S.Amdt. 5300

SA 5300. Mr. MERKLEY (for himself and Mr. Sanders) submitted an
amendment intended to be proposed to amendment SA 5194 proposed by Mr.
Schumer to the bill H.R. 5376, to provide for reconciliation pursuant
to title II of S. Con. Res. 14; which was ordered to lie on the table;
as follows:

At the appropriate place, insert the following:

SEC. __. UNIVERSAL PRESCHOOL.

(a) Definitions.--In this section:
(1) Child experiencing homelessness.--The term ``child
experiencing homelessness'' means an individual who is a
homeless child or youth under section 725 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11434a).
(2) Child with a disability.--The term ``child with a
disability'' has the meaning given the term in section 602 of
the Individuals with Disabilities Education Act (20 U.S.C.
1401).
(3) Comprehensive services.--The term ``comprehensive
services'' means services that are provided to children and
their families, and that are health, educational,
nutritional, social, and other services that are determined,
based on family needs assessments, to be necessary, within
the meaning of section 636 of the Head Start Act (42 U.S.C.
9831).
(4) Dual language learner.--The term ``dual language
learner'' means a child who is learning 2 or more languages
at the same time, or a child who is learning a second
language while continuing to develop the child's first
language.
(5) Eligible child.--The term ``eligible child'' means a
child who is age 3 or 4, on the date established by the
applicable local educational agency for kindergarten entry.
(6) Eligible provider.--The term ``eligible provider''
means--
(A) a local educational agency, acting alone or in a
consortium or in collaboration with an educational service
agency (as defined in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801)), that is
licensed by the State or meets comparable health and safety
standards;
(B) a Head Start agency or delegate agency funded under the
Head Start Act;
(C) a licensed center-based child care provider, licensed
family child care provider, or network of licensed family
child care providers; or
(D) a consortium of entities described in any of
subparagraphs (A), (B), and (C).
(7) Head start agency.--The term ``Head Start agency'', as
used in paragraph (6)(B), or subsection (c)(5)(D) or (f)(1),
means an entity designated as a Head Start agency under
section 641(a)(1) of the Head Start Act or as an Early Head
Start agency (by receiving a grant) under section 645A(a) of
such Act.
(8) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(9) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 8101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(10) Poverty line.--The term ``poverty line'' means the
poverty line defined and revised as described in section 673
of the Community Services Block Grant Act (42 U.S.C. 9902).

[[Page S4307]]

