[Senate Report 110-49]
[From the U.S. Government Publishing Office]




                                                       Calendar No. 104

   110th Congress                                       Report
     1st Session                 SENATE                 110-49

_______________________________________________________________________







                  HEAD START FOR SCHOOL READINESS ACT

                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                           HEALTH, EDUCATION,
                          LABOR, AND PENSIONS

                              to accompany

                                 S. 556




                 April 10, 2007.--Ordered to be printed














                                                       Calendar No. 104

   110th Congress                                       Report
     1st Session                 SENATE                 110-49
_______________________________________________________________________



                  HEAD START FOR SCHOOL READINESS ACT

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                           HEALTH, EDUCATION,

                          LABOR, AND PENSIONS

                              to accompany

                                 S. 556




                 April 10, 2007.--Ordered to be printed

                                -------

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                                                       Calendar No. 104
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-49

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



 
                  HEAD START FOR SCHOOL READINESS ACT

                                _______
                                

                 April 10, 2007.--Ordered to be printed

                                _______
                                

   Mr. Kennedy, from the Committee on Health, Education, Labor, and 
                   Pensions, submitted the following

                              R E P O R T

                         [To accompany S. 556]

    The Committee on Health, Education, Labor, and Pensions, to 
which was referred the bill (S. 556) to reauthorize the Head 
Start Act, and for other purposes, having considered the same, 
reports favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill (as amended) do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary of the Bill..................................1
 II. Background and Need for Legislation..............................2
III. Legislative History and Committee Action.........................4
 IV. Explanation of Bill and Committee Views..........................7
  V. Cost Estimate...................................................43
 VI. Application of Law to the Legislative Branch....................45
VII. Regulatory Impact Statement.....................................45
VIII.Section-by-Section Analysis.....................................46

 IX. Changes in Existing Law.........................................54

                   I. Purpose and Summary of the Bill

    The Head Start for School Readiness Act of 2007 
reauthorizes and makes improvements in the Head Start program 
in order to ensure that children in the program make measurable 
progress toward developing the skills they need to enter school 
ready to learn. To accomplish this, the bill focuses on five 
areas: (1) improved academic, developmental, and educational 
outcomes for children; (2) improved teacher competencies and 
high quality opportunities for professional development; (3) 
better coordination and collaboration with other programs in 
the State (including child care, State preschool programs, and 
the local public schools); (4) greater accountability for the 
management of Head Start programs; and (5) enhanced support for 
infants and toddlers through the Early Head Start program.
    The bill authorizes $7.35 billion for fiscal year 2008, 
$7.65 billion for fiscal year 2009, $7.99 billion for fiscal 
year 2010, and such sums as may be necessary for subsequent 
years. Each year, 13 percent of Head Start funding is set-aside 
for the Secretary to allocate funds for Migrant and Seasonal 
Head Start programs, Indian Head Start programs, training and 
technical assistance for Head Start grantees, improvement in 
the PRISM reviews through increased inter-rater reliability 
training, and other purposes. For research and evaluation each 
year, $20 million is reserved. The set-aside for Early Head 
Start is increased from the current 10 percent to 20 percent in 
fiscal year 2012.

                II. Background and Need for Legislation

    Head Start was created in 1965 and today stands as one of 
the Nation's most well regarded domestic programs. Head Start's 
mission to promote school readiness among the Nation's low-
income children reflects a comprehensive approach to supporting 
children and families. Because school readiness depends upon 
the interdependent relationship between cognitive, 
intellectual, physical, social and emotional, and other areas 
of early childhood development, Head Start programs provide a 
broad array of services determined to be necessary, based on an 
assessment of the children and families' needs.
    Children in Head Start enter the program with a number of 
factors that put them at risk of school failure, such as 
extreme poverty, family economic and housing instability, and 
limited family education attainment. The overwhelming majority 
of Head Start children are from families earning less than 100 
percent of the Federal poverty level, $20,650 for a family of 
four (2007 HHS Poverty Guidelines), and in most Head Start 
families, neither parent holds more than a high school degree 
or general equivalency degree (GED). Research shows that Head 
Start clearly makes a difference for children living in 
poverty, yet experience has shown that the program itself 
cannot eradicate the overwhelming effects of poverty on 
children and their families.
    By its nature, Head Start requires community input in order 
to be responsive to community needs. Head Start programs have 
successfully reached out to community partners to help foster 
school readiness and successful transitions to elementary 
school, provide health care, increase access to social services 
for families, and provide full-day, full-year services to 
children. Local programs may adapt their services to serve 
Indian tribes or migrant and seasonal farm worker communities, 
target homeless children or children of drug-addicted parents, 
or help families transitioning off welfare. Built on the 
premise that effective intervention in the lives of children 
can be best accomplished through family and community 
involvement, Head Start attempts to involve communities and 
families in both the design and implementation of the program 
at the local level.
    Today, Head Start provides educational and other 
comprehensive support services to almost 1 million low-income 
preschool children to help Head Start participants prepare for 
and succeed in school. The Head Start program currently 
provides services to children from a diverse population of 
eligible families, including migrant and Native American 
children, through nearly 19,800 centers and more than 800 home-
based programs in all 50 States, the District of Columbia, 
Puerto Rico, and the U.S. territories. The committee encourages 
continued emphasis on serving all children to meet the goals of 
Head Start programs.
    Unlike other Federal social service programs that are 
funded through States, the Department of Health and Human 
Services awards Head Start grants directly to local agencies, 
called grantees, which deliver program services. Grantees, 
numbering 1,604 nationwide, may contract with other 
organizations, called delegate agencies, to run all or part of 
their programs. Grantees had contracts with 604 delegate 
agencies in fiscal year 2006. Grantees and delegate agencies 
include public and private school systems, community action 
agencies, faith-based organizations, private, nonprofit and for 
profit organizations, local governments, and Indian tribes.
    Since the inception of the program, Head Start has 
continuously improved the quality of the services it provides. 
As the needs of children and families changed, so has Head 
Start. Head Start was first enacted into law in 1965 as a 
summer program with a budget of $352 million. In 1995, an 
appropriation of $3.3 billion allowed more than 2,000 locally-
run Head Start programs to serve more than 730,000 children and 
their families. By fiscal year 2006, Head Start was funded at 
more than double that of 1995, when it received $6.8 billion in 
funding and supported programs in every State, serving more 
than 900,000 children and their families.
    The committee also recognizes that the face of poverty has 
changed dramatically since Head Start was created 40 years ago. 
Single parent families headed by women accounted for about one-
third of the poor in 1966; now they represent more than half of 
those living in poverty. Children have now replaced the elderly 
as the group most likely to be poor. Nationally, one in five 
children under the age of five in the United States live in 
poverty. Disadvantaged children who are part of a racial or 
ethnic minority group face even harsher realities; 37.9 percent 
of all African-American children and 31.4 percent of all 
Hispanic children come from families earning less that the 
Federal poverty threshold (U.S. Census, 2006).
    Recognizing the negative correlations of poverty to later 
educational attainment, it is critical we prepare all children 
to enter school ready to learn in order to provide for their 
later success in school and life and to close the achievement 
gap. Studies document a wide gap between lower and higher-
income children before they enter kindergarten which, if 
unattended, often persists into later years in schooling. 
Despite significant Federal investment, this gap persists. 
Research also shows that lower-income children are far less 
likely than their higher-income peers to participate in early 
childhood education programs before beginning elementary 
school. If we do not prepare all children to succeed and become 
lifelong learners, our global competitiveness in the 21st 
century economy may be compromised.
    The research shows that, on average, Head Start helps to 
narrow the achievement gap between our Nation's poorest 
children and their more affluent peers. The committee believes 
that the program can be strengthened to build upon that success 
and lead to improved outcomes for Head Start children. Long-
term positive outcomes and cost-savings include: improved 
school performance, more positive behavior, reduced special 
education placement, lower in-grade retention and dropout 
rates, and increased lifelong earnings potential.
    In 1993, Secretary of Health and Human Services Donna 
Shalala appointed an Advisory Committee on Head Start Quality 
and Expansion to examine closely the Head Start program and to 
make recommendations for the future. The recommendations of the 
Advisory Committee focused on three important areas: (1) the 
need to improve quality; (2) the need to expand services; and 
(3) the need to forge partnerships with other community 
providers, including closer coordination with elementary 
schools, States, and locally-sponsored programs, and including 
cooperating with the private sector and linking Head Start with 
other National initiatives. Reauthorizations of the Head Start 
Act in 1994 and 1998 enhanced teacher qualifications, increased 
attention to cognitive areas of early childhood development, 
created the Early Head Start program, and led to program 
standards and the Outcomes Framework that guide Head Start 
programs in their curricular planning, instruction, and 
delivery of services, as well as in the ongoing assessment of 
the progress and accomplishments of children.
    The Head Start for School Readiness Act of 2007 builds on 
the original foundation of the Head Start program and on past 
reauthorizations, by increasing the focus on continued program 
quality and the achievement of important educational and other 
outcomes for children across the range of developmental domains 
critical to ensuring their school readiness.

             III. Legislative History and Committee Action

    On May 25, 2005, the Senate Committee on Health, Education, 
Labor, and Pensions met in executive session and favorably 
reported the bill unanimously with an amendment in the nature 
of a substitute. The reported bill was not considered by the 
full Senate during the 109th Congress.
    On February 14, 2007, the Senate Committee on Health, 
Education, Labor, and Pensions met in executive session and 
favorably reported the bill, S. 556, The Head Start for School 
Readiness Act, unanimously with an amendment in the nature of a 
substitute. The committee's work on S. 556 was informed by 
hearings held during the 108th and 109th Congresses.

              HEARINGS AND TESTIMONY--SUMMARY OF WITNESSES

Hearings in the 108th Congress

    The Senate Committee on Health, Education, Labor, and 
Pensions held a hearing on July 23, 2003 at 10 a.m. entitled 
Reauthorizing Head Start: Preparing Children to Succeed in 
School and in Life. A panel of five witnesses testified on 
topics related to improving the school readiness of Head Start 
children, promoting State coordination and collaboration, 
strengthening the Head Start workforce and determining the 
effectiveness of Head Start. The witnesses included:
     Windy Hill, Associate Commissioner for the Head 
Start Bureau
     G. Reid Lyons, Ph.D. Chief of the Child 
Development and Behavior Branch of the National Institute of 
Child Health and Human Development
     Marnie Shaul, Ph.D, Director, Education, Workforce 
and Income Security Issues, U.S. Government Accountability 
Office
     Amy Wilkins, Executive Director, Trust for Early 
Education
     Janis Santos, Executive Director of the Holyoke-
Chicope-Springfield Head Start Center, Springfield, MA.

Hearings in the 109th Congress

    The Subcommittee on Education and Early Childhood 
Development held a hearing on April 5, 2005, at 9:30 a.m. 
entitled Head Start: Ensuring Dollars Benefit the Children. The 
hearing focused on the Government Accountability Office's (GAO) 
report entitled Head Start: Comprehensive Approach to 
Identifying and Addressing Risks Could Help Prevent Grantee 
Financial Management Weaknesses. The GAO study was requested in 
late 2003 by Senator Enzi, Senator Alexander, Senator Gregg, 
Congressman Boehner, and Congressman Castle following reports 
of alleged financial impropriety by Head Start executives in 
more than a dozen cities across the United States.
    Between January 2003 and the first months of 2005, multiple 
accounts from numerous communities across the country alleged 
serious financial abuses and irregularities by local 
individuals and/or entities entrusted with the responsibility 
of managing Federal Head Start funds meant to serve poor and 
at-risk children. The incidents identified involved the use of 
tens of millions in Federal Head Start funds that were intended 
to serve more than 10,000 disadvantaged U.S. children. The GAO 
report on the program found that a significant percent of local 
Head Start operators surveyed in 2000 had some form of 
financial irregularity, a portion of which were serious 
deficiencies. Three years later, the GAO found that more than 
half of those operators still had recurring financial 
management problems, and recommended more timely follow up and 
enhanced training and technical assistance to develop the 
capacity of agencies to address such problems. The GAO urged 
the Department of Health and Human Services (HHS) to develop a 
better system to identify local centers with financial 
problems. HHS has the oversight responsibility for Head Start 
grantees. This is a challenge considering there are almost 
1,700 grantees, with over 20,000 centers containing more than 
48,000 classrooms. HHS's current system of accountability may 
not have the capacity for this oversight and the committee 
examined ways to improve program monitoring by HHS and what 
other oversight and accountability alternatives exist.
    The following witnesses testified:
    Dr. Wade Horn, Assistant Secretary for the Head Start 
Bureau Administration for Children, Youth and Families, U.S. 
Department of Health and Human Services, Washington, DC, 
discussed strengthening the education component of Head Start 
and improving coordination and integration of State and local 
childhood services in support of President Bush's proposal. 
Additionally, he testified about the importance of monitoring 
to measure the quality of Head Start programs. He also 
described several efforts HHS had implemented to improve 
monitoring and accountability.
    Dr. Marnie S. Shaul, Director of Educating and Protecting 
Children, United States Government Accountability Office, 
Washington, DC, testified in regard to the GAO's recent report 
on Head Start risk management which the committee had 
requested. She discussed the Administration on Children and 
Families' (ACF) processes to assess financial risks, 
specifically regarding how these processes could be improved to 
ensure accuracy and reliability. In addition, she discussed the 
effectiveness of approaches ACF uses to make sure Head Start 
grantees address any financial management weaknesses in a 
timely manner. The GAO had many recommendations including a 
suggestion that ACF take steps to recompete grants if a grantee 
fails to meet programmatic or financial management 
requirements.
    Mayor A.C. Wharton, Mayor of Shelby County, Memphis, 
Tennessee, testified on Shelby County's ongoing efforts, as 
well as some of its planned efforts, to improve program 
oversight and stewardship. He testified about the need to 
improve accountability for the Head Start program and ensure 
that there was a clearly defined entity that was legally and 
financially responsible for the program. Several of the GAO's 
findings mirrored weaknesses Shelby County had identified and 
which it was actively working to resolve in its local Head 
Start programs.
    Yvonne Gates, Clark County Commissioner, Las Vegas, Nevada 
discussed the promise of the Head Start Program and its goals 
to erase inequities among children and to give all children a 
level playing field for their future academic success. 
Therefore, she recommended that the committee expand local 
oversight of grantees. She testified about the importance of 
local governments and the need for them to be more actively 
engaged in the local review and evaluative process for these 
Federal programs. She also testified that because local 
government is closer to the people, it is better positioned to 
provide technical assistance to local agency partners. By 
coordinating with other local resources, the scope of these 
services could be expanded.
    Jim Caccamo, Director Metropolitan Council on Early 
Learning, Kansas City, Missouri, testified about the financial 
and governance problems with the Kansas City Head Start grantee 
KCMC. The financial and governance problems at KCMC began to 
surface in April 2001. The Controller/Chief Financial Officer 
was engaged in a kickback scheme and in February of 2002 pled 
guilty to bribery and money laundering. He was sentenced to 51 
months in prison and ordered to pay over $800,000. Mr. Caccamo 
suggested that the fiscal mismanagement, excessive salaries, 
and the employee kickback problems could have been avoided with 
tighter oversight on the part of the Executive Director and 
Board.
    Olivia Golden, Senior Fellow at the Urban Institute, 
Washington, DC, testified primarily on effective strategies for 
building the strongest possible Federal oversight role to 
support high-quality, fiscally accountable, programmatically 
successful, and well-managed Head Start programs across the 
country. She described the GAO's recommendations as practical 
and thought they would be useful and that thoughtful 
implementation of these recommendations would help Head Start 
programs attain the highest level of accountability. 
Additionally, Ms. Golden discussed the GAO report findings that 
contributed to this effort by identifying gaps in Federal 
oversight particularly in regard to Federal monitoring.

            IV. Explanation of the Bill and Committee Views


         ENHANCING THE SCHOOL READINESS OF HEAD START CHILDREN

    School readiness has always been central to Head Start's 
mission and should continue to be a primary goal of Head Start 
programs. The committee's intent in the Head Start for School 
Readiness Act is to assist Head Start programs with further 
meeting the goal of promoting school readiness and closing the 
achievement gap among Head Start children.
    According to the National Institute for Child Health and 
Development and other experts, school readiness consists of a 
broad set of competencies such as cognitive, social, emotional, 
physical, and language development, motivation and approaches 
to learning, as well as discipline-specific domains including 
the literacy, mathematics, science, social studies, and the 
arts. Researchers at the Frank Porter Graham Child Development 
Center, at the University of North Carolina at Chapel Hill, 
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 its research, ``the readiness 
puzzle can only be solved if the two pieces fit together'' 
(Bailey, 1999).
    The academic, cognitive, and social competencies that 
define school readiness begin developing long before children 
enter the elementary classroom. Knowledge about children's 
development and learning has increased greatly during the past 
two decades. Research in the neurobiological and behavioral 
sciences suggests the importance of a child's experience during 
the first years of life for healthy brain development, the 
importance of early intervention for at-risk infants and their 
parents, and the opportunity presented in early infancy for 
strengthening families. From birth through age five, children 
rapidly develop the capabilities on which subsequent 
development builds. According to child development expert T. 
Berry Brazelton, M.D, ``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.''
    The committee recognizes that the areas of a young child's 
development are strongly correlated with later school success 
and are foundational in nature. Standards for early learning 
should, as much as practicable, seek to address the cognitive, 
social, emotional, physical, language development, and 
motivation influencing a young child's development. To 
accomplish this goal of ensuring that children participating in 
the Head Start program develop the cognitive, social, and 
emotional competencies necessary to succeed, the Head Start for 
School Readiness Act significantly enhances Head Start's 
emphasis on positive outcomes for school readiness in all 
domains, especially in cognitive development, while retaining 
the commitment to providing comprehensive social services.
    Studies indicate that children enrolled in Head Start make 
progress while in the program. Based on data from the 2000 
Family and Child Experiences Survey (FACES), children enter 
Head Start with cognitive, social, and emotional skills well 
below the national norm of most children their same age. Key 
findings from FACES reveal that participation in Head Start 
narrows the gap between Head Start children and the general 
population of preschool-aged children in domains representing 
key components of school readiness. With only 9 months of 
participation in the program, FACES data demonstrate a 
reduction in the school-readiness gap between disadvantaged 
children and their peers with meaningful gains in their 
vocabulary, letter recognition, and writing skills. Children 
also improved in other cognitive, social, and emotional skills, 
demonstrating a reduction in problem behaviors, aggressive 
behaviors, hyperactive behaviors, and withdrawn behaviors. 
Physically, children showed high rates of immunizations, health 
screenings, interventions and supports for disabilities, and 
enrollment in health insurance plans. As Head Start continues 
to evolve, outcomes for children participating in the program 
continue to improve. Data from FACES show that, as compared to 
1997, Head Start children show greater gains in book knowledge, 
letter recognition, and print conventions. According to such 
data, children previously participating in Head Start programs 
meet national norms by the end of their kindergarten year.
    Despite these gains, however, data show Head Start children 
still lag behind the national average in school readiness when 
they enter kindergarten. A 2003 publication by HHS, 
Strengthening Head Start: What the Research Shows, provides an 
analysis of outcomes for children and families served by the 
Head Start program. The HHS analysis concludes that both lower 
and higher-achieving Head Start children have low scores on 
school readiness evaluations overall and show some 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).
    The first year preliminary findings for the Head Start 
Impact Study released in June of 2005 provide further evidence 
of the importance of Head Start for low-income children and 
families. The study found that 3-year-olds in Head Start 
received the most benefits from the program. Results found that 
within 6 to 8 months, both 3- and 4-year-olds showed small to 
moderate improvements in pre-reading, pre-writing, vocabulary, 
and literacy skills as compared to children not enrolled in 
Head Start programs. The committee is encouraged that within a 
year Head Start was able to cut in half the achievement gap 
that would have been expected if the children had not attended 
a Head Start program. The Impact Study follows children until 
they complete the first grade, and the committee is waiting for 
the final report in 2007 and hopes to see that the reduction in 
the achievement gap continues for the participants in the 
study.
    Because data indicate that many Head Start children enter 
kindergarten without the knowledge and skills proven to be 
strong predictors of school success, the committee seeks to 
ensure that all children participating in Head Start receive 
the maximum benefit of its programs and services. The 
challenges that so many Head Start children face later in their 
academic careers begin well before they enter school. As such, 
the committee recognizes the importance of Head Start's 
comprehensive services in helping children make gains toward 
achieving academic parity with their peers and enter school 
ready to learn.
    Early literacy is one facet of children's learning and 
development that is critical to school readiness. The committee 
recognizes and applauds the work of Head Start programs to 
provide a more enriched literacy experience and instruction to 
children. Children who read well in the early grades are far 
more successful later in school, and scientifically-based 
research demonstrates the importance of a strong foundation for 
children before they are given formal reading instruction in 
kindergarten and first grade. Head Start's attention to the 
development of early language and literacy skills is essential 
to helping children advance their reading skills in the later 
grades.
    Head Start programs should provide children from low-income 
families a high quality oral language and literature-rich 
environment, and establish appropriate literacy goals for 
children that are tied to instructional strategies adapted to 
their individual level of learning and development. The 
committee encourages Head Start to continue its pivotal role in 
promoting early literacy, consistent with scientifically-based 
research, such as is employed in the Early Reading First 
initiative. In addition to caring for the emotional and social 
needs of children under their care, Head Start programs must 
also encourage and promote high-quality professional 
development for teachers and staff based on scientifically-
based research in reading.
    Children who have limited pre-literacy skills (e.g., weak 
phonological and phonemic awareness) are more likely to 
struggle in attaining age-appropriate reading proficiencies. 
For example, if children can correctly and consistently 
identify letters of the alphabet before they enter kindergarten 
and understand that letters represent sounds that make up 
words, it is more likely that they will learn to read words in 
school faster than children who do not possess this knowledge. 
Research consistently confirms 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 strategies for Head 
Start teachers should be designed to strengthen phonological 
awareness and instruction to help children understand that 
words are made up of letters which correspond to sounds.
    The committee also recognizes the importance of other 
skills critical to the school readiness of young children. For 
example, promoting pre-mathematics and pre-science knowledge 
and skills is an important component of 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; and watching ice melt in different environments.
    The Head Start for School Readiness Act updates the Head 
Start program quality standards and performance measures to 
reflect the areas of competence fundamental to children's 
school readiness. Head Start grantees are required to 
demonstrate the capacity to serve eligible children with 
scientifically-based programs that promote school readiness and 
meet quality standards. Stronger quality standards will help 
facilitate children's development of the following: language 
skills; pre-literacy 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. The committee bill continues to require Head Start 
grantees to further develop the language skills of limited 
English proficient (LEP) children, such as making progress 
toward the acquisition of the English language, while also 
focusing on the other requirements for children in the program.
    The statutory improvements of the committee bill are 
expected to promote the acquisition of skills and competencies 
Head Start children need to enter school ready to learn. The 
committee also requires that the results-based performance 
measures be reviewed and updated as needed, no less than every 
4 years, based on advances in the science of early childhood 
development.

                HEAD START ALIGNMENT WITH K-12 EDUCATION

    An alignment of goals and expectations extending from the 
early years into later schooling can support better transitions 
from infant and toddler care through preschool programs to 
kindergarten and into the primary grades, as teachers work 
within a consistent framework across educational settings. 
Comprehensive standards, curricula, teaching practices, and 
assessments must be age, developmentally, and linguistically 
appropriate for young children. These standards, curricula, 
teaching practices, and assessments must be supported by 
comprehensive services for children and by the professional 
development for staff to support each child's positive 
development and educational growth. Care must be taken to 
ensure that curricula and other practices used in Head Start 
programs serve as a foundation for later learning in school.
    Studies show that many children, especially children from 
low-income families, enter school without the necessary skills 
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 building on Head Start's 
mission of school readiness to ensure that the program provides 
the foundation children will need to reach high standards later 
in school. The committee urges greater coordination between 
programs serving infants, toddlers, and children (including 
Head Start) and local educational agencies to appropriately 
plan and align expectations and curricula and facilitate a 
smooth transition into school.
    Because many children in Head Start enter the program with 
less exposure to print and to a wide-ranging vocabulary, Head 
Start's attention to all domains of child development and 
learning is necessary to ensure positive gains in cognitive 
development, including early literacy. Early development of 
language and literacy skills provide children with the 
foundation needed to later become proficient readers in the 
elementary school grades. The committee intends to strengthen 
the ability of Head Start, local schools, and other preschool 
programs to provide a positive continuum of early literacy 
experiences and instruction.
    Like other complex skills, reading and writing are outcomes 
that result from the continual interaction of development and 
learning, and therefore a range of individual variation is to 
be expected in the rate and pace at which children gain 
literacy skills. The committee recognizes that children in Head 
Start programs can make demonstrable gains in early learning 
when provided with a quality preschool experience that includes 
an effective curriculum, intensive teacher training, and on-
site monitoring and support of teacher instruction and 
interaction with children. The committee acknowledges that 
effective curricula and training programs are available that 
promote the development of language and early literacy 
knowledge and skills among Head Start children, and encourages 
Head Start programs to make use of such materials and 
practices. The committee intends, to the extent possible, that 
programs make use of scientifically-based curricula and 
training programs that are developmentally and linguistically 
appropriate for children and that reflect all necessary domains 
of child development and learning.
    The committee recognizes the benefits of Head Start's 
comprehensive services and mission to prepare the Nation's most 
disadvantaged children to enter and later succeed in school. 
Therefore, the Head Start for School Readiness Act promotes 
alignment of Head Start services and curricula with the Head 
Start Child Outcomes Framework and, as appropriate, State early 
learning standards. The act also promotes better linkages 
between Head Start agencies and other child and family agencies 
providing necessary health, mental health, and other support 
services to children.
    In referencing the Head Start Child Outcomes Framework and 
Indicators (2000), the committee recognizes the quality and 
scope of Head Start services and acknowledges the researched-
based standards and outcomes (developed by independent experts 
and practitioners) to help guide teachers and staff with 
curricula, assessments, and services in all domains of child 
development. Research reports of the National Research Council 
such as Preventing Reading Difficulties in Young Children, 
Eager to Learn: Educating Our Preschoolers, and From Neurons to 
Neighborhoods state that standards and outcomes for young 
children must address a wide range of domains--cognitive, 
social, emotional, physical, language development, approaches 
to learning, as well as content areas of arts, literacy, 
mathematics, science, and social studies. The committee intends 
that Head Start curricula, assessments, and services continue 
to be aligned to address all such domains, consistent with the 
Head Start Child Outcomes Framework.
    The committee also makes changes in the Head Start for 
School Readiness Act to ensure appropriate and greater 
alignment of Head Start services to early learning standards 
for preschool age children in respective States in which Head 
Start programs operate. The committee recognizes the benefits 
of alignment to State early learning standards and acknowledges 
that many States have developed early learning standards for 
preschool age children. However, because some State early 
learning standards do not cover the full range of child 
development and learning, the committee intends to promote 
alignment to such standards only in the most developmentally-
appropriate context, to best address the needs of Head Start 
children.
    In providing for the appropriate alignment under the act, 
it is the committee's view that any alignment of standards to 
Head Start should recognize the continuity between early 
learning standards and standards for elementary and secondary 
grades. Curricula and assessments for preschool age children 
should be consistent with developmental and age-appropriate 
standards and address all areas of children's development and 
learning.
    The committee bill 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 or reviewing early childhood standards and general 
plans for the enhanced delivery of early care and education 
services at both the State and local level.

           INCREASED NEED FOR COORDINATION AND COLLABORATION

    Head Start has a long history of coordinating with other 
programs to provide comprehensive child development and support 
services to young children and families with incomes at far 
below the poverty level to receive the health, nutrition, and 
educational supports that they need to be successful and 
prepared to enter school ready to learn. The committee 
anticipates that over time Head Start and Early Head Start 
programs will increase coordination with schools, child care, 
and other preschool programs to help meet the needs of low-
income children and their families.
    In recent years, States have begun to expand their own 
early childhood development initiatives. The National Institute 
for Early Education Research (NIEER) reported in March 2007, 
using data from the 2005-2006 school year, that 16 States used 
their own funds to supplement Head Start. States sponsoring 
preschool programs have expanded greatly over the past 30 
years. In 1970, only seven States funded preschool programs. 
According to NIEER 38 States and the District of Columbia had 
some form of State-sponsored pre-kindergarten program in the 
2005-2006 school year. These States provided early education to 
942,766 or 20 percent of the Nation's 3- and 4-year-olds in 
pre-kindergarten programs, and spent nearly $3.3 billion to 
finance these programs.
    With so many different early childhood programs providing 
services to the same target population, some States have sought 
to improve coordination and collaboration among the programs in 
order to create a coherent system that is more responsive to 
the needs of low-income parents, and supports opportunities for 
children to participate in high-quality programs that involve 
communities in the planning and implementation of service 
delivery. The committee is concerned that a fragmented service 
delivery system and uncoordinated programs can hinder program 
improvement and prevent needy children and families from 
obtaining the full array of available services for which they 
qualify and could benefit.
    The committee has enhanced and clarified the current role 
of the Head Start Collaboration Director and State Advisory 
Councils. The committee intends to strengthen the role of the 
Collaboration Director in each State to also promote alignment 
of Head Start services with State early learning standards and 
the Head Start Child Outcomes Framework. Each Head Start State 
Collaboration Office will conduct a needs assessment of Head 
Start agencies in the State with respect to the collaboration 
and coordination of services for children, the professional 
development opportunities for Head Start staff, and the 
partnerships between Head Start and other organizations. With 
these changes, the committee also intends to reduce the 
duplication of services, prevent under-enrollment, and more 
address gaps in services for Head Start children and families.
    The committee feels strongly that the Head Start 
Collaboration Director 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, health care, and employment services that are 
critical to low-income working families.
    In an effort to engage all community stakeholders, the 
committee bill specifies that a variety of new entities 
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 for 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 leverage the experience, expertise, and 
resources of a variety of organizations and individuals.
    The committee encourages the Secretary, in awarding 
collaboration grants to States, to award funds for designation 
of a Migrant and Seasonal Farmworker Collaboration Project 
Director and an Indian Head Start Collaboration Project 
Director. Such positions should be assigned the same 
responsibilities assigned to the State Directors of Head Start 
Collaboration. While it is important that the State Directors 
of Head Start Collaboration engage with the migrant and Indian 
populations in their respective States, these special Project 
Directors will ensure that the specific issues faced by 
children and families served by Migrant and Seasonal Head Start 
and Indian Head Start programs are addressed. These positions 
will also serve as a conduit for knowledge and understanding of 
these special populations served by the Head Start and Early 
Head Start programs.
    In the context of greater collaboration, the committee also 
recognizes the important role of partnerships between Head 
Start programs and school and public libraries in increasing 
the pre-literacy skills of Head Start participants. Many 
librarians have worked extensively in the area of improving 
family literacy and achieved success in integrating research-
based literacy practices into their work with families with 
pre-kindergarten children. Some Head Start programs across the 
country have long had library partnerships, through which 
librarians provide literacy training to Head Start staff; 
utilize a lending library, mobile library van, or other efforts 
to provide books to children; foster greater parental 
involvement through reading programs; and offer outreach and 
programs for LEP populations. The committee is encouraged by 
these practices and urges their continuation and expansion.

                        STATE ADVISORY COUNCILS

    The committee recognizes the importance of bolstering 
coordination and collaboration among Head Start and other early 
childhood education programs through the establishment of a new 
State Advisory Council in each State that receives a Head Start 
collaboration grant.
    In many States, as well as at the local level, there has 
been movement to enhance coordination among the variety of 
early childhood education programs through formal and 
comprehensive State coordination arrangements. In some States, 
significant coordination already exists among Head Start, Early 
Start, child care, and State pre-kindergarten programs and 
public schools. In some cases, such coordination efforts have 
taken the form of Councils or Governors' Cabinets.
    In keeping with a desire for greater collaboration among 
Head Start, early learning programs, and other related programs 
serving young children in the State, the committee has 
attempted to formalize coordination efforts in all States in a 
highly inclusive way across the sectors and settings of early 
childhood programs. In such efforts, the committee intends to 
bring together a diverse and wide array of agencies, 
organizations, and early childhood professionals, including, 
but not limited to, Head Start, family and center-based child 
care, and State pre-kindergarten programs. For States with 
similar pre-existing councils or entities, the committee urges 
inclusion of additional members--to the maximum extent 
practicable--in order to meet the list of members suggested by 
the Committee to serve on the State Advisory Council.
    While the Head Start State Collaboration Director is 
charged with assisting and improving the efforts of Head Start 
agencies in the State, the committee intends for the State 
Advisory Councils to encourage greater State level coordination 
of efforts and understanding of shared goals for young children 
from birth until school entry. In particular, the Council is 
charged with developing a strategic report, based on a 
statewide assessment of early care and education programs for 
children from birth to school entry, which includes plans for 
identifying barriers and opportunities for collaboration 
between entities carrying out existing early care and education 
programs; creating a professional development system and career 
ladder for early childhood educators in the State; making 
recommendations for a statewide, unified data collection 
system; assisting institutions of higher education to develop 
model programs for early childhood educators; and undertaking 
efforts to develop and improve State early learning standards. 
The committee requires each State Advisory Council to provide 
opportunities for public input in both its needs assessment and 
its recommendations, as well as to meet with sufficient 
regularity to review and revise its plans and recommendations.
    The committee also makes available $100 million for the 
purpose of awarding one-time incentive grants to States that 
choose to further develop and implement the recommendations and 
plans for which the State Advisory Council is responsible. Such 
grants shall be disbursed for a 3-year period and will be used 
to facilitate the development of a high-quality system of early 
care and education.
    The committee recognizes the use of nationally established 
data fields for collecting data on the supply of child care. 
Utilizing the data collected would strengthen the coordination 
of early childhood education and maximize the existing capacity 
of early childhood education in the United States. Efforts to 
develop a unified State data collection system for early care 
and education should incorporate child care data systems, such 
as those of child care resource and referral agencies.
    The committee intends to work further to strengthen the 
coordination and collaboration of early care and education 
programs and to enhance the quality of such programs for all 
needy children and families.

