early 
        childhood teachers meet or exceed the standards in 
        section 648A(a)(2)(A), (B), and (C).
          (10) Professional development.--The plan shall 
        provide a description of the State plan for assuring 
        the ongoing professional development of early childhood 
        educators and administrators including how the State 
        intends to--
                  (A) improve the competencies of early 
                childhood educators in meeting the cognitive 
                and other developmental needs of young children 
                through effective instructional strategies, 
                methods, and skills;
                  (B) develop and implement initiatives to 
                effectively recruit and promote the retention 
                of well-qualified early childhood educators;
                  (C) encourage institutions of higher 
                education, providers of community-based 
                training, and other qualified providers to 
                develop high-quality programs to prepare 
                students to be early childhood education 
                professionals; and
                  (D) improve the quality of professional 
                development available to meet the needs of 
                teachers that serve preschool children.
          (11) Quality Standards.--The State shall describe the 
        State's standards, applicable to all agencies, 
        programs, and projects that receive funds under this 
        subchapter, including a description of--
                  (A) standards with respect to services 
                required to be provided, including health, 
                parental involvement, nutritional, social, 
                transition activities described in section 
                642(d) of this subchapter, and other services;
                  (B)(i) education standards to promote the 
                school readiness of children participating in a 
                State program under Title II of this 
                subchapter; and
                  (ii) additional education standards to ensure 
                that the children participating in the program, 
                at a minimum develop and demonstrate--
                          (I) language skills;
                          (II) prereading knowledge and skills, 
                        including interest in and appreciation 
                        of books, reading and writing either 
                        alone or with others;
                          (III) premathematics knowledge and 
                        skills, including aspects of 
                        classification, seriation, number, 
                        spatial relations, and time;
                          (IV) cognitive abilities related to 
                        academic achievement;
                          (V) social development important for 
                        environments constructive for child 
                        development, early learning, and school 
                        success; and
                          (VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language;
                  (C) the State's minimum standards for early 
                childhood teacher credentials and 
                qualifications;
                  (D) the student-teacher ratio for each age-
                group served;
                  (E) administrative and financial management 
                standards;
                  (F) standards relating to the condition and 
                location of facilities for such agencies, 
                programs, and projects; and
                  (G) such other standards as the State finds 
                to be appropriate.
          (12) State accountability system.--
                  (A) In general.--The State plan shall--
                          (i) ensure that individual providers 
                        are achieving results in advancing the 
                        knowledge and behaviors identified by 
                        the State as prerequisites for 
                        kindergarten success; and
                          (ii) specify the measures the State 
                        will use to evaluate the progress 
                        toward achieving such results and the 
                        effectiveness of the State program 
                        under this section, and of individual 
                        providers in such program.
                  (B) Publication of results.--
                          (i) In general.--Subject to clause 
                        (ii), the results shall be made 
                        publicly available in the communities 
                        served by the program.
                          (ii) Confidentiality safeguards.--The 
                        system shall have in effect privacy 
                        safeguards ensuring that information on 
                        children included in data and results 
                        made public in accordance with clause 
                        (i) shall be in aggregated form, and 
                        shall not include information allowing 
                        identification of individual children.
          (13) Transition plan.--The initial State plan shall 
        make provision for transition from the direct Federal 
        program under section 640 to the demonstration program.
          (14) Cooperation with research studies.--The plan 
        shall provide assurances that the State will cooperate 
        with research activities described in section 649.
          (15) Maintenance of effort.--The State plan shall--
                  (A) contain a commitment to provide data, at 
                such times and in such format as the Secretary 
                requires, concerning non-Federal expenditures 
                and numbers of children and families served in 
                preschool and Head Start programs during the 
                base year and each fiscal year covered under 
                the State plan, sufficient to satisfy the 
                Secretary that the State program will meet its 
                obligation with respect to the maintenance of 
                effort requirement under subparagraph (B); and
                  (B) assure that the resources (which may be 
                cash or in-kind) contributed by the State 
                government to child care for preschool-aged 
                children and other preschool programs, 
                including Head Start, in the State (or, if 
                applicable, in the geographic area included in 
                the State program) for each fiscal year in 
                which the program under this section is in 
                effect shall be in an amount at least equal to 
                the total amount of such State governmental 
                resources contributed to support such programs 
                in the State (or geographic area) for the base 
                year.
          (16) Training and Technical Assistance.--The State 
        plan shall describe the training and technical 
        assistance activities that shall provide high quality, 
        sustained, intensive, and classroom-focused training 
        and technical assistance in order to have a positive 
        and lasting impact on classroom instruction.
  (i) Records, Reports and Audits.--The State agency 
administering the State program, and each entity participating 
as a Head Start service provider, shall maintain such records, 
make such reports, and cooperate with such audits as the 
Secretary may require for oversight of program activities and 
expenditures.
  (j) Inapplicability of Provisions Concerning Priority in 
Agency Designation.--The provisions of subsections (c) and (d) 
of section 641 (concerning priority in designation of Head 
Start agencies, successor agencies, and delegate agencies) 
shall not apply to a State program under this section.
  (k) Consultation.--A State proposing to administer a program 
under this section shall submit, with the plan under this 
section, assurances that the plan was developed through timely 
and meaningful consultation with appropriate public and private 
sector entities, including--
          (1) representatives of agencies responsible for 
        administering early education and care programs in the 
        State, including Head Start providers;
          (2) parents;
          (3) the State educational agency and local 
        educational agencies;
          (4) early childhood education professionals;
          (5) kindergarten teachers and teachers in grades 1 
        through 4;
          (6) child welfare agencies;
          (7) child care resource and referral agencies;
          (8) child care providers; and
          (9) a wide array of persons interested in and 
        involved with early care and early education issues in 
        the State, such as representatives of--
                  (A) health care professionals;
                  (B) the State agency with responsibility for 
                the special supplemental nutrition program for 
                women, infants, and children established by 
                section 17 of the Child Nutrition Act of 1966;
                  (C) institutions of higher education;
                  (D) community-based and faith-based 
                organizations;
                  (E) the business community;
                  (F) State legislators and local officials;
                  (G) museums and libraries;
                  (H) other relevant entities in the State; and
                  (I) other agencies that provide resources for 
                young children.
  (l) State Plan Submission.--An application shall be submitted 
by a State pursuant to this section to the Secretary, in 
consultation with the Secretary of Education, and shall be 
deemed to be approved by the Secretary unless the Secretary 
makes a written determination, prior to the expiration of a 
reasonable time beginning on the date on which the Secretary 
received the application, that the application is not in 
compliance with this section.
  (m) Treatment of Funds.--If a State or local government 
contributes its own funds to supplement activities carried out 
under the applicable programs, the State or local government 
has the option to separate out the Federal funds or commingle 
them. If the funds are commingled, the provisions of this 
subchapter shall apply to all of the commingled funds in the 
same manner, and to the same extent, as the provisions apply to 
the Federal funds.
  (n) Federal Oversight Authority; Corrective Action; 
Withdrawal of Approval.--
          (1) Federal oversight.--The Secretary shall retain 
        the authority to oversee the operation of the State 
        program under this section, including through review of 
        records and reports, audits, and onsite inspection of 
        records and facilities and monitoring of program 
        activities and operations.
          (2) Correction of deficiencies.--If the Secretary 
        determines that a State program under this section 
        substantially fails to meet the requirements of this 
        section, the Secretary shall notify the State of the 
        deficiencies identified and require corrective action 
        as follows:
                  (A) Deficiencies causing immediate 
                jeopardy.--The Secretary shall require 
                immediate corrective action to eliminate a 
                deficiency that the Secretary finds threatens 
                the health or safety of staff or program 
                participants or poses a threat to the integrity 
                of Federal funds.
                  (B) Other deficiencies.--The Secretary, 
                taking into consideration the nature and 
                magnitude of a deficiency not described in 
                subparagraph (A), and the time reasonably 
                required for correction, may--
                          (i) require the State to correct the 
                        deficiency within 90 days after 
                        notification under this paragraph; or
                          (ii) require the State to implement a 
                        quality improvement plan designed to 
                        correct the deficiency within one year 
                        from identification of the deficiency.
          (3) Withdrawal of approval.--If the deficiencies 
        identified under paragraph (2) are not corrected by the 
        deadlines established by the Secretary, the Secretary 
        shall initiate proceedings to withdraw approval of the 
        State program under this section.
          (4) Procedural rights.--A State subject to adverse 
        action under this subsection shall have the same 
        procedural rights as a Head Start agency subject to 
        adverse action under section 641A.
  (o) Independent Evaluation.--
          (1) In General.--The Secretary shall contract with an 
        independent organization outside of the Department to 
        design and conduct a multi-year, rigorous, 
        scientifically valid, quantitative evaluation of the 
        State demonstration program.
          (2) Process.--The Secretary shall award a contract 
        within 180 days of the date of enactment of the School 
        Readiness Act of 2003, to an organization that is 
        capable of designing and carrying out an independent 
        evaluation described in this subsection.
          (3) Analysis.--The evaluation shall include an 
        analysis of each State participating in the State 
        demonstration program, including--
                  (A) A quantitative description of the State 
                prekindergarten program and Head Start programs 
                within such State, as such programs existed 
                prior to participation in the State 
                demonstration program, including:
                          (i) data on the characteristics of 
                        the children served, including the 
                        overall number and percentages of 
                        children served disaggregated by 
                        socioeconomic status, race and 
                        ethnicity of those served;
                          (ii) the quality and characteristics 
                        of the services provided to such 
                        children; and
                          (iii) the education attainment of 
                        instructional staff.
                  (B) A quantitative and qualitative 
                description of the State program after each 
                year of participation in the State 
                demonstration, which shall include each of the 
                following:
                          (i) A description of changes in the 
                        administration of the State program, 
                        including the Head Start program, 
                        within such State.
                          (ii) The rate of progress of the 
                        State in improving the school readiness 
                        of disadvantaged children in the key 
                        domains of development.
                          (iii) Data as described in 
                        subparagraph (A), as updated annually.
                          (iv) The extent to which each State 
                        has met the goals established by such 
                        State with respect to annual goals as 
                        described under section 643(h)(10).
          (4) Report.--(A) The Secretary shall provide an 
        interim report on the progress of such evaluation and 
        of the progress of States participating in the State 
        demonstration in increasing the availability of high 
        quality prekindergarten services for low-income 
        children not later than October 1, 2006 to the 
        Committee on Education and the Workforce in the House 
        of Representatives and the Committee on Health, 
        Education, Labor, and Pensions in the Senate.
          (B) The Secretary shall provide a final report to the 
        Committee on Education and the Workforce in the House 
        of Representatives and the Committee on Health, 
        Education, Labor, and Pensions in the Senate, not later 
        than October 1, 2007, which shall include an overall 
        evaluation of the State demonstration program, 
        including an assessment of its success in increasing 
        the overall availability of high quality 
        prekindergarten services for low income children in 
        each of the participating States as compared to a 
        representative sample of non-participating States.
  (p) Definition.--For purposes of this section, the term 
``base year'' means the fiscal year 2003.