(11) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(12) State.--The term ``State'' means each of the several
States and the District of Columbia.
(13) Territory.--The term ``territory'' means each of the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands.
(14) Tribal organization.--The term ``Tribal organization''
has the meaning given the term ``tribal organization'' in
section 658P of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n).
(b) Universal Preschool.--
(1) Appropriations for states.--
(A) In general.--In addition to amounts otherwise
available, there is appropriated to the Department of Health
and Human Services for fiscal year 2023, out of any money in
the Treasury not otherwise appropriated--
(i) $3,200,000,000, to remain available until September 30,
2028, for payments to States, for carrying out subsection (d)
beginning in fiscal year 2023;
(ii) $800,000,000, to remain available until September 30,
2028, for payments to States, for carrying out subsections
(c)(3) and (d) beginning in fiscal year 2023;
(iii) $4,800,000,000, to remain available until September
30, 2028, for payments to States, for carrying out subsection
(d) beginning in fiscal year 2024;
(iv) $1,200,000,000, to remain available until September
30, 2028, for payments to States, for carrying out
subsections (c)(3) and (d) beginning in fiscal year 2024;
(v) $6,400,000,000, to remain available until September 30,
2028, for payments to States, for carrying out subsection (d)
beginning in fiscal year 2025; and
(vi) $1,600,000,000 to remain available until September 30,
2028, for payments to States, for carrying out subsections
(c)(3) and (d) beginning in fiscal year 2025.
(B) Additional appropriations.--In addition to amounts
otherwise available, there is appropriated to the Department
of Health and Human Services, out of any money in the
Treasury not otherwise appropriated, such sums as may be
necessary for each of fiscal years 2026 through 2028, for
payments to States, for carrying out this section (except
provisions and activities covered by paragraph (2)).
(2) Additional appropriations.--In addition to amounts
otherwise available, there is appropriated to the Department
of Health and Human Services for fiscal year 2023, out of any
money in the Treasury not otherwise appropriated--
(A) $2,500,000,000, to remain available until September 30,
2028, for carrying out payments to Indian Tribes and Tribal
organizations for activities described in this section;
(B) $1,250,000,000, to remain available until September 30,
2028, for carrying out payments to the territories, to be
distributed among the territories on the basis of their
relative need, as determined by the Secretary in accordance
with the objectives of this section, for activities described
in this section;
(C) $300,000,000, to remain available until September 30,
2028, for carrying out payments to eligible local entities
that serve children in families who are engaged in migrant or
seasonal agricultural labor, for activities described in this
section;
(D)(i) $165,000,000, to remain available until September
30, 2028, for carrying out Federal activities to support the
activities funded under this section, including
administration, monitoring, technical assistance, and
research, beginning in fiscal year 2023;
(ii) $200,000,000 to remain available until September 30,
2028, for carrying out Federal activities to support the
activities funded under this section, including
administration, monitoring, technical assistance, and
research, beginning in fiscal year 2024;
(iii) $200,000,000, to remain available until September 30,
2028, for carrying out Federal activities to support the
activities funded under this section, including
administration, monitoring, technical assistance, and
research, beginning in fiscal year 2025;
(iv) $208,000,000, to remain available until September 30,
2028, for carrying out Federal activities to support the
activities funded under this section, including
administration, monitoring, technical assistance, and
research, beginning in fiscal year 2026;
(v) $212,000,000, to remain available until September 30,
2028, for carrying out Federal activities to support the
activities funded under this section, including
administration, monitoring, technical assistance, and
research, beginning in fiscal year 2027; and
(vi) $216,000,000, to remain available until September 30,
2028, for carrying out Federal activities to support the
activities funded under this section, including
administration, monitoring, technical assistance, and
research, beginning in fiscal year 2028;
(E)(i) $2,500,000,000, to remain available until September
30, 2028, to improve compensation of Head Start staff
consistent with subparagraphs (A)(i) and (B)(viii) of section
640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)),
notwithstanding section 653(a) of such Act (42 U.S.C.
9848(a)), beginning in fiscal year 2023;
(ii) $2,500,000,000, to remain available until September
30, 2028, to improve compensation of Head Start staff
consistent with subparagraphs (A)(i) and (B)(viii) of section
640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)),
notwithstanding section 653(a) of such Act (42 U.S.C.
9848(a)), beginning in fiscal year 2024;
(iii) $2,500,000,000, to remain available until September
30, 2028, to improve compensation of Head Start staff
consistent with subparagraphs (A)(i) and (B)(viii) of section
640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)),
notwithstanding section 653(a) of such Act (42 U.S.C.
9848(a)), beginning in fiscal year 2025;
(iv) $2,500,000,000, to remain available until September
30, 2028, to improve compensation of Head Start staff
consistent with subparagraphs (A)(i) and (B)(viii) of section
640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)),
notwithstanding section 653(a) of such Act (42 U.S.C.
9848(a)), beginning in fiscal year 2026;
(v) $2,500,000,000, to remain available until September 30,
2028, to improve compensation of Head Start staff consistent
with subparagraphs (A)(i) and (B)(viii) of section 640(a)(5)
of the Head Start Act (42 U.S.C. 9835(a)(5)), notwithstanding
section 653(a) of such Act (42 U.S.C. 9848(a)), beginning in
fiscal year 2027; and
(vi) $2,500,000,000, to remain available until September
30, 2028, to improve compensation of Head Start staff
consistent with subparagraphs (A)(i) and (B)(viii) of section
640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5)),
notwithstanding section 653(a) of such Act (42 U.S.C.
9848(a)), beginning in fiscal year 2028;
(F) $9,500,000,000, to remain available until September 30,
2028, to carry out the program of grants to localities
described in subsection (f)(2); and
(G) $9,500,000,000, to remain available until September 30,
2028, to carry out the program of awards to Head Start
agencies described in subsection (f)(3).
(c) Payments for State Universal Preschool Services.--
(1) In general.--A State that has submitted, and had
approved by the Secretary in collaboration with the Secretary
of Education, the State plan described in paragraph (5) is
entitled to a payment under this subsection.
(2) Payments to states.--
(A) Payments for fiscal years 2023 through 2025.--From
amounts made available under subsection (b)(1) for carrying
out subsections (c)(3) and (d) for any of fiscal years 2023
through 2025, the Secretary shall allot for the fiscal year,
to each State that has a State plan under paragraph (5) or
transitional State plan under paragraph (7) that is approved
for a period including that fiscal year, an amount for the
purpose of providing grants to eligible providers to provide
high-quality preschool, using a formula that considers--
(i) the proportion of the number of children who are below
the age of 6 and whose families have a family income at or
below 200 percent of the poverty line for the most recent
year for which satisfactory data are available, residing in
the State, as compared to the number of such children, who
reside in all States with approved plans for the fiscal year
for which the allotment is being made; and
(ii) the existing Federal preschool investments in the
State under the Head Start Act, as of the date of the
allotment.
(B) Payments for fiscal years 2026 through 2028.--
(i) Preschool services.--For each of fiscal years 2026
through 2028, the Secretary shall pay to each State with an
approved State plan under paragraph (5), an amount for that
year equal to--