                   TRAINING AND TECHNICAL ASSISTANCE

    The committee bill changes the training and technical 
assistance set-aside from at least 2 percent in current law to 
2 percent. The committee directs that half of those funds be 
sent to local grantees so that programs have a reliable source 
of funding for training and technical assistance activities. 
The remaining 50 percent provides the Secretary with adequate 
flexibility to conduct appropriate Federal training and 
technical assistance activities to help individual programs 
meet the Head Start quality standards. The committee encourages 
the Secretary to maintain the long-standing set-aside for 
training and technical assistance activities related to 
providing services to children with disabilities.
    The committee bill allows training and technical assistance 
funds to support a regional or State system of early childhood 
education training and technical assistance. The committee 
encourages the Secretary to include assistance in HHS' regional 
system for the Migrant Seasonal Head Start program and the 
American Indian/Alaska Native programs. The committee 
encourages the Secretary to provide the training and technical 
assistance for these two programs through national awards by 
contractors with knowledge of, and experience in, working with 
the populations served by these programs.
    The committee bill also restricts the use of training and 
technical assistance funds for travel expenditures associated 
with attending conferences when similar training and technical 
assistance is available locally. It is the committee's view 
that occasional travel to conferences and events may be 
necessary but only as such conferences relate to the overall 
effectiveness and quality of Head Start programs and outcomes. 
Excessive travel to Head Start conferences and events, 
especially those outside the continental United States, is not 
an appropriate use of Federal training and technical assistance 
funds. Whenever possible, Head Start programs should utilize 
local or regionally-based training opportunities and should 
limit travel to occasions when an identified training need 
cannot be met through local or regional resources. Recognizing 
that some States encompass a significant geographic area, the 
committee does not intend for the prohibition on long-distance 
travel expenses to prevent travel within a State, regardless of 
the distances incurred within the State. The committee urges 
the Secretary to ensure that expenditures are consistent with 
the 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 by 
both Head Start agencies and HHS. The committee urges HHS 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 
HHS 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.

                          QUALITY IMPROVEMENT

    The Head Start for 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. After funds have been allocated to 
maintain grantees' current funded enrollment levels, the 
committee intends that 30 percent of remaining funds for fiscal 
year 2008, and 40 percent for each of fiscal year 2009 through 
2012 be set aside for quality improvement.
    Quality Head Start programs contribute significantly to 
children's development. There is growing recognition that 
participation in high-quality early childhood education and 
care programs are important indicators of success in school and 
in life. This is due in part to the fact that these programs 
affect children precisely at the point when children's 
development is rapid, dramatic, and multidimensional. 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 committee bill is critical if Head Start is 
to succeed in improving the school readiness of participating 
children.
    These funds are 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 programs to reach new 
goals for teacher quality. The bill begins to address this need 
by ensuring that of the funds reserved (beyond those funds 
necessary to adjust programs for inflation) not less than half 
of all quality funds must be used to increase teacher salaries 
and assist programs in recruiting and retaining quality staff.
    Funds may 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 outreach to families and external partners.
    The committee bill also includes an opportunity for a small 
number of Head Start programs to receive incentives for 
innovative approaches that expand and improve services for Head 
Start children and families. Under these provisions, grantees 
may retain a limited percentage of the administrative portion 
of their grant on an on-going basis, if the grantee is able to 
serve more children while also improving program quality and 
outcomes.
    While program quality depends on the availability of 
quality materials, equipment, and community partners to provide 
comprehensive services, the quality of Head Start programs is 
primarily dependent upon staff quality. Therefore, staff 
development continues to be a high priority of this committee. 
Quality improvement funds may be used to provide assistance for 
staff completing postsecondary coursework and for other staff 
development and training.
    The committee recognizes that a well designed Head Start 
classroom with an effective pre-literacy program delivered by a 
competent teacher is vital for later reading proficiencies and 
school readiness. Head Start teachers must be equipped with an 
understanding of how oral language, pre-literacy, and early 
literacy develops in children and how parental and classroom 
instruction and involvement can optimize that development. 
Teachers need professional development throughout their careers 
to strengthen their knowledge and skills for promoting 
children's language, pre-literacy, and early writing, as well 
as other cognitive areas.
    The committee feels that another important use of quality 
improvement funds is in training staff to address the 
challenges of children participating in Head Start programs. 
Quality improvement funds should be utilized to conduct 
outreach to these low-income populations including homeless 
families, migrant and seasonal farmworking families, and 
families with LEP children, and in developing partnerships with 
institutions of higher education to recruit and train 
individuals who may serve as mentors to Head Start children.

   HEAD START RESEARCH, EVALUATION AND ASSESSMENTS OF YOUNG CHILDREN

    There is an ongoing need for high-quality research about 
the effectiveness of Head Start. During the 1998 
reauthorization, Congress took a giant step forward by 
commissioning a National study on the impact of Head Start 
services to provide valuable data comparing the outcomes of 
children in Head Start programs with similar children who do 
not participate in the program. In June 2005, HHS published the 
first year preliminary findings of the Head Start Impact Study. 
The committee looks forward to the final report of the Head 
Start Impact Study in 2007, which will help inform reform 
efforts so that all grantees can have a positive effect on 
children in the program.
    In 1997, Head Start launched the Family and Child 
Experiences Survey (known as FACES) to provide valuable 
information on child outcomes and program performance quality 
over time. FACES is a study of a national random sample of Head 
Start programs, but is not designed to compare Head Start 
participants to other children in other preschool programs 
serving a similar population. HHS continues data collection 
efforts for the FACES study. 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 programs can be strengthened to best meet the 
needs of the children it serves.
    The committee notes with some concern the insufficient 
research focusing on American Indian and Alaska Native Head 
Start programs, thus limiting the availability of 
scientifically-based research on these programs. The committee 
strongly recommends that the Secretary undertake a study or set 
of studies designed to focus on this population, with a focus 
on issues such as curriculum development, availability and need 
for services, appropriate research methodologies and measures 
for these populations, and best practices for teaching and 
educating American Indian and Alaska Native Head Start program 
participants. Furthermore, the committee underscores the 
importance of providing tribes and tribal organizations (such 
as the National Indian Head Start Directors Association) the 
opportunity to contribute to and collaborate on this research, 
with tribes retaining as much local control over this process 
as is practicable.
    The committee strongly supports the efforts of the National 
Academy of Sciences (NAS) to review the current body of early 
childhood research through the Developmental Outcomes and 
Assessments for Young Children. Because academic outcomes and 
assessments for young children are emerging areas of knowledge 
and practice, the act also includes a review of Head Start 
outcomes by the NAS, to facilitate greater information and 
recommendations on their further development, appropriateness, 
and application. Once the NAS completes its report and 
recommendations, HHS will use the results of such study to 
develop, inform, and revise Head Start outcomes and any 
appropriate assessments. As such, any guidance or mandates for 
new outcomes will be grounded in independent research and 
informed by experts and practitioners in the child development 
and early care and education fields.
    This review is needed to provide recommendations on 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. The committee hopes that recommendations of 
this panel will be used by the Secretary to inform and guide 
the development and implementation of the recommended 
educational standards for Head Start program participants.
    Recent research on child development and learning has shown 
that integrating a child's cognitive development with his or 
her social, emotional, and physical development promotes 
greater school readiness. Consistent with that research, Head 
Start programs are currently guided in their curriculum and 
program practice by the Head Start Child Outcomes Framework, 
which provides guidance toward an integrated approach of child 
development and learning, with a variety of indicators within 
each area of child development (e.g., social, emotional, 
physical, cognitive). The Framework also is helpful to programs 
in their efforts to analyze and use data on child outcomes in 
program self-assessment and continuous improvement.
    Recent reports conducted by the NAS, such as Neurons to 
Neighborhoods and Eager to Learn: Educating Our Preschoolers, 
have demonstrated the need to consider carefully the variation 
in each child of his or her development and background in 
developing standards for Head Start programs, expected outcomes 
for Head Start children, and effective and appropriate pedagogy 
and assessment.
    The committee believes that educational assessments are an 
essential component of program evaluation and improving student 
achievement. Through valid and reliable assessments much can be 
learned about program strengths and weaknesses, what a child 
has or has not learned, and which instructional techniques work 
best with different children.
    Currently, Head Start programs use locally-designed 
assessments to monitor child development and growth and to 
improve instruction and services to maximize children's 
learning. The committee bill acknowledges the importance of 
assessments in Head Start and includes a requirement that 
agencies establish effective procedures and provide for the 
regular assessment of Head Start children, such as 
observational assessments, direct formal assessments, or parent 
and provider interviews, taking into consideration the age of 
the child. Because academic outcomes and assessments for young 
children are emerging areas of knowledge and practice, the 
committee recognizes the ongoing need to consult and rely on 
recommendations from independent experts in the development and 
application of such outcomes and assessments. The committee 
expects that Head Start agencies will have a process to assess 
each of the elements important to a child's school readiness 
and later performance in school, including cognitive abilities 
and motor and sensory development. The Head Start agency may 
choose the assessment so long as it is valid and reliable and 
meets recognized technical standards.
    The committee is very aware of the need for better 
information about the readiness of Head Start students to enter 
school and to measure young children's learning and 
development. However, the committee has concerns about the 
current National Reporting System (NRS). The committee believes 
that the existing NRS is inappropriate for use in the Head 
Start program and accordingly requires the Secretary to halt 
the implementation and any further development of the NRS. The 
Secretary is required to incorporate the findings of the NAS 
review into any new assessment or assessment system developed 
for the Head Start program and may not reinstitute the NRS in 
its current form.

                    LITERACY IN HEAD START PROGRAMS

    Efforts to improve family literacy are an important 
component of the Head Start program. Family literacy 
activities, including financial literacy services, enhance 
parental involvement in their child's education, which is 
significantly challenged if parents themselves cannot read. 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 nearly 50,000 
children's books have been placed in Head Start classrooms. In 
addition, nearly 2,000 Head Start parent-mentors have received 
training to better prepare them to support their child's 
language and literacy development and to encourage other 
parents to do the same. 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.
    The committee views a literacy rich environment for 
children as an important priority for Head Start programs. To 
further expand the availability of books in Head Start 
classrooms, the committee bill recommends that State Head Start 
Collaboration offices promote partnerships between Head Start 
agencies and other organizations to enhance the Head Start 
curriculum, including partnerships to promote more books in 
Head Start classrooms.
    The committee encourages the Secretary to disseminate to 
Head Start centers information on best practices for infusing 
literacy and print activities into Head Start classrooms and 
getting books into children's hands. It is vitally important 
for young children's literacy development that a large number 
and variety of high-quality, print-rich books be maintained in 
each Head Start center and classroom and be easily accessible 
to all children. The committee urges the Secretary to provide 
best practices for Head Start professional development to 
emphasize the importance of pre-k in establishing a foundation 
for literacy and pre-reading skills; to encourage the creation 
of physical environments that engage children in print 
activities, entice children to play with, use and read books, 
and that provide children better classroom (e.g., book nooks 
and library corners) and out-of-classroom access to books 
(e.g., classroom lending library); to train teachers in 
effective read-along techniques and the selection of age 
appropriate books; and to encourage Head Start programs to make 
books and story reading a constant presence in everyday 
classroom activities.
    The committee also recognizes the importance of enhancing 
linkages between Head Start programs and libraries. As such, 
the bill encourages Head Start programs to collaborate with 
local libraries, where available, that are interested in such 
collaboration, to develop innovative programs to excite 
children about the world of books. Such programs may involve 
taking children to the library for story hour; promoting use of 
library cards for families so that children can bring books 
home; developing a lending library or using a mobile library 
van; supplementing a center's collection with books on various 
themes of the week or providing fresh books in the classroom on 
a regular basis; and carrying out other activities through 
partnerships to promote literacy and excitement about the world 
of print.

                  UNDERSERVED AND AT-RISK POPULATIONS

    While all children served by the Head Start program are 
economically in need, there are some subgroups of the eligible 
Head Start population who are particularly at risk and often 
underserved. According to a study conducted by the HHS in 2001, 
less than 19 percent of the eligible children of migrant and 
seasonal workers received Head Start services. Similarly, the 
Indian Head Start program served only 16 percent of eligible 
children. The committee bill attempts to increase the 
participation of these children by increasing the percentage 
set-aside for Indian Head Start and for Migrant and Seasonal 
Head Start to 4 and 5 percent respectively.
    In an effort to address the unique challenges faced by 
American Indian and Alaska Native children, the committee bill 
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 and requires annual consultation with the Secretary. 
The committee believes that increased input from tribal 
programs that serve large numbers of American Indian and Alaska 
Native children will allow for a better understanding of these 
children's unique needs.
    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 have poor prospects for success in school; that 
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 that 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 committee bill 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 committee also recognizes the need for Head Start 
programs to support children from immigrant, refugee, and 
asylee families. In addition, consideration is given in the 
bill to children from families in crisis, children in foster 
care and those referred to Head Start by child welfare 
services, and children who are exposed to chronic violence or 
substance abuse. The committee specifically directs that Head 
Start staff be adequately trained in addressing the challenges 
of these children.

                HOMELESS CHILDREN IN HEAD START PROGRAMS

    Over 40 percent of children living in homeless shelters are 
under the age of 5 and are at an age when early childhood 
education can have a significant, positive effect on their 
development and future academic achievement. Homeless children 
experience more developmental delays, health problems, and 
other challenges, which make enrollment and access to Head 
Start programs important for success in school.
    The Department of Education's fiscal year 2000 Report to 
Congress on the Education of Homeless Children and Youth 
identified limited program capacity and availability, 
transportation, and immunizations and residency requirements as 
representing significant barriers within the Head Start program 
for homeless children to access Head Start services. The 
committee bill addresses this issue by increasing efforts to 
conduct outreach to homeless families and by leveraging the 
experience of the homeless liaisons in public schools 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 Head Start for School Readiness Act encourages 
enrollment of homeless children by providing categorical 
eligibility for homeless children, as well as addressing the 
other barriers limiting the access and participation of 
homeless children. To overcome barriers such as high mobility, 
documentation requirements, transportation challenges, and lack 
of service coordination with other social service programs, the 
committee urges Head Start grantees to increase their outreach, 
recruitment, and enrollment of families in homeless situations; 
to provide appropriate services to meet their needs; and to 
collaborate with relevant community agencies.
    The Head Start for School Readiness Act includes many 
provisions specifically designed to increase the participation 
of homeless families in Head Start programs. It is the 
committee's intent that when the Secretary issues regulations 
to implement these provisions of the Act that consideration is 
given to procedures that will eliminate and address barriers to 
homeless families' participation in Head Start programs. The 
committee recognizes the Head Start Bureau's historical 
encouragement of local Head Start grantees to target homeless 
families whenever possible to address the challenges homeless 
families experience when enrolling and maintaining enrollment 
in Head Start programs. Research has demonstrated the 
importance of early childhood education for homeless children, 
offering the stability and supports needed for a child to cope 
with his or her situation.
    In general, when a grantee works on its community needs 
assessment, it should ensure that it accounts for homeless 
families. The mean income of homeless families is 46 percent of 
the poverty line; homeless families are often so poor and so 
mobile that they are not accounted for in standard Census 
measures. For this reason, extra efforts should be made to 
include homeless families in calculations of the concentration 
of low-income families in a geographic area. The Secretary may 
require that grantees in their community needs assessment take 
into account the percentage of homeless pre-school age children 
in the service area. Grantees should be particularly cognizant 
of all underserved populations in their community such as 
homeless children, children in foster care, and children with 
disabilities. The Secretary should ask grantees to report on 
efforts to remove barriers, facilitate enrollment, and 
prioritize children who are most in need of Head Start services 
in their community. Family transportation needs of underserved 
populations should also be addressed in Head Start planning 
efforts.
    The goal of reducing under-enrollment should not discourage 
grantees from serving underserved populations, including 
homeless children. Therefore, regulations should clarify that 
provisions designed to reduce under-enrollment are not meant to 
prohibit or discourage Head Start grantees from serving 
homeless children. If a homeless child moves out of a program's 
service area, to the extent feasible and at the request of the 
parent, the child can continue to participate in such program.
    Documentation for homeless children continues to be a 
barrier. The committee recognizes the difficulty in securing 
documents (e.g., proof of age, proof of residency, birth 
certificates, and immunization and other medical records) for 
homeless children. The Head Start for School Readiness Act 
models provisions in the No Child Left Behind Act that allow 
homeless children to enroll in Head Start while those documents 
are being obtained. Homeless families, if necessary, should be 
allowed to produce alternative proof of residency and evidence 
of such documents. To facilitate effective transitions, 
grantees should request records from previous service providers 
and transfer the records of former program participants in a 
timely manner. The committee encourages States and localities 
to review laws, policies, and regulations that act as barriers 
to the enrollment of homeless children in Head Start programs, 
in particular with respect to relevant documentation and 
records. It is the committee's intent that when the Secretary 
develops regulations, the Secretary consider such State or 
local reviews, especially with respect to documentation 
policies.
    It is important to the committee that better and more 
consistent data relating to homeless children and families are 
obtained. Therefore, the committee urges the Secretary to 
include a specific analysis of the status of homeless children 
and children in foster care in the report on the status of 
children participating in Head Start programs.

            LIMITED ENGLISH PROFICIENT CHILDREN AND FAMILIES

    Approximately 28 percent of the children served by Head 
Start speak a language other than English at home and come to 
Head Start centers with limited English skills. These children 
speak over 140 languages. After English, the most common 
languages spoken by Head Start children are Spanish, Chinese, 
Hmong, and Vietnamese. Given demographic projections for the 
immigrant community, the number of children who will come to 
the Head Start program speaking a language other than English 
will only increase in the foreseeable future.
    During this reauthorization of Head Start, the committee 
prioritized improving the delivery of services for LEP children 
and their families. The bill establishes a requirement that 
grantees set policies to identify and serve LEP children 
through linguistically appropriate approaches so that such 
children and their families have a meaningful opportunity to 
participate in Head Start programs, including the provision of 
information to parents in an accessible manner. The committee 
urges the Secretary and the Head Start Bureau to continue and 
enhance activities to ensure that LEP children are served by 
high-quality Head Start programs, including activities to 
assist Head Start grantees to adopt teaching strategies that 
provide language-rich learning environments, literacy 
development, and materials appropriate for LEP children.
    The committee recognizes the development of native language 
immersion and cultural programs as an important strategy for 
meeting the needs of children served by Indian Head Start 
programs, guided by the discretion of the individual Tribal 
grantees.

                       CHILDREN WITH DISABILITIES

    Head Start grantees are required to enroll and provide 
comprehensive educational, medical, and social services to 
children with disabilities, as defined under Part C and Section 
619 of the Individuals with Disabilities Education Act (IDEA), 
and their families. Since 1974, Congress has required that no 
less than 10 percent of the children a grantee serves are 
children with disabilities. Currently, children with 
disabilities comprise about 13 percent of the total Head Start 
population; 10.6 percent of enrolled Head Start children 
receive services under IDEA.
    Today, nearly 132,000 children with disabilities, including 
over 114,000 children eligible for services under IDEA, 
participate in Head Start and Early Head Start programs, 
including children with speech and language impairments, 
autism, orthopedic impairments, mental retardation, 
developmental delays, and learning disabilities. Within Head 
Start, children with disabilities receive individualized 
services in an inclusive, integrated environment that prepares 
them to enter elementary school.
    The committee recognizes the important role that Head Start 
plays in seeking out and identifying and serving low-income 
children with disabilities. Therefore, it encourages grantees 
to maintain current strategies delineated in Federal 
performance standards for comprehensively addressing the needs 
of children with disabilities. Grantees must continue outreach 
to identify and enroll children with disabilities; refer 
children to local educational agencies for evaluation and 
determination of eligibility for IDEA services; collaborate 
with local educational agencies to provide comprehensive 
educational, medical, and social services to children with 
disabilities; coordinate programs and systems (such as IDEA and 
Medicaid/EPSDT programs) to ensure that a wide range of needs 
are met; and provide funding for training and technical 
assistance specifically related to those who care for children 
with disabilities.
    It is important to the committee that better and more 
consistent data relating to children with disabilities are 
obtained. Therefore, the committee urges the Secretary to 
include a specific analysis of the status of children with 
disabilities in the report on the status of children 
participating in Head Start programs.

                TEACHER QUALITY AND STAFF QUALIFICATIONS

    The committee believes that well-educated and skilled 
teachers are a key element to early childhood program quality 
and better outcomes for children. Research consistently 
demonstrates a link between the achievement of children and the 
knowledge, skills, and competencies of classroom teachers. 
Teachers in Head Start programs must be adequately trained and 
educated, particularly in effectively providing pre-literacy, 
language, and pre-mathematics instruction, as well as social, 
emotional, and physical development and approaches to learning.
    Nationally, over 70 percent of Head Start program teachers 
have at least an Associate's degree (AA); of the teachers with 
degrees, over 50 percent have Bachelor's (BA) or advanced 
degrees. To promote the highest quality instruction and 
learning environment as possible, the committee has taken a 
number of steps to strengthen the educational goals for Head 
Start teachers.
    Over the next 5 years (by September 30, 2012), it is a goal 
for all Head Start teachers in center-based programs to have at 
least an AA degree relating to early childhood development or 
an AA degree in a related educational area with coursework 
related to early childhood development and demonstrated 
teaching competencies as determined by the Head Start director.
    Over the next 3 years (by September 30, 2010), it is a goal 
for all Head Start curriculum specialists and education 
coordinators in center-based programs have a BA degree relating 
to early childhood development or a BA or advanced degree and 
coursework equivalent to a minor relating to early childhood 
development.
    Over the next 3 years (by September 30, 2010), it is a goal 
for all Head Start assistant teachers in center-based programs 
to have a Child Development Associate (CDA) credential or be 
enrolled in a CDA program to be completed within 2 years.
    Over the next 6 years (by September 30, 2013), the goal is 
for at least 50 percent of all Head Start teachers in each 
State to have a BA degree relating to early childhood education 
or a BA degree with specialized training for pre-kindergarten 
and demonstrated teacher competencies. Currently, 38 percent of 
Head Start teachers have at least a BA degree, and teachers and 
programs across the Nation are striving to achieve this goal.
    Each Head Start agency must report to the Secretary 
annually on its progress toward meeting the goals of increasing 
the educational attainment of Head Start staff. The Secretary 
shall document the increasing percentages of Head Start staff 
making progress toward these goals and compile and submit a 
summary of the reports to Congress.
    The committee strongly believes that continuing 
professional development is also an important element to 
improving the Head Start teaching workforce. Each Head Start 
teacher shall have at least 15 clock hours of professional 
development per year. Such professional development shall be 
high-quality, sustained, intensive, and classroom-focused in 
order to have a positive and lasting effect on classroom 
instruction.
    The committee believes that encouraging current Head Start 
staff to return to school is an important goal. If Head Start 
funds are used to provide financial assistance to pursue a 
degree in higher education, the Head Start employee must remain 
employed with Head Start for at least 3 years after receiving 
the degree or repay the total or prorated amount.
    The committee recognizes the importance of recruiting and 
retaining high quality teachers to the Head Start program and 
that successful recruitment and retention mechanisms include a 
myriad of incentives approaches. The committee views 
differential and merit based programs and scholarships as 
examples of such incentive programs.
    The committee understands that there are State and Federal 
student financial aid programs available to Head Start 
personnel to pursue higher education degrees. It is the 
committee's intent that, to the extent possible, these sources 
of financial aid should be accessed to assist Head Start 
personnel to meet the teacher quality and staff qualification 
requirements under this act.
    The committee's primary objective is to improve outcomes 
for children in Head Start programs by strengthening the 
quality of the programs serving these children. According to 
NIEER, ``teachers who have earned a BA are better equipped to 
provide high quality preschool education than are teachers with 
a 2 year degree (AA), Child Development Associate (CDA) 
certificate, or High School diploma (even when these teachers 
have had training in child development).''
    The committee understands that the goals set out in the 
legislation for the number of individuals with BA degrees may 
be challenging for certain grantees, States, and regions. The 
challenges in securing and maintaining teaching staff with 
advanced degrees is particularly acute for Migrant and Seasonal 
Head Start programs, Indian Head Start programs, programs that 
require bilingual teaching staff, and rural grantees. The 
committee acknowledges that many of the challenges faced by 
these programs are systemic by virtue of how and where they 
operate and urges the Secretary to assist grantees in meeting 
these challenges.
    The committee also notes the challenge facing Indian Head 
Start programs which are often located in remote and isolated 
areas without access to post-secondary institutions. It is the 
committee's hope, however, that these challenges can be 
addressed by additional access to distance education. The 
committee bill includes a provision to provide additional 
funding to Tribal Colleges and Universities. The committee 
intends for this funding to help the staff of Indian Head Start 
programs attend Tribal Colleges and Universities where such 
institutions exist to meet the teacher requirements of this 
legislation in a way that respects the traditional values of 
Native American tribes.
    Finally, the committee views the teacher development goals 
as important for all Head Start programs. However, in 
implementing the requirements of this section, the Secretary 
shall not impose penalties or sanctions on individual Head 
Start programs or staff in the Head Start monitoring process as 
a result of failing to meet the levels of teachers holding such 
credentials prescribed under this section.

                            EARLY HEAD START

    The science of early childhood education and development 
demonstrates that during the first 3 years of life, the brain 
undergoes its most dramatic development and children acquire 
the ability to think, speak, learn, and reason. 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 groundbreaking 
report Starting Points: Meeting the Needs of Our Youngest 
Children states that ``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).
    The critical development which occurs during the first 3 
years of a child's life is well documented: all infants and 
toddlers need positive learning experiences to foster their 
intellectual, social, and emotional development and to lay the 
foundation for later school success. Infants and toddlers 
living in high-risk environments need additional supports to 
promote their healthy growth and development. Disparities in 
children's cognitive and social abilities become evident well 
before they enter Head Start or pre-kindergarten programs at 
age 4.
    The Early Head Start program minimizes these disparities 
and ensures that children enter school ready to learn. The 
National Evaluation of Early Head Start--a rigorous, large 
scale, random-assignment evaluation--concluded that the Early 
Head Start program is making a positive difference in areas 
associated with children's success in school, family self-
sufficiency, and parental support of child development.
    The committee believes that, given the importance of the 
early years for healthy brain development and the demonstrated 
effectiveness of the Early Head Start program, increasing the 
number of infants and toddlers served by Early Head Start is 
important for reducing the gap disadvantaged children face when 
they enter preschool. Accordingly, the committee has added 
amendments to expand the Early Head Start program which 
currently serves 3 percent of eligible children, increasing the 
current 10 percent set-aside of total Head Start appropriations 
to at least 20 percent by 2012. The committee provides for such 
increase, so long as these increases will not reduce services 
for preschool age children in the Head Start programs.
    The committee has also included provisions to allow 
programs to convert funds used for preschool age children to 
serve infants and toddlers under certain conditions and when a 
community needs assessment indicates that such a conversion is 
warranted. The committee is concerned that services provided as 
a result of this conversion be of the same high quality as 
those provided through existing Early Head Start programs, and 
therefore directs the Secretary to condition the approval of 
such conversions on ensuring that the eligibility criteria and 
standards required under section 645A of the Head Start Act are 
met.
    Services for parents to support their role as parents are a 
critical component of the Early Head Start program. According 
to the NAS, considerable evidence supports the notion that 
programs that combine child-focused educational activities with 
explicit attention to parent-child interaction patterns and 
relationship building have the greatest impact for at-risk 
children. The National Evaluation of Early Head Start concluded 
that Early Head Start parents were more involved and provided 
more support for their child's language development and 
learning than control group parents. This clearly shows that 
the two-generation focus is critical to the achievement and 
success of Early Head Start.
    The committee expects that Early Head Start programs will 
continue to offer required services to parents to support their 
role as parents and will continue to be responsible for the 
provision of services to parents that meet the Head Start 
Performance Standards. These services may continue to be 
provided either directly by the Early Head Start programs or 
through formal partnerships with community agencies. Early Head 
Start programs will continue to encourage parent participation 
in these services.
    Because so many infants and toddlers are in the care of 
relatives, friends, or neighbors, the committee intends that 
Early Head Start programs provide home-based services to family 
child care homes and kith and kin caregivers caring for infants 
and toddlers who also participate in Early Head Start services. 
These home-based services will enhance the ability of kith and 
kin caregivers to provide continuity in supporting children's 
physical, social, emotional, and intellectual development. The 
committee intends that Early Head Start should be able to 
implement successful models for kith and kin care emerging from 
HHS' Enhanced Home Visiting Project. The committee also feels 
that while training and services may be provided directly to 
other caregivers when parents are unable to attend, services 
under this section should also continue to be provided to 
children's immediate families.
    Given the changes in the committee bill to expand and 
enhance the Early Head Start program, the committee supports 
the maintenance of an Early Head Start director position within 
the Federal Office of Head Start, to provide leadership to all 
Early Head Start programs on essential issues of prenatal 
development, infant and toddler development, and Early Head 
Start programming.
    The committee also intends for Early Head Start programs 
and staff to continue to receive the ongoing training 
opportunities and technical assistance necessary from 
organizations with specialized expertise relating to infants, 
toddlers, and families. To sustain the positive outcomes and 
gains generated by Early Head Start, the committee believes 
that it is critical for Early Head Start programs to access a 
continuum of relevant training. Such organizations offer the 
demonstrated capacity needed to provide direction and support 
to the Head Start national and regional training and technical 
assistance system to better serve Early Head Start grantees.
    Further, it is critical that training for Early Head Start 
programs focus on the unique social and emotional development 
of infants and toddlers. Research demonstrates that attending 
to the social and emotional development of very young children 
is just as important as attending to components of linguistic 
and cognitive competence and is essential to children's overall 
functioning, their ability to form and maintain relationships, 
their ability to learn, and their future success in school and 
life.

           DESIGNATION AND COMPETITION OF HEAD START AGENCIES

    It is the committee's intent with this bill to improve the 
accountability, quality, and outcomes of Head Start programs 
for children and their families. This goal is accomplished in 
two ways: (1) by ensuring that the funding for those grantees 
with significant or recurring deficiencies is suspended or 
terminated; and (2) by assisting grantees in improving their 
performance through training and technical assistance.
    All grantees, even those with priority designation, are 
required to submit an application for funding every 5 years. 
For initial designation as a Head Start grantee, an entity must 
demonstrate the power, authority, and capability to administer 
a Head Start program and shall establish program goals for 
improving the school readiness of Head Start children. Current 
grantees that are eligible to apply are those that have met or 
are making progress toward meeting program goals, the Head 
Start performance standards, and the Head Start Child Outcomes 
Framework. However, only those high-performing grantees that 
are currently receiving funding, have met or exceeded program 
and financial requirements, have no unresolved deficiencies, 
and can demonstrate active collaboration with other State or 
local providers of services to children, are eligible to 
receive priority designation. The committee believes expanding 
the universe of organizations eligible to compete and operate 
Head Start programs may result in improved program performance 
and stronger Head Start programs overall. The committee 
recognizes that all grantees, even high-performing grantees, 
and ultimately the children will benefit from ongoing, 
continuous improvement of the program.
    The committee understands the significance of a priority 
designation for grantees in the open competition process. 
Therefore, language in the bill clearly defines what 
constitutes a deficiency and an area of unresolved 
noncompliance. A deficiency is defined as a systemic or 
substantial material failure of an agency in an area of 
performance that the Secretary determines involves a threat to 
the health, safety, or civil rights of children or staff; a 
denial to parents to exercise their full roles and 
responsibilities related to program operations; a failure to 
comply with standards related to early childhood development 
and health services, family and community partnerships, or 
program design and management; the misuse of Head Start funds; 
loss of legal status or financial viability, loss of permits, 
debarment from receiving Federal grants or contracts, or the 
improper use of Federal funds; or the failure to meet any other 
Federal or State requirement that the agency has shown an 
unwillingness or inability to correct after notice from the 
Secretary.
    An agency can also be deemed deficient by a systemic 
failure of the board of directors, if it fails to fully 
exercise its legal and fiduciary responsibilities; a 
substantial failure of an agency to meet the administrative 
requirements; or having an area of unresolved noncompliance. In 
addition, an agency may be deemed deficient for a failure to 
demonstrate that it has attempted to meet the coordination and 
collaboration requirements with other entities providing early 
childhood programs and services. By using the term ``systemic'' 
or ``substantial in nature'', a deficiency is reserved for 
serious failure to conform to Head Start performance standards.
    The committee was very concerned with some of the findings 
of the GAO's February 28, 2005, report entitled Head Start: 
Comprehensive Approach to Identifying and Addressing Risks 
Could Help Prevent Grantee Financial Management Weaknesses. 
This report determined that 53 percent of grantees identified 
with noncompliance were again cited for noncompliance in their 
next reviews.
    The committee recognizes that a noncompliance is not the 
same level of severity as a deficiency. However, it is 
unsatisfactory to the committee that programs failed to correct 
a noncompliance finding in a timely manner. The committee 
defined the term ``unresolved area of noncompliance'' as a 
failure of a program to correct a noncompliance within 120 days 
or within additional time as authorized by the Secretary. A 
program failing to resolve an area of noncompliance within 120 
days will be deemed deficient.
    The committee recognizes that some noncompliance findings 
are procedural in nature and as such cannot be ``undone.'' In 
these cases, the committee expects that resolution of the 
noncompliance finding will involve the implementation of 
policies and procedures that will ensure future compliance with 
the Head Start statute and regulations.
    All grantees with a current deficiency will be subject to 
an open competition without priority designation. Any eligible 
grantee that has had a deficiency is encouraged to compete for 
designation. If a Head Start agency resolves deficiencies and 
areas of noncompliance within the timeframe of the quality 
improvement plan, such agencies shall be redesignated. The 
committee also expects that the current practice of self-
certification regarding the resolution of findings of 
noncompliance will be continued.
    The committee anticipates high-performing grantees will be 
awarded a subsequent grant for 5 years and remain Head Start 
grantees because consistency is very important for the Head 
Start program, especially for the children served by these 
grants. The committee also recognizes that many Head Start 
grantees are doing a very good job administering their grants. 
In the case of Indian Head Start programs, the committee 
intends that any grant awarded for these purposes will go to an 
Indian Head Start grantee. In the event that an eligible Indian 
Head Start grantee is not available, children shall continue to 
receive services until an Indian Head Start grantee becomes 
available and designated.