               ADMINISTRATIVE REQUIREMENTS AND STANDARDS

  Sec. 644. (a) * * *

           *       *       *       *       *       *       *

  (f)(1) * * *
  (2) Financial assistance provided under this subchapter may 
not be used by a Head Start agency to purchase a facility 
(including paying the cost of amortizing the principal, and 
paying interest on, loans) to be used to carry out a Head Start 
program unless the Secretary approves a request that is 
submitted by such agency and contains--
          (A) a description of the consultation conducted by 
        the Head Start agency with the providers in the 
        community demonstrating capacity and capability to 
        provide services under this Act, and of the potential 
        for collaboration with such providers and the cost 
        effectiveness of such collaboration as opposed to the 
        cost effectiveness of the purchase of a facility;
          [(A)] (B) a description of the site of the facility 
        proposed to be purchased or that was previously 
        purchased;
          [(B)] (C) the plans and specifications of such 
        facility;
          [(C)] (D) information demonstrating that--
                  (i) * * *

           *       *       *       *       *       *       *

          [(D)] (E) in the case of a request regarding a 
        previously purchased facility, information 
        demonstrating that the facility will be used 
        principally as a Head Start center, or a direct support 
        facility for a Head Start program; and
          [(E)] (F) such other information and assurances as 
        the Secretary may require.

           *       *       *       *       *       *       *


                  PARTICIPATION IN HEAD START PROGRAMS

  Sec. 645. (a)(1) The Secretary shall by regulation prescribe 
eligibility for the participation of persons in Head Start 
programs assisted under this subchapter. Except as provided in 
paragraph (2), such criteria may provide--
          (A) * * *
          (B) pursuant to such regulations as the Secretary 
        shall prescribe, that--
                  (i) programs assisted under this subchapter 
                may include, [to a reasonable extent] not to 
                exceed 10 percent of the total enrollment, 
                participation of children in the area served 
                who would [benefit from such programs] benefit 
                from such programs, including children referred 
                by child welfare services, but whose families 
                do not meet the low-income criteria prescribed 
                pursuant to subparagraph (A); and

           *       *       *       *       *       *       *

  (3) The amount of a basic allowance provided under section 
403 of title 37, United States Code, on behalf of an individual 
who is a member of the uniformed services for housing that is 
acquired or constructed under the authority of subchapter IV of 
chapter 169 of title 10, United States Code, or any other 
related provision of law, shall not be considered to be income 
for purposes of determining the eligibility of a child of the 
individual for programs assisted under this subchapter.

           *       *       *       *       *       *       *


SEC. 645A. EARLY HEAD START PROGRAMS FOR FAMILIES WITH INFANTS AND 
                    TODDLERS.