(I) 95.440 percent of the State's expenditures in the year
for preschool services provided under subsection (d), for
fiscal year 2026;
(II) 79.534 percent of the State's expenditures in the year
for such preschool services, for fiscal year 2027; and
(III) 63.627 percent of the State's expenditures in the
year for such preschool services, for fiscal year 2028.

(ii) State activities.--The Secretary shall pay to each
State with an approved State plan under paragraph (5) an
amount for a fiscal year equal to 53.022 percent of the
amount of the State's expenditures for the activities
described in paragraph (3), except that in no case shall a
payment for a fiscal year under this clause exceed the amount
equal to 5 percent of the State's expenditures described in
clause (i) for such fiscal year.
(iii) Non-federal share.--The remainder of the cost paid by
the State for preschool services, that is not provided under
clause (i), shall be considered the non-Federal share of the
cost of those services. The remainder of the cost paid by the
State for State activities, that is not provided under clause
(ii), shall be considered the non-Federal share of the cost
of those activities.
(iv) Advance payment; retrospective adjustment.--The
Secretary shall make a payment under clause (i) or (ii) for a
year on the basis of advance estimates of expenditures
submitted by the State and such other investigation as the
Secretary may find necessary, and shall reduce or increase
the payment as necessary to adjust for any overpayment or
underpayment for a previous year.
(C) Authorities.--
(i) Fiscal years 2023 through 2025.--Notwithstanding any
other provision of this paragraph, for each of fiscal years
2023 through 2025, the Secretary shall have the authority to
reallot funds that were allotted under subparagraph (A) from
any State without an approved State plan under paragraph

[[Page S4308]]