  HEAD START PERFORMANCE STANDARDS, EDUCATIONAL STANDARDS AND MEASURES

    As a National laboratory for early childhood development, 
the Head Start program has always been concerned with the 
quality of its programs and its effects on children and 
families. Head Start performance standards are critical to 
maintaining the highest quality of services in Head Start 
centers. Such standards include mandatory regulations for Head 
Start grantees and prescribe the characteristics of a quality 
Head Start program. Beyond defining the process for providing 
services to children in the program, the Head Start Program 
Performance Standards guarantee comprehensive services such as 
immunizations, health services, nutrition, education, and the 
involvement of parent programs. The committee recognizes that 
the gains in development and school readiness outcomes made by 
Head Start children are closely associated with Head Start 
performance standards.
    The committee bill makes several additions to Head Start 
educational performance standards to ensure that such standards 
reflect the following essential areas of child development: 
language skills related to listening, understanding, speaking, 
and communicating; pre-literacy knowledge and skills; pre-
mathematics knowledge and skills; scientific abilities; social 
and emotional development; physical development; and general 
cognitive abilities related to development and achievement. The 
committee views each of these areas as critical to the later 
academic success of Head Start children in school and directs 
the Secretary to adopt these additional educational standards 
for Head Start programs, consistent with findings of the 
forthcoming report by the NAS Panel on Developmental Outcomes 
and Assessments for Young Children.
    In 1995, Head Start joined efforts throughout the Federal 
Government to develop performance measures to promote 
accountability through the assessment of program quality and 
outcomes. These performance measures have assisted efforts by 
Head Start agencies to shift focus from process to outcomes and 
results-oriented evaluation in accordance with the Government 
Performance and Results Act of 1993 (P.L. 103-620), the 
recommendations of the 1993 Advisory Committee on Head Start 
Quality and Expansion, and the mandate of Section 641A(b) of 
the 1994 Reauthorization of the Head Start Act.
    The performance measures developed in response to enhanced 
educational focus are providing methods and procedures for 
assessing, annually and over long periods, the quality and 
effectiveness of programs operated by Head Start agencies. The 
committee bill directs the Secretary to ensure that these 
measures assess characteristics that are strongly predictive of 
children's readiness for and later performance in school and 
intends for such measures to be updated periodically based on 
advances in the science of early childhood development. The 
committee views these measures as essential to promoting the 
success and assisting in the continual improvement of Head 
Start programs.

                               TRANSITION

    Successful transition from preschool into the K-12 
education system is one of Head Start's primary objectives. The 
committee has long recognized that transition activities are a 
partnership in which the Head Start agency and local 
educational agencies must cooperate; therefore, compatible 
transition requirements are outlined both in the Head Start 
statute and in the Elementary and Secondary Education Act.
    Previously, the committee provided a set-aside to fund 31 
demonstration projects designed to identify and replicate best 
practices for extending a Head Start-like model of 
comprehensive services into kindergarten and the first three 
grades of elementary school, thereby facilitating the 
transition of Head Start children into their local school 
systems. Based on the success of this initiative, two 
information memos were disseminated to all Head Start grantees 
that shared project results from successful demonstration 
projects. In addition, three training guides have been 
developed and numerous training opportunities made available to 
assist grantees in incorporating best practices identified by 
this effort.
    These demonstration projects were discontinued in fiscal 
year 1996 consistent with the terms of their original awards. 
However, the committee feels strongly that effective transition 
activities should be an integral part of every Head Start 
program.
    The committee commends the Administration's efforts to 
foster an environment in which transition activities are 
integrated into program operations in a manner similar to each 
of the other vital services provided to families. It is the 
committee's intent that those efforts continue and that 
grantees be provided continued training and technical 
assistance to make that goal a reality.

                             ACCOUNTABILITY

    The committee recognizes that, according to the latest 
monitoring report issued by HHS, the majority of current Head 
Start grantees are providing quality services. However, there 
are some grantees that are not fulfilling their obligation to 
ensure that our Nation's neediest children enter school with 
the skills and knowledge they need to succeed. Over the past 10 
years HHS has terminated 170 Head Start grantees.
    The committee believes that HHS should continue to improve 
the current Head Start monitoring system 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 affected 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 the quality of Head Start 
program operations. Therefore, the committee bill requires that 
grantees develop annual program goals and demonstrate that they 
have met or are making progress toward meeting these goals as a 
condition of receiving priority in designation of their Head 
Start grant. All grantees are required to reapply every 5 years 
consistent with the terms for financial assistance under the 
Head Start for School Readiness Act.

                               GOVERNANCE

    The committee believes that Head Start agencies need strong 
governance structures to ensure fiscal and legal compliance as 
well as strong program operations and oversight. Under current 
Head Start regulations, the Governing Body has fiscal and legal 
liability for Head Start programs. The committee believes that 
by establishing the roles and responsibilities of the Governing 
Body in the Head Start statute, the structure of grantees will 
be strengthened and clarified. Policy Councils do not currently 
have fiscal and legal liability, and the committee agrees that 
they are not the appropriate entity for such responsibilities. 
The Head Start for School Readiness Act takes a number of steps 
to ensure that Head Start agency has a Governing Body that is 
actively engaged and can provide more effective oversight, 
which the committee believes is an important role given their 
fiscal and legal responsibility and liability for the program.
    The bill makes additional requirements regarding the 
composition of the Governing Body. The Governing Body must 
reflect the community being served and include at least one 
person with experience in fiscal management, at least one 
person with experience in early childhood development, and a 
licensed attorney with experience in matters that come before 
the Governing Body. The Governing Body must also include at 
least one individual with knowledge of the Head Start program 
and its performance standards. In the event that individuals 
with such experience are not serving on the Governing Body, the 
Governing Body is encouraged to obtain assistance in these 
areas from consultants. The committee also intends that public 
agencies operating Head Start programs be permitted to make use 
of existing employees who have such expertise.
    The committee also requires that no member of the Governing 
Body have a conflict of interest with the Head Start agency or 
delegate agencies and that no member of the Governing Body 
receive compensation for his or her participation as a member.
    The committee also encourages parents and others in the 
community in which Head Start operates to actively serve on the 
Governing Body.
    The committee believes that the Governing Body is 
responsible for developing internal controls to safeguard 
Federal funds and to comply with all applicable laws and 
regulations. The Governing Body's role is to establish policies 
and procedures to detect or prevent program noncompliance. 
Together with the Policy Council, the Governing Body must 
develop procedures to facilitate meaningful consultation and 
collaboration between the two entities.
    By strengthening the role of the Governing Body in Head 
Start programs, the committee by no means is abolishing the 
Policy Councils and intends for Policy Councils to continue in 
their role and capacity of support for quality Head Start 
programs. Parents have long played a key and central role in 
the operations of Head Start programs. The committee is clear 
in its intent by requiring the Governing Body to consult and 
collaborate with the Policy Council in the areas set forth in 
the act, as well as for the Policy Council to have its own 
appropriate roles and responsibilities. The committee expects 
the Governing Body to consult and collaborate with the Policy 
Council and has prescribed impasse procedures for when the 
Governing Body and the Policy Council disagree, in order to 
resolve such disputes.
    As with the Governing Body, the committee believes it is 
important to strengthen and clarify the role of the Policy 
Council for Head Start agencies. The committee is clear that 
the majority of the members of the Policy Council shall be 
parents of children who are currently enrolled in Head Start 
and who are elected by parents of currently enrolled children. 
The remainder of the Policy Council shall consist of members of 
the community which the Head Start agency or delegate agencies 
serve, which could include parents of children who were 
previously served by the Head Start agency. The committee is 
clear that individuals serving on the Policy Council shall not 
have a conflict of interest or be compensated to serve on the 
council.
    The committee intends that the Policy Council will be 
responsible for program planning, including program design and 
recruitment and budget planning. The Policy Council will also 
be responsible for program operation and programs that support 
parent involvement.
    To facilitate oversight and Head Start agency 
accountability, the Governing Body shall receive regular and 
accurate information from the Head Start agency about program 
planning, policies and operations, including Program 
Information Reports (PIR) and audit reports.
    The committee intends for training and technical assistance 
to be provided to the members of the Governing Body and Policy 
Council, if appropriate, to ensure that they understand their 
oversight responsibilities and can effectively oversee the 
programs.
    The committee also requires each delegate agency to 
establish a policy committee. Each policy committee will be 
comprised of members from the community the agency serves, 
including parents of children who are currently enrolled at the 
agency. The purpose of each policy committee is to serve in an 
advisory capacity to the delegate agency for the purposes of 
program planning and operation and parent involvement.

                        OVERSIGHT AND MONITORING

    The committee believes that oversight by the Secretary of 
HHS is an important factor in ensuring that Head Start grantees 
meet the guidelines established for their program. Appropriate 
oversight ensures that program effectiveness can be assessed 
and measured, that only qualified programs continue to receive 
Federal funding, and that inefficient or abusive use of Federal 
funds is halted.
    The committee intends for Head Start programs to continue 
to address all domains of child development while addressing 
specific educational outcomes necessary for children to enter 
school ready to learn. The committee bill adds educational 
standards, based on the recommendations of the NAS to ensure 
that Head Start curricula meet appropriate criteria and 
children show progress toward meeting educational outcomes 
related to all of the domains of child development. The 
additional educational standards relate to language skills, 
pre-literacy knowledge and skills, pre-mathematics knowledge 
and skills, scientific abilities, and general cognitive 
abilities. Furthermore, the committee bill emphasizes the 
social and emotional development and physical development of 
Head Start children as they relate to early learning and school 
success. In the case of LEP children, the committee also adds 
standards related to progress toward acquiring the English 
language.
    The committee clarifies the standards related to facilities 
for Head Start programs in relation to compliance with State 
and local licensing and other requirements and accessibility by 
State and local authorities for monitoring such compliance.
    The committee believes that in developing standards the 
Secretary must consult with experts regarding promising 
practices in early childhood education and development in 
relation to all aspects of Head Start services. In addition, 
the Secretary shall consider demographic changes and unique 
challenges facing Head Start agencies such as changes in family 
structure or language background, children with disabilities, 
children in foster care, homeless children, and children in 
rural areas who may be served by the seasonal programs when 
developing standards for Head Start agencies.
    Many Head Start grantees or agencies oversee delegate 
agencies for which they are ultimately responsible. The 
committee bill requires that each Head Start agency establish 
procedures for evaluating delegate agencies, informing them of 
any deficiencies, remedies to ensure corrective action 
including defunding delegate agencies, and a process for 
delegates to appeal defunding decisions. An agency may initiate 
monitoring visits or pursue other actions until deficiencies 
are corrected, but may not terminate a delegate agency's 
contract without showing cause.
    At least once every 3 years, each Head Start and Early Head 
Start agency receives a comprehensive on-site review by HHS. 
These monitoring reviews play a vital role in assuring that 
Head Start agencies are providing high-quality services. The 
committee intends that reviews reflect an assessment of 
strengths and weaknesses of the program, as well as how well 
the program has addressed family and community needs.
    The PRISM monitoring of Head Start grantees undertaken by 
HHS is critical to realizing the goals of adequate oversight of 
the program. The committee believes that the PRISM reviews need 
to be conducted, to the greatest extent possible, in a 
consistent and reliable manner. It is the committee's intent 
that the conduct of such reviews of Head Start grantees provide 
for greater consistency across all variables such as time, 
reviewers, and geographical location.
    The committee recognizes that the monitoring process has 
consequences associated with it. In order to ensure the 
integrity of the monitoring process by HHS, the committee has 
added provisions regarding inter-rater reliability, which means 
the extent to which two or more independent reviewers 
consistently obtain the same result when using the same 
assessment.
    The committee believes employees of HHS should, to the 
extent practicable, continue to be included on teams sent out 
to monitor and evaluate Head Start programs. Additional members 
of the review team shall also include individuals knowledgeable 
about Head Start and other early childhood programs. The 
committee bill establishes provisions for training of 
supervisors and members of review teams to ensure the quality 
and consistency of the review process.
    Due to strong concerns about the health and safety of 
children in Head Start programs, the committee requires 
unannounced site inspections of Head Start Centers for health 
and safety reasons and prompt follow-up reviews for agencies 
with findings of deficiencies. The committee clearly 
articulates the definition of a deficiency and describes the 
serious violations of health and safety, legal and fiscal 
standards, or program failures that are considered a 
deficiency. The monitoring process allows for programs to 
correct areas of noncompliance with program standards and if 
uncorrected to become a deficiency.
    The committee bill allows programs time to correct 
deficiencies and stipulates that only programs with unresolved 
deficiencies will be subject to recompetition. The Secretary 
shall provide technical assistance to programs found to have a 
deficiency. The reports on the findings and the plans for 
correcting deficiencies shall be made available to the public.
    The committee believes that the self-assessment is an 
essential tool for program improvement. Therefore, each Head 
Start agency is required to conduct a comprehensive self-
assessment annually in consultation with the policy council 
(and, if applicable, the policy committee), and community 
members in order to assess progress in meeting program goals 
and objectives and complying with Head Start program 
performance standards. The findings, including program 
strengths and weaknesses, shall be reported to the governing 
structures of the program and the HHS regional office. Each 
agency shall also develop an improvement plan to strengthen any 
areas of weakness identified in the assessment and establish 
procedures for the ongoing monitoring of their programs. 
Training and technical assistance funds may be used to assist 
agencies in conducting self-assessments.

                            UNDER-ENROLLMENT

    As a general requirement of the Head Start Act, agencies 
are expected to fully meet their funded enrollment and to 
maintain a waiting list. However, it has come to the 
committee's attention that some Head Start grantees have 
experienced problems achieving and maintaining their full 
funded enrollment while others experience shortfalls in their 
capacity to provide or maintain services to eligible children. 
The committee recognizes the existing efforts by the Secretary 
to address this issue in regulation, yet believes a statutory 
approach to addressing under-enrollment is warranted given the 
significance of the issue.
    The committee bill has been carefully drafted to provide 
for shared accountability in addressing issues of enrollment of 
Head Start children. The bill requires each Head Start program 
to report on a monthly basis to the Secretary a figure which 
reflects the program's actual enrollment, including a 
description of an enrollment shortfall if such actual 
enrollment is less than the funded enrollment prescribed by the 
grant held by the Head Start agency. The bill also requires the 
Secretary on a semi-annual basis to determine which Head Start 
agencies are under-enrolled, and directs the agency, in 
collaboration with the Secretary, to provide for a plan and 
timetable in which to address issues of under-enrollment in 
agencies operating with less than 95 percent of enrollment.
    In reviewing enrollment data, the committee bill directs 
the Secretary to take into consideration the quality and extent 
of outreach, recruitment, and community needs assessments, 
changing demographics, mobility of populations, and the 
identification of new underserved low-income populations; 
facilities related issues that may affect enrollment; the 
ability to provide full-day programs, where needed, through 
Head Start funds or through collaboration with other funds or 
programs; the availability and use by families of other 
preschool and child care options, including parental care, in 
the local area; and agency management procedures that may 
affect efficient enrollment. Agencies identified by the 
Secretary shall be provided timely and on-going technical 
assistance to reduce under-enrollment, but are considered to be 
out of compliance immediately.
    Upon receipt of technical assistance, the Head Start agency 
will implement its plan to address under-enrollment. If after 9 
months, a Head Start agency is still operating with an actual 
enrollment that is less than 95 percent of the agency's funded 
enrollment, the Secretary may designate such agency as 
chronically under-enrolled and recapture, withhold, or reduce 
the base grant by a percentage equal to the percentage 
difference between funded and actual enrollment for the most 
recent year in which the agency is determined to be under-
enrolled. In such cases, the Secretary shall use funds 
recovered from the grantee to distribute to other Head Start 
agencies within the State prepared to increase enrollment in 
their respective programs.
    If the Secretary, after implementation of the plan, finds 
that the causes of under-enrollment are beyond the agency's 
control; the shortfall can reasonably be expected to be 
temporary; or the number of slots allotted to the agency is 
small enough that under-enrollment does not constitute a 
significant shortfall, the Secretary may waive or reduce the 
percentage reductions in the base grant.

                            FINANCIAL AUDITS

    In addition to conducting on-site inspections, regional HHS 
staff also monitor grantees' compliance with regulations by 
annually reviewing their financial audit reports. Auditors may 
select and review samples of financial transactions to 
determine whether a grantee has followed established procedures 
and program regulations. If a grantee administers more than one 
Federal grant, as is often the case with large nonprofit 
agencies, school districts, and municipalities, relatively 
small grants may not be reviewed in much detail.
    In addition to a lack of detail, financial audit reports 
may not provide timely information for monitoring current 
grantee operations. Grantees have 9 months to submit financial 
audit reports for any given year. It may take several 
additional months before officials in the HHS Office of 
Inspector General review the audit report, summarize the 
findings, and submit the findings to the appropriate regional 
officials. Grantees that are classified as ``high risk'' do not 
face termination of their funding unless they are also 
classified as deficient, which usually involves an on-site 
inspection. As a result, HHS may wait up to 3 years until the 
next regularly scheduled triennial inspection before it 
classifies a high-risk grantee as deficient and requires it to 
develop a quality improvement plan and face possible 
termination from the program.
    The committee is very concerned about this process and has 
therefore added to the bill a requirement that the Secretary 
conduct an annual review of grantee financial status. The 
committee believes grantees must be accountable for their 
financial management and requires each center to maintain and 
submit a complete accounting of its administrative expenses, 
including salaries and compensation, to the Secretary.

                        COMBAT PAY INELIGIBILITY

    The committee feels strongly that as our soldiers are 
overseas fighting to defend our freedom, it is our 
responsibility to look out for their children and families. 
When soldiers receive combat pay because they are working in 
dangerous situations, this extra income should not adversely 
affect their family's eligibility for programs such as Head 
Start. During the 108th Congress, the Subcommittee on Children 
and Families held a series of joint hearings with the Armed 
Services Subcommittee on Personnel on issues affecting military 
families. The committee included language to address the 
problem of soldiers not being able to access certain benefits, 
such as Head Start, due to income ineligibility when such 
parents receive combat pay. This language is intended to ensure 
that families in the military receiving combat pay and who 
would otherwise be eligible for Head Start would not be deemed 
ineligible because of that income supplement.

                           DELEGATE AGENCIES

    This legislation includes language that would strengthen 
the ability of Head Start grantees to defund delegate agencies 
that have serious deficiencies. Head Start grantees, in 
addition to the oversight already conducted by the Secretary, 
are asked to clearly define procedures for defunding a 
seriously deficient program as well as that program's appeals 
process. It is the intent of the committee that such procedures 
be fair to all parties but not unduly cumbersome or time-
consuming.
    Grantees are expected to clearly define their procedures 
for evaluating delegate agencies to minimize the circumstances 
that would necessitate defunding and ensure that all of their 
delegate agencies are held accountable for performance and 
successfully address any deficiencies in a timely manner.
    Any delegate agency found seriously deficient must be 
notified of the possibility of termination. During the notice 
period, monthly monitoring visits and technical assistance may 
be provided by the Head Start grantee. The grantee could also 
elect to release funds on a reimbursement basis instead of in 
advance, particularly in the event of questionable fiscal 
practices by the delegate agency. After a reasonable notice 
period, if deficiencies are not corrected, termination will 
take effect. The grantee is then responsible for ensuring the 
continuity of Head Start services for the children and families 
affected.

                         CENTERS OF EXCELLENCE

    The committee bill includes the Centers of Excellence in 
Early Childhood as a separately authorized program to recognize 
outstanding performance and promote the successes of effective 
Head Start programs so that other Head Start programs, and 
others, can learn from their peers.
    The committee supports the underlying goal of giving grants 
to Head Start programs that are exemplary and leveraging 
excellent programs to model best practices so that other 
programs can achieve excellence. The legislation authorizes the 
Governors to nominate and the Secretary of HHS to create a 
nationwide network of 200 Centers of Excellence in Early 
Childhood built around exemplary Head Start programs.
    All Head Start centers need to excel in school readiness, 
accountability, and coordination of services; improving the 
performance of all centers in these areas is the focus of this 
legislation. States have primary responsibility for setting 
standards for and funding public education. A child who arrives 
at school too far behind the starting line may never catch up. 
In addition, the State is in the best position to help 
coordinate the variety of public and private programs that have 
been created since Head Start was established. In order to 
increase coordination between Head Start and the public school 
system and other State-run social service programs, such as 
Medicaid and the Child Care and Development Block Grant (CCDBG) 
program, centers that have the potential to drive effective 
collaboration within their State would be nominated by their 
Governor.
    The Secretary of HHS would select 146 Centers of Excellence 
from among nominations submitted by the Governors. The 
Secretary would name an additional 54 centers, so that there is 
at least one Center of Excellence in each State, the District 
of Columbia, and Puerto Rico. It is also the committee's intent 
that one or more Indian Head Start and Migrant and Seasonal 
Head Start programs will be recognized as Centers of 
Excellence. The bill permits exemplary Indian Head Start 
programs and migrant and seasonal Head Start programs to be 
nominated by their respective regional office (region 11 and 
region 12) instead of by a State Governor.
    In addition, it is the committee's intent that Governors 
are encouraged to look to Head Start centers offering Early 
Head Start programs. The significance of years 0-3 in child 
development is now widely understood, and it is important for 
Centers of Excellence to be able to encourage best practices in 
serving the very young.
    When making bonus grants, the Secretary shall give a 
priority to programs that demonstrate that they are of 
exceptional quality and would serve as exemplary models for 
programs in their geographic region. The Secretary may also 
consider the population served by the applicant, especially if 
they are serving an underserved population. Programs that have 
a record of doing an exceptional job of serving underserved 
populations should be given this priority as well.
    Head Start programs identified as Centers of Excellence 
would receive a Federal bonus grant of at least $200,000 and up 
to $500,000 in each of 5 years (in addition to its base 
funding). It is the committee's intent that bonus grant funding 
for the Centers would vary depending on the number of children 
served at a Center of Excellence. It is the hope of the 
committee that as we continue to work through the legislative 
process and when new money is available some of this money will 
be designated for the Centers of Excellence.
    The Centers of Excellence bonus grants will be used for 
centers to:
    1. work in their community to model the best of what Head 
Start can do for at-risk children and families, including 
getting those children ready for school and ready for academic 
success;
    2. coordinate all early childhood services in their 
community;
    3. offer training and support to all professionals working 
with at-risk children;
    4. track these families and ensure seamless continuity of 
services from birth to age 8, with an emphasis on working in 
partnership with public schools to ensure that Head Start 
children succeed in school;
    5. become models of excellence by all performance measures 
and be willing to be held accountable for good outcomes for our 
most disadvantaged children; and
    6. have the flexibility to serve additional Head Start or 
Early Head Start children or provide more full-day services to 
better meet the needs of working parents.
    The committee intends that a Center of Excellence that uses 
its bonus grant for activities related to infants and toddlers 
must demonstrate existing expertise in providing services to 
this age group. The developmental needs of infants and toddlers 
are unique and require teachers that have knowledge of infant 
and toddler development.
    The committee has included Early Head Start, Migrant and 
Seasonal Head Start, and Indian Head Start programs as 
participants in the Centers of Excellence Program. The 
committee feels that all Head Start programs could benefit 
greatly by the exemplary practices modeled in Early Head Start 
programs for infants and toddlers, as well as practices 
tailored to the needs of children in Indian, Migrant, and 
Seasonal Head Start programs.

                                FUNDING

    The committee bill authorizes the Head Start program at 
$7.350 billion for fiscal year 2008, $7.650 billion for fiscal 
year 2009, $7.995 billion for fiscal year 2010, and such sums 
as may be necessary for fiscal year 2011 and 2012. The 
committee's incremental increases in the authorization level of 
the Head Start program affirms a commitment to improving and 
enhancing program quality while also reasonably expanding the 
program to reach additional eligible children and families 
living in poverty.
    The committee bill provides any remaining funds after 
maintaining required reservations in Section 640 and adjusting 
current Head Start programs for inflation shall be used for 
quality improvement funds. In fiscal year 2006, 30 percent of 
such funds shall be used for quality improvement activities and 
40 percent shall be used for each fiscal year 2007 through 2010 
for these purposes. The committee intends the remaining 
percentages be used for program expansion grants.
    In allocating expansion funds, the committee recognizes the 
apparent discrepancy in the allocation of Head Start dollars 
among the States and takes affirmative steps to address this 
policy. The change in the committee bill responds to the 
inclusion of a 1978 hold harmless provision that--since recent 
shifts in demographics and poverty--has resulted in a disparity 
in the allocation of resources to high-growth States, despite 
past increases in Head Start appropriations.
    In order to begin to remedy this situation, the Committee 
has included the requirement that 65 percent of new program 
expansion funds for Head Start would be allocated to those 
States serving less than 60 percent of Head Start eligible 
children, ages 3 or 4, living below the poverty line. In 
establishing this policy, the committee intends for the 
Secretary to prioritize funding to the 30 States adversely 
affected by the 1978 hold harmless provision. The remaining 35 
percent of expansion funds shall be allocated among all States, 
based upon their relative share of Head Start eligible children 
less than 5 years of age living below the poverty line. The 
committee acknowledges these policy changes as only an initial 
step toward addressing the funding discrepancies between States 
in the Head Start program.

                  PARTICIPATION IN HEAD START PROGRAMS

    The committee recognizes that children from some low-income 
families earning a little above the Federal poverty level would 
benefit from Head Start services are not able to participate in 
the program because they are not income eligible. Furthermore, 
the high cost of living in many States indicates that even 
those slightly above the federal poverty level still require 
assistance. The committee felt it was important to retain the 
100 percent Federal Poverty level in determining the formula 
allocation to States under the Head Start Program. However, the 
committee has raised the eligibility level from 100 percent to 
130 percent of the Federal poverty level consistent with 
eligibility for the free school lunch, school breakfast, and 
special milk programs. The committee intends for such policy to 
help families, whose incomes may increase as they move from 
welfare to work or attain better employment, to continue to 
access the Head Start program and to provide additional 
opportunities for participation of low-income working families 
in Head Start programs. The 130 percent eligibility level would 
not count toward the 10 percent of over-income children served 
by programs under current law. The committee does not intend 
that the 130 percent be taken into account when determining 
eligible children for the purpose of the formula or allotment 
of funds. The committee intends for programs to first serve 
families at 100 percent of the Federal poverty level and to 
give programs to serve families with incomes of up to 130 
percent, if they have sought to serve all families with incomes 
below that level.
    The committee also recognizes the particular needs of 
homeless children and deems homeless children categorically 
eligible for Head Start services. The needs of military 
families are also recognized and the bill clarifies that 
special pay for housing for any member of the uniformed 
services shall not be considered income for purposes of 
eligibility.
    The committee believes that Head Start agencies should have 
flexibility to respond to changing community needs. For this 
reason, Head Start agencies are permitted to apply to the 
Secretary to convert part-day sessions to full-day sessions and 
to use grant funds to serve additional infants and toddlers, 
consistent with rules and standards for Early Head Start. The 
communitywide needs assessment which programs currently conduct 
shall be used to determine eligibility for such conversions.

MIGRANT AND SEASONAL HEAD START PROGRAMS AND INDIAN HEAD START PROGRAMS

    The committee has included several provisions to improve 
access to Head Start services by children of migrant and 
seasonal farm workers, as well as by Indian children.
    According to a study conducted by HHS in 2001, the Migrant 
and Seasonal Head Start programs have consistently received 
less than 4 percent of the Head Start annual appropriation, 
enabling them to serve only 19 percent of eligible migrant and 
seasonal children, compared to 50 percent of the eligible 
population served by the regular Head Start program. The 
current Migrant and Seasonal Head Start Program at present 
serves nearly 37,000 migrant children and nearly 2,500 seasonal 
children annually, operating in 40 States.
    Indian Head Start programs serve over 23,000 children each 
year; however, that number represents only 16 percent of 
eligible children. Only 188 of the federally recognized tribes 
have Head Start programs. The committee recognizes the need to 
expand services to additional eligible children. In addition, 
the committee bill requires the Secretary to engage in 
meaningful consultation and data collection related to the 
Indian Head Start programs. The committee bill directs the 
Secretary to consult with Indian tribes, American Indian and 
Alaska Native experts in early childhood development, and 
related organizations in reviewing and promulgating program 
standards and measures.
    The Committee has taken steps to address this issue by 
directing the Secretary to allocate not less than 5 percent of 
the funds reserved under Section 640a(2) to Migrant and 
Seasonal Head Start programs. The committee has also directed 
the Secretary to allocate not less than 4 percent of the 
reserved funds to Indian Head Start programs. The committee 
intends that the Secretary shall not use funds appropriated 
under this subchapter to create additional slots or services in 
non-Indian or non-migrant and seasonal programs until the 4 and 
5 percent allocations are achieved. The committee ensures that 
additional funding for these programs does not reduce the 
number of children served in existing Head Start programs. The 
committee further intends that funding increases allow current 
programs to expand the number of children served, as well as 
establish new programs in areas that lack services to these 
populations of children.
    HHS has not collected data on the demand and availability 
of Head Start services for migrant and seasonal families since 
the aforementioned 2001 study. Therefore, the committee bill 
directs the Secretary to work with the Migrant and Seasonal 
Head Start community to develop a system that on an ongoing 
basis can adequately account for the number of seasonal and 
migrant children who are eligible for Head Start and determine 
how many of these eligible children are receiving services. The 
bill also directs the Secretary to work with the Migrant and 
Seasonal Head Start community and other public and private 
stakeholders to identify the barriers that prevent eligible 
children from accessing services. In addition, the Secretary is 
called upon to develop a system through which Migrant and 
Seasonal Head Start programs can effectively work with children 
and their families to track health records and educational 
documents as a child moves from State to State.

                             TRANSPORTATION

    The committee requires the Secretary to improve the safety 
and security of Head Start children that use Head Start 
transportation to get to the program. When a Head Start agency 
develops a contract with a provider of transportation services, 
the Committee requires that the contract include requirements 
for background checks for individuals employed by the company. 
Head Start children are young and vulnerable and we must ensure 
their safety.
    The committee has been made aware of difficulty in at least 
one State in complying with safety requirements for the 
transportation of Head Start students that were initially 
promulgated by Secretary Donna Shalala on January 18, 2001. The 
committee provides an additional two years for Head Start 
grantees to come into compliance with safety requirements for 
transportation of Head Start students if their currently owned 
and operated vehicles do not meet the necessary and appropriate 
requirements for a rear emergency door. While the committee 
recognizes the validity and necessity of those requirements, it 
is apparent that a few grantees have not been able to meet 
those standards and need more time to do so. The committee does 
not provide any additional authority for new, leased, rented, 
or manufactured vehicles that fail to meet the rear emergency 
door requirements to be used to transport Head Start children. 
The Committee intends this to be the final waiver authorized by 
Congress on this issue and will not support any efforts to 
extend this waiver again.
    The committee also orders the Secretary to modify Head 
Start regulations, as appropriate and necessary, to reflect the 
findings of the Federal Transit Administration (FTA) and its 
currently pending study on Federal seat spacing requirements 
and child restraint systems. If the FTA finds that its current 
standards can be modified and that small, vulnerable children 
can be allowed to be transported in different alternative 
vehicles with appropriate child restraint systems, the 
Secretary shall modify their regulations on this issue. 
However, if the FTA finds that its current standards are 
appropriate and necessary for the safety and welfare of small 
children, the Secretary shall not modify the regulations, and 
all Head Start grantees will immediately comply with the 
regulations regarding the transportation of Head Start 
children.

                            V. Cost Estimate


S. 556--Head Start for School Readiness Act

    Summary: S. 556 would reauthorize the Head Start program 
through 2012 and authorize two new, related grant programs. 
Head Start was authorized through 2003 by the Coats Human 
Services Reauthorization Act of 1998 (Public Law 105-285) and 
has since been extended through annual appropriation acts.
    CBO estimates that the bill would authorize additional 
appropriations of $6.1 billion in 2008 and $38.6 billion over 
the 2008-2012 period, assuming that annual authorizations are 
adjusted for inflation when specific annual appropriation 
levels are not provided. (Without such inflation adjustments, 
the authorizations would total about $38.1 billion over the 
2008-2012 period.) CBO estimates that appropriation of the 
authorized levels would result in additional outlays of $34.5 
billion over the 2008-2012 period, assuming annual adjustments 
for inflation (and about $34.2 billion without adjustments for 
inflation). Enacting S. 556 would not affect direct spending or 
receipts.
    S. 556 contains no intergovernmental or private-sector 
mandates as defined by the Unfunded Mandates Reform Act (UMRA). 
Any costs to state, local, or tribal governments would result 
from complying with conditions for receiving federal 
assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 556 is shown in the following table. The 
costs of this legislation fall within budget function 500 
(education, training, employment, and social services).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2007     2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Head Start Spending Under Current Law:
    Budget Authority \1\..................................    6,889    1,389        0        0        0        0
    Estimated Outlays.....................................    6,846    3,751      761       97       14        0
Proposed Changes:
    Head Start:
        Estimated Authorization Level.....................        0    5,961    7,650    7,995    8,147    8,307
        Estimated Outlays.................................        0    3,398    6,745    7,736    8,054    8,230
    Bonus Grants to Centers of Excellence in Early
     Childhood:
        Authorization Level...............................        0       90       90       90       90       90
        Estimated Outlays.................................        0        5       51       87       89       90
    Administrative Costs of Centers of Excellence in Early
     Childhood:
        Authorization Level...............................        0        1        1        1        1        1
        Estimated Outlays.................................        0        *        *        *        *        1
    Research Activities for Centers for Excellence in
     Early Childhood:
        Authorization Level...............................        0        2        2        2        2        2
        Estimated Outlays.................................        0        *        1        2        2        2
    Tribal Colleges and Universities Head Start
     Partnership:
        Estimated Authorization Level.....................        0       10       10       10       11       11
        Estimated Outlays.................................        0        1        8       10       10       10
          Total Proposed Changes:
            Estimated Authorization Level.................        0    6,064    7,753    8,098    8,250    8,410
            Estimated Outlays.............................        0    3,403    6,806    7,836    8,156    8,333
Total Spending Under S. 556:
    Estimated Authorization Level.........................    6,889    7,453    7,753    8,098    8,250    8,410
    Estimated Outlays.....................................    6,846    7,155    7,567    7,932    8,170    8,333
----------------------------------------------------------------------------------------------------------------
\1\ The 2007 level is the amount appropriated for the Head Start program, including an advance of $1.389 billion
  for the 2006-2007 academic year. The 2008 level is the amount appropriated in an advance appropriation for the
  2007-2008 academic year.
 Notes.--Components may not sum to totals because of rounding. * = less than $500,000.

    Basis of estimate: S. 556 would reauthorize the Head Start 
program through 2012. The program is currently authorized 
through September 30, 2007, by the Revised Continuing 
Appropriations Resolution, 2007 (Public Law 110-5). For this 
estimate, CBO assumes that the bill will be enacted before the 
start of fiscal year 2008, that the estimated amounts shown in 
the table will be appropriated for each year, and that outlays 
will generally follow historical spending patterns.