  (a) * * *
  (b) Scope and Design of Programs.--In carrying out a program 
described in subsection (a), an entity receiving assistance 
under this section shall--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) provide services to parents to support their 
        role as parents and to help the families move toward 
        self-sufficiency (including educational and employment 
        services as appropriate);
          [(5) coordinate services with services provided by 
        programs in the State and programs in the community 
        (including programs for infants and toddlers with 
        disabilities) to ensure a comprehensive array of 
        services (such as health and mental health services);]
          (4) provide services to parents to support their role 
        as parents (including parenting skills training and 
        training in basic child development) and to help the 
        families move toward self-sufficiency (including 
        educational and employment services as appropriate);
          (5) coordinate services with services (including 
        home-based services) provided by programs in the State 
        and programs in the community (including programs for 
        infants and toddlers with disabilities) to ensure a 
        comprehensive array of services (such as health and 
        mental health services, and family support services);

           *       *       *       *       *       *       *

          [(8) ensure formal linkages with the agencies and 
        entities described in section 644(b) of the Individuals 
        with Disabilities Education Act (20 U.S.C. 1444(b)) and 
        providers of early intervention services for infants 
        and toddlers with disabilities under the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.); and]
          (8) ensure formal linkages with the agencies and 
        entities described in section 644(b) of the Individuals 
        with Disabilities Education Act (20 U.S.C. 1444(b)) and 
        providers of early intervention services for infants 
        and toddlers with disabilities under the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.) and the agency responsible for administering the 
        Section 106 of the Child Abuse Prevention and Treatment 
        Act (42 U.S.C. 5106a); and

           *       *       *       *       *       *       *

  (d) Eligible Service Providers.--To be eligible to receive 
assistance under this section, an entity shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
Entities that may apply to carry out activities under this 
section include--
          [(1) entities operating Head Start programs under 
        this subchapter; and]
          (1) entities operating Head Start programs under this 
        subpart, including migrant and seasonal Head Start 
        programs; and
          (2) other public entities, and nonprofit or for-
        profit private entities, including community- and 
        faith-based organizations, capable of providing child 
        and family services that meet the standards for 
        participation in programs under this subchapter and 
        meet such other appropriate requirements relating to 
        the activities under this section as the Secretary may 
        establish.

           *       *       *       *       *       *       *

  (g) Monitoring, Training, Technical Assistance, and 
Evaluation.--
          (1) * * *
          (2) Training and technical assistance account.--
                  (A) * * *
                  (B) Activities.--Funds in the account may be 
                used by the Secretary for purposes including--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) providing ongoing training and 
                        technical assistance for existing 
                        recipients (as of the date of such 
                        training or assistance) of grants under 
                        subsection (a) and support and program 
                        planning and implementation assistance 
                        for new recipients of such grants; 
                        [and]
                          (iv) providing professional 
                        development and personnel enhancement 
                        activities, including the provision of 
                        funds to recipients of grants under 
                        subsection (a) for the recruitment and 
                        retention of qualified staff with an 
                        appropriate level of education and 
                        experience[.]; and
                          (v) providing professional 
                        development designed to increase 
                        program participation for underserved 
                        populations of eligible children.

           *       *       *       *       *       *       *


                   TECHNICAL ASSISTANCE AND TRAINING

  Sec. 648. (a) * * *
  (b) The Secretary shall make available to each State the 
money reserved in section 640(a)(2)(C)(ii) to support a State-
based system delivering training and technical assistance that 
improves the capacity of Head Start programs within a State to 
deliver services in accordance with the Head Start standards in 
section 641A(a)(1), with particular attention to the standards 
set forth in subparagraphs (A) and (B) of such section. The 
Secretary shall--
          (1) ensure eligible entities within a State are 
        chosen by the Secretary, in consultation with the State 
        Collaboration Board described in section 
        640(a)(5)(C)(i), through a competitive bid process;
          (2) ensure that existing agencies with demonstrated 
        expertise in providing high quality training and 
        technical assistance to improve the delivery of Head 
        Start services, including the State Head Start 
        Association, State agencies, migrant and seasonal Head 
        Start programs operating in the State, and other 
        entities currently providing training and technical 
        assistance in early education, be included in the 
        planning and coordination of the State system of 
        training and technical assistance; and
          (3) encourage States to supplement the funds 
        authorized in section 640(a)(2)(C)(ii) with State, 
        Federal, or local funds other than Head Start funds, to 
        expand activities beyond Head Start agencies to include 
        other providers of other early childhood services 
        within a State.
  [(b)] (c) The process for determining the technical 
assistance and training activities to be carried out under this 
section shall--
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (d) In allocating resources for technical assistance 
and training under this section, the Secretary shall--
          (1) * * *
          (2) supplement amounts provided under section 
        640(a)(3)(C)(ii) in order to address the training and 
        career development needs of classroom staff (including 
        instruction for providing services to children with 
        disabilities and for activities described in section 
        1221(b)(3) of the Elementary and Secondary Education 
        Act of 1965) and nonclassroom staff, including home 
        visitors and other staff working directly with 
        families, including training relating to increasing 
        parent involvement and services designed to increase 
        family literacy and improve parenting skills;

           *       *       *       *       *       *       *

          (5) assist Head Start agencies and programs in 
        conducting and participating in communitywide strategic 
        planning and needs assessment, including the needs of 
        homeless children and their families;

           *       *       *       *       *       *       *

          (10) assist Head Start agencies in developing 
        innovative program models, including mobile and home-
        based programs; [and]
          (11) provide support for Head Start agencies 
        (including policy councils and policy committees, as 
        defined in regulation) that meet the standards 
        described in section 641A(a) but that have, as 
        documented by the Secretary through reviews conducted 
        pursuant to section 641A(c), significant programmatic, 
        quality, and fiscal issues to address[.]; and
          (12) assist Head Start agencies and programs in 
        increasing program participation of eligible homeless 
        children.
  [(d)] (e) The Secretary may provide, either directly or 
through grants to public or private nonprofit entities, 
including community- and faith-based organizations, training 
for Head Start personnel in the use of the performing and 
visual arts and interactive programs using electronic media to 
enhance the learning experience of Head Start children. Special 
consideration shall be given to entities that have demonstrated 
effectiveness in educational programming for preschool children 
that includes components for parental involvement, care 
provider training, and developmentally appropriate related 
activities.
  [(e) The Secretary shall provide, either directly or through 
grants or other arrangements, funds from programs authorized 
under this subchapter to support an organization to administer 
a centralized child development and national assessment program 
leading to recognized credentials for personnel working in 
early childhood development and child care programs, training 
for personnel providing services to non-English language 
background children (including services to promote the 
acquisition of the English language), training for personnel in 
helping children cope with community violence, and resource 
access projects for personnel working with disabled children.]
  (f) The Secretary shall provide, either directly or through 
grants or other arrangements, funds from programs authorized 
under this subchapter to support an organization to administer 
a centralized child development and national assessment program 
leading to recognized credentials for personnel working in 
early childhood development and child care programs, training 
for personnel providing services to non-English language 
background children (including services to promote the 
acquisition of the English language), training for personnel 
providing services to children determined to be abused or 
neglected, training for personnel providing services to 
children referred by or receiving child welfare services, 
training for personnel in helping children cope with community 
violence, and resource access projects for personnel working 
with disabled children.
  (g) Helping Personnel Better Serve Migrant and Seasonal Farm-
working Communities and Homeless Families.--The Secretary shall 
provide, either directly or through grants, or other 
arrangements, funds for training of Head Start personnel in 
addressing the unique needs of migrant and seasonal working 
families, families with a limited English proficiency, and 
homeless families.
  (h) Authorized Activities.--The majority of funds expended 
under this section shall be used to provide high quality, 
sustained, intensive, and classroom-focused training and 
technical assistance in order to have a positive and lasting 
impact on classroom instruction. Funds shall be used to carry 
out activities related to any or all of the following:
          (1) Education and early childhood development.
          (2) Child health, nutrition, and safety.
          (3) Family and community partnerships.
          (4) Other areas that impact the quality or overall 
        effectiveness of Head Start programs.
  (i) Prohibition on Use of Funds.--Funds under this subchapter 
used for training shall be used for needs identified annually 
by a grant applicant or delegate agency in their program 
improvement plan, except that funds shall not be used for long-
distance travel expenses for training activities available 
locally or regionally or for training activities substantially 
similar to locally or regionally available training activities.
  (j) Definition.--For purposes of this section, the term 
``eligible entities'' means an institution of higher education 
or other entity with expertise in delivering training in early 
childhood development, family support, and other assistance 
designed to improve the delivery of Head Start services.