(5) or transitional State plan under paragraph (7) by the
date required by the Secretary, to States with an approved
State plan or transitional State plan under such paragraph
(5) or (7) and to eligible localities and Head Start agencies
in accordance with subsection (f).
(ii) Fiscal year 2026.--Notwithstanding any other provision
of this section, on October 1, 2025, the Secretary shall have
the authority to reallot funds from payments made from
allotments under subparagraph (A) that are unobligated on
such date, to any State without such unobligated funds that
is a State with an approved State plan under paragraph (5) or
transitional State plan under paragraph (7) to carry out the
purposes of this section or to an eligible locality or Head
Start agency in accordance with subsection (f).
(3) State activities.--A State that receives a payment
under paragraph (2) shall carry out all of the following
activities:
(A) State administration of the State preschool program
described in this section.
(B) Supporting a continuous quality improvement system for
providers of preschool services participating, or seeking to
participate, in the State preschool program, through the use
of data, research, monitoring, training, technical
assistance, professional development, and coaching.
(C) Providing outreach and enrollment support for families
of eligible children.
(D) Supporting data systems building.
(E) Supporting staff of eligible providers in pursuing
credentials and degrees, including baccalaureate degrees.
(F) Supporting activities that ensure access to inclusive
preschool programs for children with disabilities.
(G) Providing age-appropriate transportation services for
children, which at a minimum shall include transportation
services for children experiencing homelessness and children
in foster care.
(H) Conducting or updating a statewide needs assessment of
access to high-quality preschool services.
(4) Lead agency.--The Governor of a State desiring for the
State to receive a payment under this subsection shall
designate a lead agency (such as a State agency or joint
interagency office) for the administration of the State's
preschool program under this section.
(5) State plan.--In order to be eligible for payments under
this section, the Governor of a State shall submit a State
plan to the Secretary for approval by the Secretary, in
collaboration with the Secretary of Education, at such time,
in such manner, and containing such information as the
Secretary shall by rule require, that includes a plan for
achieving universal, high-quality, free, inclusive, and
mixed-delivery preschool services. Such plan shall include,
at a minimum, each of the following:
(A) A certification that--
(i) the State has in place, or will have in place no later
than 18 months after the State first receives funding under
this section, developmentally appropriate, evidence-based
preschool standards that, at a minimum, are as rigorous as
the standards specified in subparagraph (B) of section
641A(a)(1) of the Head Start Act (42 U.S.C. 9836a(a)(1)) and
include program standards for class sizes and ratios; and
(ii) the State will coordinate such standards with other
early learning standards in the State.
(B) An assurance that the State will ensure--
(i) all preschool services in the State funded under this
section will--

(I) be universally available to all children in the State
without any additional eligibility requirements; and
(II) be high-quality, free, and inclusive; and

(ii) that the local preschool programs in the State funded
under this section will--

(I) by not later than 1 year after the program receives
such funding, meet the State's preschool education standards
described in subparagraph (A);
(II) offer programming that meets the duration requirements
of at least 1,020 annual hours;
(III) adopt policies and practices to conduct outreach and
provide expedited enrollment, including prioritization, to--

(aa) children experiencing homelessness (which, in the case
of a child attending a program provided by an eligible
provider described in subsection (a)(6)(A), shall include
immediate enrollment for the child);
(bb) children in foster care or kinship care;
(cc) children in families who are engaged in migrant or
seasonal agricultural labor;
(dd) children with disabilities, including eligible
children who are served under part C of the Individuals with
Disabilities Education Act; and
(ee) dual language learners;

(IV) provide for salaries, and set schedules for salaries,
for staff of providers in the State preschool program that
are equivalent to salaries of elementary school staff with
similar credentials and experience;
(V) at a minimum, provide a living wage for all staff of
such providers; and
(VI) require educational qualifications for teachers in the
preschool program including, at a minimum, requiring that
lead teachers in the preschool program have a baccalaureate
degree in early childhood education or a related field by not
later than 6 years after the date on which the State first
receives funds under this section, except that--