Head Start

    S. 556 would revise and reauthorize the Head Start program 
through 2012. The Head Start program provides comprehensive 
child development services to low-income children. Services 
include education, health, nutrition, and social services with 
the goal of increasing the school readiness of young children 
in low-income families.
    The bill would authorize the appropriation of $7.350 
billion in 2008 (which includes the $1.389 billion already 
appropriated for that year), $7.650 billion in 2009, $7.995 
billion in 2010, and such sums as may be necessary in 2011 and 
2012. CBO estimates that the total authorizations of additional 
appropriations for the 2008-2012 period would be $38.1 billion, 
assuming adjustments for inflation in 2011 and 2012, with 
resulting outlays of $34.2 billion over those five years.
    Funding for this program for a given fiscal year is 
provided by both a regular appropriation for that fiscal year 
and an advance appropriation provided earlier. 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 fiscal year could be provided in one 
appropriation.

Centers of Excellence in Early Childhood

    S. 556 would authorize appropriations of $92.5 million a 
year for a new Centers of Excellence in Early Childhood grant 
program. The Secretary of Health and Human Services (HHS) could 
designate as many as 200 exemplary Head Start agencies as such 
Centers of Excellence in Early Childhood. Those centers would 
receive bonus grants to carry out various activities, including 
enrolling additional children and providing training to 
teachers. The Secretary also would be authorized to make a 
grant to an independent organization to conduct research on the 
ability of those centers to improve school readiness of the 
children receiving Head Start services and to measure the 
success of the centers. The bill would authorize $90 million a 
year for bonus grants, $0.5 million annually for HHS 
administrative costs, and $2 million a year for research. CBO 
estimates that providing these amounts would result in outlays 
of $331 million over the next five years. The outlay estimate 
reflects the assumption that spending for these new centers 
would occur over a two-year period rather than the four-year 
span for current Head Start centers.

Tribal Colleges and Universities Head Start Partnership

    S. 556 would create a new Tribal Colleges and Universities 
Head Start Partnership program and authorize the appropriation 
of $10 million in 2008 and such sums as may be necessary from 
2009 through 2012. The bill would authorize the Secretary of 
HHS to award grants for not less than five years to tribal 
colleges and universities to create education programs on 
tribal culture and language, to increase the number of Indian 
Head Start staff members and parents with advanced degrees in 
early childhood education and related fields, and for other 
purposes. CBO estimates that providing the authorized amounts 
would result in outlays of $39 million over the 2008-2012 
period. The projected rate of spending is the average of the 
rates for two similar programs, Child Welfare Training and 
University Centers for Excellence in Developmental 
Disabilities.
    Intergovernmental and private-sector impact: S. 556 
contains no intergovernmental or private-sector mandates as 
defined by UMRA. Grant funds authorized by the bill would 
benefit state, local, and tribal governments that participate 
in the Head Start and Early Head Start programs. Any costs they 
incur from complying with increased management and oversight 
responsibilities or from implementing standards for educational 
performance would result from complying with conditions for 
receiving federal assistance.
    Estimate prepared by: Federal Costs: Jonathan Morancy. 
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum. Impact on the Private Sector: Paige Shevlin.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

            VI. Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1, the Congressional 
Accountability Act (CAA) requires a description of the 
application of this bill to the legislative branch. This bill 
does not amend any act that applies to the legislative branch.

                    VII. Regulatory Impact Statement

    The committee has determined that there will be minimal 
increases in the regulatory burden imposed by this bill.

                   VIII. Section-by-Section Analysis


Sec. 1. Short title

    This Act may be cited as the ``Head Start for School 
Readiness Act.''

Sec. 2. Statement of purpose

    This section modifies Section 636 by revising the statement 
of purpose to read

    It is the purpose of this subchapter to promote the school 
readiness of low-income children by enhancing their cognitive 
and social development--
    (1) with a learning environment that supports cognitive 
development (including the growth of language, pre-literacy, 
and premathematics skills) and the growth of social, emotional 
and physical skills.
    (2) 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. 3. Definitions

    Amends Section 637 by adding community-based organizations 
to the definition of potential delegate agencies, and adds 
financial literacy as a component of family literacy services. 
Section 637 is amended to remove the Federated States of 
Micronesia, the Republic of the Marshall Islands, and the 
Republic of Palau from the definition of ``State.'' Section 637 
also defines ``homeless child'' ``limited English proficient'' 
children, ``institution of higher education.'' The term 
``deficiency'' and ``unresolved areas of non-compliance'' are 
defined and later referred to in section 641A(d). The term 
``interrater reliability'' is defined in relation to the Head 
Start monitoring process.

Sec. 4. Financial assistance for Head Start programs

    Amends Section 638 to authorize grants to Head Start 
agencies for a 5-year period.

Sec. 5. Authorization of appropriations

    Reauthorizes the Head Start Act at $7.35 million for fiscal 
year 2008, $7.65 million for fiscal year 2009, $7.995 million 
for fiscal year 2010, and such sums as may be necessary for 
fiscal year 2011 and fiscal year 2012. From the amount 
appropriated, the Secretary can make available up to $20 
million for fiscal year 2008 to carry out research, 
demonstration, and evaluation activities including longitudinal 
studies under Section 649, and such sums for fiscal years 2009-
12,

Sec. 6. Allotment of funds

    This section amends Section 640 by requiring the Secretary 
to reserve a sum each fiscal year for Indian Head Start and 
migrant and seasonal Head Start programs that is the total of 
not less than 4 percent of the amount appropriated for Indian 
programs under Section 639 for that fiscal year and not less 
than 5 percent of that appropriated amount for migrant and 
seasonal programs, except that if reserving such percentages 
would reduce the number of children served by Head Start 
programs relative to the number of children served upon the 
date of enactment of this act. After ensuring that each grant 
recipient for Indian and migrant and seasonal Head Start 
programs have received 4 percent and 5 percent respectively, 
the Secretary shall distribute 65 percent of the remaining 
funds to priority grant recipients in the States serving the 
smallest percentages of eligible children and distribute the 
remaining 35 percent on a competitive basis.
    Section 640(a) is amended to provide not less than 2 
percent of the amount appropriated under section 639 for 
training and technical assistance activities, of which 50 
percent shall be made available for Head Start agencies to use 
directly for various activities, and of which 50 percent shall 
be made available to the Secretary to provide directly, or 
support a system of, early childhood education training and 
technical assistance. Not less than $3 million of these funds 
shall be made available to carry out activities described in 
section 648(d)(4).
    Subparagraph 640(a)(3)(A) stipulates Head Start quality 
improvement funds, and is amended to provide an amount equal to 
30 percent of such excess amounts in fiscal year 2008, and 40 
percent of such excess amounts in fiscal year 2009 through 
fiscal year 2012. Subparagraph 640(a)(3)(B) is amended to 
provide greater detail regarding the goals for which such 
quality improvement funds shall be used.
    Subparagraph 640(a)(5) is amended to require the Secretary 
to award a collaboration grant to each State and each national 
administrative office serving Indian Head Start programs and 
Migrant and Seasonal Head Start programs to facilitate 
collaboration between Head Start agencies and entities that 
carry out activities designed to benefit low-income families 
and children. Grants shall be used to encourage Head Start 
agencies to collaborate with other entities, coordinate with 
other State agencies, promote alignment of Head Start with 
State early learning standards, and promote better linkages 
between Head Start and other child and family agencies. The 
State Director of Head Start Collaboration shall conduct an 
assessment that addresses the needs of Head Start agencies in 
the State, and shall develop a strategic plan to address such 
needs.
    As a condition of receiving a grant under Subparagraph 
640(a)(5), each State shall designate or establish a State 
Advisory Council on early childhood care and education, 
comprised of a diverse membership, which shall: conduct a 
statewide needs assessment concerning early childhood care and 
education; identify barriers to and opportunities for 
collaboration; develop recommendations regarding data 
collection in early childhood programs; develop a professional 
development plan for the early childhood workforce; assess the 
availability of pre-kindergarten services for children; and 
assist institutions in developing model early childhood 
education programs. The Secretary shall reserve $100 million 
for fiscal year 2008 to award competitive, one-time start-up 
grants to states to further develop and implement plans for a 
high-quality system of early childhood care and education. 
These funds shall remain available for obligation through 
fiscal year 2012.
    Subparagraph 640(a)(6) is amended to reserve amounts not 
less than 12 percent for fiscal year 2008, 14 percent for 
fiscal year 2009, 16 percent for fiscal year 2010, 18 percent 
for fiscal year 2011, and 20 percent for fiscal year 2012 for 
the Early Head Start program.
    Section 640(l) is amended to address the needs and provide 
access to Head Start services for Indian children and children 
of migrant and seasonal farmworkers. Section 640(m) instructs 
the Secretary to issue regulations to facilitate the enrollment 
and participation of homeless children in Head Start programs.
    Section 640(f) is amended to require the Secretary to 
establish procedures for the conversion of part-day programs to 
full-day programs as well as serving additional infants and 
toddlers pursuant to Section 645(a)5.
    Subparagraph 640(i)(1) requires background checks for 
individuals transporting Head Start enrollees. Subparagraph 
640(i)(2) provides for limited exceptions to the Vehicle Safety 
Requirements.

Sec. 7. Designation of Head Start agencies

    Section 641(a) provides the Secretary authority to 
designate any local public or private non-profit or for-profit 
organization within a community, including community-based 
organizations, as a Head Start agency. To be so designated, 
such agency must establish goals to meet Head Start's 
performance standards and improve the school readiness of 
children participating in Head Start programs. Such agency must 
also establish a governing body with legal and fiscal 
responsibility for administering and overseeing programs, and a 
policy council with decision-making responsibility for program 
planning and elements of program operation. Section 641(a) is 
further amended to specify the composition and responsibilities 
of the governing body and policy council, including policies 
for information sharing between these two entities and shared 
responsibility for establishment of processes to resolve 
internal disputes. The composition of both entities must 
include members of the community to be served, including 
parents.
    Section 641(c) is amended to redesignate any Head Start 
agency or delegate agency receiving assistance under this 
subchapter, that is high-performing as determined by meeting or 
exceeding program requirements and standards, having no 
unresolved deficiencies, demonstrating active collaboration 
with the state or local communities in the provision of 
services, and successfully completing the appropriate re-
application forms. If no entity is eligible for redesignation 
according to these criteria, the Secretary shall designate a 
Head Start agency from qualified applicants in an open 
competition. Section 641(e) states the terms of effectiveness 
which the Secretary shall consider in selecting from qualified 
applicants in such a competition.

Sec. 8. Quality standards; monitoring of Head Start agencies and 
        programs

    Amends Section 641A by adding educational standards, based 
on the recommendations of the National Academy of Sciences, 
relating to language skills, pre-literacy knowledge and skills, 
premathematics knowledge and skills, scientific abilities, 
general cognitive abilities, social and emotional development, 
physical development, and in the case of limited English 
proficient children, progress toward acquiring the English 
language.
    Section 641A is further amended to include new procedures 
for the evaluation and corrective action of delegate agencies, 
including procedures for defunding, termination, and appeal. 
Each Head Start agency shall evaluate its delegate agencies and 
inform such agencies of deficiencies identified, and may 
initiate monitoring visits or pursue other actions against such 
agency until deficiencies are corrected.
    Section 641A also provides for unannounced site inspections 
of Head Start Centers for health and safety reasons, as 
appropriate, and directs the Secretary to conduct prompt 
follow-up reviews to agencies with findings of deficiencies. 
Reviews of Head Start agencies shall be conducted by review 
teams that include individuals who are knowledgeable about Head 
Start and other early childhood programs, and shall reflect a 
review and assessment of program effectiveness, which includes 
strengths and weaknesses of programs. Reviews will seek 
information from communities and States about innovative or 
effective collaborative efforts, assess compliance with income 
eligibility requirements and gauge whether programs have 
adequately addressed the population and community needs, and 
include data from the period child assessments conducted in 
programs. The Secretary shall ensure the quality and 
consistency of Head Start review across the nation, by 
conducting periodic inter-rater reliability checks.
    Section 641A is amended to require each Head Start agency 
to conduct a comprehensive self-assessment of their 
effectiveness and progress in meeting program goals and 
objectives, and to develop an improvement plan to strengthen 
any areas needing improvement as identified in the self-
assessment.
    Section 641A establishes new rules for the reduction of 
grants and redistribution of funds in cases of under-
enrollment, and requires each agency to report actual 
enrollment monthly. In cases in which agencies are less than 95 
percent enrolled, the Secretary shall develop a plan and 
timetable with the agency for correcting under-enrollment 
considering quality, extent of outreach, community needs 
assessment, changing demographics, identification of new 
underserved low-income populations, any facilities-related 
issues affecting enrollment, and shall provide timely and 
ongoing technical assistance to such agency for the purpose of 
correcting the under-enrollment. After 18 months, the Secretary 
may designate such agency as chronically under-enrolled and 
recapture, withhold or reduce the base grant by a percentage 
equal to the percentage difference between funded and actual 
enrollment. The Secretary redistribute such amounts to other 
Head Start agencies within the State.

Sec. 9. Centers of Excellence in Early Childhood

    Establishes a new section 641B, creating a new competitive 
grant program for the Secretary to recognize up to 200 
exemplary Head Start agencies as Centers of Excellence in Early 
Childhood, under a separate authorization of appropriations. 
Subject to available funds, exemplary centers will receive 
grants to model and disseminate best practices for achieving 
early academic success and for promoting seamless service 
delivery for eligible children and their families. Grants may 
also be used to provide services to additional eligible 
children, better meet the needs of working families, further 
coordinate early childhood and social services for at-risk 
children, provide training and cross-training for Head Start 
teachers and staff, provide effective transitions between Head 
Start and elementary school, develop partnerships with 
institutions of higher education, and carry out other 
activities. There are authorized to be appropriated $90 million 
to award bonus grants under this section, including an 
additional $4.5 million for related administrative costs and 
research activities.

Sec. 10. Powers and functions of Head Start agencies

    Section 642 is amended to specify conditions for 
designation as a Head Start agency, which include authority 
under a charter or applicable law to receive and administer 
funds and contributions from private or local public sources to 
be used in support of a Head Start program. Agencies must also 
be empowered to transfer funds and delegate powers of its 
governing board and its overall program responsibilities. 
Delegate agencies must establish a policy committee comprised 
of members of the community to be served, including parents.
    Section 642(b) stipulates additional requirements for 
designation as a Head Start agency. Head Start agencies are 
also required to provide a family needs assessment, provide for 
the regular participation of parents, perform community 
outreach to encourage volunteers for the Head Start program, 
inform single parents who participate in programs and 
activities about the availability of child support services for 
purposes of establishing paternity and acquiring child support, 
refer eligible parents to the child support offices of State 
and local governments, and provide parents of limited English 
proficient children outreach and information in an 
understandable format.
    Head Start agencies will work with local educational 
agencies and elementary schools to discuss strategies and 
options and to ensure a smooth elementary school transition for 
Head Start children. Head Start agencies will also collaborate 
with local educational agencies on shared use of transportation 
and facilities and to reduce duplication of services while 
increasing participation of underserved populations of eligible 
children.
    To promote parental involvement, this section requires Head 
Start agencies to conduct training to inform parents of rights 
and responsibilities regarding their children's education and 
support active involvement of parents with schools.
    Section 642(e) requires Head Start agencies to enroll 100 
percent of its funded enrollment and maintain an active waiting 
list.
    Section 642(f) requires each Head Start agency to develop 
an annual technical assistance and training plan.

Sec. 11. Head Start transition

    Section 642A is amended to require Head Start agencies to 
coordinate with local educational agencies and schools in which 
Head Start children will enroll to: develop records 
transferring procedures; establish communication channels 
between Head Start staff and school counterparts to facilitate 
program coordination; develop curricula continuity for 
transition and shared expectations purposes; conduct parent--
teacher meetings; run transition training of school staff and 
Head Start staff; develop family outreach and support programs 
considering LEP families; enhance educational and developmental 
continuity and continuity of parental involvement; help parents 
understand the importance of parental involvement in a child's 
academic success; develop system to increase participation of 
underserved eligible children in program, and; coordination and 
collaboration of development of Head Start curricula's 
alignment with State early learning standards, as appropriate.

Sec. 12. Submission of plans to Governors

    Section 643 is amended to require approval from a State 
Governor of a proposed Head Start plan for a contract, 
agreement, grant or other assistance before an agency may carry 
out a Head Start program in the State. Governor approval is not 
required for Indian, Migrant, or Seasonal Head Start programs.

Sec. 13. Costs of developing and administering a program

    Section 644(b) is amended to permit up to 10 Head Start 
agencies to expend an amount in excess of allowable direct 
costs associated with developing and administering a program, 
provided that the agency submits an assurance that they will 
serve a greater percentage of children in the community 
involved than was previously served without diminishing 
services provided to currently enrolled children, and any such 
excess amount does not exceed 5 percent of the total costs of 
the program. Such applicant must also accomplish 3 of 5 
improved outcomes related to Head Start programs.

Sec. 14. Participation in Head Start programs

    Section 645 is amended to prescribe eligibility to children 
from low-income families for Head Start services if their 
family's income is below 130 percent of the poverty line, and 
to deem homeless children eligible for Head Start services. 
Head Start agencies are required to serve children at 100 
percent of the poverty level first.
    This section is also amended to clarify that special pay or 
housing for any member of the uniformed services shall not be 
considered to be income for the purposes of determining 
eligibility for Head Start services.
    Section 645 is amended to permit Head Start agencies to 
apply to the Secretary to convert part-day sessions into full-
day sessions, or to use grant funds to serve additional infants 
and toddlers consistent with the Early Head Start rules, 
regulations, and standards, subject to the communitywide needs 
assessment.

Sec. 15. Early Head Start programs

    Section 645A is amended by requiring Head Start agencies to 
provide additional services to parents to support their role as 
parents, including home-based services and family support 
services. This Section also requires that Early Head Start 
agencies develop a transitioning process for children and 
parents from Early Head Start to Head Start or other local 
early childhood education programs as well as establish 
communication channels between Early Head Start and Head Start 
staffs to coordinate programs.
    This section also defines ``eligible Head Start providers'' 
as tribal governments, migrant and seasonal Head Start 
programs, as well as community-based organizations that meet 
program standards.
    Section 645A is amended to include new staff 
qualifications, including requirements that Center-based 
teachers providing direct services to Early Head Start children 
and families have a minimum of a CDA or an AA and training in 
early childhood development by September 30, 2012. It also 
directs the Secretary to develop training and qualification 
standards for home visitor staff.

Sec. 16. Appeals, notice, hearing and records and audits

    Section 646(a) is amended to include timelines and 
procedures for termination, reduction or suspension of 
financial assistance, including clarified terms for filing an 
appeal and for a full and fair hearing of such appeal.
    Section 647(a) is amended by changing ``each recipient'' to 
``each Head Start agency.'' It requires each center receiving 
financial assistance to maintain and submit a complete 
accounting of their administrative expenses including salaries 
and compensation annually to the Secretary.

Sec. 17. Technical assistance and training

    Section 648 is amended to make available funds to support a 
State system of training and technical assistance related to 
early childhood care and education for Head Start agencies. It 
requires the Secretary to ensure that such training and 
technical assistance is provided by agencies with demonstrated 
expertise in improving the delivery of Head Start services, and 
encourages the states to supplement funds provided under this 
act for such purposes.
    This section further clarifies instructions for the 
Secretary in allocating resources for technical assistance and 
training, and adds new priorities to such activities, including 
local literacy training.

Sec. 18. Staff qualifications and development

    Section 648A is amended to establish new staff 
qualification goals for Head Start programs, to ensure that all 
teachers nationwide in center-based programs have at least an 
associate degree in early childhood education (or equivalent 
coursework) by 2012, and to ensure that all Head Start 
curriculum specialists and education have a baccalaureate or 
advanced degree in early childhood education (or equivalent 
coursework) by 2010. This section also includes a goal to 
ensure that all Head Start teaching assistants have at least a 
child development associate credential by 2010, and that half 
of all Head Start teachers in each State have a baccalaureate 
degree in early childhood education (or equivalent coursework) 
by 2013. All Head Start teachers shall also attend not less 
than 15 hours of professional development per year.
    The Secretary shall document progress toward these goals, 
including increasing percentages of Head Start staff making 
progress toward these goals, and compile and submit a summary 
of such reports to Congress.
    This section also includes service requirements for 
individuals who receive financial assistance under this act to 
pursue an advanced degree, as well as requires each Head Start 
agency to create and maintain a professional development plan 
for employees providing direct services to children.

Sec. 19. Tribal colleges or university Head Start partnership program

    Section 648B includes a new authorized discretionary grant 
program of the Secretary to award 5-year grants to Tribal 
colleges and universities to promote school readiness in Indian 
children by implementing tribal culture and language programs 
and increasing the number of degrees in early childhood 
education and related fields among Indian Head Start agency 
staff members, parents of Head Start children, and members of 
the tribal community involved in Indian Head Start.
    Grants under this section may be used for technology 
literacy programs for those served by and associated with 
Indian Head Start. The Secretary will ensure that the Indian 
Head Start Bureau is sufficiently staffed to administer the 
programs in this section and to provide enough technical 
assistance to the colleges and universities receiving grants. 
To receive grants, tribal colleges and universities must submit 
applications to the Secretary for consideration. This section 
authorizes $10 million to carry out this program for fiscal 
year 2008, and such sums as may be necessary for each fiscal 
year 2009-12.

Sec. 20. Research, demonstrations, and evaluation

    Section 649 is amended to direct the Secretary to identify 
successful strategies that promote good oral health and quality 
dental services for children participating in Head Start and 
Early Head Start programs. The Secretary shall also consider 
children who are abused or neglected when developing, testing 
and disseminating new ideas for addressing the needs of low-
income children in Head Start programs.
    Section 649 is further amended to require a review and 
update of assessments, standards, and measures used in Head 
Start programs by the Panel on Developmental Outcomes and 
Assessments for Young Children of the National Academy of 
Sciences. In developing or refining any assessment in Head 
Start, the Secretary shall ensure consistency with nationally 
recognizes professional and technical standards, validity and 
reliability for all purposes for which assessments are used, 
development and linguistic appropriateness of such assessments, 
and use of such assessments to improve the quality of Head 
Start programs.
    Section 649 suspends implementation and terminates further 
development and use of the National Reporting System by the 
Secretary, and prohibits the use of any assessment to rank, 
compare, or otherwise evaluate individual children or teachers 
in Head Start programs, or to provide rewards or sanctions for 
children or teachers.
    This section is further amended to direct the Secretary to 
study the status of limited English proficient children and 
families in Head Start and Early Head Start programs.

Sec. 20. Reports

    Section 650(a) is amended so that the Secretary will also 
consider homeless children and children in foster care in 
reports concerning the status of children.

Sec. 22. Comparability of wages

    Section 653 is amended to direct that no Federal funds 
shall be used to compensate an individual employed by Head 
Start in an amount that exceeds the salary of the Secretary.

Sec. 23. Limitation with respect to certain unlawful activities

    Section 655 is amended to forbid participation in civil 
disturbance, rioting, or unlawful demonstration by individuals 
in Head Start agencies.

Sec. 24. Political activities

    Section 656 is amended to prohibit the participation of any 
Head Start employee, while working on behalf of a Head Start 
program, to engage in any political activity associated with a 
candidate or contending faction in an election, as well as any 
activity to provide transportation to voting polls.

Sec. 25. Parental consent requirement for health services

    A new Section 657A is added to require written parental 
consent before administration or referral of any health care 
services or procedures, including non-emergency intrusive 
physical examination of a child in connection with 
participation in a program. The section also provides for 
definition of the term ``nonemergency intrusive physical 
examination''.
    This section does not prohibit agencies from using 
established methods for handling suspected or known cases of 
child abuse and neglect that comply with Federal, State or 
tribal law.

                      IX. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (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

           *       *       *       *       *       *       *


[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 the school 
readiness of low-income children by enhancing their cognitive 
and social development--
          (1) with a learning environment that supports 
        cognitive development (including the growth of 
        language, pre-literacy, and premathematics skills) and 
        the growth of social, emotional, and physical skills; 
        and
          (2) 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) * * *

           *       *       *       *       *       *       *

          (2) The term ``delegate agency'' means a public, 
        private nonprofit (including a community-based 
        organization, as defined in section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801)), or for-profit organization or agency to 
        which a grantee has delegated all or part of the 
        responsibility of the grantee for operating a Head 
        Start program.
          (3) * * *
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Parent literacy, including financial 
                literacy, training that leads to economic self-
                sufficiency.
                  (D) * * *
          (4) * * *

           *       *       *       *       *       *       *

          (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. [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)(ii) 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 ``deficiency'' means--
                  (A) a systemic or substantial material 
                failure of an agency in an area of performance 
                that the Secretary determines involves--
                          (i) a threat to the health, safety, 
                        or civil rights of children or staff;
                          (ii) a denial to parents of the 
                        exercise of their full roles and 
                        responsibilities related to program 
                        operations;
                          (iii) a failure to comply with 
                        standards related to early childhood 
                        development and health services, family 
                        and community partnerships, or program 
                        design and management;
                          (iv) the misuse of funds under this 
                        subchapter;
                          (v) loss of legal status or financial 
                        viability, loss of permits, debarment 
                        from receiving Federal grants or 
                        contracts, or the improper use of 
                        Federal funds; or
                          (vi) failure to meet any other 
                        Federal or State requirement that the 
                        agency has shown an unwillingness or 
                        inability to correct, after notice from 
                        the Secretary, within the period 
                        specified;
                  (B) systemic failure of the board of 
                directors of an agency to fully exercise its 
                legal and fiduciary responsibilities;
                  (C) substantial failure of an agency to meet 
                the administrative requirements of section 
                644(b);
                  (D) failure of an agency to demonstrate that 
                the agency attempted to meet the coordination 
                and collaboration requirements with entities 
                described in section 640(a)(5)(D)(ii)(I); or
                  (E) having an unresolved area of 
                noncompliance.
          (19) The term ``homeless child'' means a child 
        described in section 725(2) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a(2)).
          (20) The term ``institution of higher education'' has 
        the meaning given the term in section 101(a) of the 
        Higher Education Act of 1965 (20 U.S.C. 1001(a)).
          (21) The term ``interrater reliability'' means the 
        extent to which 2 or more independent raters or 
        observers consistently obtain the same result when 
        using the same assessment tool.
          (22) The term ``limited English proficient'', used 
        with respect to a child, means a child--
                  (A) who is enrolled or preparing to enroll in 
                a Head Start program, Early Head Start program, 
                or other early care and education program;
                  (B)(i) who was not born in the United States 
                or whose native language is a language other 
                than English;
                  (ii)(I) who is a Native American, Alaska 
                Native, or a native resident of an outlying 
                area (as defined in section 9101 of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801)); and
                  (II) who comes from an environment where a 
                language other than English has had a 
                significant impact on the child's level of 
                English language proficiency; or
                  (iii) who is migratory, whose native language 
                is a language other than English, and who comes 
                from an environment where a language other than 
                English is dominant; and
                  (C) whose difficulties in speaking or 
                understanding the English language may be 
                sufficient to deny such child--
                          (i) the ability to successfully 
                        achieve in a classroom in which the 
                        language of instruction is English; or
                          (ii) the opportunity to participate 
                        fully in society.
          (23) The term ``unresolved area of noncompliance'' 
        means failure to correct a noncompliance item within 
        120 days, or within such additional time (if any) 
        authorized by the Secretary, after receiving from the 
        Secretary notice of such noncompliance item, pursuant 
        to section 641A(d).

           *       *       *       *       *       *       *


              FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS

    Sec. 638. The Secretary may, upon application by an agency 
which is eligible for designation as a Head Start agency 
pursuant to section 641, provide financial assistance to such 
agency for a period of 5 years for the planning, conduct, 
administration, and evaluation of a Head Start program focused 
primarily upon the children from low-income families who have 
not reached the age of compulsory school attendance which (1) 
will provide such comprehensive health, education, parental 
involvement, nutritional, social, and other services as will 
enable the children to attain their full potential and attain 
school readiness; and (2) will provide for direct participation 
of the parents of such children in the development, conduct, 
and overall program direction at the local level.

           *       *       *       *       *       *       *


                    [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. AUTHORIZATLON OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
for carrying out the provisions of this subchapter 
$7,350,000,000 for fiscal year 2008, $7,650,000,000 for fiscal 
year 2009, $7,995,000,000 for fiscal year 2010, and such sums 
as may be necessary for each of fiscal years 2011 and 2012.
    (b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available to carry out 
research, demonstration, and evaluation activities, including 
longitudinal studies under section 649, not more than 
$20,000,000 for fiscal year 2008, and such sums as may be 
necessary for each of fiscal years 2009 through 2012, of which 
not more than $7,000,000 for each of fiscal years 2008 through 
2012 shall be available to carry out impact studies under 
section 649(g).

           *       *       *       *       *       *       *


             ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE

    Sec. 640. (a)(1) * * *
          (2) * * *
          [(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;]
          (A) Indian Head Start programs, services for children 
        with disabilities, and migrant and seasonal Head Start 
        programs, except that the Secretary shall reserve for 
        each fiscal year for use by Indian Head Start and 
        migrant and seasonal Head Start programs (referred to 
        in this paragraph as ``covered programs''), on a 
        nationwide basis, a sum that is the total of a 
        percentage specified by the Secretary that is not less 
        than 4 percent of the amount appropriated under section 
        639 for that fiscal year (for Indian Head Start 
        programs) and a percentage specified by the Secretary 
        that is not less than 5 percent of that appropriated 
        amount (for migrant and seasonal Head Start programs) 
        (referred to in this paragraph as the ``specified 
        percentages''), except that--
                  (i) if reserving the specified percentages 
                would reduce the number of children served by 
                Head Start programs, relative to the number of 
                children served on the date of enactment of the 
                Head Start for School Readiness Act, taking 
                into consideration an appropriate adjustment 
                for inflation, the Secretary shall reserve 
                percentages that approach, as closely as 
                practicable, the specified percentages and that 
                do not cause such a reduction; and
                  (ii) notwithstanding any other provision of 
                this subparagraph, the Secretary shall reserve 
                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 the previous 
                fiscal year;
          (B) * * *
                  (i) * * *

           *       *       *       *       *       *       *

          [(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);]
          (C) training and technical assistance activities that 
        are sufficient to meet the needs associated with 
        program expansion and to foster program and management 
        improvement activities as described in any of 
        paragraphs (1) through (17) of section 648(d), in an 
        amount for each fiscal year that is not less than 2 
        percent of the amount appropriated under section 639 
        for such fiscal year, of which--
                  (i) 50 percent shall be made available to 
                Head Start agencies to use directly, or by 
                establishing local or regional agreements with 
                community experts, institutions of higher 
                education, or private consultants, for any of 
                the following training and technical assistance 
                activities, including--
                          (I) activities that ensure that Head 
                        Start programs meet or exceed the 
                        program performance standards described 
                        in section 641A(a)(1);
                          (II) activities that ensure that Head 
                        Start programs have adequate numbers of 
                        trained, qualified staff who have 
                        skills in working with children and 
                        families, including children and 
                        families who are limited English 
                        proficient and children with 
                        disabilities;
                          (III) activities to pay expenses, 
                        including direct training for expert 
                        consultants working with any staff, to 
                        improve the management and 
                        implementation of Head Start services 
                        and systems;
                          (IV) activities that help ensure that 
                        Head Start programs have qualified 
                        staff who can promote language skills 
                        and literacy growth of children and who 
                        can provide children with a variety of 
                        skills that have been identified as 
                        predictive of later reading 
                        achievement, school success, and the 
                        skills, knowledge, abilities, 
                        development, and progress described in 
                        section 641A(a)(1)(B)(ii);
                          (V) activities to improve staff 
                        qualifications and to assist with the 
                        implementation of career development 
                        programs and to encourage the staff to 
                        continually improve their skills and 
                        expertise, including developing 
                        partnerships with programs that 
                        recruit, train, place, and support 
                        college students in Head Start centers 
                        to deliver an innovative early learning 
                        program to preschool children;
                          (VI) activities that help local 
                        programs ensure that the arrangement, 
                        condition, and implementation of the 
                        learning environments in Head Start 
                        programs are conducive to providing 
                        effective program services to children 
                        and families;
                          (VII) activities to provide training 
                        necessary to improve the qualifications 
                        of Head Start staff and to support 
                        staff training, child counseling, 
                        health services, and other services 
                        necessary to address the needs of 
                        children enrolled in Head Start 
                        programs, including children from 
                        families in crises, children who 
                        experience chronic violence or 
                        homelessness, children who experience 
                        substance abuse in their families, and 
                        children under 3 years of age, where 
                        applicable;
                          (VIII) activities to provide classes 
                        or in-service-type programs to improve 
                        or enhance parenting skills, job 
                        skills, adult and family literacy, 
                        including financial literacy, or 
                        training to become a classroom aide or 
                        bus driver in a Head Start program;
                          (IX) additional activities determined 
                        appropriate for the improvement of Head 
                        Start agencies' programs, as determined 
                        by the agencies' technical assistance 
                        and training plans; or
                          (X) any other activities regarding 
                        the use of funds as determined by the 
                        Secretary;
                  (ii) 50 percent shall be made available to 
                the Secretary--
                          (I) to provide directly training and 
                        technical assistance on early childhood 
                        education and care or to support, 
                        through grants or other arrangements, a 
                        State system of training and technical 
                        assistance (which may include such a 
                        system for a consortium of States 
                        within a region); and
                          (II) to assist local programs 
                        (including Indian Head Start programs 
                        and migrant and seasonal Head Start 
                        programs) in meeting the standards 
                        described in section 641A(a)(1); and
                  (iii) not less than $3,000,000 of the amount 
                in clause
                (ii) appropriated for such fiscal year shall be 
                made available to carry out activities 
                described in section 648(d)(4);
          (D) discretionary payments made by the Secretary 
        (including payments for all costs (other than 
        compensation of Federal employees) of reviews of Head 
        Start agencies and programs under section 641A(c), and 
        of activities carried out under paragraph (1), (2), or 
        (3) of section 641A(d) related to correcting 
        deficiencies and conducting proceedings to terminate 
        the designation of Head Start [agencies;] (agencies); 
        and