SEC. 648A. STAFF QUALIFICATIONS AND DEVELOPMENT.

  (a) Classroom Teachers.--
          (1) * * *
          [(2) Degree requirements.--
                  [(A) In general.--The Secretary shall ensure 
                that not later than September 30, 2003, at 
                least 50 percent of all Head Start teachers 
                nationwide in center-based programs have--
                          [(i) an associate, baccalaureate, or 
                        advanced degree in early childhood 
                        education; or
                          [(ii) an associate, baccalaureate, or 
                        advanced degree in a field related to 
                        early childhood education, with 
                        experience in teaching preschool 
                        children.
                  [(B) Progress.--The Secretary shall require 
                Head Start agencies to demonstrate continuing 
                progress each year to reach the result 
                described in subparagraph (A).]
          (2) Degree requirements.--
                  (A) In general.--The Secretary shall ensure 
                that not later than September 30, 2008, at 
                least 50 percent of all Head Start teachers 
                nationwide in center-based programs have--
                          (i) a baccalaureate, or advanced 
                        degree in early childhood education; or
                          (ii) a baccalaureate, or advanced 
                        degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children.
                  (B) Progress.--Each Head State agency shall 
                provide to the Secretary a report indicating 
                the number and percentage of classroom 
                instructors with child development associate 
                credentials and associate, baccalaureate, or 
                advanced degrees. The Secretary shall compile 
                all program reports and make them available to 
                the Committee on Education and the Workforce of 
                the United States House of Representatives and 
                the Committee on Health, Education, Labor, and 
                Pensions of the United States Senate.
                  (C) Requirement for new Head Start 
                teachers.--Within 3 years after the date of 
                enactment of this clause, the Secretary shall 
                require that all Head Start teachers nationwide 
                in center-based programs hired following the 
                date of enactment of this subparagraph--
                          (i) have an associate, baccalaureate, 
                        or advanced degree in early childhood 
                        education;
                          (ii) have an associate, 
                        baccalaureate, or advanced degree in a 
                        field related to early childhood 
                        education, with experience in teaching 
                        preschool children; or
                          (iii) be currently enrolled in a 
                        program of study leading to an 
                        associate degree in early childhood 
                        education and agree to complete degree 
                        requirements within 3 years from the 
                        date of hire.
                  (D) Service requirements.--The Secretary 
                shall establish requirements to ensure that 
                individuals who receive financial assistance 
                under this Act in order to comply with the 
                requirements under section 648A(a)(2) shall 
                subsequently teach in a Head Start center for a 
                period of time equivalent to the period for 
                which they received assistance or repay the 
                amount of the funds.

           *       *       *       *       *       *       *

  (f) Professional Development Plans.--Every Head Start agency 
and program shall create, in consultation with an employee, a 
professional development plan for all full-time employees who 
provide direct services to children.

SEC. 649. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

  (a) In General.--
          (1) Requirement; general purposes.--The Secretary 
        shall carry out a continuing program of research, 
        demonstration, and evaluation activities, in order to--
                  (A) * * *
                  [(B) use the Head Start programs to develop, 
                test, and disseminate new ideas and approaches 
                for addressing the needs of low-income 
                preschool children (including children with 
                disabilities) and their families and 
                communities (including demonstrations of 
                innovative noncenter-based program models such 
                as home-based and mobile programs), and 
                otherwise to further the purposes of this 
                subchapter.]
                  (B) use the Head Start programs to develop, 
                test, and disseminate new ideas and approaches 
                for addressing the needs of low-income 
                preschool children (including children with 
                disabilities and children determined to be 
                abused or neglected) and their families and 
                communities (including demonstrations of 
                innovative non-center based program models such 
                as home-based and mobile programs), and 
                otherwise to further the purposes of this 
                subchapter.

           *       *       *       *       *       *       *

  (d) Specific Objectives.--The research, demonstration, and 
evaluation activities under this subchapter shall include 
components designed to--
          (1) * * *

           *       *       *       *       *       *       *

          [(9) study the experiences of small, medium, and 
        large States with Head Start programs in order to 
        permit comparisons of children participating in the 
        programs with eligible children who did not participate 
        in the programs, which study--
                  [(A) may include the use of a data set that 
                existed prior to the initiation of the study; 
                and
                  [(B) shall compare the educational 
                achievement, social adaptation, and health 
                status of the participating children and the 
                eligible nonparticipating children; and]
          (9) Repealed.--

           *       *       *       *       *       *       *

  (g) National Head Start Impact Research.--
          (1) Expert panel.--
                  (A) In general.--The Secretary shall appoint 
                an independent panel consisting of experts in 
                program evaluation and research, education, and 
                early childhood programs--
                          [(i) to review, and make 
                        recommendations on, the design and plan 
                        for the research (whether conducted as 
                        a single assessment or as a series of 
                        assessments) described in paragraph 
                        (2), within 1 year after the date of 
                        enactment of the Coats Human Services 
                        Reauthorization Act of 1998;]
                          [(ii)] (i) to maintain and advise the 
                        Secretary regarding the progress of the 
                        research; and
                          [(iii)] (ii) to comment, if the panel 
                        so desires, on the interim and final 
                        research reports submitted under 
                        paragraph (7).

           *       *       *       *       *       *       *

          (7) Reports.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Transmittal of reports to congress.--
                          (i) In general.--The Secretary shall 
                        transmit, to the committees described 
                        in clause (ii), the first interim 
                        report by September 30, [1999] 2003, 
                        the second interim report by September 
                        30, [2001] 2005, and the final report 
                        by September 30, [2003] 2006.