(aa) subject to item (bb), the requirements under this
subclause shall not apply to individuals who were employed by
an eligible provider or early education program for a
cumulative 3 of the 5 years immediately preceding the date of
enactment of this Act and have the necessary content
knowledge and teaching skills for early childhood educators,
as demonstrated through measures determined by the State; and
(bb) nothing in this section shall require the State to
lessen State requirements for educational qualifications, in
existence on the date of enactment of this Act, to serve as a
teacher in a State preschool program.
(C) For States with existing publicly funded State
preschool programs (as of the date of submission of the State
plan), a description of how the State plans to use funding
provided under this section to ensure that such existing
programs in the State meet the requirements of this section
for a State preschool program.
(D) A description of how the State, in establishing and
operating the State preschool program supported under this
section, will--
(i) support a mixed-delivery system for any new slots
funded under this section, including by facilitating the
participation of Head Start programs and programs offered by
licensed child care providers;
(ii) ensure the State preschool program does not disrupt
the stability of infant and toddler child care throughout the
State;
(iii) ensure adequate consultation with the State Advisory
Council on Early Childhood Education and Care designated or
established in section 642B(b)(1)(A)(i) of the Head Start Act
(42 U.S.C. 9837b(b)(1)(A)(i)) in the development of its plan,
including consultation in how the State intends to distribute
slots under clause (v);
(iv) partner with Head Start agencies to ensure the full
utilization of Head Start programs within the State; and
(v) distribute new preschool slots and resources equitably
among child care (including family child care) providers,
Head Start agencies, and schools within the State.
(E) A certification that the State, in operating the
program described in this section for a fiscal year--
(i) will not reduce the total preschool slots provided in
State-funded preschool programs from the number of such slots
in the previous fiscal year; or
(ii) if the number of eligible children identified in the
State declines from the previous fiscal year, will maintain
at least the previous year's ratio of the total preschool
slots described in clause (i) to eligible children so
identified.
(F) An assurance that the State will use funding provided
under this section to ensure children with disabilities have
access to and participate in inclusive preschool programs
consistent with provisions in the Individuals with
Disabilities Education Act, and a description of how the
State will collaborate with entities carrying out programs
under section 619 or part C of the Individuals with
Disabilities Education Act, to support inclusive preschool
programs.
(G) A certification that the State will support the
continuous quality improvement of programs providing
preschool services under this section, including support
through technical assistance, monitoring, and research.
(H) A certification that the State will ensure a highly
qualified early childhood workforce to support the
requirements of this section.
(I) An assurance that the State will meet the requirements
of clauses (ii) and (iii) of section 658E(c)(2)(T) of the
Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858c(c)(2)(T)), with respect to funding and assessments
under this section.
(J) A certification that subgrant and contract amounts
provided as described in subsection (d) will be sufficient to
enable eligible providers to meet the requirements of this
section, and will provide for increased payment amounts based
on the criteria described in subclauses (IV) and (V) of
subparagraph (B)(ii).
(K) An agreement to provide to the Secretary such periodic
reports, providing a detailed accounting of the uses of
funding received under this section, as the Secretary may
require for the administration of this section.
(6) Duration of the plan.--Each State plan shall remain in
effect for a period of not more than 3 years. Amendments to
the State plan shall remain in effect for the duration of the
plan.
(7) Transitional state plan.--For a period of not more than
3 years following the date of enactment of this Act, the
Secretary shall award funds under this section, for the
purpose of expanding access to universal, high-quality, free,
inclusive, and mixed-delivery preschool services in alignment
with the requirements of this section, to States with an
approved transitional State plan, submitted at such time, in
such manner, and containing such information as the Secretary
shall require, including at a minimum an assurance that the
State will submit a State plan under paragraph (5).
(d) Subgrants and Contracts for Local Preschool Programs.--
(1) Subgrants and contracts.--
(A) In general.--A State that receives a payment under
subsection (c)(2) for a fiscal year shall use amounts
provided through the payment to pay the costs of subgrants
to, or contracts with, eligible providers to operate
universal, high-quality, free, and inclusive