           *       *       *       *       *       *       *

        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. In no case shall the Secretary use funds 
        appropriated under this subchapter to expand or create 
        additional slots or services in non-Indian and non-
        migrant and seasonal Head Start programs until the 
        amounts based on the specified percentages for Indian 
        Head Start programs and migrant and seasonal Head Start 
        programs pursuant to subparagraph (A) are reached. The 
        Secretary shall require each Head Start agency to 
        report at the end of each budget year on how funds 
        provided to carry out subparagraph (C)(i) were used.
          (3)(A)(i) * * *
                  (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;] 30 percent of such excess 
                amount for fiscal year 2008, and 40 percent of 
                such excess amount for each of fiscal years 
                2009 through 2012; and
                  (II) * * *
          (ii) * * *
          (B) * * *
                  (i) Ensuring that Head Start programs meet or 
                exceed [performance standards pursuant to 
                section 641A(a)(1)(A).] standards and measures 
                pursuant to section 641A.
                  [(ii) Ensuring that such programs have 
                adequate numbers of qualified staff, and that 
                such staff is furnished adequate training, 
                including developing skills in working with 
                children, with non-English language background 
                and children with disabilities, when 
                appropriate.]
                  (ii) Ensuring that such programs have 
                adequate numbers of qualified staff, and that 
                such staff is furnished adequate training, 
                including training to promote the development 
                of language, premathematics, and pre-literacy 
                skills in young children and in working with 
                limited English proficient children, children 
                in foster care, children referred by child 
                welfare services, and children with 
                disabilities, when appropriate.
                  [(iii) Ensuring that salary levels and 
                benefits are adequate to attract and retain 
                qualified staff for such programs.]
                  (iii) Developing and financing the salary 
                scales and benefits standards 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 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.]
                  (iv) Using salary increases to--
                          (I) assist with the implementation of 
                        quality programs and improve staff 
                        qualifications;
                          (II) ensure that staff can promote 
                        the language skills and literacy growth 
                        of children and can provide children 
                        with a variety of skills that have been 
                        identified, through scientifically 
                        based early reading research, as 
                        predictive of later reading 
                        achievement, as well as the skills, 
                        knowledge, abilities, development, and 
                        progress described in section 
                        641A(a)(1)(B)(ii); and
                          (III) encourage the staff to 
                        continually improve their skills and 
                        expertise--
                                  (aa) through the 
                                implementation of career 
                                development programs; and
                                  (bb) through the completion 
                                of postsecondary coursework in 
                                early childhood education.
                  (v) Improving [community-wide] communitywide 
                strategic planning and needs assessments for 
                such programs, including collaborations to 
                increase program participation by underserved 
                populations of eligible children
                  (vi) * * *
                  [(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.]
                  (vii) Providing assistance to complete 
                postsecondary coursework, to enable Head Start 
                teachers to improve competencies and the 
                resulting child outcomes, including informing 
                the teachers of the availability of Federal and 
                State incentive and loan forgiveness programs.
                  (viii) Promoting the regular attendance and 
                stability of all Head Start children with 
                particular attention to highly mobile children, 
                including children of migrant or seasonal 
                farmworkers families (where appropriate), 
                homeless children, and children in foster care.
                  (ix) Making such other improvements in the 
                quality of such programs as the Secretary may 
                designate.
                  (C) Quality improvements 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 648(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.] 
                        Salary increases, in excess of cost-of-
                        living allowances, provided with such 
                        funds shall be subject to the specific 
                        standards governing salaries and salary 
                        increases established pursuant to 
                        section 644(a).
                          (II) * * *

           *       *       *       *       *       *       *

                          (ii) To train classroom teachers and 
                        other staff to meet the [education 
                        performance standards described in 
                        section 641(a)(1)B)] standards and 
                        measures described in section 641A, 
                        through activities--
                                  (I) to promote children's 
                                language, pre-literacy, 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;]
                                  (II) to help limited English 
                                proficient children attain the 
                                knowledge, skills, abilities, 
                                and development specified in 
                                section 641A(a)(1)(B)(ii) and 
                                to promote the acquisition of 
                                the English language by such 
                                children and families;
                                  (III) * * *
                                  [(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.]
                                  (IV) to provide education and 
                                training necessary to improve 
                                the qualifications of Head 
                                Start staff, particularly 
                                assistance to enable more 
                                instructors to be fully 
                                competent and 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 
                                challenges of children 
                                participating in Head Start 
                                programs, including children 
                                from immigrant, refugee, and 
                                asylee families, children from 
                                families in crisis, homeless 
                                children, children in foster 
                                care, children referred to Head 
                                Start programs by child welfare 
                                agencies, and children who are 
                                exposed to chronic violence or 
                                substance abuse.
                          (iii) To employ additional Head Start 
                        staff, including staff necessary to 
                        reduce the child-staff ratio, 
                        educational staff who have the 
                        qualifications described in section 
                        648(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) * * *
                          (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.] programs.
                          (vi) To conduct outreach to homeless 
                        families in an effort to increase the 
                        program participation of eligible 
                        homeless children.
                          (vii) To conduct outreach to migrant 
                        and seasonal farmworking families and 
                        families with limited English 
                        proficient children.
                          (viii) To partner with institutions 
                        of higher education and nonprofit 
                        organizations, including community-
                        based organizations, that recruit, 
                        train, place, and support college 
                        students, to serve as mentors and 
                        reading partners to preschool children 
                        in Head Start programs.
                          (ix) To upgrade the qualifications 
                        and skills of educational personnel to 
                        meet the professional standards 
                        described in section 648A(a)(1), 
                        including certification and licensure 
                        as bilingual education teachers, 
                        teachers of English as a second 
                        language, and for other educational 
                        personnel who serve limited English 
                        proficient children.
                          [(vi)] (x) Such other activities as 
                        the Secretary may designate.
                  (D)(i) Funds reserved under subparagraph (A) 
                shall be allotted by the Secretary as follows:
                          (I) * * *

           *       *       *       *       *       *       *

                  (ii) * * *

           *       *       *       *       *       *       *

          (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] 2007; and
                  [(B) any amount available after all 
                allotments are made under subparagraph (A) for 
                such fiscal year shall be distributed 
                proportionately on the basis of the number of 
                children less than 5 years of age from families 
                whose income is below the poverty line.]
                  (B) any amount available after all allotments 
                are made under subparagraph (A) for such fiscal 
                year shall be distributed as follows:
                          (i) Each State shall receive an 
                        amount sufficient to serve the same 
                        number of children in Head Start 
                        programs in each State as were served 
                        on the date of enactment of the Head 
                        Start for School Readiness Act, taking 
                        into consideration an appropriate 
                        adjustment for inflation.
                          (ii) After ensuring that each State 
                        has received the amount described in 
                        clause (i), the Secretary shall 
                        distribute the remaining balance, by--
                                  (I) distributing 65 percent 
                                of the balance among the States 
                                serving less than 60 percent 
                                (as determined by the 
                                Secretary) of children who are 
                                3 or 4 years of age from 
                                families whose income is below 
                                the poverty line, by allotting 
                                to each of those States an 
                                amount that bears the same 
                                relationship to that 65 percent 
                                as the number of children who 
                                are less than 5 years of age 
                                from families whose income is 
                                below the poverty line 
                                (referred to in this clause as 
                                ``young low-income children'') 
                                in that State bears to the 
                                number of young low-income 
                                children in all those States; 
                                and
                                  (II) distributing 35 percent 
                                of the balance among the 
                                States, by allotting to each 
                                State an amount that bears the 
                                same relationship to that 35 
                                percent as the number of young 
                                low-income children in that 
                                State bears to the number of 
                                young low-income children in 
                                all the States.

           *       *       *       *       *       *       *

          (5)(A) From amounts reserved and allotted pursuant to 
        paragraph (4) (and amounts reserved, before such 
        allotments, for national administrative offices), the 
        Secretary shall reserve such sums as may be necessary 
        to award the collaboration grants described in 
        subparagraphs (B) and (D).
          [(B) From the reserved sums, the Secretary may award 
        a collaboration grant to each State in facilitate 
        collaboration regarding 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-
                1444, 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).
          [(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) develop 
                statewide, regional, or local unified plans for 
                early childhood education and child care that 
                include the participation of Head Start 
                agencies; and
                  [(ii) to States that engage in other 
                innovative collaborative initiatives, including 
                plans for collaborative training and 
                professional development initiatives for child 
                care, early childhood education and Head Start 
                service managers, providers, and staff.]
          (B)(i) From the reserved sums, the Secretary shall 
        award a collaboration grant to each State and to each 
        national administrative office serving Indian Head 
        Start programs and migrant and seasonal Head Start 
        programs to facilitate collaboration between Head Start 
        agencies and entities (including the State or national 
        administrative office) that carry out other activities 
        designed to benefit low-income families and children 
        from birth to school entry. The national administrative 
        offices shall use the funds made available through the 
        grants to carry out the authorities and 
        responsibilities described in subparagraphs (B) and 
        (C).
          (ii) Grants described in clause (i) shall be used 
        to--
                  (I) assist Head Start agencies to collaborate 
                with entities involved in State and local 
                planning processes to better meet the needs of 
                low-income families and children from birth to 
                school entry;
                  (II) assist Head Start agencies to coordinate 
                activities 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 
                entities providing resource and referral 
                services in the State, to make full-working-day 
                and full calendar year services available to 
                children;
                  (III) promote alignment of Head Start 
                services with State early learning standards, 
                as appropriate, and the Head Start Child 
                Outcomes Framework;
                  (IV) promote better linkages between Head 
                Start agencies and other child and family 
                agencies, including agencies that provide 
                health, mental health, or family services, or 
                other child or family supportive services, such 
                as services provided under section 619 or part 
                C of the Individuals with Disabilities 
                Education Act (20 U.S.C. 1419, 1431 et seq.); 
                and
                  (V) carry out the activities of the State 
                Director of Head Start Collaboration authorized 
                in subparagraph (D).
          (C) In order to improve coordination and delivery of 
        early childhood education and care to children in the 
        State, a State that receives a collaboration grant 
        under subparagraph (B) shall--
                  (i) appoint or designate an individual to 
                serve as, or carry out the responsibilities of, 
                the State Director of Head Start Collaboration;
                  (ii) ensure that the State Director of Head 
                Start 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; and
                  (iii) involve the State Head Start 
                Association in the selection of the Director 
                and involve the Association in determinations 
                relating to the ongoing direction of the 
                collaboration office.
          (D) The State Director of Head Start Collaboration, 
        reporting to the State Advisory Council described in 
        subparagraph (E), shall--
                  (i) not later than 1 year after the State 
                receives a collaboration grant under 
                subparagraph (B), conduct an assessment that--
                          (I) addresses the needs of Head Start 
                        agencies in the State with respect to 
                        collaboration, coordination of 
                        services, and alignment of services 
                        with State early learning standards, as 
                        appropriate, and the Head Start Child 
                        Outcomes Framework;
                          (II) shall be updated on an annual 
                        basis; and
                          (III) shall be made available to the 
                        general public within the State;
                  (ii) develop a strategic plan that is based 
                on the assessment described in clause (i) that 
                will--
                          (I) enhance collaboration and 
                        coordination of Head Start services 
                        with other entities providing early 
                        childhood education and care (such as 
                        child care or services offered by 
                        museums), health care, mental health 
                        care, welfare, child protective 
                        services, education and community 
                        service activities, family literacy 
                        services, reading readiness programs 
                        (including such programs offered by 
                        public and school libraries), services 
                        relating to children with disabilities, 
                        other early childhood education and 
                        care for limited English proficient 
                        children and homeless children, and 
                        services provided for children in 
                        foster care and children referred to 
                        Head Start programs by child welfare 
                        agencies, including agencies and State 
                        officials responsible for such 
                        services;
                          (II) assist Head Start agencies to 
                        develop a plan for the provision of 
                        full-working-day, full calendar year 
                        services for children enrolled in Head 
                        Start programs who need such care;
                          (III) assist Head Start agencies to 
                        align services with State early 
                        learning standards, as appropriate, and 
                        the Head Start Child Outcomes 
                        Framework; and
                          (IV) enable Head Start agencies in 
                        the State to better access professional 
                        development opportunities for Head 
                        Start staff, such as by--
                                  (aa) working with local Head 
                                Start agencies to meet the 
                                degree requirements described 
                                in section 648A(a)(2)(A), 
                                including providing distance 
                                learning opportunities for Head 
                                Start staff, where needed to 
                                make higher education more 
                                accessible to Head Start staff; 
                                and
                                  (bb) enabling the State Head 
                                Start agencies to better 
                                conduct outreach to eligible 
                                families;
                  (iii) promote partnerships between Head Start 
                agencies, State and local governments, and the 
                private sector to help ensure that children 
                from low-income families, who are in Head Start 
                programs or are preschool age, are receiving 
                comprehensive services to prepare the children 
                to enter school ready to learn;
                  (iv) consult with the chief State school 
                officer, local educational agencies, and 
                providers of early childhood education and 
                care, regarding early childhood education and 
                care at both the State and local levels;
                  (v) promote partnerships (such as the 
                partnerships involved with the Free to Grow 
                initiative) between Head Start agencies, 
                schools, law enforcement, relevant community-
                based organizations, and substance abuse and 
                mental health treatment agencies to strengthen 
                family and community environments and to reduce 
                the impact on child development of substance 
                abuse, child abuse, domestic violence, and 
                other high risk behaviors that compromise 
                healthy development;
                  (vi) promote partnerships between Head Start 
                agencies and other organizations in order to 
                enhance the Head Start curriculum, including 
                partnerships to promote inclusion of more books 
                in Head Start classrooms and partnerships to 
                promote coordination of activities with the 
                Ready-to-Learn Television program carried out 
                under subpart 3 of part D of title II of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6775 et seq.); and
                  (vii) identify other resources and 
                organizations (both public and private) for the 
                provision of in-kind services to Head Start 
                agencies in the State.
          (E)(i) The Governor of the State shall--
                  (I) designate or establish a council to serve 
                as the State advisory council on collaboration 
                on early childhood education and care for 
                children from birth to school entry (in this 
                subchapter referred to as the ``State Advisory 
                Council''); and
                  (II) designate an individual to coordinate 
                activities of the State Advisory Council, as 
                described in clause (iv)(I).
          (ii) The Governor may designate an existing entity to 
        serve as the State Advisory Council, if the entity 
        includes representatives consistent with clause (iii).
          (iii) Members of the State Advisory Council shall 
        include, to the maximum extent possible--
                  (I) the State Director of Head Start 
                Collaboration;
                  (II) a representative of the appropriate 
                regional office of the Administration for 
                Children and Families;
                  (III) a representative of the State 
                educational agency and local educational 
                agencies;
                  (IV) a representative of institutions of 
                higher education;
                  (V) a representative (or representatives) of 
                the State agency (or agencies) responsible for 
                health or mental health care;
                  (VI) a representative of the State agency 
                responsible for professional standards, 
                certification, and licensing for early 
                childhood educators;
                  (VII) a representative of the State agency 
                responsible for child care;
                  (VIII) early childhood educators, including 
                professionals with expertise in second language 
                acquisition and instructional strategies in 
                teaching limited English proficient children;
                  (IX) kindergarten teachers and teachers in 
                grades 1 through 3;
                  (X) health care professionals;
                  (XI) child development specialists, including 
                specialists in prenatal, infant, and toddler 
                development;
                  (XII) a representative of the State agency 
                responsible for assisting children with 
                developmental disabilities;
                  (XIII) a representative of the State agency 
                responsible for programs under section 619 or 
                part C of the Individuals with Disabilities 
                Education Act (20 U.S.C. 1419, 1431 et seq.);
                  (XIV) a representative of the State 
                interagency coordinating councils established 
                under section 641 of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1441);
                  (XV) a representative of the State Head Start 
                Association (where appropriate), and other 
                representatives of Head Start programs in the 
                State;
                  (XVI) a representative of the State network 
                of child care resource and referral agencies;
                  (XVII) a representative of community-based 
                organizations;
                  (XVIII) a representative of State and local 
                providers of early childhood education and 
                child care;
                  (XIX) a representative of Indian Head Start 
                programs (where appropriate) and a 
                representative of migrant and seasonal Head 
                Start programs (where appropriate);
                  (XX) parents;
                  (XXI) religious and business leaders;
                  (XXII) the head of the State library 
                administrative agency;
                  (XXIII) representatives of State and local 
                organizations and other entities providing 
                professional development to early childhood 
                educators and child care providers;
                  (XXIV) a representative from the Office of 
                Coordinator for Education of Homeless Children 
                and Youths in the State;
                  (XXV) a State legislator; and
                  (XXVI) a representative of other entities 
                determined to be relevant by the Governor of 
                the State.
          (iv)(I) The State Advisory Council shall be 
        responsible for, in addition to responsibilities 
        assigned to the council by the Governor of the State--
                  (aa) conducting a periodic statewide needs 
                assessment concerning early education and care 
                for children from birth to school entry;
                  (bb) identifying barriers to, and 
                opportunities for, collaboration and 
                coordination among entities carrying out 
                federally-funded and State-funded child 
                development, child care, and early childhood 
                education programs;
                  (cc) developing recommendations regarding 
                means of establishing a unified data collection 
                system for early childhood education and care 
                throughout the State;
                  (dd) developing a statewide professional 
                development and career ladder plan for early 
                childhood education and care in the State;
                  (ee) reviewing and approving the strategic 
                plan, regarding collaborating and coordinating 
                services to better serve children enrolled in 
                Head Start programs, developed by the State 
                Director of Head Start Collaboration under 
                subparagraph (D)(iii);
                  (ff) assessing the availability of high 
                quality prekindergarten services for low-income 
                children in the State;
                  (gg) assisting 2- and 4-year public and 
                private institutions of higher education to 
                develop articulation agreements;
                  (hh) awarding grants to assist institutions 
                of higher education to develop model programs 
                of early childhood education and care, 
                including practica or internships for students 
                to spend time in a Head Start or 
                prekindergarten program; and
                  (ii) undertaking collaborative efforts to 
                develop, and make recommendations for 
                improvements in, State early learning 
                standards.
          (II) The State Advisory Council shall hold public 
        hearings and provide an opportunity for public comment 
        on the activities described in subclause (I). The State 
        Advisory Council shall submit a statewide strategic 
        report addressing the activities described in subclause 
        (I) to the State Director of Head Start Collaboration 
        and the Governor of the State.
          (III) After submission of a statewide strategic 
        report under subclause (II), the State Advisory Council 
        shall meet periodically to review any implementation of 
        the recommendations in such report and any changes in 
        State and local needs.
          (F)(i)(I) Prior to carrying out paragraph (4), the 
        Secretary shall reserve a portion to carry out this 
        subparagraph for a fiscal year. The Secretary shall 
        reserve the portion from the amount (if any) by which 
        the funds appropriated under section 639(a) for the 
        fiscal year exceed the adjusted prior year 
        appropriation (as defined in paragraph (3)(A)(ii)), 
        without reducing the share available for quality 
        improvement funds described in paragraph (3)(B).
          (II) To the extent consistent with subclause (I), the 
        Secretary shall reserve $100,000,000 for fiscal year 
        2008. Funds reserved under this subclause shall remain 
        available for obligation through fiscal year 2012.
          (ii) The Secretary shall use the portion reserved 
        under clause (i) to award, on a competitive basis, one-
        time startup grants of not less than $500,000 to 
        eligible States to enable such States to pay for the 
        Federal share of the cost of further developing and 
        implementing the recommendations and plans for which 
        the State's State Advisory Council is responsible under 
        subparagraph (E)(iv)(I). Such grants shall--
                  (I) facilitate the development of high-
                quality systems of early childhood education 
                and care and activities designed to improve 
                school preparedness;
                  (II) increase and make effective use of 
                existing and new delivery systems and funds for 
                early childhood education and care; and
                  (III) enhance existing early childhood 
                education and care (in existence on the date on 
                which the grant involved is awarded).
          (iii) To be eligible to receive a grant under this 
        subparagraph, a State shall prepare and submit to the 
        Secretary an application, for a 3-year period, at such 
        time, in such manner, and containing such information 
        as the Secretary shall require, including--
                  (I) a description of the State's State 
                Advisory Council's responsibilities under 
                subparagraph (E)(iv)(I);
                  (II) a description, for each fiscal year, of 
                how the State will make effective use of funds 
                available under this subparagraph, with funds 
                described in clause (iv), to create an early 
                childhood education and care system, by 
                developing or enhancing programs and activities 
                described in subparagraph (E)(iv)(I);
                  (III) a description of the State early 
                learning standards and the State's goals for 
                increasing the number of children entering 
                kindergarten ready to learn;
                  (IV) information identifying the agency or 
                joint interagency office and individual 
                designated to carry out the activities under 
                this subparagraph, which may be the individual 
                designated under subparagraph (E)(i)(II); and
                  (V) a description of how the State plans to 
                sustain activities under this subparagraph 
                beyond the grant period.
          (iv) The Federal share of the cost described in 
        clause (ii) shall be 30 percent, and the State shall 
        provide the non-Federal share.
          (v) Funds made available under this subparagraph 
        shall be used to supplement, and not supplant, other 
        Federal, State, and local funds expended to carry out 
        activities related to early childhood education and 
        care in the State.
          (vi) Not later than 18 months after the date a State 
        receives a grant under this subparagraph, the State 
        shall submit an interim report to the Secretary. A 
        State that receives a grant under this subparagraph 
        shall submit a final report to the Secretary at the end 
        of the grant period.
          [(E)] (G)(i) The Secretary shall--
                  (I) review on an ongoing basis evidence of 
                barriers to effective collaboration between 
                Head Start programs and other Federal, State, 
                and local [child care and early childhood 
                education programs and resources] early 
                childhood education and care programs and 
                resources;
                  (II) * * *

           *       *       *       *       *       *       *

          (ii) In the case of a collaborative activity funded 
        under this subchapter and another provision of law 
        providing for [Federal child care or early childhood 
        education] Federal early childhood education or child 
        care, the use of equipment and nonconsumable supplies 
        purchased with funds made available under this 
        subchapter or such provision shall not be restricted to 
        children enrolled or otherwise participating in the 
        program carried out under that subchapter or provision, 
        during a period in which the activity is predominantly 
        funded under this subchapter or such provision.
          [(F)] (H) As used in this paragraph, the term ``low-
        income'', used with respect to children or families, 
        shall not be considered to refer only to children or 
        families that meet the low-income criteria prescribed 
        pursuant to section 645(a)(1)(A).
          (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).] not 
        less than 12 percent for fiscal year 2008, not less 
        than 14 percent for fiscal year 2009, not less than 16 
        percent for fiscal year 2010, not less than 18 percent 
        for fiscal year 2011, and not less than 20 percent for 
        fiscal year 2012, of the amount appropriated pursuant 
        to section 639(a).
          [(B)(i) If the Secretary does not submit an interim 
        report on the preliminary findings of the Early Head 
        Start impact study currently being conducted by the 
        Secretary (as of the date of enactment of the Head 
        Start Amendments of 1998) to the appropriate committees 
        by June 1, 2001, the amount of the reserved portion for 
        fiscal year 2002 that exceeds the reserved portion for 
        fiscal year 2001, if any, shall be used for quality 
        improvement activities described in section 640(a)(3) 
        and shall not be used to serve an increased number of 
        eligible children under section 645A.
          [(ii) If the Secretary does not submit a final report 
        on the Early Head Start impact study to the appropriate 
        committees by June 1, 2002, or if the Secretary finds 
        in the report that there are substantial deficiencies 
        in the programs carried out under section 645A, the 
        amount of the reserved portion for fiscal year 2003 
        that exceeds the reserved portion for fiscal year 2002, 
        if any, shall be used for quality improvement 
        activities described in section 640(a)(3) and shall not 
        be used to serve an increased number of eligible 
        children under section 645A.
          [(iii) In this subparagraph:
                  [(I) The term ``appropriate committees'' 
                means the Committee on Education and the 
                Workforce and the Committee on Appropriations 
                of the House of Representatives and the 
                Committee on Labor and Human Resources and the 
                Committee on Appropriations of the Senate.
                  [(II) The term ``reserved portion'', used 
                with respect to a fiscal year, means the amount 
                required to be used in accordance with 
                subparagraph (A) for that fiscal year.]
          [(C)] (B)(i) For any fiscal year for which the 
        Secretary determines that the amount appropriated under 
        section 639(a) is not sufficient to permit the 
        Secretary to reserve the portion described in 
        subparagraph (A) without reducing the number of 
        children served by Head Start programs or adversely 
        affecting the quality of Head Start services, relative 
        to the number of children served and the quality of the 
        services during the preceding fiscal year, the 
        Secretary may reduce the percentage of funds [required 
        to be] reserved for the portion described in 
        subparagraph (A) for the fiscal year for which the 
        determination is made, but not below the percentage 
        [required to be] so reserved for the preceding fiscal 
        year.
          (ii) * * *

           *       *       *       *       *       *       *

          (7) For purposes of this subsection, the term 
        ``State'' does not include Guam, American Samoa, the 
        Virgin Islands, the Commonwealth of the Northern 
        Mariana Islands, the Federated States of Micronesia, 
        the Republic of the Marshall Islands, and Palau.
    (b) * * *

           *       *       *       *       *       *       *

    [(f) The] (f)(1) Not later than 1 year after the date of 
enactment of the Head Start for School Readiness Act, the 
Secretary shall establish procedures to enable Head Start 
agencies to develop locally designed or specialized service 
delivery models to address local community [needs.] needs, 
including models that leverage the capacity and capabilities of 
the delivery system of early childhood education and child 
care.
    (2) In establishing the procedures the Secretary shall 
establish procedures to provide for--
          (A) the conversion of part-day programs to full-day 
        programs or part-day slots to full-day slots; and
          (B) serving additional infants and toddlers pursuant 
        to section 645(a)(5).
    (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 
        communitywide strategic planning and needs assessments 
        involving other community organizations and Federal, 
        State, and local 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 individuals, 
        organizations, and public entities serving children 
        with disabilities, children in foster care, and 
        homeless children including the local educational 
        agency liaison designated under section 
        722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii));
          (D) the extent to which the family and [community] 
        communitywide needs assessment of the applicant 
        reflects a need to provide full-working-day or full 
        calendar year services and the extent to which, and 
        manner in which, the applicant demonstrates the ability 
        to collaborate and participate with [other local] the 
        State and local community providers of child care or 
        preschool services to provide full-working-day full 
        calendar year services;
          (E) the numbers of eligible children in each 
        community who would like to participate but are not 
        participating in a Head Start program or any other 
        [early childhood program] early childhood education and 
        care program;
          (F) *  *  *
          (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 (existing as of the date of the 
        allocation decision) 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 local educational agency liaison 
        designated under section 722(g)(1)(J)(ii) of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11432(g)(1)(J)(ii)), 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.
    (3) * * *

           *       *       *       *       *       *       *

    (h) * * *
    [(i)] (i)(1) The Secretary shall issue regulations 
establishing requirements for the safety features, and the safe 
operation, of vehicles used by Head Start agencies to transport 
children participating in Head Start programs. The regulations 
shall also establish requirements to ensure the appropriate 
supervision of, and appropriate background checks for, 
individuals with whom the agencies contract to transport those 
children.
    (2)(A) For purposes of part 1310 of title 45, Code of 
Federal Regulations, as in effect on the date of enactment of 
the Head Start for School Readiness Act, any vehicle in use to 
transport children for a Head Start program as of January 1, 
2007, shall not be subject to a requirement under that part 
regarding rear emergency exit doors for 2 years after that date 
of enactment.
    (B) The Secretary shall revise allowable alternate vehicle 
standards described in that part 1310 (or any corresponding 
similar regulation or ruling) to exempt from Federal seat 
spacing requirements any vehicle used to transport children for 
a Head Start program, if the vehicle is equipped with child 
restraint systems consistent with that part 1310 (or any 
corresponding similar regulation or ruling). Such revision 
shall be made in a manner consistent with the findings of the 
Federal Transit Administration of the Department of 
Transportation, pursuant to its study on occupant protection on 
Head Start transit vehicles, related to Government 
Accountability Office report GAO-06-767R.
    (j) * * *
    (k)(1) * * *

           *       *       *       *       *       *       *

    (l)(1) With funds made available under section 640(a)(2) to 
migrant and seasonal Head Start programs, the Secretary shall 
give priority to migrant and seasonal Head Start programs that 
serve eligible children of migrant [and seasonal farmworker 
families] or seasonal farmworkers whose work requires them to 
relocate most frequently.
    (2) * * *
    [(3) In carrying out this subchapter, the Secretary shall 
continue the administrative arrangement responsible for meeting 
the needs of children of migrant and seasonal farmworkers and 
Indian children and shall ensure that appropriate funding is 
provided to meet such needs.]
    (3) In carrying out this subchapter, the Secretary shall 
continue the administrative arrangement at the national level 
for meeting the needs of Indian children and children of 
migrant and seasonal farmworkers and shall ensure--
          (A) that appropriate funding is provided to meet such 
        needs, including training and technical assistance 
        provided by staff with knowledge of and experience in 
        working with such populations; and
          (B) the appointment of a national Indian Head Start 
        collaboration director and a national migrant and 
        seasonal Head Start program collaboration director.
    (4)(A) For the purposes of paragraph (3), the Secretary 
shall conduct an annual consultation in each affected Head 
Start region, with tribal governments operating Head Start 
(including) Early Head Start programs.
    (B) The consultations shall be for the purpose of better 
meeting the needs of American Indian and Alaska Native children 
and families pertinent to subsection (a)(2)(A), taking into 
consideration funding allocations, distribution formulas, and 
other issues affecting the delivery of Head Start services 
within tribal communities.
    (C) The Secretary shall publish a notification of the 
consultations in the Federal Register prior to conducting the 
consultations.
    (D) A detailed report of each consultation shall be 
prepared and made available, on a timely basis, to all tribal 
governments receiving funds under this subchapter.
    (5)(A) In order to increase access to Head Start services 
for children of migrant and seasonal farmworkers, the Secretary 
shall work in collaboration with providers of migrant and 
seasonal Head Start programs, the Secretary of Agriculture, the 
Secretary of Labor, and the Secretary of Education to--
          (i) collect, report, and share data on farmworkers 
        and their families in order to adequately account for 
        the number of children of migrant or seasonal 
        farmworkers who are eligible for Head Start services 
        and determine how many of such children receive the 
        services; and
          (ii) identify barriers that prevent children of 
        migrant and seasonal farmworkers who are eligible for 
        Head Start services from accessing Head Start services, 
        and develop a plan for eliminating such barriers, 
        including certain requirements relating to tracking, 
        health records, and educational documents.
    (B) Not later than 1 year after the date of enactment of 
the Head Start for School Readiness Act, the Secretary shall 
publish in the Federal Register a notice about how the 
Secretary plans to carry out the activities identified in 
subparagraph (A) and shall provide a period for public comment. 
To the extent practicable, the Secretary shall consider 
comments received before implementing any of the activities 
identified in subparagraph (A).
    (C) Not later than 18 months after the date of enactment of 
the Head Start for School Readiness Act, the Secretary shall 
submit a report to the Committee on Education and Labor of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate detailing how the 
Secretary plans to carry out the activities identified in 
subparagraph (A).
    (D) The Secretary shall take appropriate caution to ensure 
the protection of the confidentiality of any personally 
identifiable data, information, and records collected or 
maintained regarding children and families served by migrant 
and seasonal Head Start programs.
    (E) Nothing in this paragraph shall be construed to 
authorize the development of a nationwide database of 
personally identifiable data, information, or records on 
individuals involved in studies or other collections of data 
under this paragraph.
    (m) Enrollment of Homeless Children.--The Secretary shall 
issue regulations to remove barriers to the enrollment and 
participation of homeless children in Head Start programs. Such 
regulations shall require Head Start agencies to--
          (1) implement policies and procedures to ensure that 
        homeless children are identified and receive 
        appropriate priority for enrollment;
          (2) allow homeless children to apply to, enroll in, 
        and attend Head Start programs while required 
        documents, such as proof of residency, proof of 
        immunization, and other medical records, birth 
        certificates, and other documents, are obtained within 
        a reasonable timeframe; and
          (3) coordinate individual Head Start programs with 
        efforts to implement subtitle B of title VII of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 
        et seq.).
    (n) Rule of Construction.--Nothing in this subchapter shall 
be construed to require a State to establish a program of early 
childhood education and care for children in the State, to 
require any child to participate in a program in order to 
attend preschool, or to participate in any initial screening 
prior to participation in a program of early childhood 
education and care, except as provided under section 612(a)(3) 
of the Individuals with Disabilities Education Act (20 U.S.C. 
1412(a)(3)) and consistent with section 635(a)(5) of such Act 
(20 U.S.C. 1435(a)(5)).
    (o) Curricula.--All curricula funded under this subchapter 
shall be scientifically based, developmentally and 
linguistically based (to the extent practicable), and age 
appropriate. The curricula shall reflect all areas of child 
development and learning. Parents shall have the opportunity to 
examine any such curricula or instructional materials funded 
under this subchapter.

           *       *       *       *       *       *       *


                  [DESIGNATION OF HEAD START AGENCIES

    [Sec. 641. (a) The Secretary is authorized to designate as 
a Head Start agency any local public or private nonprofit or 
for-profit agency, within a community, which (1) 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) 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
    [(b) For purposes of this subchapter, a community may be a 
city, county, or multicity or multicounty unit within a State, 
an Indian reservation (including Indians in any off-reservation 
area designated by an appropriate tribal government in 
consultation with the Secretary), or a neighborhood or other 
area (irrespective of boundaries or political subdivisions) 
which provides a suitable organizational base and possesses the 
commonality of interest needed to operate a Head Start program.
    [(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 
64lA(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. 
        1431-1444, 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.
    [(e) If no agency in the community receives priority 
designation under subsection (c), and there is no qualified 
applicant in the community, the Secretary shall designate a 
qualified agency to carry out the Head Start program in the 
community on an interim basis until a qualified applicant from 
the community is so designated.
    [(f) The Secretary shall require that the practice of 
significantly involving parents and area residents affected by 
the program in selection of Head Start agencies be continued.
    [(g) If the Secretary determines that a nonprofit agency 
and a for-profit agency have submitted applications for 
designation of equivalent quality under subsection (d), the 
Secretary may give priority to the nonprofit agency. In 
selecting from among qualified applicants for designation as a 
Head Start agency under subsection (d), the Secretary shall 
give priority to applicants that have demonstated capacity in 
providing comprehensive early childhood services to children 
and their families.]

SEC. 641. DESIGNATION OF HEAD START AGENCIES.