           *       *       *       *       *       *       *

  [(h) Quality Improvement Study.--
          [(1) Study.--The Secretary shall conduct a study 
        regarding the use and effects of use of the quality 
        improvement funds made available under section 
        640(a)(3) since fiscal year 1991.
          [(2) Report.--The Secretary shall prepare and submit 
        to Congress not later than September 2000 a report 
        containing the results of the study, including 
        information on--
                  [(A) the types of activities funded with the 
                quality improvement funds;
                  [(B) the extent to which the use of the 
                quality improvement funds has accomplished the 
                goals of section 640(a)(3)(B);
                  [(C) the effect of use of the quality 
                improvement funds on teacher training, 
                salaries, benefits, recruitment, and retention; 
                and
                  [(D) the effect of use of the quality 
                improvement funds on the development of 
                children receiving services under this 
                subchapter.]
  (h) NAS Study.--
          (1) In General.--The Secretary shall use funds 
        allocated in section 640(a)(2)(C)(iii) to contract with 
        the National Academy of Sciences for the Board on 
        Children, Youth, and Families of the National Research 
        Council to establish an independent panel of experts to 
        review and synthesize research, theory and applications 
        in the social, behavioral and biological sciences and 
        shall make recommendations on early childhood pedagogy 
        with regard to each of the following:
                  (A) Age and developmentally appropriate Head 
                Start academic requirements and outcomes, 
                including but not limited to the domains in 
                641A(a)(B).
                  (B) Differences in the type, length, mix and 
                intensity of services necessary to ensure that 
                children from challenging family and social 
                backgrounds including: low-income children, 
                children of color, children with special needs, 
                and children with limited English proficiency 
                enter kindergarten ready to succeed.
                  (C) Appropriate assessments of young children 
                for the purposes of improving instruction, 
                services, and program quality, including 
                systematic observation assessment in a child's 
                natural environment, parent and provider 
                interviews, and accommodations for children 
                with disabilities and appropriate assessments 
                for children with special needs, including 
                English language learners.
          (2) Composition.--The panel shall consist of multiple 
        experts in each of the following areas:
                  (A) Child development and education, 
                including cognitive, social, emotional, 
                physical, approaches to learning, and other 
                domains of child development and learning.
                  (B) Professional development, including 
                teacher preparation, to individuals who teach 
                young children in programs.
                  (C) Assessment of young children, including 
                screening, diagnostic and classroom-based 
                instructional assessment; children with special 
                needs, including children with disabilities and 
                limited English proficient children.
          (3) Timing.--The National Academy of Sciences and the 
        Board shall establish the panel not later than 90 days 
        after the date of enactment of this paragraph. The 
        panel should complete its recommendations within 18 
        months of its convening.
          (4) Application of Panel Report.--The results of the 
        panel study shall be used as guidelines by the 
        Secretary to develop, inform and revise, where 
        appropriate, the Head Start education performance 
        measures and standards and the assessments utilized in 
        the Head Start program.

SEC. 650. REPORTS.

  (a) Status of Children.--[At least once during every 2-year 
period, the Secretary shall prepare and submit, to the 
Committee on Education and the Workforce of the House of 
Representatives and the Committee on Labor and Human Resources 
of the Senate, a report concerning the status of children 
(including disabled and non-English language background 
children) in Head Start programs, including the number of 
children and the services being provided to such children.] At 
least once during every 2-year period, the Secretary shall 
prepare and submit, to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on 
Health, Education, Labor and Pensions of the Senate, a report 
concerning the status of children (including disabled, 
homeless, and non-English language background children) in Head 
Start programs, including the number of children and the 
services being provided to such children. Such report shall 
include--
          (1) * * *

           *       *       *       *       *       *       *

          (8) information concerning children participating in 
        programs that receive Head Start funding, including 
        information on family income, racial and ethnic 
        background, homelessness, disability, and receipt of 
        benefits under part A of title IV of the Social 
        Security Act;

           *       *       *       *       *       *       *


                     [NONDISCRIMINATION PROVISIONS

  [Sec. 654. (a) The Secretary shall not provide financial 
assistance for any program, project, or activity under this 
subchapter unless the grant or contract with respect thereto 
specifically provides that no person with responsibilities in 
the operation thereof will discriminate with respect to any 
such program, project, or activity because of race, creed, 
color, national origin, sex, political affiliation, or beliefs.
  [(b) No person in the United States shall on the ground of 
sex be excluded from participation in, be denied the benefits 
of, be subjected to discrimination under, or be denied 
employment in connection with any program or activity receiving 
assistance under this subchapter. The Secretary shall enforce 
the provisions of the preceding sentence in accordance with 
section 602 of the Civil Rights Act of 1964. Section 603 of 
such Act shall apply with respect to any action taken by the 
Secretary to enforce such sentence. This section shall not be 
construed as affecting any other legal remedy that a person may 
have if such person is excluded from participation in, denied 
the benefit of, subjected to discrimination under, or denied 
employment in connection with, any program, project, or 
activity receiving assistance under this subchapter.
  [(c) The Secretary shall not provide financial assistance for 
any program, project, or activity under this subchapter unless 
the grant or contract relating to the financial assistance 
specifically provides that no person with responsibilities in 
the operation of the program, project, or activity will 
discriminate against any individual because of a handicapping 
condition in violation of section 504 of the Rehabilitation Act 
of 1973.]

SEC. 654. NONDISCRIMINATION PROVISIONS.

  (a)(1) The Secretary shall not provide financial assistance 
for any program, project, or activity under this subchapter 
unless the grant or contract with respect thereto specifically 
provides that no person with responsibilities in the operation 
thereof will discriminate with respect to any such program, 
project, or activity because of race, creed, color, national 
origin, sex, political affiliation, or beliefs.
  (2) Paragraph (1) shall not apply to a recipient of financial 
assistance under this subchapter that is a religious 
corporation, association, educational institution, or society, 
with respect to the employment of individuals of a particular 
religion to perform work connected with the carrying on by such 
corporation, association, educational institution, or society 
of its activities. Such recipients shall comply with the other 
requirements contained in this subsection.
  (b) No person in the United States shall on the ground of sex 
be excluded from participation in, be denied the benefits of, 
be subjected to discrimination under, or be denied employment 
in connection with any program or activity receiving assistance 
under this subchapter. The Secretary shall enforce the 
provisions of the preceding sentence in accordance with section 
602 of the Civil Rights Act of 1964. Section 603 of such Act 
shall apply with respect to any action taken by the Secretary 
to enforce such sentence. This section shall not be construed 
as affecting any other legal remedy that a person may have if 
such person is excluded from participation in, denied the 
benefit of, subjected to discrimination under, or denied 
employment (except as provided in subsection (a)(2)), in the 
administration of any program, project, or activity receiving 
assistance under this subchapter.
  (c) The Secretary shall not provide financial assistance for 
any program, project, or activity under this subchapter unless 
the grant or contract relating to the financial assistance 
specifically provides that no person with responsibilities in 
the operation of the program, project, or activity will 
discriminate against any individual because of a handicapping 
condition in violation of section 504 of the Rehabilitation Act 
of 1973, except as provided in subsection (a)(2).