[[Page S4309]]

preschool programs (which State-funded programs may be
referred to in this section as ``local preschool programs'')
through the State preschool program in accordance with
paragraph (3). A State shall reduce or increase the amounts
provided under such subgrants or contracts if needed to
adjust for any overpayment or underpayment described in
subsection (c)(2)(B)(iv).
(B) Amount.--A State shall award a subgrant or contract
under this subsection in a sufficient amount to enable the
eligible provider to operate a local preschool program that
meets the requirements of subsection (c)(5)(B), which amount
shall reflect variations in the cost of preschool services by
geographic area, type of provider, and age of child, and the
additional costs associated with providing inclusive
preschool services for children with disabilities.
(C) Duration.--The State shall award a subgrant or contract
under this subsection for a period of not less than 3 years,
unless the subgrant or contract is terminated or suspended,
or the subgrant period is reduced, for cause.
(2) Enhanced payments for comprehensive services.--In
awarding subgrants or contracts under this subsection and in
addition to meeting the requirements of paragraph (1)(B), the
State shall award subgrants or contracts with enhanced
payments to eligible providers that offer local preschool
programs funded under this subsection to a high percentage of
low-income children to support comprehensive services.
(3) Establishing and expanding universal preschool
programs.--
(A) Establishing and expanding universal preschool programs
in high-need communities.--In awarding subgrants or contracts
under this subsection, the State shall first prioritize
establishing and expanding universal local preschool programs
within and across high-need communities by awarding subgrants
or contracts to eligible providers operating within and
across, or with capacity to operate within and across, such
high-need communities. The State shall--
(i) use a research-based methodology approved by the
Secretary to identify such high-need communities, as
determined by--

(I) the rate of poverty in the community;
(II) rates of access to high-quality preschool within the
community; and
(III) other indicators of community need as required by the
Secretary; and