    (a) Designation.--
          (1) In general.--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 organization 
        that--
                  (A) has power and authority to carry out the 
                purpose of this subchapter and perform the 
                functions set forth in section 642 within a 
                community; and
                  (B) is determined to have the capacity to 
                plan, conduct, administer, and evaluate, either 
                directly or by other arrangements, a Head Start 
                program.
          (2) Required goals for designation.--In order to be 
        designated as a Head Start agency, an entity described 
        in paragraph (1) shall--
                  (A) establish program goals for improving the 
                school readiness of children participating in a 
                program under this subchapter, including goals 
                for meeting the performance standards and 
                additional educational standards described in 
                section 641A and shall establish results-based 
                school readiness goals that are aligned with 
                the Head Start Child Outcomes Framework, State 
                early learning standards (as appropriate), and 
                requirements and expectations for local public 
                schools; and
                  (B) have a governing body--
                          (i) with legal and fiscal 
                        responsibility for administering and 
                        overseeing programs under this 
                        subchapter;
                          (ii) that fully participates in the 
                        development, planning, and evaluation 
                        of the programs to ensure the operation 
                        of programs of high quality;
                          (iii) that is responsible for 
                        ensuring compliance with Federal laws 
                        and regulations, including the 
                        performance standards described in 
                        section 641A, as well as applicable 
                        State, tribal, and local laws and 
                        regulations, including laws defining 
                        the nature and operations of the 
                        governing body; and
                          (iv) that has procedures to 
                        facilitate meaningful consultation and 
                        collaboration about decisions of the 
                        governing body and the policy council 
                        established under paragraph (3).
          (3) Establishment of policy council upon 
        designation.--Upon receiving designation as a Head 
        Start agency, the agency shall establish a policy 
        council that--
                  (A) in accordance with paragraph (5)(C), 
                shall make decisions that influence the 
                character of programs consistent with paragraph 
                (5)(F); and
                  (B) with the governing body, shall establish 
                processes to resolve internal disputes.
          (4) Eligibility for subsequent grants.--In order to 
        receive a grant under this subchapter subsequent to the 
        initial grant provided following the date of enactment 
        of the Head Start for School Readiness Act, an entity 
        described in paragraph (1) shall demonstrate that the 
        entity has met or is making progress toward meeting the 
        goals described in paragraph (2)(A).
          (5) Governing body and policy council.--
                  (A) Establishment of governing body.--Each 
                Head Start agency shall establish a governing 
                body in accordance with paragraph (2)(B).
                  (B) Composition of governing body.--
                          (i) In general.--The governing body 
                        shall be composed as follows:
                                  (I) Not less than 1 member of 
                                the governing body shall have a 
                                background in fiscal 
                                management.
                                  (II) Not less than 1 member 
                                of the governing body shall 
                                have a background in early 
                                childhood development.
                                  (III) Not less than 1 member 
                                of the governing body shall be 
                                a licensed attorney familiar 
                                with issues that come before 
                                the governing body.
                                  (IV) Additional members shall 
                                reflect the community to be 
                                served, and include parents of 
                                children who are currently, or 
                                were formerly, enrolled in Head 
                                Start programs.
                                  (V) In the case in which the 
                                governing body is a part of a 
                                Head Start agency that is a 
                                public agency, members of the 
                                governing body shall include 
                                elected or appointed public 
                                officials.
                          (ii) Consultants.--In the case that 
                        persons described in clause (i) are not 
                        available to serve as members of the 
                        governing body, the governing body 
                        shall make use of consultants in the 
                        areas described in clause (i) to work 
                        directly with the governing body.
                          (iii) Conflict of interest.--Members 
                        of the governing body shall--
                                  (I) not have a conflict of 
                                interest with the Head Start 
                                agency (including any delegate 
                                agency); and
                                  (II) not receive compensation 
                                for the purposes of serving on 
                                the governing body or for 
                                providing services to the Head 
                                Start agency.
                  (C) Responsibilities of governing body.--
                          (i) In general.--The governing body 
                        shall be responsible for--
                                  (I) the selection of delegate 
                                agencies and such agencies' 
                                service areas;
                                  (II) establishing procedures 
                                and criteria for recruitment, 
                                selection, and enrollment;
                                  (III) all funding 
                                applications and amendments to 
                                funding applications for 
                                programs under this subchapter;
                                  (IV) establishing procedures 
                                and guidelines to access and 
                                collect the information 
                                described in paragraph (6);
                                  (V) review and approval of--
                                          (aa) the annual self-
                                        assessment, financial 
                                        audit, and findings 
                                        from the Federal 
                                        monitoring review, of 
                                        the Head Start agency 
                                        (including any delegate 
                                        agency); and
                                          (bb) such agency's 
                                        progress in carrying 
                                        out the programmatic 
                                        and fiscal intent of 
                                        such agency's grant 
                                        application;
                                  (VI) developing procedures 
                                for how members of the policy 
                                council of the Head Start 
                                agency are selected, consistent 
                                with subparagraph (E)(ii);
                                  (VII) financial audits, 
                                accounting, and reporting;
                                  (VIII) personnel policies and 
                                procedures regarding hiring, 
                                termination, salary scales (and 
                                changes made to the scale), and 
                                salaries of the Executive 
                                Director, Head Start Director, 
                                the Director of Human 
                                Resources, the Chief Fiscal 
                                Officer, and any equivalent 
                                position; and
                                  (IX) review and approval of 
                                the community assessment, 
                                including any updates to such 
                                assessment.
                          (ii) Conduct of responsibilities.--
                        The governing body shall ensure the 
                        development and approval of an internal 
                        control structure to facilitate those 
                        responsibilities in order to--
                                  (I) safeguard Federal funds;
                                  (II) comply with laws and 
                                regulations that have an impact 
                                on financial statements;
                                  (III) detect or prevent 
                                noncompliance with this 
                                subchapter; and
                                  (IV) receive financial audit 
                                reports and direct and monitor 
                                staff implementation of 
                                corrective actions.
                          (iii) Committees.--The governing body 
                        shall, to the extent practicable and 
                        appropriate, establish--
                                  (I) advisory committees to 
                                oversee responsibilities 
                                related to financial auditing 
                                and finances of the Head Start 
                                agency, as well as compliance 
                                with Federal, State, and local 
                                laws and regulations; and
                                  (II) at the discretion of the 
                                governing body, additional 
                                advisory committees to study 
                                and make recommendations on 
                                areas related to the 
                                improvement of the Head Start 
                                program.
                  (D) Establishment of policy council.--Each 
                Head Start agency shall establish a policy 
                council in accordance with paragraph (3).
                  (E) Composition of policy council.--
                          (i) In general.--The policy council 
                        shall consist of--
                                  (I) parents of children 
                                currently enrolled in the 
                                programs of the Head Start 
                                agency (including any delegate 
                                agency), which shall constitute 
                                a majority of the membership of 
                                the policy council; and
                                  (II) members at large of the 
                                community served by the Head 
                                Start agency, which may include 
                                parents of children previously 
                                enrolled in the programs of the 
                                Head Start agency (including 
                                any delegate agency).
                          (ii) Selection.--Parents serving on 
                        the policy council shall be elected by 
                        parents of children currently enrolled 
                        in the programs of the Head Start 
                        agency (including any delegate agency) 
                        and shall represent, proportionately, 
                        all program options and settings 
                        operated by the Head Start agency 
                        (including any delegate agency).
                          (iii) Conflict of interest.--Members 
                        of the policy council shall--
                                  (I) not have a conflict of 
                                interest with the Head Start 
                                agency (including any delegate 
                                agency); and
                                  (II) not receive compensation 
                                for serving on the policy 
                                council or for providing 
                                services to the Head Start 
                                agency.
                  (F) Responsibilities of policy council.--The 
                policy council shall be responsible for--
                          (i) program planning, including--
                                  (I) program design, including 
                                long and short term program 
                                goals, all funding applications 
                                and amendments to funding 
                                applications, and objectives 
                                based on the annual 
                                communitywide assessment and 
                                self-assessment;
                                  (II) program recruitment, 
                                selection, and enrollment 
                                priorities; and
                                  (III) budget planning for 
                                program expenditures consistent 
                                with subparagraph (C)(i)(VII), 
                                including polices for 
                                reimbursement and participation 
                                in policy council activities;
                          (ii) program operation consistent 
                        with subparagraph (C)(i)(VIII), 
                        including implementation of standards 
                        of conduct for program staff, 
                        contractors, and volunteers and 
                        criteria for the employment and 
                        dismissal of program staff; and
                          (iii) activities to support the 
                        active involvement of parents in 
                        supporting program operations, 
                        including policies to ensure that the 
                        Head Start program is responsive to 
                        community and parent needs.
          (6) Information sharing.--The governing body and the 
        policy council shall share with each other regular and 
        accurate information for use by both entities about 
        program planning, policies, and Head Start agency 
        operations, including--
                  (A) monthly financial statements (including 
                detailed credit card account expenditures for 
                any employee with a Head Start agency credit 
                card or who seeks reimbursement for charged 
                expenses);
                  (B) monthly program information summaries;
                  (C) program enrollment reports, including 
                attendance reports for children whose care is 
                partially subsidized by another public agency;
                  (D) monthly reports of meals and snacks 
                provided through programs of the Department of 
                Agriculture;
                  (E) the financial audit;
                  (F) the annual self-assessment, including any 
                findings related to the annual self-assessment;
                  (G) the community assessment of the Head 
                Start agency's service area and any applicable 
                updates;
                  (H) communication and guidance from the 
                Secretary; and
                  (I) the program information reports.
          (7) Training and technical assistance.--Appropriate 
        training and technical assistance shall be provided to 
        the members of the governing body and the policy 
        council to ensure that the members understand the 
        information the members receive and can effectively 
        oversee and participate in the programs of the Head 
        Start agency.
    (b) Communities.--For purposes of this subchapter, a 
community may be a city, county, or multicity or multicounty 
unit within a State, an Indian reservation (including Indians 
in any off-reservation area designated by an appropriate tribal 
government in consultation with the Secretary), or a 
neighborhood or other area (irrespective of boundaries or 
political subdivisions) that provides a suitable organizational 
base and possesses the commonality of interest needed to 
operate a Head Start program.
    (c) Redesignation.--
          (1) In general.--In administering the provisions of 
        this section, the Secretary shall, in consultation with 
        the Governor of the State involved, redesignate as a 
        Head Start agency any Head Start agency or delegate 
        agency that is high performing, as determined by 
        meeting each of the following criteria:
                  (A) Is receiving assistance under this 
                subchapter.
                  (B) Meets or exceeds program and financial 
                management requirements or standards described 
                in section 641A(a)(1).
                  (C) Has no unresolved deficiencies, including 
                having resolved any deficiencies found during 
                the last triennial review under section 
                641A(c).
                  (D) Can demonstrate, through agreements such 
                as memoranda of understanding, active 
                collaboration with the State or local community 
                in the provision of services for children (such 
                as the provision of extended day services, 
                education, professional development and 
                training for staff, and other types of 
                cooperative endeavors).
                  (E) Completes and submits the appropriate 
                reapplication forms as required by the 
                Secretary.
          (2) Limitation.--A Head Start agency with a triennial 
        review under section 641A(c) scheduled not later than 
        18 months after the date of enactment of the Head Start 
        for School Readiness Act shall not be subject to the 
        criteria described in paragraph (1) for that review in 
        order to be redesignated. The Head Start agency shall 
        be subject to the criteria for any subsequent triennial 
        review.
    (d) Designation When No Entity Is Redesignated.--If no 
entity in a community is redesignated according to subsection 
(c), the Secretary shall, after conducting an open competition, 
designate a Head Start agency from among qualified applicants 
in such community.
  (f) Effectiveness.--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, educational, nutritional, social, 
        and other services needed to aid participating children 
        in attaining their full potential, and to prepare 
        children to succeed in school;
          (3) the capacity of such applicant to serve eligible 
        children with programs that use scientifically based 
        research that promote school readiness of children 
        participating in the program;
          (4) 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;
          (5) the plan of such applicant to coordinate the Head 
        Start program the applicant proposes to carry out with 
        other preschool programs, including--
                  (A) the Early Reading First and Even Start 
                programs under subparts 2 and 3 of part B of 
                title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6371 et seq., 
                6381 et seq.);
                  (B) other preschool program under title I of 
                that Act (20 U.S.C. 6301 et seq.);
                  (C) programs under section 619 and part C of 
                the Individuals with Disabilities Education Act 
                (20 U.S.C. 1419, 1431 et seq.);
                  (D) State prekindergarten programs;
                  (E) child care programs;
                  (F) the educational programs that the 
                children in the Head Start program involved 
                will enter at the age of compulsory school 
                attendance; and
                  (G) reading readiness programs such as those 
                conducted by public and school libraries;
          (6) the plan of such applicant to coordinate the Head 
        Start program that the applicant proposes to carry out 
        with public and private entities who are willing to 
        commit resources to assist the Head Start program in 
        meeting its program needs;
          (7) the plan of such applicant to collaborate with a 
        local library, where available, that is interested in 
        that collaboration, to--
                  (A) develop innovative programs to excite 
                children about the world of books, such as 
                programs that involve--
                          (i) taking children to the library 
                        for a story hour;
                          (ii) promoting the use of library 
                        cards;
                          (iii) developing a lending library or 
                        using a mobile library van; and
                          (iv) providing fresh books in the 
                        Head Start classroom on a regular 
                        basis;
                  (B) assist in literacy training for Head 
                Start teachers; and
                  (C) support parents and other caregivers in 
                literacy efforts;
          (8) the plan of such applicant--
                  (A) to facilitate 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 and overall 
                conduct of the program at the local level, 
                including through providing transportation 
                costs;
                  (C) to offer (directly or through referral to 
                local entities, such as entities carrying out 
                Even Start programs under subpart 3 of part B 
                of title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6381 et seq.), 
                public and school libraries, and entities 
                carrying out 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 the effect 
                of drug exposure on 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 (including cognitive 
                        development);
                          (ii) assistance in developing 
                        literacy and communication skills;
                          (iii) opportunities to share 
                        experiences with other parents 
                        (including parent mentor 
                        relationships);
                          (iv) regular in-home visitation; or
                          (v) 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 
                (including foster parents and grandparents, 
                where applicable) 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 outreach to fathers, in 
                appropriate cases, in order to strengthen the 
                role of fathers in families, in the education 
                of their young children, and in the Head Start 
                program, by working directly with fathers and 
                father figures through activities such as--
                          (i) in appropriate cases, including 
                        fathers in home visits and providing 
                        opportunities for direct father-child 
                        interactions; and
                          (ii) targeting increased male 
                        participation in the conduct of the 
                        program;
          (9) the ability of such applicant to carry out the 
        plans described in paragraphs (2), (4), and (5);
          (10) other factors related to the requirements of 
        this subchapter;
          (11) the plan of such applicant to meet the needs of 
        limited English proficient children and their families, 
        including procedures to identify such children, plans 
        to provide trained personnel, and plans to provide 
        services to assist the children in making progress 
        toward the acquisition of the English language;
          (12) the plan of such applicant to meet the needs of 
        children with disabilities;
          (13) the plan of such applicant who chooses to assist 
        younger siblings of children who will participate in 
        the Head Start program, to obtain health services from 
        other sources;
          (14) the plan of such applicant to collaborate with 
        other entities carrying out early childhood education 
        and child care programs in the community;
          (15) the plan of such applicant to meet the needs of 
        homeless children and children in foster care, 
        including the transportation needs of such children; 
        and
          (16) the plan of such applicant to recruit and retain 
        qualified staff.
    (f) Involvement of Parents and Area Residents.--The 
Secretary shall continue the practice of involving parents and 
area residents who are affected by programs under this 
subchapter in the selection of qualified applicants for 
designation as Head Start agencies.
    (g) Priority.--In selecting from among qualified applicants 
for designation as a Head Start agency, the Secretary shall 
give priority to applicants that have demonstrated capacity in 
providing effective, comprehensive, and well-coordinated early 
childhood education and care to children and their families.
    (h) Interim Basis.--If there is not a qualified applicant 
in a community for designation as a Head Start agency, the 
Secretary shall designate a qualified agency to carry out the 
Head Start program in the community on an interim basis until a 
qualified applicant from the community is so designated.
    (i) Prohibition Against Non-Indian Head Start Agency 
Receiving a Grant for an Indian Head Start Program.--
          (1) In general.--Notwithstanding any other provision 
        of law except as provided in paragraph (2), under no 
        condition may a non-Indian Head Start agency receive a 
        grant to carry out an Indian Head Start program.
          (2) Exception.--In a community in which there is no 
        Indian Head Start agency available for designation to 
        carry out an Indian Head Start program, a non-Indian 
        Head Start agency may receive a grant to carry out an 
        Indian Head Start program but only until such time as 
        an Indian Head Start agency in such community becomes 
        available and is designated pursuant to this section.

           *       *       *       *       *       *       *


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

    (a) Quality Standards.--
          (1) Establishment of standards.--* * *
                  (A) performance standards with respect to 
                services required to be provided, including 
                health, parental involvement, nutritional, 
                social, transition activities described in 
                section [642(d)] 642(c), and other services;
                  (B)(i) [education performance standards] 
                educational performance standards to ensure the 
                school readiness of children participating in a 
                Head Start program, on completion of the Head 
                Start program and prior to entering school; and
                  [(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 
                        backgound children, progress toward 
                        acquisition of the English language.]
                  (ii) additional educational standards based 
                on the recommendations of the National Academy 
                of Sciences panel described in section 649(h) 
                and other experts in the field, to ensure that 
                the curriculum involved addresses, and that the 
                children participating in the program show 
                appropriate progress toward developing and 
                applying, the recommended educational outcomes, 
                after the panel considers the appropriateness 
                of additional educational standards relating 
                to--
                          (I) language skills related to 
                        listening, understanding, speaking, and 
                        communicating;
                          (II) pre-literacy knowledge and 
                        skills;
                          (III) premathematics knowledge and 
                        skills;
                          (IV) scientific abilities;
                          (V) general cognitive abilities 
                        related to academic achievement and 
                        child development;
                          (VI) social and emotional development 
                        related to early learning and school 
                        success;
                          (VII) physical development; and
                          (VIII) in the case of limited English 
                        proficient children, progress toward 
                        acquisition of the English language 
                        (which may include progress made with 
                        linguistically appropriate 
                        instructional services) while making 
                        meaningful progress in attaining the 
                        knowledge, skills, abilities, and 
                        development described in subclauses (I) 
                        through (VII);

           *       *       *       *       *       *       *

                  (D) standards relating to the condition and 
                location of facilities for such agencies, 
                programs, and [projects; and] projects, 
                including regulations that require that the 
                facilities used by Head Start agencies 
                (including Early Head Start agencies and 
                including any delegate agencies) for regularly 
                scheduled center-based and combination program 
                option classroom activities--
                          (i) shall be in compliance with State 
                        and local requirements concerning 
                        licensing for such facilities; and
                          (ii) shall be accessible by State and 
                        local authorities for purposes of 
                        monitoring and ensuring compliance; and

           *       *       *       *       *       *       *

          (2) Considerations in developing standards.--

           *       *       *       *       *       *       *

                  (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] the date of enactment of 
                        the Head Start for School Readiness 
                        Act;
                          (ii) changes over the period since 
                        [the date of enactment of this Act] the 
                        date of enactment of the Head Start for 
                        School Readiness 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] 
                        early childhood education and care, 
                        children with disabilities, homeless 
                        children, children in foster care, 
                        family services, program 
                        administration, and financial 
                        management;

           *       *       *       *       *       *       *

                          (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] 
                        including changes in the language 
                        background and family structure of such 
                        children, and changes in the population 
                        and number of such children who are in 
                        foster care or are homeless 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 public schools; and]
                          (vii) the unique challenges faced by 
                        individual programs, including those 
                        programs that are seasonal or short 
                        term and those programs that serve 
                        rural populations;
                  (C)(i) review and revise as necessary the 
                performance standards in effect under this 
                subsection; and
                  (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.] the date of 
                enactment of the Head Start for School 
                Readiness Act; and
                  (D) consult with Indian tribes, American 
                Indian and Alaska Native experts in early 
                childhood education and care, linguists, and 
                the National Indian Head Start Directors 
                Association on the review and promulgation of 
                program standards and measures (including 
                standards and measures for language acquisition 
                and school readiness).
          (3) * * *
          (4) Evaluations and corrective actions for delegate 
        agencies.--
                  (A) Procedures.--
                          (i) In general.--Subject to clause 
                        (ii), the Head Start agency shall 
                        establish procedures relating to its 
                        delegate agencies, including--
                                  (I) procedures for evaluating 
                                delegate agencies;
                                  (II) procedures for defunding 
                                delegate agencies; and
                                  (III) procedures for 
                                appealing a defunding decision 
                                relating to a delegate agency.
                          (ii) Termination.--The Head Start 
                        agency may not terminate a delegate 
                        agency's contract or reduce a delegate 
                        agency's service area without showing 
                        cause or demonstrating the cost-
                        effectiveness of such a decision.
                  (B) Evaluations.--Each Head Start agency--
                          (i) shall evaluate its delegate 
                        agencies using the procedures 
                        established pursuant to this section, 
                        including subparagraph (A); and
                          (ii) shall inform the delegate 
                        agencies of the deficiencies identified 
                        through the evaluation that shall be 
                        corrected.
                  (C) Remedies to ensure corrective actions.--
                In the event that the Head Start agency 
                identifies a deficiency for a delegate agency 
                through the evaluation, the Head Start agency 
                shall take action, which may include--
                          (i) initiating procedures to 
                        terminate the designation of the agency 
                        unless the agency corrects the 
                        deficiency;
                          (ii) conducting monthly monitoring 
                        visits to such delegate agency until 
                        all deficiencies are corrected or the 
                        Head Start agency decides to defund 
                        such delegate agency; and
                          (iii) releasing funds to such 
                        delegate agency--
                                  (I) only as reimbursements, 
                                until all deficiencies are 
                                corrected or the Head Start 
                                agency decides to defund such 
                                delegate agency; and
                                  (II) only if there is 
                                continuity of services for 
                                children and families.
                  (D) Rule of construction.--Nothing in this 
                paragraph shall be construed to impact or 
                obviate the responsibilities of the Secretary 
                with respect to Head Start agencies or delegate 
                agencies receiving funding under this 
                subchapter.
    (b) Results-Based Performance Measures.--
          (1) In general.-- * * *
          (2) [Characteristics of measures.--] Characteristics 
        and use of measures._ * * *
                  (A) * * *
                  (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).]
                  (D) measure characteristics that are strongly 
                predictive (as determined on a scientific 
                basis) of a child's school readiness and later 
                performance in school;
                  (E) be appropriate for the population served; 
                and
                  (F) be reviewed not less than every 4 years, 
                based on advances in the science of early 
                childhood development.
        The performance measures shall be issued by regulation 
        and shall include the performance standards and 
        additional educational standards described in 
        subparagraphs (A) and (B) of subsection (a)(1).
          (3) Use of measures.--The Secretary shall use the 
        performance measures developed pursuant to this 
        subsection--
                  (A) to identify strengths and weaknesses in 
                the operation of Head Start programs 
                nationally, regionally, and locally[; and];
                  (B) to identify problem areas that may 
                require additional training and technical 
                assistance resources[.]; and
                  (C) to enable Head Start agencies to 
                individualize programs of instruction to better 
                meet the needs of the child involved.

           *       *       *       *       *       *       *

    (c) Monitoring of Local Agencies and Programs.--
          (1) In general.-- * * *
                  (A) * * *

           *       *       *       *       *       *       *

                  [(C) Followup reviews including prompt return 
                visits to agencies and programs that fail to 
                meet the standards.]
                  (C) Unannounced site inspections for health 
                and safety reasons, as appropriate.
                  (D) Followup reviews, including--
                          (i) prompt return visits as necessary 
                        for failure to meet 1 or more of the 
                        performance measures developed by the 
                        Secretary under subsection (b);
                          (ii) a review of agencies and 
                        programs with citations that include 
                        findings of deficiencies not later than 
                        6 months after the date of such 
                        citation; and
                          (iii) followup reviews that 
                        incorporate a monitoring visit without 
                        prior notice of the visit to the agency 
                        or program involved or with such 
                        limited prior notice as is necessary to 
                        ensure the participation of parents and 
                        key staff members.
                  [(D)] (E) Other reviews as appropriate.
          [(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 extend 
                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.--
                  (A) In general.--The Secretary shall ensure 
                that reviews described in paragraph (1)--
                          (i) are performed, to the maximum 
                        extent practicable, by employees of the 
                        Department of Health and Human Services 
                        who are knowledgeable about Head Start 
                        programs;
                          (ii) are conducted by review teams 
                        that shall include individuals who are 
                        knowledgeable about Head Start programs 
                        and other early childhood education and 
                        care and, to the maximum extent 
                        practicable, the diverse (including 
                        linguistic and cultural) needs of 
                        eligible children (including children 
                        with disabilities, homeless children, 
                        and children in foster care) and 
                        limited English proficient children and 
                        their families, and personnel 
                        management, financial accountability, 
                        and systems development and monitoring;
                          (iii) include as part of the reviews 
                        of the programs, a review and 
                        assessment of program effectiveness, 
                        including strengths and weaknesses, 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);
                          (iv) seek information from the 
                        communities and States where Head Start 
                        programs exist about innovative or 
                        effective collaborative efforts, 
                        barriers to collaboration, and the 
                        efforts of the Head Start agencies to 
                        collaborate with the entities carrying 
                        out early childhood education and care 
                        in the community;
                          (v) include as part of the reviews of 
                        the programs, a review and assessment 
                        of whether the programs are in 
                        conformity with the income eligibility 
                        requirements under section 645 and 
                        regulations promulgated under such 
                        section;
                          (vi) include as part of the reviews 
                        of the programs, a review and 
                        assessment of whether programs have 
                        adequately addressed population and 
                        community needs (including needs of 
                        populations of limited English 
                        proficient children and children of 
                        migrant or seasonal farmworkers);
                          (vii) include as part of the reviews 
                        of the programs, a review and 
                        assessment of whether programs have 
                        adequately addressed the needs of 
                        children with disabilities;
                          (viii) include as part of the reviews 
                        of the programs, data from the results 
                        of periodic child assessments, and a 
                        review and assessment of child outcomes 
                        and performance as they relate to 
                        agency-determined school readiness 
                        goals described in section 
                        641(a)(2)(A); and
                          (ix) in the case of Early Head Start 
                        agencies programs, are conducted by a 
                        review team that includes individuals 
                        who are knowledgeable about the 
                        development of infants and toddlers.
                  (B) Training; quality and consistency.--The 
                Secretary, from funds available under section 
                640(a)(2)(D), shall provide periodic training 
                for supervisors and members of review teams in 
                such topics as program management and financial 
                audit performance. The Secretary shall ensure 
                the quality and consistency across and within 
                regions of reviews and non-compliance and 
                deficiency determinations by conducting 
                periodic interrater reliability checks.
    (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), or fails to address the 
        communitywide strategic plan and needs assessment 
        identified in section 640(g)(2)(C), the Secretary 
        shall--
                  (A) inform the agency of the deficiencies 
                that shall be corrected and identify the 
                assistance to be provided consistent with 
                paragraph (3);

           *       *       *       *       *       *       *

    (e) Summaries of Monitoring Outcomes.--Not later than 120 
days after the end of each fiscal year, the Secreatry 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.] The 
information contained in such report shall be made available to 
parents with children receiving assistance under this 
subchapter in an understandable and uniform format, and to the 
extent practicable, in a language that the parents can 
understand. Such information shall be made widely available 
through public means such as distribution through public 
agencies, and, at a minimum, by posting such information on the 
Internet immediately upon publication.
    (f) Self-Assessments.--
          (1) In general.--Not less frequently than once each 
        program year, with the consultation and participation 
        of policy councils, and, as applicable, policy 
        committees, and, as appropriate, other community 
        members, each agency receiving funds under this 
        subchapter shall conduct a comprehensive self-
        assessment of the agency's effectiveness and progress 
        in meeting program goals and objectives and in 
        implementing and complying with standards described in 
        subsection (a)(1).
          (2) Report and improvement plans.--
                  (A) Report.--An agency conducting a self-
                assessment shall report the findings of the 
                self-assessment to the relevant policy council, 
                policy committee, governing body, and regional 
                office of the Administration for Children and 
                Families of the Department of Health and Human 
                Services. Each self-assessment shall identify 
                areas of strength and weakness.
                  (B) Improvement plan.--The agency shall 
                develop an improvement plan approved by the 
                governing body of the agency to strengthen any 
                areas identified in the self-assessment as 
                weaknesses or in need of improvement. The 
                agency shall report the areas to the 
                appropriate regional office of the 
                Administration for Children and Families.
          (3) Ongoing monitoring.--Each Head Start agency, 
        (including each Early Head Start agency and including 
        any delegate agency) shall establish and implement 
        procedures for the ongoing monitoring of their Head 
        Start (including Early Head Start) programs, to ensure 
        that the operations of the programs work toward meeting 
        program goals and objectives and Head Start performance 
        standards.
          (4) Training and technical assistance.--Funds may be 
        made available, through section 648(d), for training 
        and technical assistance to assist agencies in 
        conducting self-assessments.
    (g) Reduction of Grants and Redistribution of Funds in 
Cases of Under-Enrollment.--
          (1) Definitions.--In this subsection:
                  (A) Actual enrollment.--The term ``actual 
                enrollment'' means, with respect to the program 
                of a Head Start agency, the actual number of 
                children enrolled in such program and reported 
                by the agency (as required in paragraph (2)) in 
                a given month.
                  (B) Base grant.--The term ``base grant'' 
                means, with respect to a Head Start agency for 
                a fiscal year, that portion of the grant 
                derived--
                          (i) from amounts reserved for use in 
                        accordance with section 640(a)(2)(A), 
                        for a Head Start agency administering 
                        an Indian Head Start program or migrant 
                        and seasonal Head Start program;
                          (ii) from amounts reserved for 
                        payments under section 640(a)(2)(B); or
                          (iii) from amounts available under 
                        section 640(a)(2)(D) or allotted among 
                        States under section 640(a)(4).
                  (C) Funded enrollment.--The term ``funded 
                enrollment'' means, with respect to the program 
                of a Head Start agency in a fiscal year, the 
                number of children that the agency is funded to 
                serve through a grant for the program during 
                such fiscal year, as indicated in the grant 
                award.
          (2) Enrollment reporting requirement for current 
        fiscal year.--Each entity carrying out a Head Start 
        program shall report on a monthly basis to the 
        Secretary and the relevant Head Start agency--
                  (A) the actual enrollment in such program; 
                and
                  (B) if such actual enrollment is less than 
                the funded enrollment, any apparent reason for 
                such enrollment shortfall.
          (3) Secretarial review and plan.--The Secretary 
        shall--
                  (A) on a semiannual basis, determine which 
                Head Start agencies are operating with an 
                actual enrollment that is less than the funded 
                enrollment based on not less than 4 consecutive 
                months of data;
                  (B) for each such Head Start agency operating 
                a program with an actual enrollment that is 
                less than 95 percent of its funded enrollment, 
                as determined under subparagraph (A), develop, 
                in collaboration with such agency, a plan and 
                timetable for reducing or eliminating under-
                enrollment taking into consideration--
                          (i) the quality and extent of the 
                        outreach, recruitment, and 
                        communitywide needs assessment 
                        conducted by such agency;
                          (ii) changing demographics, mobility 
                        of populations, and the identification 
                        of new underserved low-income 
                        populations;
                          (iii) facilities-related issues that 
                        may impact enrollment;
                          (iv) the ability to provide full-day 
                        programs, where needed, through funds 
                        made available under this subchapter or 
                        through collaboration with entities 
                        carrying out other preschool or child 
                        care programs, or programs with other 
                        funding sources (where available);
                          (v) the availability and use by 
                        families of other preschool and child 
                        care options (including parental care) 
                        in the community served; and
                          (vi) agency management procedures 
                        that may impact enrollment; and
                  (C) provide timely and ongoing technical 
                assistance to each agency described in 
                subparagraph (B) for the purpose of 
                implementing the plan described in such 
                subparagraph.
          (4) Implementation.--Upon receipt of the technical 
        assistance described in paragraph (3)(C), a Head Start 
        agency shall immediately implement the plan described 
        in paragraph (3)(B).
          (5) Secretarial action for continued under-
        enrollment.--If, 1 year after the date of 
        implementation of the plan described in paragraph 
        (3)(B), the Head Start agency continues to operate a 
        program at less than funded enrollment, the Secretary 
        shall, where determined appropriate, continue to 
        provide technical assistance to such agency.
          (6) Secretarial review and adjustment for chronic 
        under-enrollment.--
                  (A) In general.--If, after receiving 
                technical assistance and developing and 
                implementing a plan to the extent described in 
                paragraphs (3), (4), and (5) for 9 months, a 
                Head Start agency is still operating a program 
                with an actual enrollment that is less than 95 
                percent of its funded enrollment, the Secretary 
                may--
                          (i) designate such agency as 
                        chronically under-enrolled; and
                          (ii) recapture, withhold, or reduce 
                        the base grant for the program by a 
                        percentage equal to the percentage 
                        difference between funded enrollment 
                        and actual enrollment for the program 
                        for the most recent year in which the 
                        agency is determined to be under-
                        enrolled under paragraph (3)(A).
                  (B) Waiver or limitation of reductions.--If 
                the Secretary, after the implementation of the 
                plan described in paragraph (3)(B), finds 
                that--
                          (i) the causes of the enrollment 
                        shortfall, or a portion of the 
                        shortfall, are beyond the agency's 
                        control (such as serving significant 
                        numbers of children of migrant or 
                        seasonal farmworkers, homeless 
                        children, children in foster care, or 
                        other highly mobile children);
                          (ii) the shortfall can reasonably be 
                        expected to be temporary; or
                          (iii) the number of slots allotted to 
                        the agency is small enough that under-
                        enrollment does not constitute a 
                        significant shortfall, the Secretary 
                        may, as appropriate, waive or reduce 
                        the percentage recapturing, 
                        withholding, or reduction otherwise 
                        required by subparagraph (A).
                  (C) Procedural requirements; effective 
                date.--The actions taken by the Secretary under 
                this paragraph with respect to a Head Start 
                agency shall take effect 1 day after the date 
                on which--
                          (i) the time allowed for appeal under 
                        section 646(a) expires without an 
                        appeal by the agency; or
                          (ii) the action is upheld in an 
                        administrative hearing under section 
                        646.
          (7) Redistribution of funds.--
                  (A) In general.--The Secretary shall use 
                amounts recovered from a Head Start agency 
                through recapturing, withholding, or reduction 
                under paragraph (6) in a fiscal year--
                          (i) in the case of a Head Start 
                        agency administering an Indian Head 
                        Start program or a migrant and seasonal 
                        Head Start program, whose base grant is 
                        derived from amounts specified in 
                        paragraph (1)(B)(i), to redirect funds 
                        to 1 or more agencies that--
                                  (I) are administering Head 
                                Start programs serving the same 
                                special population; and
                                  (II) demonstrate that the 
                                agencies will use such 
                                redirected funds to increase 
                                enrollment in their Head Start 
                                programs in such fiscal year; 
                                or
                          (ii) in the case of a Head Start 
                        agency in a State, whose base grant is 
                        derived from amounts specified in 
                        clause (ii) or (iii) of paragraph 
                        (1)(B), to redirect funds to 1 or more 
                        agencies that--
                                  (I) are administering Head 
                                Start programs in the same 
                                State; and
                                  (II) make the demonstration 
                                described in clause (i)(II).
                  (B) Special rule.--If there is no agency 
                located in a State that meets the requirements 
                of subclauses (I) and (II) of subparagraph 
                (A)(ii), in the case of a Head Start agency 
                described in subparagraph (A)(ii), the 
                Secretary shall use amounts described in 
                subparagraph (A) to redirect funds to Head 
                Start agencies located in other States that 
                make the demonstration described in 
                subparagraph (A)(i)(II).
                  (C) Adjustment to funded enrollment.--The 
                Secretary shall adjust as necessary the 
                requirements relating to funded enrollment 
                indicated in the grant agreement of a Head 
                Start agency receiving redistributed amounts 
                under this paragraph.
    (h) Contract With Nonprofit Intermediary Organization.--
From funds reserved under clause (i) or (ii) of section 
640(a)(2)(C) or from whatever other resources the Secretary 
determines appropriate, in carrying out the provisions of this 
section, the Secretary or a Head Start agency may contract with 
a nonprofit intermediary organization that--
          (1) provides evaluations and technical assistance to 
        improve overall performance management; and
          (2) has an exclusive focus of improving the 
        performance management and the use of technology in 
        assessing performance and meeting Head Start 
        regulations and can provide on-site, hands-on guidance 
        with the implementation of the recommendations.