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 2210, as reported by the Committee on Education and 
the Workforce, is an ill-advised and unprecedented attack on 
the early education and child care services the federal 
government now provides for young children. This legislation, 
if enacted, will weaken the social, health, and academic 
components of Head Start and, more fundamentally, lead to the 
dismantling of Head Start, as we know it.
    Under the auspices of improving state collaboration and 
child outcomes, this bill would block grant the program to 
eight states with unproven and untested preschool programs. The 
bill, despite the rhetoric surrounding it, establishes no real 
system for ensuring quality, accountability, or performance. 
These provisions of H.R. 2210 discard Head Start's 
comprehensive approach to providing services, weaken education 
standards, curtail parent involvement, diminish oversight and 
accountability, and allow state supplantation of federal funds. 
The bill diverts funds from local programs to governors while 
relieving states of the responsibility to meet the current 
federal performance standards that have made Head Start so 
successful. It is an unjustified, unproven, and unnecessary 
experiment that has more to do with conservative ideology than 
good policy.
    Equally troubling, this bill repeals current civil rights 
protections and allows programs to discriminate in their hiring 
practices based on religion. This is part of an ongoing 
campaign by this Administration and the Republican leadership 
to bring down the wall that separates church and state and to 
subject child services workers to hiring and firing practices 
based on their personal values and beliefs rather than their 
on-the-job performance.
    The Minority is strongly opposed to Title II and the 
provisions allowing discriminations in this bill.
    Head Start is the premiere early education program in this 
country. Started in 1964 under President Johnson, it is a 
highly successful and comprehensive child development and early 
education program for low-income children, ages birth to five 
years old, and their families. It has played a very important 
role in helping over 20 million children and their families in 
its long history.
    Head Start was created to help counter some of the 
devastating effects that poverty has on children and families. 
Its goal was to help very disadvantaged children be better 
prepared to succeed in school and in life. Child development 
experts concluded that the most effective approach was to 
consider the needs of the whole child and provide comprehensive 
services such as health and nutrition. In addition, parental 
involvement was a cornerstone in Head Start because the experts 
believed parents were children's most important and influential 
teachers and to have long-term success, the program should 
consider the family, as well as the child.
    Head Start currently serves over 900,000 children and 
families with the goal of helping children begin school ready 
to succeed. In addition to providing research-based academic 
curricula, Head Start also provides an array of comprehensive 
services such as, health and mental health screenings and 
services, nutrition, dental and vision services, and extensive 
parental involvement in their education. For example, in 2002, 
89% of Head Start children received medical screenings and 24% 
were diagnosed as needing treatment. More than 47,000 children 
received services for asthma, more than 20,000 children 
received services for hearing problems, more than 25,000 
children received treatment for vision problems, and 93% of 
children received immunizations. Over 71,000 children were 
diagnosed with speech and language impairments and received 
services. Parent services are also prioritized in Head Start 
programs because parents are children's primary teachers and 
therefore central to quality early education. Additionally, 
867,000 Head Start parents volunteered in their local program, 
more than 296,000 parents received parenting education through 
program services and referrals, more than 246,000 parents 
received health education through program services and 
referrals, and more than 95,000 parents received adult 
education services through the program or referrals.
    Head Start is one of the most evaluated federal programs, 
and research concludes that Head Start works. Children who 
attend Head Start make significant gains relative to national 
norms in vocabulary, early writing, letter recognition and 
social behavior, and they enter school better prepared than 
low-income children who do not attend Head Start. Head Start 
students show IQ gains, are less likely to need special 
education services, are less likely to repeat a grade, are more 
likely to graduate from high school and are less likely to 
commit crimes in adolescence.
    It is true that Head Start does not completely eliminate 
the school readiness gap. And it is also true that there is 
room for improvement in the program. However, the Majority's 
claim that the continuing school readiness gap is a sign of 
Head Start's inadequacy and provides rationale for turning the 
program over to the states is specious. Poverty has devastating 
effects on children and families and is one of the strongest 
factors in hindering academic progress. Child development and 
education experts believe it is ``totally illogical and 
unrealistic'' to expect any early education program to 
eliminate the school readiness gap. The truth is that no state 
pre-school program has ever demonstrated that it does as good a 
job as Head Start in preparing low-income children to succeed 
in school.
    Instead of dismantling a successful program, the Minority 
believes the focus of reauthorization should be on keeping the 
Head Start program intact and strengthening the program so this 
country's poorest children can receive the high quality, 
comprehensive early education they need to achieve in school 
and reach their full potential. Dozens of groups, including the 
NEA, AFT, Easter Seals, Children's Defense Fund, Catholic 
Charities of America, National Head Start Association, ACLU, 
National League of Cities, NAEYC, United Way of America, SEIU, 
AFSCME and the NAACP strongly oppose this bill. Thousands of 
our constituents have contacted us to express their opposition 
to this legislation. Rather than pursuing a bill that will lead 
to a partisan passage of Head Start for the first time in its 
history, we should reconsider the block grant approach and work 
within the current successful Head Start structure to create 
the best possible program for America's poorest children.

                                TITLE I

    Title I of this bill amends the Head Start program for non-
block grant states. There are a number of provisions in this 
title that the Minority supports because they will build upon 
Head Start's success and help it evolve into an even stronger 
program. In particular, the Minority supports the increased 
emphasis on pre-literacy, language and pre-mathematics skills, 
and the direction of an independent NAS study designed to 
integrate the best science and best practices into Head Start's 
educational performance standards and utilization of 
assessments. In addition, the Minority supports improvements to 
teacher quality. However, there are also a number of provisions 
in this title opposed by the Minority.

Authorization level

    Head Start and Early Head Start serve children from birth 
to 5 years old whose family income is at or below the federal 
poverty line. The 2003 poverty line for a family of 3 is 
$15,260. Currently, because of inadequate funding, only 60% of 
eligible preschool children, 3% of eligible infants and 
toddlers, and 19% of eligible migrant and seasonal children are 
served by their respective Head Start programs. Despite the 
President's statement April 2, 2002 that ``we must make sure 
that every child enters school ready to learn--every child--not 
just one, not just a few, but every, single child,'' this 
bill's authorization provides only a 2.9% increase over last 
year's appropriation. This just barely covers the cost of 
inflation, leaving hundreds of thousands of America's poorest 
children unable to attend Head Start.
    In addition to expanding Head Start for all children, the 
Minority strongly feels expansion to serve children of migrant 
and seasonal farm workers is critically important. Migrant and 
Seasonal Head Start programs operate seasonally to meet the 
needs of children and families as they harvest crops. MSHS 
seeks to break the cycle of poverty created by moving from 
place to place by offering high quality child education 
programs for children ages birth to school entry age. 
Currently, the program serves only 19% of children eligible for 
MSHS. The Majority's bill does little to help the situation, 
leaving nearly 130,000 children of migrant and seasonal workers 
neglected by Head Start. The Minority believes we must make 
every effort to ensure that these children, who are born into 
poverty and harsh conditions, receive every opportunity 
available to attain a quality education.

Training and technical assistance

    The Head Start Act currently reserves at least two percent 
of the appropriation for training and technical assistance (T/
TA). Data from the Department of Health and Human Services 
(HHS) shows that it has spent about 2.5% in recent years ($134 
million in FY02) on T/TA. The current T/TA system emphasizes 
continuous quality improvement for all programs. The focus on 
training and technical assistance recognizes that continued 
improvements in the quality of Head Start programs and services 
are dependent upon a well-funded and well-designed training and 
technical assistance system. Regular, ongoing training and 
professional development for all Head Start staff is essential 
to the program's continued success.
    In addition, the science associated with helping to prepare 
children for a lifetime of learning continues to evolve and 
inform best practices, and must be integrated into the Head 
Start classroom. T/TA funds that are sent to local programs are 
being used to train staff in a variety of areas including: 
early childhood curriculum implementation; assessing the 
development of children; child health and safety; human 
resources training; and family services. For example, this 
money is used to help teachers learn how to integrate early 
literacy to every area of curriculum. This means teachers learn 
how to incorporate more basic counting, alphabet learning and 
reading skills into the curriculum in all the classrooms. 
Another example is that this money is used to help programs 
improve the role of fathers in their child's development.
    If we are serious about improving quality, it is illogical 
to cut back the funding for quality improvements. Yet this bill 
decreases the main pot of money used for on-going quality 
improvements in Head Start Centers. This decreases the 2% floor 
set-aside to an undetermined amount between 1% and 2%. That 
could mean pulling over $70 million away from program 
improvements just next year. The T/TA set-aside takes on even 
greater importance under the Majority's budget because Head 
Start's second pot of money for quality improvements only gets 
money when funding grows, and this bill's authorization just 
barely covers inflation.

Teacher quality

    Democratic Members strongly support the idea of increasing 
teacher quality in Head Start as a critical component to 
increasing overall program quality and helping more children 
reach kindergarten better prepared to succeed. Research finds 
that teacher education is related to better outcomes in 
children's cognitive, social and emotional development. This 
bill takes important strides in teacher quality by requiring 
that 50% of Head Start teachers nationwide have at least a 
baccalaureate degree by 2008, and by requiring that by 2005, 
all new teachers have at least an associate's degree or be 
enrolled in a program to achieve an associate degree. However, 
this bill provides almost nothing to support the implementation 
of this important teacher quality provision. On average, Head 
Start teachers make just $21,000 while kindergarten teachers 
make over $41,000. In order to attract and retain highly 
qualified teachers, Head Start must improve teacher salaries 
and access to early education scholarships. According to an 
analysis by CRS, the authorization level in this bill will 
provide approximately $33 million in FY03 specifically for 
teacher salary increases and scholarships. An analysis by the 
Trust for Early Education suggests this budget figure will fall 
over $300 million short in just the first year of the bill, and 
$2 billion short over the life of the reauthorization. 
Improving teacher quality is very important, but without 
providing the means to support the provision, the initiative is 
severely undercut.

Discrimination in hiring

    H.R. 2210 contains a provision that repeals longstanding 
civil rights protections for employees of Head Start programs 
operating through faith based organizations. Since 1981, the 
Head Start Act has included a nondiscrimination provision that 
assured fundamental civil rights protections for Head Start 
teachers and volunteers. It has had strong bipartisan support 
since its passage.
    The Majority claims that this provision would make Head 
Start consistent with Title VII of the Civil Rights Act of 
1964. We disagree. By maintaining current law in Section 654 of 
the Head Start Act, the Committee affirms a civil rights 
standard that has coexisted with Title VII since 1981. Section 
654 allows that with regard to funding of faith-based 
organizations, government funds, collected from all taxpayers, 
should not be used to support discrimination. In addition, it 
is important to note that these very provisions have not 
hampered the participation of faith-based organizations in Head 
Start programs.
    We strongly support the right of religious institutions to 
preserve the integrity of their own religious character when it 
comes to religious activities. We disagree that it is healthy 
for American society, or in conformance with basic American 
principles of fairness and equal treatment under the law, for 
the federal government to provide funds for secular purposes to 
any organization, which would then use these funds in a 
discriminatory fashion on religious grounds. In fact, in a poll 
conducted in 2001 by the Pew Research Center and the Pew Forum 
on Religion and Public Life on President Bush's faith-based 
initiative, 78% of those polled shared this view.
    We are also greatly concerned that the provision to remove 
civil rights protections for employees could have a negative 
impact on the children and families who participate in these 
programs. Tens of thousands of already at-risk 3 and 4-year old 
children could lose their Head Start teachers--who often are 
the most important adults to whom they have bonded, other than 
their parents. In addition, countless parents will be blocked 
from climbing the ladder out of poverty that has already taken 
thousands of parents from being a parent volunteer to being a 
trained and paid Head Start teacher--simply because the parents 
do not share the federally-funded employer's religious beliefs.
    Head Start is a model for demonstrating that a prohibition 
on religious employment discrimination is fully compatible with 
federal assistance to faith-based charities. Faith-based 
charities have taken good advantage of these federally funded 
programs to advance their charitable work in a manner which the 
President finds worthy for expansion--and we have heard no 
suggestion that the faith-based charities involved with Head 
Start or numerous other social service programs have seen their 
own faith communities erode.
    The Minority vehemently opposes this assault on civil 
rights protections and is joined by numerous religious and 
secular organizations, including the Baptist Joint Committee, 
the Episcopal Church, the Presbyterian Church (U.S.A.), the 
United Church of Christ, Justice and Witness Ministries, 
American Civil Liberties Union and the United Methodist Church. 
The Coalition Against Religious Discrimination, an advocacy 
organization comprised of religious, civil rights, labor, 
education and healthy advocacy organizations noted in their 
June 17, 2003 letter to Members of the Committee that 
``allowing discrimination based on religion would significantly 
impede the important goals of Head Start, sending a damaging 
message to Head Start students.''

                                TITLE II

    The Minority adamantly opposes Title II in its entirety. 
The rationale that the block grant is the solution to closing 
the school readiness gap is flawed and illogical. State 
preschool programs are untested and unproven. Not only is there 
no research showing that state preschool programs produce 
better results than Head Start, there is no research 
demonstrating the effectiveness of state preschool programs at 
all. The No Child Left Behind Act was crafted because Congress 
believed the solution to the achievement gap in K-12 education 
was stronger standards and stronger accountability. Yet the 
Majority and this bill address the same achievement gap in 
young children by eliminating standards and accountability. 
This block grant solution is the wrong approach and will lead 
to the demise of a highly successful program.
    There are numerous problems with this Title. First, states 
are eligible for the block grant without demonstrating 
expertise or commitment to high-quality comprehensive or proven 
preschool programs. To apply for the block grant, states must 
meet for weak eligibility criteria. None of these eligibility 
criteria ensure that states could or would run programs as high 
quality and effective as Head Start.
    Second, the block grant guts quality comprehensive 
services. None of the thirteen areas of Head Start performance 
standards (e.g., ``education and early child development,'' 
``health and safety'') that lay out the comprehensive services 
and high level of quality that have made Head Start successful 
are required. The bill emphasizes comprehensive services being 
met through referrals to outside services, essentially 
encouraging states to provide a lower level of services.
    Third, this title weakens educational performance 
standards. The block grant requires no minimum threshold on 
school readiness standards, child-staff ratios, classroom size, 
or curriculum content. These are central to education and 
program quality and there is great variation in States in 
content and quality of these standards.
    Fourth, the block grant weakens oversight and evaluation. 
States meeting the eligibility criteria have their applications 
deemed approved by the Secretary by default, meaning little 
oversight or evaluation of the quality or appropriateness of 
the State plan. In addition, there is not minimum threshold 
required of States' internal evaluations--they define their own 
success.
    Fifth, this Title reduces the role of parents in children's 
success. Teaching parenting strategies and involving parents in 
their children's education is strongly related to children's 
achievement in school, and that's why parent involvement in 
their child's development and education, health and nutrition, 
mental health, community advocacy and transition activities to 
kindergarten have been a cornerstone of the Head Start 
programs. But this title requires only minimal parental 
involvement and makes no reference to the parent policy 
councils, which is what helps make Head Start a local program 
addressing local needs.
    Finally, this Title allows States to have an overall 
decrease in early education services statewide. The title's 
supplantation restrictions are considered almost impossible to 
enforce by GAO. Moreover, the block grant permits supplanting 
federal funds, so nothing bars States from diverting ESEA or 
TANF funds to other purposes and using the block grant funds to 
fill in the holes.