           *       *       *       *       *       *       *


SEC. 641B. CENTERS OF EXCELLENCE IN EARLY CHILDHOOD.

  (a) Definition.--In this section, the term ``center of 
excellence'' means a Center of Excellence in Early Childhood 
designated under subsection (b).
  (b) Designation and Bonus Grants.--The Secretary shall, 
subject to the availability of funds under this subchapter, 
including under subsection (f), establish a program under which 
the Secretary shall--
          (1) designate not more than 200 exemplary Head Start 
        agencies (including Early Head Start agencies, Indian 
        Head Start agencies, and migrant and seasonal Head 
        Start agencies) as Centers of Excellence in Early 
        Childhood; and
          (2) make bonus grants to the centers of excellence to 
        carry out the activities described in subsection (d).
    (c) Application and Designation.--
          (1) Application.--
                  (A) Nomination and submission.--
                          (i) In general.--To be eligible to 
                        receive a designation as a center of 
                        excellence under subsection (b), except 
                        as provided in clause (ii), a Head 
                        Start agency in a State shall be 
                        nominated by the Governor of the State 
                        and shall submit an application to the 
                        Secretary at such time, in such manner, 
                        and containing such information as the 
                        Secretary may require.
                          (ii) Indian and migrant and seasonal 
                        head start programs.--In the case of an 
                        Indian Head Start agency or a migrant 
                        or seasonal Head Start agency, to be 
                        eligible to receive a designation as a 
                        center of excellence under subsection 
                        (b), such an agency shall be nominated 
                        by the head of the appropriate regional 
                        office of the Department of Health and 
                        Human Services and shall submit an 
                        application to the Secretary in 
                        accordance with clause (i).
                  (B) Contents.--At a minimum, the application 
                shall include--
                          (i) evidence that the Head Start 
                        program carried out by the agency has 
                        significantly improved the school 
                        readiness of, and enhanced academic 
                        outcomes for, children who have 
                        participated in the program;
                          (ii) evidence that the program meets 
                        or exceeds standards and performance 
                        measures described in subsections (a) 
                        and (b) of section 641A, as evidenced 
                        by successful completion of 
                        programmatic and monitoring reviews, 
                        and has no findings of deficiencies 
                        with respect to the standards and 
                        measures;
                          (iii) evidence that the program is 
                        making progress toward meeting the 
                        requirements described in section 648A;
                          (iv) evidence demonstrating the 
                        existence of a collaborative 
                        partnership among the Head Start 
                        agency, the State (or a State agency), 
                        and other early care and education 
                        providers in the local community 
                        involved;
                          (v) a nomination letter from the 
                        Governor, or appropriate regional 
                        office, demonstrating the agency's 
                        ability to carry out the coordination, 
                        transition, and training services of 
                        the program to be carried out under the 
                        bonus grant involved, including 
                        coordination of activities with State 
                        and local agencies that provide early 
                        childhood education and care to 
                        children and families in the community 
                        served by the agency;
                          (vi) information demonstrating the 
                        existence of a local council for 
                        excellence in early childhood, which 
                        shall include representatives of all 
                        the institutions, agencies, and groups 
                        involved in the work of the center for, 
                        and the local provision of services to, 
                        eligible children and other at-risk 
                        children, and their families; and
                          (vii) a description of how the 
                        Center, in order to expand 
                        accessibility and continuity of quality 
                        early childhood education and care, 
                        will coordinate activities assisted 
                        under this section with--
                                  (I) programs carried out 
                                under the Child Care and 
                                Development Block Grant Act of 
                                1990 (42 U.S.C. 9858 et seq.);
                                  (II) other programs carried 
                                out under this subchapter, 
                                including the Early Head Start 
                                programs carried out under 
                                section 645A;
                                  (III)(aa) Early Reading First 
                                and Even Start programs carried 
                                out under subparts 2 and 3 of 
                                part B of title I of the 
                                Elementary and Secondary 
                                Education Act of 1965 (20 
                                U.S.C. 6371 et seq., 6381 et 
                                seq.);
                                  (bb) other preschool programs 
                                carried out under title I of 
                                that Act (20 U.S.C. 6301 et 
                                seq.); and
                                  (cc) the Ready-to-Learn 
                                Television program carried out 
                                under subpart 3 of part D of 
                                title II of that Act (20 U.S.C. 
                                6775 et seq.);
                                  (IV) programs carried out 
                                under section 619 and part C of 
                                the Individuals with 
                                Disabilities Education Act (20 
                                U.S.C. 1419, 1431 et seq.);
                                  (V) State prekindergarten 
                                programs; and
                                  (VI) other programs of early 
                                childhood education and care.
          (2) Selection.--In selecting agencies to designate as 
        centers of excellence under subsection (b), the 
        Secretary shall designate not less than 1 from each of 
        the 50 States, the District of Columbia, an Indian Head 
        Start program, a migrant or seasonal Head Start 
        program, and the Commonwealth of Puerto Rico.
          (3) Priority.--In making bonus grant determinations 
        under this section, the Secretary shall give priority 
        to programs that, through their applications, 
        demonstrate that they are of exceptional quality and 
        would serve as exemplary models for programs in the 
        same geographic region. The Secretary may also consider 
        the populations served by the applicants, such as 
        programs that serve large proportions of limited 
        English proficient or other underserved populations, 
        and may make bonus grants to programs that do an 
        exceptional job meeting the needs of such children in 
        such populations.
          (4) Term of designation.--
                  (A) In general.--Subject to subparagraph (B), 
                the Secretary shall designate a Head Start 
                agency as a center of excellence for a 5-year 
                term. During the period of that designation, 
                subject to the availability of appropriations, 
                the agency shall be eligible to receive a bonus 
                grant under subsection (b).
                  (B) Revocation.--The Secretary may revoke an 
                agency's designation under subsection (b) if 
                the Secretary determines that the agency is not 
                demonstrating adequate performance or has had 
                findings of deficiencies described in paragraph 
                (1)(B)(ii).
          (5) Amount of bonus grant.--The Secretary shall base 
        the amount of funding provided through a bonus grant 
        made under subsection (b) to a center of excellence on 
        the number of children eligible for Head Start services 
        in the community involved. The Secretary shall, subject 
        to the availability of funding, make such a bonus grant 
        in an amount of not less than $200,000 per year.
    (d) Use of Funds.--
          (1) Activities.--A center of excellence that receives 
        a bonus grant under subsection (b)--
                  (A) shall use the funds made available 
                through the bonus grant to model and 
                disseminate, to other Head Start centers in the 
                State involved, best practices for achieving 
                early academic success, including--
                          (i) best practices for achieving 
                        school readiness and developing pre-
                        literacy and premathematics skills for 
                        at-risk children and achieving the 
                        acquisition of the English language for 
                        limited English proficient children; 
                        and
                          (ii) best practices for providing 
                        seamless service delivery for eligible 
                        children and their families;
                  (B) may use the funds made available through 
                the bonus grant--
                          (i) to provide Head Start services to 
                        additional eligible children;
                          (ii) to better meet the needs of 
                        working families in the community 
                        served by the center by serving more 
                        children in existing Early Head Start 
                        programs (existing as of the date the 
                        center is designated under this 
                        section) or in full-working-day, full 
                        calendar year Head Start programs;
                          (iii) to further coordinate early 
                        childhood education and care and social 
                        services available in the community 
                        served by the center for at-risk 
                        children (birth through age 8), their 
                        families, and pregnant women;
                          (iv) to provide training and cross 
                        training for Head Start teachers and 
                        staff, child care providers, public and 
                        private preschool and elementary school 
                        teachers, and other providers of early 
                        childhood education and care, and 
                        training and cross training to develop 
                        agency leaders;
                          (v) to provide effective transitions 
                        between Head Start programs and 
                        elementary school, to facilitate 
                        ongoing communication between Head 
                        Start and elementary school teachers 
                        concerning children receiving Head 
                        Start services, and to provide training 
                        and technical assistance to providers 
                        who are public elementary school 
                        teachers and other staff of local 
                        educational agencies, child care 
                        providers, family service providers, 
                        and other providers of early childhood 
                        education and care, to help the 
                        providers described in this clause 
                        increase their ability to work with 
                        low-income, at-risk children and their 
                        families;
                          (vi) to develop or maintain 
                        partnerships with institutions of 
                        higher education and nonprofit 
                        organizations, including community-
                        based organizations, that recruit, 
                        train, place, and support college 
                        students to serve as mentors and 
                        reading partners to preschool children 
                        in Head Start programs; and
                          (vii) to carry out other activities 
                        determined by the center to improve the 
                        overall quality of the Head Start 
                        program carried out by the agency and 
                        the program carried out under the bonus 
                        grant involved.
          (2) Involvement of other head start agencies and 
        providers.--A center that receives a bonus grant under 
        subsection (b), in carrying out activities under this 
        subsection, shall work with the center's delegate 
        agencies and several additional Head Start agencies 
        (especially agencies that are low-performing on the 
        standards or performance measures described in 
        subsection (a) or (b) of section 641(A), and other 
        providers of early childhood education and care in the 
        community involved, to encourage the agencies and 
        providers described in this sentence to carry out model 
        programs.
    (e) Research and Reports.--
          (1) Research.--The Secretary shall, subject to the 
        availability of funds to carry out this subsection, 
        award a grant or contract to an independent 
        organization to conduct research on the ability of the 
        centers of excellence to improve the school readiness 
        of children receiving Head Start services, and to 
        positively impact school results in the earliest 
        grades. The organization shall also conduct research to 
        measure the success of the centers of excellence at 
        encouraging the center's delegate agencies, additional 
        Head Start agencies, and other providers of early 
        childhood services in the communities involved to meet 
        measurable improvement goals, particularly in the area 
        of school readiness.
          (2) Report.--Not later than 48 months after the date 
        of enactment of the Head Start for School Readiness 
        Act, the organization shall prepare and submit to the 
        Secretary and Congress a report containing the results 
        of the research described in paragraph (1).
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated for each of fiscal years 2008 through 2012--
          (1) $90,000,000 to make bonus grants to centers of 
        excellence under subsection (b) to carry out activities 
        described in subsection (d);
          (2) $500,000 to pay for the administrative costs of 
        the Secretary in carrying out this section; and
          (3) $2,000,000 for research activities described in 
        subsection (e).

           *       *       *       *       *       *       *


              [POWERS AND FUNCTIONS OF HEAD START AGENCIES

SEC. 642. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

    [Sec. 642. (a)] (a) In General._In order to be designated 
as a Head Start agency under this subchapter, an agency must 
have authority under its charter or applicable law to receive 
and administer funds under this subchapter, funds and 
contributions from private or local public sources which may be 
used in support of a Head Start program, and funds under any 
Federal or State assistance program pursuant to which a public 
or private nonprofit or for-profit agency (as the case may be 
organized in accordance with this subchapter, could act as 
grantee, contractor, or sponsor of projects appropriate for 
inclusion in Head Start program. Such an agency must also be 
empowered to transfer funds so received, and to delegate powers 
to other agencies, subject to the powers of its governing board 
and it overall program responsibilities. The power to transfer 
funds and delegate powers must include the power to make 
transfers and delegations covering component projects in all 
cases where this will contribute to efficiency and 
effectiveness or otherwise further program objectives.
    [(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 
        D.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 1431-1444, 1419), serving the children and families 
served by the Head Start agency to carry out the provisions of 
this subchapter.
    [(d)(1) Each Head Start agency shall take steps to ensure, 
to the maximum extent possible, that children maintain the 
developmental and educational gains achieved in Head Start 
programs and build upon such gains in further schooling.
    [(2) 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) exchanging information on the provision of 
        noneducational services to such children.
    [(3) 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) provide training to the parents--
                  [(i) to inform the parents about their rights 
                and responsibilities concerning the education 
                of their children; and
                  [(ii) to enable the parents to understand and 
                work with schools in order to communicate with 
                teachers and other school personnel, to support 
                the school work of their children, and to 
                participate as appropriate in decisions 
                relating to the education of their children; 
                and
          [(B) take other actions, as appropriate and feasible, 
        to support the active involvement of the parents with 
        schools, school personnel, and school-related 
        organizations.
    [(4) The Secretary, in cooperation with the Secretary of 
Education, shall--
          [(A) evaluate the effectiveness of the projects and 
        activities funded under section 642A;
          [(B) disseminate to Head Start agencies information 
        (includtng information from the evaluation required by 
        subparagraph (A)) on effective policies and activities 
        relating to the transition of children from Head Start 
        programs to public schools; and
          [(C) provide technical assistance to such agencies to 
        promote and assist such agencies to adopt and implement 
        such effective policies and activities.
    [(e) Head Start agencies shall adopt, in consultation with 
experts in child development and with classroom teachers, an 
assessment to be used when hiring or evaluating any classroom 
teacher in a center-based Head Start program. Such assessment 
shall measure whether such teacher has mastered the functions 
described in section 648A(a)(1).]
    (b) Additional Requirements.--In order to be designated as 
a Head Start agency under this subchapter, a Head Start agency 
shall also--
          (1) establish a program with all 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 the capacity to serve eligible 
        children with scientifically based curricula and other 
        interventions and support services that help promote 
        the school readiness of children participating in the 
        program;
          (3) establish effective procedures and provide for 
        the regular assessment of Head Start children, 
        including observational and direct formal assessment, 
        where appropriate;
          (4) establish effective procedures, for determining 
        the needs of children, that include high quality 
        research based developmental screening tools that have 
        been demonstrated to be valid, reliable, and accurate 
        for children from a range of backgrounds;
          (5) require each delegate agency to create a policy 
        committee, which shall--
                  (A) be comprised of members of the community 
                to be served, including parents of children who 
                are currently enrolled in the Head Start 
                programs of the Head Start agency; and
                  (B) serve in an advisory capacity to the 
                delegate agency, to make decisions and 
                recommendations regarding program planning and 
                operation and parental involvement.
          (6) seek the involvement of parents, area residents, 
        and local business in the design and implementation of 
        the program;
          (7) provide for the regular participation of parents 
        and area residents in the implementation of the 
        program;
          (8) provide technical and other support needed to 
        enable such parents and area residents to secure, on 
        their own behalf, available assistance from public and 
        private sources;
          (9) establish effective procedures to carry out 
        subparagraphs (A) and (B) of section 641(f)(8);
          (10) conduct outreach to schools in which Head Start 
        children will 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;
          (11) establish effective procedures to carry out 
        section 641(f)(8)(C);
          (12) establish effective procedures to carry out 
        section 641(f)(8)(D);
          (13) establish effective procedures to carry out 
        section 641(f)(8)(E);
          (14) establish effective procedures to carry out 
        section 641(f)(8)(F);
          (15) consider providing services to assist younger 
        siblings of children participating in its Head Start 
        program, to obtain health services from other sources;
          (16) perform community outreach to encourage 
        individuals previously unaffiliated with Head Start 
        programs to participate in its Head Start program as 
        volunteers;
          (17)(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;
          (18) provide parents of limited English proficient 
        children outreach and information in an understandable 
        and uniform format and, to the extent practicable, in a 
        language that the parents can understand; and
          (19) at the option of such agency, partner with an 
        institution of higher education and a nonprofit 
        organization to provide college students with the 
        opportunity to serve as mentors or reading partners to 
        Head Start participants.
  (c) Transition Activities to Facilitate Continued Progress.--
          (1) In general.--Each Head Start agency shall 
        collaborate with the entities listed in this 
        subsection, to the maximum extent possible, to ensure 
        the successful transition of Head Start children to 
        school, so that such children are able to build upon 
        the developmental and educational gains achieved in 
        Head Start programs in further schooling.
          (2) Coordination.--
                  (A) Local educational agency.--In communities 
                where both public prekindergarten programs and 
                Head Start programs operate, a Head Start 
                agency shall collaborate and coordinate 
                activities with the local educational agency or 
                other public agency responsible for the 
                operation of the prekindergarten program and 
                providers of prekindergarten, including 
                outreach activities to identify eligible 
                children.
                  (B) Elementary schools.--Head Start staff 
                shall, with the permission of the parents of 
                children enrolled in Head Start programs, 
                regularly communicate with the elementary 
                schools such children will be attending to--
                          (i) share information about such 
                        children;
                          (ii) collaborate with the teachers in 
                        such elementary schools regarding 
                        teaching strategies and options; and
                          (iii) ensure a smooth transition to 
                        elementary school for such children.
                  (C) Other programs.--The head of each Head 
                Start agency shall coordinate activities 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.), 
                other entities providing early childhood 
                education and care, and the agencies 
                responsible for administering section 106 of 
                the Child Abuse Prevention and Treatment Act 
                (42 U.S.C. 5106a), parts B and E of title IV of 
                the Social Security Act (42 U.S.C. 621 et seq. 
                and 670 et seq.), programs under subtitle B of 
                title VII of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11431 et seq.), Even 
                Start programs under subpart 3 of part B of 
                title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6381 et seq.), 
                and programs under section 619 and part C of 
                the Individuals with Disabilities Education Act 
                (20 U.S.C. 1419, 1431 et seq.), serving the 
                children and families served by the Head Start 
                agency.
          (3) Collaboration.--A Head Start agency shall take 
        steps to coordinate activities 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, in appropriate 
                cases;
                  (B) collaborating to reduce the duplication 
                of services while increasing the program 
                participation of underserved populations of 
                eligible children; and
                  (C) exchanging information on the provision 
                of noneducational services to such children.
          (4) Parental involvement.--In order to promote the 
        continued involvement of the parents of children that 
        participate in Head Start programs in the education of 
        their children, the Head Start agency shall--
                  (A) provide training to the parents--
                          (i) to inform the parents about their 
                        rights and responsibilities concerning 
                        the education of their children; and
                          (ii) to enable the parents, upon the 
                        transition of their children to 
                        school--
                                  (I) to understand and work 
                                with schools in order to 
                                communicate with teachers and 
                                other school personnel;
                                  (II) to support the 
                                schoolwork of their children; 
                                and
                                  (III) to participate as 
                                appropriate in decisions 
                                relating to the education of 
                                their children; and
                  (B) take other actions, as appropriate and 
                feasible, to support the active involvement of 
                the parents with schools, school personnel, and 
                school-related organizations.
    (d) Assessment or Evaluation.--Each Head Start agency shall 
adopt, in consultation with experts in child development and 
with classroom teachers, an assessment or evaluation to measure 
whether classroom teachers have mastered the functions 
described in section 648A(a)(1) and have attained a level of 
literacy appropriate to implement Head Start curricula.
    (e) Funded Enrollment; Waiting List.--Each Head Start 
agency shall enroll 100 percent of its funded enrollment and 
maintain an active waiting list at all times with ongoing 
outreach to the community and activities to identify 
underserved populations.
    (f) Technical Assistance and Training Plan.--In order to 
receive funds under this subchapter, a Head Start agency shall 
develop an annual technical assistance and training plan. Such 
plan shall be based on the agency's self-assessment, the 
communitywide needs assessment, and the needs of parents to be 
served by such agency.

[SEC. 642A. HEAD START TRANSITION.

    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) developing and implementing a systematic 
        procedure for transferring, with parental consent, Head 
        Start program records for each participating child to 
        the school in which such child will enroll;
          [(2) establishing channels of communication between 
        Head Start staff and their counterparts in the schools 
        (including teachers, social workers, and health staff) 
        to facilitate coordination of programs;
          [(3) 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) 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) assisting families, administrators, and teachers 
        in enhancing educational and developmental continuity 
        between Head Start services and elementary school 
        classes; and
          [(7) linking the services provided in such Head Start 
        program with the education services provided by such 
        local educational agency.]

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

    (a) In General.--Each Head Start agency shall take steps to 
coordinate activities 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, which may include--
          (1) developing and implementing a systematic 
        procedure for transferring, with parental consent, Head 
        Start program records for each participating child to 
        the school in which such child will enroll;
          (2) establishing ongoing channels of communication 
        between Head Start staff and their counterparts in the 
        schools (including teachers, social workers, health 
        staff, and local educational agency liaisons designated 
        under section 722(g)(1)(J)(ii) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii))) 
        to facilitate coordination of programs;
          (3) establishing comprehensive transition policies 
        and procedures that support children transitioning to 
        school, including by engaging the local education 
        agency in the establishment of such policies;
          (4) developing a continuity of developmentally 
        appropriate curricular objectives and practices between 
        the Head Start agency and local educational agency, 
        that reflect shared expectations for children's 
        learning and development for the transition to school;
          (5) conducting outreach to parents, elementary school 
        (such as kindergarten) teachers, and Head Start 
        teachers to discuss the educational, developmental, and 
        other needs of individual children;
          (6) organizing and participating in joint training, 
        including transition-related training of school staff 
        and Head Start staff;
          (7) 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.), and family outreach and support 
        efforts under subtitle B of title VII of the McKinney-
        Vento Homeless Assistance Act (42 U.S.C. 11431 et 
        seq.), taking into consideration the language needs of 
        parents of limited English proficient children;
          (8) assisting families, administrators, and teachers 
        in enhancing educational and developmental continuity 
        and continuity of parental involvement in activities 
        between Head Start services and elementary school 
        classes;
          (9) linking the services provided in such Head Start 
        program with the education services, including services 
        relating to language, literacy, and numeracy, provided 
        by such local educational agency;
          (10) helping parents understand the importance of 
        parental involvement in a child's academic success 
        while teaching the parents strategies for maintaining 
        parental involvement as their child moves from the Head 
        Start program to elementary school;
          (11) helping parents understand the instructional and 
        other services provided by the school in which their 
        child will enroll after participation in the Head Start 
        program; and
          (12) coordinating activities and collaborating to 
        ensure that curricula used in the Head Start program 
        are aligned with State early learning standards, as 
        appropriate, and the Head Start Child Outcomes 
        Framework with regard to cognitive development 
        (including language, pre-literacy, and premathematics 
        competencies), and social, emotional, and physical 
        competencies that children entering kindergarten are 
        expected to demonstrate.
    (b) Construction.--In this section, a reference to a Head 
Start agency, or its program, services, facility, or personnel, 
shall not be construed to be a reference to an Early Head Start 
agency, or its program, services, facility, or personnel.

           *       *       *       *       *       *       *


                    SUBMISSION OF PLANS TO GOVERNORS

    Sec. 643. In carrying out the provisions of this 
subchapter, no contract, agreement, grant, or other assistance 
shall be made for the purpose of carrying out a Head Start 
program within a State unless a plan setting forth such 
proposed contract, agreement, grant, or other assistance has 
been submitted to the [chief executive officer] Governor of the 
State, and such plan has not been disapproved by such officer 
within [45] 30 days of such submission, or, if disapproved (for 
reasons other than failure of the program to comply with State 
health, safety, and child care laws, including regulations 
applicable to comparable child care programs in the State), has 
been reconsidered by the Secretary and found by the Secretary 
to be fully consistent with the provisions and in furtherance 
of the purposes of this subchapter, as evidenced by a written 
statement of the Secretary's findings that is transmitted to 
such officer. Funds to cover the costs of the proposed 
contract, agreement, grant, or other assistance shall be 
obligated from the appropriation which is current at the time 
the plan is submitted to such officer. This section shall not[, 
however,] apply to contracts, agreements, grant, loans, or 
other assistance to any institution of higher education in 
existence on the date of the enactment of this Act. This 
section shall not apply to contracts, agreements, grants, 
loans, or other assistance for Indian Head Start programs and 
migrant and seasonal Head Start programs.

           *       *       *       *       *       *       *

    Sec. 644. (a) * * *
    (b) [Except] (1) Except as provided in subsection (f), no 
financial assistance shall be extended under this subchapter in 
any case in which the Secretary determines that the costs of 
developing and administering a program assisted under this 
subchapter exceed 15 percent of the total costs, including the 
required non-Federal contributions to such costs, of such 
program. The Secretary shall establish by regulation, criteria 
for determining (1) the costs of developing and administering 
such program; and (2) the total costs of such program. In any 
case in which the Secretary determines that the cost of 
administering such program does not exceed 15 percent of such 
total costs but is, in the judgment of the Secretary, 
excessive, the Secretary shall forthwith require the recipient 
of such financial assistance to take such steps prescribed by 
the Secretary as will eliminate such excessive administrative 
cost, including the sharing by one or more Head Start agencies 
of a common director and other administrative personnel. The 
Secretary may waive the limitation prescribed by this 
subsection for specific periods of time not be exceed 12 months 
whenever the Secretary determines that such a waiver is 
necessary in order to carry out the purposes of this 
subchapter.
    (2)(A) The limitation prescribed by paragraph (1) shall not 
prohibit a Head Start agency from expending an amount in excess 
of allowable direct costs associated with developing and 
administering a program assisted under this subchapter, if--
          (i) the agency submits an application for a grant 
        year containing an assurance that--
                  (I) the agency will serve a greater 
                percentage of children in the community 
                involved than were served in the preceding 
                grant year; and
                  (II) the agency will not diminish services 
                provided to currently enrolled children (as of 
                the date of the application), including the 
                number of hours and days such services are 
                provided;
          (ii) any such excess amount does not exceed 5 percent 
        of the total costs, including the required non-Federal 
        contributions to such costs, of such program; and
          (iii) in the event that the applicant applies to 
        expend any such excess amount in a subsequent grant 
        year, the applicant continues to serve the same number 
        of children as proposed in the initial application 
        submitted under this paragraph and accomplishes, 
        relative to the prior Head Start agency, at least 3 of 
        the 5 improved outcomes.
    (B) In subparagraph (A), the term `improved outcome' 
means--
          (i) an increase in average teacher salary;
          (ii) an increase in the number of qualified teachers;
          (iii) a significant increase in the number of 
        children who receive full-day Head Start services;
          (iv) a decrease in the caseload for family workers; 
        or
          (v) an increase in transportation options for 
        families.
    (C) The Secretary shall approve not more than 10 
applications described in subparagraph (A) for a fiscal year, 
and to the extent practicable shall ensure participation under 
this paragraph of a diverse group of Head Start agencies, 
including public, private nonprofit, and for-profit agencies 
operating 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) that children from low-income families shall be 
        eligible for participation in programs assisted under 
        this subchapter if their families' incomes are below 
        130 percent of the poverty line, or if their families 
        are eligible or, in the absence of child care, would 
        potentially be leigible for public assistance; and
          (B) * * *
                  (i) * * *
                  (ii) * * *
In determining, for purposes of this paragraph, whether a child 
who has applied for enrollment in a Head Start program meets 
the low-income criteria, an entity may consider evidence of 
family income during the 12 months preceding the month in which 
the application is submitted, or during the calendar year 
preceding the calendar year in which the application is 
submitted, whichever more accurately reflects the needs of the 
family at the time of application. A homeless child shall be 
deemed eligible for Head Start services.
    (2) * * *

           *       *       *       *       *       *       *

    (3)(A) In this paragraph:
          (i) The term ``dependent'' has the meaning given the 
        term in paragraphs (2)(A) and (4)(A)(i) of section 
        401(a) of title 37, United States Code.
          (ii) The terms ``member'' and ``uniformed services'' 
        have the meanings given the terms in paragraphs (23) 
        and (3), respectively, of section 101 of title 37, 
        United States Code.
    (B) The following amounts of pay and allowance of a member 
of the uniformed services shall not be considered to be income 
for purposes of determining the eligibility of a dependent of 
such member for programs funded under this subchapter:
          (i) The amount of any special pay payable under 
        section 310 of title 37, United States Code, relating 
        to duty subject to hostile fire or imminent danger.
          (ii) The amount of basic allowance payable under 
        section 403 of such title, including any such amount 
        that is provided on behalf of the member for housing 
        that is acquired or constructed under the alternative 
        authority for the acquisition and improvement of 
        military housing under subchapter IV of chapter 169 of 
        title 10, United States Code, or any other related 
        provision of law.
    (4) After demonstrating a need through a communitywide 
needs assessment, a Head Start agency may apply to the 
Secretary to convert part-day sessions, particularly 
consecutive part-day sessions, into full-day sessions.
    (5)(A) Consistent with a communitywide needs assessment, a 
Head Start agency may apply to the Secretary to serve 
additional infants and toddlers if the agency submits an 
application to the Secretary containing--
          (i) a description of how the needs of pregnant women, 
        infants, and toddlers will be addressed in accordance 
        with section 645A(b), and with regulations prescribed 
        by the Secretary pursuant to section 641A in areas 
        including the agency's approach to child development 
        and provision of health services, approach to family 
        and community partnerships, and approach to program 
        design and management;
          (ii) a description of how the needs of eligible Head 
        Start children are being and will be served;
          (iii) assurances that the agency will participate in 
        technical assistance activities (including a planning 
        period, start-up site visits, and national training 
        activities) in the same manner as recipients of grants 
        under section 645A; and
          (iv) evidence that the agency meets the same 
        eligibility criteria as recipients of grants under 
        section 645A.
    (B) In approving such applications, the Secretary shall 
take into account the costs of serving persons under section 
645A.
    (C) Any Head Start agency designated under this section and 
permitted to use grant funds under subparagraph (A) to serve 
additional infants and toddlers shall be considered to be an 
Early Head Start agency and shall be subject to the same rules, 
regulations, and conditions as apply to recipients of grants 
under section 645A for those grant funds.

           *       *       *       *       *       *       *

    (d)(1) An Indian tribe that--
    (A) * * *

           *       *       *       *       *       *       *

    (3) * * *
    (4) Notwithstanding any other provision of this Act, an 
Indian tribe that operates both an Early Head Start program 
under section 645A and a Head start program may, at its 
discretion, at any time during the grant period involved, 
reallocate funds between the Early Head Start program and the 
Head Start program in order to address fluctuations in client 
population, including pregnant women and children birth to 
compulsory school age. The reallocation of such funds between 
programs by an Indian tribe shall not serve as the basis for 
the Secretary to reduce a base grant (as defined in section 
641A(g)(1)) for either program in succeeding years.

           *       *       *       *       *       *       *


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

    (a) In General.--* * *
    (b) Scope and Design of Programs.* * *
          (1) * * *

           *       *       *       *       *       *       *

          (4) [provide services to parents to support their 
        role as parents] provide additional services and 
        research-based activities 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) where appropriate and in conjunction with 
        services provided under this section to the children's 
        immediate families (or as approved by the Secretary), 
        provide home-based services to family child care homes, 
        and kin caregivers, caring for infants and toddlers who 
        also participate in Early Head Start programs, to 
        provide continuity in supporting the children's 
        cognitive, social, emotional, and physical development;
          [(5)](6) 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 and homeless 
        infants and toddlers) to ensure a comprehensive array 
        of services (such as health and mental health services, 
        and family support services);
          (7) ensure that children with documented behavioral 
        problems, including problems involving behavior related 
        to prior or existing trauma, receive appropriate 
        screening and deferral;
          [(6)](8) ensure formal linkages with local Health 
        Start programs in order to provide for continuity of 
        services for children and families;
          (9) develop and implement a systematic procedure for 
        transitioning children and parents from an Early Head 
        Start program to a Head Start program or another local 
        program of early childhood education and care;
          (10) establish channels of communication between 
        staff of Early Head Start programs and staff of Head 
        Start programs or other local providers of early 
        childhood education and care, to facilitate the 
        coordination of programs;
          [(7)](11) in the case of a Head Start agency that 
        operates a program and that also provides Head Start 
        services through the age of mandatory school 
        attendance, ensure that children and families 
        participating in the program receive such services 
        through such age;
          [(8)](12) 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] 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 
        agencies responsible for administering section 106 of 
        the Child Abuse Prevention and Treatment Act (42 U.S.C. 
        5106a) and parts B and E of title IV of the Social 
        Security Act (42 U.S.C. 621 et seq. and 670 et seq.); 
        and
          [(9)](13) meet such other requirements concerning 
        design and operation of the program described in 
        subsection (a) as the Secretary may establish.

           *       *       *       *       *       *       *

        (d) Eligible Service Providers.--* * *
          (1) entities operating Head Start programs under this 
        subchapter, including tribal governments and entities 
        operating migrant and seasonal Head Start programs; and
          (2) other public entities, and nonprofit or for-
        profit private entities, including community-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) Requirement.  * * *
          (2) Training and technical assistance account.--
                  (A) In general.--* * *
                  (B) Activities.--Funds in the account may be 
                used by the Secretary for purposes including--
                          (i) * * *

           *       *       *       *       *       *       *

                          [(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.]
                          (iv) providing professional 
                        development and personnel enhancement 
                        activities, including the provision of 
                        funds to recipients of grants under 
                        subsection (a), relating to--
                                  (I) effective methods of 
                                conducting parent education, 
                                home visiting, and promoting 
                                quality early childhood 
                                development;
                                  (II) recruiting and retaining 
                                qualified staff; and
                                  (III) increasing program 
                                participation for underserved 
                                populations of eligible 
                                children.
    (h) Staff Qualifications and Development.--
          (1) Center-based staff.--The Secretary shall 
        establish staff qualification goals to ensure that, not 
        later than September 30, 2012, all teachers providing 
        direct services to Early Head Start children and 
        families in Early Head Start centers have a minimum of 
        a child development associate credential or an 
        associate degree, and have been trained (or have 
        equivalent course work) in early childhood development 
        with a focus on infant and toddler development.
          (2) Home visitor staff.--
                  (A) Standards.--In order to further enhance 
                the quality of home visiting services provided 
                to families of children participating in home-
                based, center-based, or combination program 
                options under this subchapter, the Secretary 
                shall establish standards for training, 
                qualifications, and the conduct of home visits 
                for home visitor staff in Early Head Start 
                programs.
                  (B) Contents.--The standards for training, 
                qualifications, and the conduct of home visits 
                shall include content related to--
                          (i) structured child-focused home 
                        visiting that promotes parents' ability 
                        to support the child's cognitive, 
                        social, emotional, and physical 
                        development;
                          (ii) effective strengths-based parent 
                        education, including methods to 
                        encourage parents as their child's 
                        first teachers;
                          (iii) early childhood development 
                        with respect to children from birth 
                        through age 3;
                          (iv) methods to help parents promote 
                        emergent literacy in their children 
                        from birth through age 3, including use 
                        of research-based strategies to support 
                        the development of literacy and 
                        language skills for children who are 
                        limited English proficient;
                          (v) health, vision, hearing, and 
                        developmental screenings;
                          (vi) strategies for helping families 
                        coping with crisis; and
                          (vii) the relationship of health and 
                        well-being of pregnant women to 
                        prenatal and early child development.