Amendments

    Due to the extensive problems in this legislation, 
Democratic Members offered a series of amendments. Below is a 
description of these amendments and how the Committee acted 
upon them.
    Mr. Grijalva, with Mr. Hinojosa, offered an amendment that 
would increase funding to serve more children in Migrant and 
Seasonal Head Start (MSHS). Currently, the program serves only 
19% of children eligible for MSHS, whereas Regional Head Start 
serves 60% of eligible children. This bill does little to 
change the situation, leaving nearly 130,000 children of 
migrant and seasonal workers behind. Completely closing this 
funding gap between MSHS and Regional Head Start may be 
unrealistic in the near future, but moving towards parity by 
making a modest increase in funding for MSHS programs is an 
important first step. This amendment provided the money to 
expand MSHS by 10,000 more children. This amendment was 
defeated on a party-line vote.
    Ms. Woolsey offered an amendment that would retain current 
law protecting employee civil rights and prohibit 
discrimination in hiring based on religion. H.R. 2210 repeals 
this longstanding civil rights protection designed to protect 
Head Start teachers, staff and parent volunteers. This bill 
would allow Head Start programs run by a religious organization 
to discriminate in their hiring and would allow programs to 
immediately fire staff because of their religion. The Woolsey 
amendment would have maintained the civil rights protection in 
the current law. The amendment was defeated on a party-line 
vote.
    Mr. Miller, with Ms. Woolsey, offered an amendment that 
would have kept this bill from dismantling the Head Start 
program, strengthened the academic components of Head Start, 
and provided States the ability to coordinate and align Head 
Start with other early education programs. This amendment 
struck Title II of the bill, preserving the current federal-to-
local funding structure for Head Start and maintaining Head 
Start's high quality program performance standards and strong 
federal oversight. This amendment also added provisions to 
Title I of the bill to strengthen Head Start collaboration 
offices by giving them increased authority to align Head Start 
and early education programs. The amendment was defeated on a 
party-line vote.
    Mr. D. Davis, with Mrs. McCarthy and Mr. Bishop, offered an 
amendment providing funding specifically for teacher salaries 
and scholarships to support the teacher quality requirements in 
the bill. The Republican bill requires 50% of Head Start 
teachers nationwide to have to least baccalaureate degrees by 
2008 and beginning 2005, requires all new teachers to have at 
least an associate degree or be enrolled in a program to 
achieve an associate degree. This bill provides only $33 
million in FY03 for implementing the teacher quality provision. 
This bill's authorization will fall over $300 million short in 
just the first year of the bill. This amendment fixes this 
glaring flaw to improving teacher quality by providing 
sufficient authorization to support higher quality teachers in 
Head Start. The amendment was defeated on a party-line vote.
    Mr. Kind offered an amendment to restore this bill's cuts 
to training and technical assistance funds. Current law creates 
a set-aside of ``at least 2%'' for training and technical 
assistance. This bill allows the current set-aside to be 
reduced as low as 1 percent, thus substantially decreasing the 
money available for improving program quality. The Minority 
strongly opposes this provision because we will not make Head 
Start stronger by slashing money used to make programs better. 
This amendment would have restored the current set-aside. The 
amendment was defeated on a party-line vote.
    Mr. Van Hollen with Mr. Tierney and Ms. Majette, offered an 
amendment to provide full funding for preschoolers and double 
the percentage of infants and toddlers receiving Early Head 
Start over the next 5 years. Currently, only 60% of eligible 
preschool children receive Head Start and only 3% of infants 
and toddlers receive Early Head Start because of inadequate 
funding. The authorization in this bill does little to address 
this problem, as it just barely covers the cost of inflation. 
The amendment was defeated on a party-line vote.
    Mrs. McCollum, with Mr. Van Hollen and Mr. Ryan, offered an 
amendment to provide Head Start grantees with funding to meet 
bus safety regulations. The Congress previously passed a 
mandate regarding the safety requirements of bus transportation 
for Head Start children, but no money was provided to help 
programs implement the provision. This amendment helps programs 
retain their enrollment levels and keeps programs from 
decreasing their services by providing funding for Head Start 
programs to meet the federal requirement regarding safety 
modifications of buses used for transportation. The amendment 
was defeated on a party-line vote.
    Mr. Kind offered an amendment to suspend the National 
Reporting System pending the results of the study requested of 
the National Academy of Sciences in the bill. The 
Administration is currently implementing a countrywide testing 
system for Head Start children despite protests by early child 
education experts who believe the system is heavily flawed and 
inappropriate. This amendment would suspend the National 
testing pending a study by experts and would require the 
Secretary to use the report as guidelines for developing an 
appropriate method of using assessments to improve child 
outcomes and program quality. The amendment was defeated on a 
party-line vote.
    The minority welcomed the passage in subcommittee of an 
amendment by Ms. S. Davis to revert to the original language of 
current law to include both social and emotional development as 
goals for the Scope and Design of Early Head Start, the 
evaluation of programs, and the training of personnel 
throughout the text; and to an amendment by Mr. Case to restore 
references to ``cultural'' and ``multicultural'' from current 
law.

                                   George Miller.
                                   Raul M. Grijalva.
                                   Ron Kind.
                                   Timothy Bishop.
                                   Rush Holt.
                                   Timothy Ryan.
                                   Danny K. Davis.
                                   John F. Tierney.
                                   Chris Van Hollen.
                                   Ruben Hinojosa.
                                   Lynn C. Woolsey.
                                   Dale E. Kildee.
                                   Carolyn McCarthy.
                                   Susan A. Davis.
                                   David Wu.
                                   Ed Case.
                                   Dennis J. Kucinich.
                                   Betty McCollum.
                                   Denise L. Majette.
                                   Robert E. Andrews.
                                   Major R. Owens.
                                   Donald M. Payne.

                                
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