           *       *       *       *       *       *       *


                      APPEALS, NOTICE, AND HEARING

    Sec. 646. (a) The Secretary shall prescribe procedures to 
assure that--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) financial assistance under this subchapter shall 
        not be terminated or reduced, an application for 
        refunding shall not be denied, and a suspension of 
        financial assistance shall not be continued for longer 
        than 30 days, unless the recipient has been afforded 
        reasonable notice and opportunity for a full and fair 
        hearing; and
          [(4) the Secretary shall develop and publish 
        procedures (including mediation procedures) to be used 
        in order to--
                  [(A) resolve in a timely manner conflicts 
                potentially leading to adverse action between--
                          [(i) recipients of financial 
                        assistance under this subchapter; and
                          [(ii) delegate agencies or Head Start 
                        Parent Policy Councils; and
                  [(B) avoid the need for an administrative 
                hearing on an adverse action.]
          (3) financial assistance under this subchapter may be 
        terminated or reduced, and an application for refunding 
        may be denied, after the recipient has been afforded 
        reasonable notice and opportunity for a full and fair 
        hearing, including--
                  (A) a right to file a notice of appeal of a 
                decision not later than 30 days after notice of 
                the decision from the Secretary; and
                  (B) access to a full and fair hearing of the 
                appeal, not later than 120 days after receipt 
                by the Secretary of the notice of appeal;
          (4) the Secretary shall develop and publish 
        procedures (including mediation procedures) to be used 
        in order to--
                  (A) resolve in a timely manner conflicts 
                potentially leading to an adverse action 
                between--
                          (i) recipients of financial 
                        assistance under this subchapter; and
                          (ii) delegate agencies, or policy 
                        councils of Head Start agencies;
                  (B) avoid the need for an administrative 
                hearing on an adverse action; and
                  (C) prohibit a Head Start agency from 
                expending financial assistance awarded under 
                this subchapter for the purpose of paying legal 
                fees pursuant to an appeal under paragraph (3), 
                except that such fees shall be reimbursed by 
                the Secretary if the agency prevails in such 
                decision; and
          (5) the Secretary may suspend funds to a grantee 
        under this subchapter--
                  (A) except as provided in subparagraph (B), 
                for not more than 30 days; or
                  (B) in the case of a grantee under this 
                subchapter that has multiple and recurring 
                deficiencies for 180 days or more and has not 
                made substantial and significant progress 
                toward meeting the goals of the grantee's 
                quality improvement plan or eliminating all 
                deficiencies identified by the Secretary, 
                during the hearing of an appeal described in 
                paragraph (3), for any amount of time, 
                including permanently.

           *       *       *       *       *       *       *


           [RECORDS AND AUDITS] RECORDS AND FINANCIAL AUDITS

    Sec. 647. (a) [Each recipient of] Each Head Start center, 
including each Early Head Start center, receiving financial 
assistance under this subchapter shall keep such records as the 
Secretary shall prescribe, including records which fully 
disclose the amount and disposition by such recipient of the 
proceeds of such financial assistance, the total cost of the 
project or undertaking in connection with which such financial 
assistance is given or used, the amount of that portion of the 
cost of the project or undertaking supplied by other sources, 
and such other records as will facilitate an effective [audit] 
financial audit.
    (b) The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall 
have access for the purpose of [audit] financial audit and 
examination to any books, documents, papers, and records of the 
recipients that are pertinent to the financial assistance 
received under this subchapter.
  (c) Each Head Start center, including each Early Head Start 
center, receiving financial assistance under this subchapter 
shall maintain, and annually submit to the Secretary, a 
complete accounting of its administrative expenses, including 
expenses for salaries and compensation funded under this 
subchapter and provide such additional documentation as the 
Secretary may require.

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                   TECHNICAL ASSISTANCE AND TRAINING

    Sec. 648. (a) The Secretary shall provide, directly or 
through grants or other arrangements (1) technical assistance 
to communities developing, conducting, and administering 
programs under this subchapter; and (2) training for 
specialized or other personnel needed in connection with Head 
Start programs, in accordance with the process, and the 
provisions for allocating resources, set forth in subsections 
[(b) and (c)] (b), (c), and (d).
    (b) The Secretary shall make available funds set aside in 
section 640(a)(2)(C)(ii) to support a State system of training 
and technical assistance (which may include such a system for a 
consortium of States within a region) that improves the 
capacity of Head Start programs to deliver services in 
accordance with the standards described in section 641A(a)(1), 
with particular attention to the standards described in 
subparagraphs (A) and (B) of such section. The Secretary 
shall--
          (1) ensure that 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 Associations, 
        State agencies, Indian Head Start agencies, migrant and 
        seasonal Head Start agencies, and other entities 
        providing training and technical assistance in early 
        childhood education and care, for the State (including 
        such a consortium of States within a region), are 
        included in the planning and coordination of the 
        system; and
          (2) encourage States (including such consortia) to 
        supplement the funds authorized in section 
        640(a)(2)(C)(ii) with Federal, State, or local funds 
        other than funds made available under this subchapter, 
        to expand training and technical assistance activities 
        beyond Head Start agencies to include other providers 
        of other early childhood education and care within a 
        State (including such a consortium).
    [(b)] (c) The process for determining the technical 
assistance and training activities to be carried out under this 
section shall--
          (1) * * *
          (2) * * *
          (3) ensure the provision of technical assistance to 
        assist Head Start agencies, entities carrying out other 
        [child care and early childhood programs] early 
        childhood education and care programs, communities, and 
        States in collaborative efforts to provide quality 
        full-working-day, full calendar year services, 
        including technical assistance related to identifying 
        and assisting in resolving barriers to collaboration.
    [(c)] (d) In allocating resources for technical assistance 
and training under this section, the Secretary shall--
          (1) * * *
                  (A) * * *
                  (B) assisting Head Start agencies in--
                          (i) ensuring the school readiness of 
                        children; and
                          (ii) meeting the [educational 
                        performance measures] measures 
                        described in section 641A(b)(4);
          (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 
        1222(d) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 6372(d))) 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;
          (3) assist Head Start agencies in the development of 
        collaborative initiatives with States and other 
        entities within the States, to foster effective [early 
        childhood professional development systems] 
        professional development systems regarding early 
        childhood education and care;
          (4) * * *

           *       *       *       *       *       *       *

          (5) assist Head Start agencies and programs in 
        conducting and participating in communitywide strategic 
        planning and needs assessment, including assessing the 
        needs of homeless children and their families;
          (6) * * *
          [(7) assist Head Start agencies in better serving the 
        needs of families with very young children;]
          (7) assist Head Start agencies in better serving the 
        needs of families with very young children, including 
        providing support and program planning and 
        implementation assistance for Head Start agencies that 
        apply to serve or are serving additional infants and 
        toddlers with funds previously used for 3- and 4-year-
        olds in accordance with section 645(a)(5);
          (8) * * *

           *       *       *       *       *       *       *

          (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[.];
          (12) assist Head Start agencies in increasing the 
        program participation of homeless children;
          (13) provide training and technical assistance to 
        members of governing bodies, policy councils, and, as 
        appropriate, policy committees, to ensure that the 
        members can fulfill their functions;
          (14) provide training and technical assistance to 
        Head Start agencies to assist such agencies in 
        conducting self-assessments;
          (15) assist Head Start agencies in improving outreach 
        to, and the quality of services available to, limited 
        English proficient children and their families, 
        including such services to help such families learn 
        English, particularly in communities that have 
        experienced a large percentage increase in the 
        population of limited English proficient individuals, 
        as measured by the Bureau of the Census;
          (16) provide activities that help ensure that Head 
        Start programs have qualified staff who can promote 
        prevention of childhood obesity by integrating into the 
        programs developmentally appropriate research-based 
        initiatives that stress the importance of physical 
        activity and nutrition choices made by children and 
        family, through daily classroom and family routines; 
        and
          (17) assist Indian Head Start agencies to provide on-
        site and off-site training to staff, using approaches 
        that identify and enhance the positive resources and 
        strengths of Indian children and families, to improve 
        parent and family engagement and staff development, 
        particularly with regard to child and family 
        development.
    [(d)](e) The Secretary may provide, either directly or 
through grants to public or private nonprofit entities, 
including community-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 childre. 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)](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 programs leading to recognized credentials for 
personnel working in [early childhood development and child 
care programs] early childhood education and care programs, 
training for personnel providing services to non-English 
language background children (including services to promote the 
acquisition of the English language) or providing services to 
children determined to be abused or neglected, training for 
personnel providing services to children referred by entities 
providing child welfare services 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) 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 farmworker families, families with limited English 
proficiency, and homeless families.
    (h) Funds used under this section shall be used to provide 
high quality, sustained, and intensive, 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 1 or more 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) Funds used under this section for training shall be 
used for needs identified annually by a grant applicant 
(including any delegate agency) in its program improvement 
plan, except that funds shall not be used for long-distance 
travel expenses for training activities--
          (1) available locally or regionally; or
          (2) substantially similar to locally or regionally 
        available training activities.
    (j)(1) To support local efforts to enhance early language 
and preliteracy development of children in Head Start programs, 
and to provide the children with high-quality oral language 
skills, and environments that are rich in literature, in which 
to acquire language and preliteracy skills, each Head Start 
agency, in coordination with the appropriate State office and 
the relevant State Head Start collaboration office, shall 
ensure that all of the agency's Head Start teachers receive 
ongoing training in language and emergent literacy (referred to 
in this subsection as ``literacy training''), including 
appropriate curricula and assessments to improve instruction 
and learning. Such training shall include training in methods 
to promote phonological awareness (including phonemic 
awareness) and vocabulary development in an age-appropriate and 
culturally and linguistically appropriate manner.
    (2) The literacy training shall be provided at the local 
level in order--
          (A) to be provided, to the extent feasible, in the 
        context of the Head Start programs of the State 
        involved and the children the program involved serves; 
        and
          (B) to be tailored to the early childhood literacy 
        background and experience of the teachers involved.
    (3) The literacy training shall be culturally and 
linguistically appropriate and support children's development 
in their home language.
    (4) The literacy training shall include training in how to 
work with parents to enhance positive language and early 
literacy development at home.
    (5) The literacy training shall include specific methods to 
best address the needs of children who are limited English 
proficient.
    (6) The literacy training shall include training on how to 
best address the language and literacy needs of children with 
disabilities, including training on how to work with 
specialists in language development.

           *       *       *       *       *       *       *


SEC. 648A. STAFF QUALIFICATIONS AND DEVELOPMENT.

    (a) Classroom Teachers.--
          (1) Professional requirements.--* * *
                  (A) * * *

           *       *       *       *       *       *       *

          [(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 
                establish staff qualification goals to ensure 
                that--
                          (i) not later than September 30, 
                        2012, all Head Start teachers 
                        nationwide in center-based programs 
                        have at least--
                                  (I)(aa) an associate degree 
                                (or equivalent coursework) 
                                relating to early childhood; or
                                  (bb) an associate degree in a 
                                related educational area and, 
                                to the extent practicable, 
                                coursework relating to early 
                                childhood; and
                                  (II) demonstrated teaching 
                                competencies, as determined by 
                                the program director involved 
                                (including, at a minimum, an 
                                appropriate level of literacy, 
                                a demonstrated capacity to be 
                                highly engaged with children, 
                                and a demonstrated ability to 
                                effectively implement an early 
                                childhood curriculum);
                          (ii) not later than September 30, 
                        2010, all Head Start curriculum 
                        specialists and education coordinators 
                        nationwide in center-based programs 
                        have--
                                  (I) the capacity to offer 
                                assistance to other teachers in 
                                the implementation and 
                                adaptation of curricula to the 
                                group and individual needs of a 
                                class; and
                                  (II)(aa) a baccalaureate or 
                                advanced degree relating to 
                                early childhood; or
                                  (bb) a baccalaureate or 
                                advanced degree and coursework 
                                equivalent to a major relating 
                                to early childhood;
                          (iii) not later than September 30, 
                        2010, all Head Start teaching 
                        assistants nationwide in center-based 
                        programs have--
                                  (I) at least a child 
                                development associate 
                                credential;
                                  (II) enrolled in a program 
                                leading to an associate or 
                                baccalaureate degree; or
                                  (III) enrolled in a child 
                                development associate 
                                credential program to be 
                                completed within 2 years; and
                          (iv) not later than September 30, 
                        2013, 50 percent of all Head Start 
                        teachers in center-based programs in 
                        each State (and geographic region for 
                        Indian Head Start programs and for 
                        migrant and seasonal Head Start 
                        programs) have a baccalaureate degree 
                        relating to early childhood (or a 
                        related educational area), and 
                        demonstrated teaching competencies, as 
                        determined by the program director 
                        involved (including, at a minimum, an 
                        appropriate level of literacy, a 
                        demonstrated capacity to be highly 
                        engaged with children, and a 
                        demonstrated ability to effectively 
                        implement an early childhood 
                        curriculum).
                  (B) Teacher in-service requirement.--Each 
                Head Start teacher shall attend not less than 
                15 clock hours of professional development per 
                year. Such professional development shall be 
                high quality, sustained, intensive, and 
                classroom-focused in order to have a positive 
                and lasting impact on classroom instruction and 
                the teacher's performance in the classroom, and 
                regularly evaluated for effectiveness.
                  (C) Progress.--
                          (i) Report.--The Secretary shall--
                                  (I) require Head Start 
                                agencies to--
                                          (aa) describe 
                                        continuing progress 
                                        each year toward 
                                        achieving the goals 
                                        described in 
                                        subparagraph (A);
                                          (bb) submit to the 
                                        Secretary a report 
                                        indicating the number 
                                        and percentage of 
                                        classroom instructors 
                                        in center-based 
                                        programs with child 
                                        development associate 
                                        credentials or 
                                        associate, 
                                        baccalaureate, or 
                                        advanced degrees; and
                                  (II) compile and submit a 
                                summary of all program reports 
                                described in subclause (I)(bb) 
                                to the Committee on Education 
                                and Labor of the House of 
                                Representatives and the 
                                Committee on Health, Education, 
                                Labor, and Pensions of the 
                                Senate.
                          (ii) Demonstrate progress.--A Head 
                        Start agency may demonstrate that 
                        progress by partnering with 
                        institutions of higher education or 
                        other programs that recruit, train, 
                        place, and support college students to 
                        deliver an innovative program of early 
                        childhood education and care to 
                        preschool children.
                  (D) Service requirements.--The Secretary 
                shall establish requirements to ensure that, in 
                order to enable Head Start agencies to comply 
                with the requirements of subparagraph (A), 
                individuals who receive financial assistance 
                under this subchapter to pursue a degree or 
                credential described in subparagraph (A) 
                shall--
                          (i) teach or work in a Head Start 
                        program for a minimum of 3 years after 
                        receiving the degree; or
                          (ii) repay the total or a prorated 
                        amount of the financial assistance 
                        received based on the length of service 
                        completed after receiving the degree.
          (3) Alternative credentialing requirements.--The 
        Secretary shall ensure that, for center-based programs, 
        each Head Start classroom that does not have a teacher 
        that meets the requirements of clause [(i) or (ii)] (i) 
        or (iv) of paragraph (2)(A) is assigned one teacher who 
        has--
                  (A) * * *

           *       *       *       *       *       *       *

    (c) Family Service Workers.--* * *
          (1) * * *
          (2) promote the development of model curricula (on 
        subjects including parenting training and family 
        literacy) designed to ensure the attainment of 
        appropriate competencies by individuals working or 
        planning to work in the field of early childhood and 
        family services; [and]
          (3) promote the establishment of a credential that 
        indicates attainment of the competencies and that is 
        accepted nationwide[.]; and
          (4) promote the use of appropriate strategies to meet 
        the needs of special populations (including populations 
        of limited English proficient children).
    (d) Head Start Fellowships.--
          (1) * * *
          (2) * * *
          (3) Assignments of fellows.--
                  (A) Placement sites.--* * *

           *       *       *       *       *       *       *

                  (C) No placement in lobbying organizations.--
                Head Start Fellowship positions may not be 
                located in any agency, including a center, 
                whose primary purpose, or one of whose major 
                purposes, is to influence Federal, State, or 
                local legislation.

           *       *       *       *       *       *       *

    (f) Professional Development Plans.--Every Head Start 
agency and center shall create, in consultation with employees 
of the agency or center (including family service workers), a 
professional development plan for employees who provide direct 
services to children, including a plan for classroom teachers, 
curriculum specialists, and education coordinators, and 
teaching assistants to meet the requirements set forth in 
subsection (a).
    (g) Construction.--In this section, a reference to a Head 
Start agency, or its program, services, facility or personnel, 
shall not be considered to be a reference to an Early Head 
Start agency, or its program, services, facility or personnel.

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SEC. 648B. TRIBAL COLLEGE OR UNIVERSITY HEAD START PARTNERSHIP PROGRAM.

    (a) Purpose.--The purpose of this section is to promote 
social competencies and school readiness in Indian children.
    (b) Tribal College or University Head Start Partnership 
Program.--
          (1) Grants.--The Secretary is authorized to award 
        grants, for periods of not less than 5 years, to Tribal 
        Colleges and Universities to--
                  (A) implement education programs that include 
                education concerning tribal culture and 
                language and increase the number of associate, 
                baccalaureate, and advanced degrees in early 
                childhood education and related fields that are 
                earned by Indian Head Start agency staff 
                members, parents of children served by such an 
                agency, and members of the tribal community 
                involved;
                  (B) develop and implement the programs under 
                subparagraph (A) in technology-mediated 
                formats, including providing the programs 
                through such means as distance learning and use 
                of advanced technology, as appropriate; and
                  (C) provide technology literacy programs for 
                Indian Head Start agency staff members and 
                children and families of children served by 
                such an agency.
          (2) Staffing.--The Secretary shall ensure that the 
        American Indian Programs Branch of the Head Start 
        Bureau of the Department of Health and Human Services 
        shall have staffing sufficient to administer the 
        programs under this section and to provide appropriate 
        technical assistance to Tribal Colleges and 
        Universities receiving grants under this section.
    (c) Application.--Each Tribal College or University 
desiring a grant under this section shall submit an application 
to the Secretary, at such time, in such manner, and containing 
such information as the Secretary may require, including a 
certification that the Tribal College or University has 
established a partnership with 1 or more Indian Head Start 
agencies for the purpose of conducting the activities described 
in subsection (b).
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section, $10,000,000 for 
fiscal year 2008 and such sums as may be necessary for each of 
fiscal years 2009 through 2012.
    (e) Definitions.--In this section:
          (1) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given such term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)).
          (2) Tribal college or university.--The term ``Tribal 
        College or University''--
                  (A) has the meaning given such term in 
                section 316 of the Higher Education Act of 1965 
                (20 U.S.C. 1059c); and
                  (B) means an institution determined to be 
                accredited or a candidate for accreditation by 
                a nationally recognized accrediting agency or 
                association.

           *       *       *       *       *       *       *


SEC. 649. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

    (a) In General.--
          (1) Requirement; general purposes.--* * *
                  (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, children determined to be abused 
                or neglected, homeless children, and children 
                in foster care) 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.

           *       *       *       *       *       *       *

    (d) Specific Objectives.-- * * *
          (1) * * *

           *       *       *       *       *       *       *

          (4) * * *
          (5) identify successful strategies that promote good 
        oral health and provide effective linkages to quality 
        dental services through pediatric dental referral 
        networks, for infants and toddlers participating in 
        Early Head Start programs and children participating in 
        other Head Start programs;
          [(5)](6) permit comparisons of children and families 
        participating in Head Start programs with children and 
        families receiving other [child care, early childhood 
        education, or child development services] early 
        childhood education and care services and with other 
        appropriate control groups;
          [(6)](7) * * *
          [(7)](8) * * *
          [(8)](9) promote exploration of areas in which 
        knowledge is insufficient, and that will other wise 
        contribute to fulfiling the purposes of this 
        subchapter; and
          [(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]
          (10) * * *

           *       *       *       *       *       *       *

[The Secretary shall ensure that an appropriate entity carries 
out a study described in paragraph (9), and prepares and 
submits to the appropriate committees of Congress a report 
containing the results of the study, not later than September 
30, 2002.]

           *       *       *       *       *       *       *

    (e) Longitudinal Studies.--* * *
          (1) * * *

           *       *       *       *       *       *       *

          (3) as appropriate, permit comparison of children and 
        families participating in Head Start programs with 
        children and families receiving other [child care, 
        early childhood education, or child development 
        services] early childhood education and care services, 
        and with other appropriate control groups.

           *       *       *       *       *       *       *

    (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] and early 
                childhood education and care 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) * * *
                          [(iii)] (ii) * * *
          (2) General authority.--After reviewing the 
        recommendations of the expert panel, the Secretary 
        shall make a grant to, or enter into a contract or 
        cooperative agreement with, an organization to conduct 
        independent research that provides a national analysis 
        of the impact of Head Start programs. The Secretary 
        shall ensure that the organization shall have expertise 
        in program evaluation[, and research, education, and 
        early childhood programs] and research, and early 
        childhood education and care programs.

           *       *       *       *       *       *       *

          (5) Analysis.--The Secretary shall ensure that the 
        organization conducting the research--
                  (A)(i) * * *

           *       *       *       *       *       *       *

                  (D) * * *
                          (i) individuals who participate in 
                        other [early childhood programs] early 
                        childhood education and care programs 
                        (such as public or private preschool 
                        programs and day care); and
                          (ii) individuals who do not 
                        participate in any other [early 
                        childhood program] early childhood 
                        education and care program.

           *       *       *       *       *       *       *

          (7) Reports.--
                  (A) Submission of interim reports.--* * *

           *       *       *       *       *       *       *

                  (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, the 
                        second interim report by September 30, 
                        2001, and the final report by September 
                        30, [2003] 2008.
                          (ii) Committees.--The committees 
                        referred to in clause (i) are the 
                        Committee on [Education and the 
                        Workforce] Education and Labor of the 
                        House of Representatives and the 
                        Committee on [Labor and Human 
                        Resources] Health, Education, Labor, 
                        and Pensions of the Senate.

           *       *       *       *       *       *       *

    [(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) Review of Assessments.--
          (1) Application of study.--When the study on 
        Developmental Outcomes and Assessments for Young 
        Children by the National Academy of Sciences is made 
        available to the Secretary, the Secretary shall--
                  (A) incorporate the results of the study, as 
                appropriate and in accordance with paragraphs 
                (2) and (3), into each assessment used in the 
                Head Start programs; and
                  (B) use the results of the study to develop, 
                inform, and revise the standards and measures 
                described in section 641A.
          (2) Development and refinement.--In developing and 
        refining any assessment used in the Head Start 
        programs, the Secretary shall--
                  (A) receive recommendations from the Panel on 
                Developmental Outcomes and Assessments for 
                Young Children of the National Academy of 
                Sciences; and
                  (B) with respect to the development or 
                refinement of such assessment, ensure--
                          (i) consistency with relevant, 
                        nationally recognized professional and 
                        technical standards;
                          (ii) validity and reliability for all 
                        purposes for which assessments under 
                        this subchapter are designed and used;
                          (iii) developmental and linguistic 
                        appropriateness of such assessments for 
                        children assessed, including children 
                        who are limited English proficient; and
                          (iv) that the results can be used to 
                        improve the quality of, accountability 
                        of, and training and technical 
                        assistance in, Head Start programs.
          (3) Additional requirements.--The Secretary, in 
        carrying out the process described under paragraph (2), 
        shall ensure that--
                  (A) staff administering any assessments under 
                this subchapter have received appropriate 
                training to administer such assessments;
                  (B) appropriate accommodations for children 
                with disabilities and children who are limited 
                English proficient are made;
                  (C) the English and Spanish (and any other 
                language, as appropriate) forms of such 
                assessments are valid and reliable; and
                  (D) such assessments are not used to exclude 
                children from Head Start programs.
          (4) Suspended implementation of national reporting 
        system.--The Secretary shall--
                  (A) suspend implementation and terminate 
                further development and use of the National 
                Reporting System; and
                  (B) incorporate, as appropriate, 
                recommendations under paragraph (2)(A) into any 
                assessment used in the Head Start programs.
    (i) Special Rule.--The use of assessment items and data on 
any assessment authorized under this subchapter by any agent of 
the Federal Government to rank, compare, or otherwise evaluate 
individual children or teachers, or to provide rewards or 
sanctions for individual children or teachers is prohibited. 
The Secretary shall not use the results of a single assessment 
as the sole method for assessing program effectiveness or 
making grantee funding determinations at the national, 
regional, or local level under this subchapter.
    (j) Services to Limited English Proficient Children and 
Families.--
          (1) Study.--The Secretary shall conduct a study on 
        the status of limited English proficient children and 
        their families in Head Start (including Early Head 
        Start) programs.
          (2) Report.--The Secretary shall prepare and submit 
        to Congress, not later than September 2011, a report 
        containing the results of the study, including 
        information on--
                  (A) the demographics of limited English 
                proficient children from birth through age 5, 
                including the number of such children receiving 
                Head Start (including Early Head Start) 
                services and the geographic distribution of 
                children described in this subparagraph;
                  (B) the nature of Head Start (including Early 
                Head Start) services provided to limited 
                English proficient children and their families, 
                including the types, content, duration, 
                intensity, and costs of family services, 
                language assistance, and educational services;
                  (C) procedures in Head Start programs for the 
                assessment of language needs and the transition 
                of limited English proficient children to 
                kindergarten, including the extent to which 
                Head Start programs meet the requirements of 
                section 642A for limited English proficient 
                children;
                  (D) the qualifications of and training 
                provided to Head Start (including Early Head 
                Start) teachers serving limited English 
                proficient children and their families;
                  (E) the rate of progress made by limited 
                English proficient children and their families 
                in Head Start (including Early Head Start) 
                programs, including--
                          (i) the rate of progress of the 
                        limited English proficient children 
                        toward meeting the additional 
                        educational standards described in 
                        section 641A(a)(1)(B)(ii) while 
                        enrolled in Head Start programs, 
                        measured between 1990 and 2006;
                          (ii) the correlation between the 
                        progress described in this subparagraph 
                        and the type of instruction and 
                        educational program provided to the 
                        limited English proficient children; 
                        and
                          (iii) the correlation between the 
                        progress described in this subparagraph 
                        and the health and family services 
                        provided by Head Start programs to 
                        limited English proficient children and 
                        their families; and
                  (F) the extent to which Head Start programs 
                make use of funds under section 640(a)(3) to 
                improve the quality of Head Start services 
                provided to limited English proficient children 
                and their families.

           *       *       *       *       *       *       *


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] Education and Labor 
of the House of Representatives and the Committee on [Labor and 
Human Resources] Health, Education, Labor, and Pensions of the 
Senate, a report concerning the status of children) [(including 
disabled and non-English language background children)] 
(including children with disabilities, limited English 
proficient children, and children participating in Indian Head 
Start programs and migrant and seasonal Head Start programs) 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, children in foster care, 
        disability, and receipt of benefits under part A of 
        title IV of the Social Security Act;

           *       *       *       *       *       *       *

          (14) a study of the delivery of Head Start programs 
        to Indian children living on and near Indian 
        reservations, to children of [Alaskan Natives] Alaska 
        Natives, and to children of [migrant and] migrant or 
        seasonal farmworkers.
Promptly after submitting such report to the Committee on 
[Education and the Workforce] Education and Labor of the House 
of Representatives and the Committee on [Labor and Human 
Resources] Health, Education, Labor, and Pensions of the 
Senate, the Secretary shall publish in the Federal Register a 
notice indicating that such report is available to the public 
and specifying how such report may be obtained.
    (b) Facilities.--At least once during every 5-year period, 
the Secretary shall prepare and submit, to the Committee on 
[Education and the Workforce] Education and Labor of the House 
of Representatives and the Committee on [Labor and Human 
Resources] Health, Education, Labor, and Pensions of the 
Senate, a report concerning the condition, location, and 
ownership of facilities used, or available to be used, by 
Indian Health Start agencies (including [Native Alaskan] Alaska 
Native Head Start agencies) and Native Hawaiian Head Start 
agencies.

           *       *       *       *       *       *       *


                         COMPARABILITY OF WAGES

    Sec. 653. [The Secretary shall take] (a) The Secretary 
shall take such action as may be necessary to assure that 
persons employed in carrying out programs financed under this 
subchapter shall not receive compensation at a rate which is 
(1) in excess of the average rate of compensation paid in the 
area where the program is carried out to a substantial number 
of the persons providing substantially comparable services, or 
in excess of the average rate of compensation paid to a 
substantial number of the persons providing substantially 
comparable services in the area of the person's immediately 
preceding employment, whichever is higher; or (2) less than the 
minimum wage rate prescribed in section 6(a)(1) of the Fair 
Labor Standards Act of 1938. The Secretary shall encourage Head 
Start agencies to provide compensation according to salary 
scales that are based on training and experience.
    (b) No Federal funds shall be used to pay the compensation 
of an individual employed by a Head Start agency in carrying 
out programs under this subchapter, either as direct or 
indirect costs or any proration of such costs, in an amount in 
excess of an amount based on the rate payable for level II of 
the Executive Schedule under section 5313 of title 5, United 
States Code.

           *       *       *       *       *       *       *


         LIMITATION WITH RESPECT TO CERTAIN UNLAWFUL ACTIVITIES

    Sec. 655. No individual employed or assigned by or in any 
Head Start agency or other agency assisted under this 
subchapter shall, pursuant to or during the performance of 
services rendered or assisted under this subchapter by such 
Head Start agency or such other agency, plan, initiate, 
participate in, or otherwise aid or assist in the conduct of 
any unlawful demonstration, rioting, or civil disturbance.

           *       *       *       *       *       *       *


                          POLITICAL ACTIVITIES

    [Sec. 656. (a) For purposes of]

SEC. 656. POLITICAL ACTIVITIES.

    (a) State or Local Agency._For purposes of chapter 15 of 
title 5, United States Code, any agency which assumes 
responsibility for planning, developing, and coordinating Head 
Start programs and receives assistance under this subchapter 
shall be deemed to be a State or local agency. For purposes of 
clauses (1) and (2) of section 150(2)(a) of such title, any 
agency receiving assistance under this subchapter shall be 
deemed to be a State or local agency.
    [(b) Programs assisted under this subchapter shall not be 
carried on in a manner involving the use of program funds, the 
provision of services, or the employment or assignment of 
personnel in a manner supporting or resulting in the 
identification of such programs with (1) any partisan or 
nonpartisan political activity or any other political activity 
associated with a candidate, or contending faction or group, in 
an election for public or party office; (2) any activity to 
provide voters or prospective voters with transportation to the 
polls or similar assistance in connection with any such 
election; or (3) any voter registration activity. The 
Secretary, after consultation with the Office of Personnel 
Management, shall issue rules and regulations to provide for 
the enforcement of this section, which shall include provisions 
for summary suspension of assistance or other action necessary 
to permit enforcement on an emergency basis.]
  (b) Restrictions.--
          (1) In general.--A program assisted under this 
        subchapter, and any individual employed by, or assigned 
        to or in, a program assisted under this subchapter 
        (during the hours in which such individual is working 
        on behalf of such program), shall not engage in--
                  (A) any partisan or nonpartisan political 
                activity or any other political activity 
                associated with a candidate, or contending 
                faction or group, in an election for public or 
                party office; or
                  (B) any activity to provide voters or 
                prospective voters with transportation to the 
                polls or similar assistance in connection with 
                any such election.
          (2) Rules and regulations.--The Secretary, after 
        consultation with the Director of the Office of 
        Personnel Management, may issue rules and regulations 
        to provide for the enforcement of this section, which 
        may include provisions for summary suspension of 
        assistance or other action necessary to permit 
        enforcement on an emergency basis.

           *       *       *       *       *       *       *

    Sec. 657. * * *

SEC. 657A. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY INTRUSIVE 
                    PHYSICAL EXAMINATIONS.

    (a) Definition.--The term ``nonemergency intrusive physical 
examination'' means, with respect to a child, a physical 
examination that--
          (1) is not immediately necessary to protect the 
        health or safety of the child or the health or safety 
        of another individual; and
          (2) requires incision or is otherwise invasive, or 
        involves exposure of private body parts.
    (b) Requirement.--A Head Start agency shall obtain written 
parental consent before administration of, or referral for, any 
health care service provided or arranged to be provided, 
including any nonemergency intrusive physical examination of a 
child in connection with participation in a program under this 
subchapter.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to prohibit agencies from using established methods, 
for handling cases of suspected or known child abuse and 
neglect, that are in compliance with applicable Federal, State, 
or tribal law.

           *       *       *       *       *       *       *


                           United States Code


                                Title 42


Sec. 247b-1. Screenings, referrals, and education regarding lead 
                    poisoning

           *       *       *       *       *       *       *


HISTORICAL AND STATUTORY NOTES

           *       *       *       *       *       *       *



  Development and Implementation of Effective Data Management by the 
               Centers for Disease Control and Prevention

    Pub. L. 106-310, Div. A, Title XXV, Sec. 2501(c), Oct. 17, 
2000, 114 Stat. 1161, provided that:
        (1) In general.--* * *
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) assist with the improvement of the 
                ability of State-based data management systems 
                and federally-funded means-tested public 
                benefit programs (including the special 
                supplemental food program for women, infants 
                and children (WIC) under section 17 of the 
                Child Nutrition Act of 1966 (42 U.S.C. 1786) 
                and the early head start program under section 
                645A of the Head Start Act (42 U.S.C. 
                [9840a(h)] 9840a) to respond to ad hoc 
                inquiries and generate progress reports 
                regarding the lead blood level screening of 
                children enrolled in those programs;

           *       *       *       *       *       *       *


                                  
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