(ii) distribute funding for preschool services under this
section within such a high-need community so that a majority
of children in the community are offered such preschool
services before the State establishes and expands preschool
services in communities with lower levels of need.
(B) Use of funds.--Subgrants or contracts awarded under
subparagraph (A) shall be used to enroll and serve children
in such a local preschool program involved, including by
paying the costs--
(i) of personnel (including classroom and administrative
personnel), including compensation and benefits;
(ii) associated with implementing the State's preschool
standards, providing curriculum supports, and meeting early
learning and development standards;
(iii) of professional development, teacher supports, and
training;
(iv) of implementing and meeting developmentally
appropriate health and safety standards (including licensure,
where applicable), teacher to child ratios, and group size
maximums;
(v) of materials, equipment, and supplies; and
(vi) of rent or a mortgage, utilities, building security,
indoor and outdoor maintenance, and insurance.
(4) Establishing and expanding universal preschool programs
in additional communities.--Once a State that receives a
payment under subsection (c)(2) meets the requirements of
paragraph (3) with respect to establishing and expanding
local preschool programs within and across high-need
communities, the State shall use funds from such payment to
enroll and serve children in local preschool programs, as
described in such paragraph, in additional communities in
accordance with the metrics described in paragraph (3)(A)(i).
Such funds shall be used for the activities described in
clauses (i) through (vi) of paragraph (3)(B).
(e) Payments for Universal Preschool Services to Indian
Tribes and Territories.--
(1) Indian tribes and tribal organizations.--
(A) In general.--For each of fiscal years 2023 through
2028, from the amount appropriated for Indian Tribes and
Tribal organizations under subsection (b)(2)(A), the
Secretary shall make payments to Indian Tribes and Tribal
organizations with an application approved under subparagraph
(B), and the Tribes and Tribal organizations shall be
entitled to such payments for the purpose of carrying out the
preschool program described in this section, consistent, to
the extent practicable as determined by the Secretary, with
the requirements applicable to States.
(B) Applications.--An Indian Tribe or Tribal organization
seeking a payment under this paragraph shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may specify.
(2) Territories.--
(A) In general.--For each of fiscal years 2023 through
2028, from the amount appropriated for territories under
subsection (b)(2)(B), the Secretary shall make payments to
the territories with an application approved under
subparagraph (B), and the territories shall be entitled to
such payments, for the purpose of carrying out the preschool
program described in this section, consistent, to the extent
practicable as determined by the Secretary, with the
requirements applicable to States.
(B) Applications.--A territory seeking a payment under this
paragraph shall submit an application to the Secretary at
such time, in such manner, and containing such information as
the Secretary may specify.
(3) Lead agency.--The head of an Indian tribe or territory
desiring for the Indian tribe or a related tribal
organization, or territory, to receive a payment under this
subsection shall designate a lead agency (such as a tribal or
territorial agency or joint interagency office) for the
administration of the preschool program of the Indian tribe
or territory, under this section.
(f) Grants to Localities and Head Start Expansion in
Nonparticipating States.--
(1) Eligible locality defined.--In this subsection, the
term ``eligible locality'' means a city, county, or other
unit of general local government, a local educational agency,
or a Head Start agency.
(2) Grants to localities.--
(A) In general.--The Secretary, in consultation with the
Secretary of Education, shall use funds reserved in
subsection (b)(2)(F) or reallotted under subsection (c)(2)(C)
to award local universal preschool grants, as determined by
the Secretary of Health and Human Services, to eligible
localities located in States that have not received payments
under subsection (c)(2)(A). The Secretary shall award the
grants to eligible localities in a State from the allotment
made for that State under subparagraph (B). The Secretary
shall specify the requirements for an eligible locality to
conduct a preschool program under this subsection which
shall, to the greatest extent practicable, be consistent with
the requirements applicable to States under this section, for
a universal, high-quality, free, and inclusive preschool
program.
(B) Allotments.--For each State described in subparagraph
(A), the Secretary shall allot for the State for a fiscal
year an amount that bears the same relationship to the funds
appropriated under subsection (b)(2)(F) for the fiscal year
as the number of children from families with family incomes
at or below 200 percent of the poverty line, and who are
under the age of 6, in the State bears to the total number of
all such children in all States described in subparagraph
(A).
(C) Application.--To receive a grant from the corresponding
State allotment under this subsection, an eligible locality
shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary
may require. The requirements for the application shall, to
the greatest extent practicable, be consistent with the State
plan requirements applicable to States under this section.
(D) Recoupment of unused funds.--Notwithstanding any other
provision of this section, for each of fiscal years 2024
through 2028, the Secretary shall have the authority to
recoup any unused funds allotted under subparagraph (B) for
awards under paragraph (3)(A) to Head Start agencies in
accordance with paragraph (3).
(3) Head start expansion in nonparticipating states.--
(A) In general.--The Secretary shall use funds appropriated
under subsection (b)(2)(G), reallotted under subsection
(c)(2)(C), or recouped under paragraph (2) to make awards to
Head Start agencies in a State described in paragraph (2)(A)
to carry out the purposes of the Head Start Act in such
State.
(B) Rule.--For purposes of carrying out the Head Start Act
in circumstances not involving awards under this paragraph,
funds awarded under subparagraph (A) shall not be included in
the calculation of a ``base grant'' as such term is defined
in section 640(a)(7)(A) of the Head Start Act (42 U.S.C.
9835(a)(7)(A)).
(C) Definition.--In this paragraph, the term ``Head Start
agency'' means an entity designated or eligible to be
designated as a Head Start agency under section 641(a)(1) of
the Head Start Act or as an Early Head Start agency (by
receiving a grant) under section 645A(a) of such Act.
(4) Priority for serving underserved communities.--In
making determinations to award a grant or make an award under
this subsection, the Secretary shall give priority to
entities serving communities with a high percentage of
children from families with family incomes at or below 200
percent of the poverty line.
(g) Allowable Sources of Non-Federal Share.--For purposes
of calculating the amount of the non-Federal share, as
determined under subsection (c)(2)(B)(iii), relating to a
payment under subsection (c)(2)(B), a State's non-Federal
share--
(1) may be in cash or in kind, fairly evaluated, including
facilities or property, equipment, or services;
(2) shall include any increase in amounts spent by the
State to expand half-day kindergarten programs in the State,
as of the day before the date of enactment of this Act, into
full-day kindergarten programs;
(3) shall not include contributions being used as a non-
Federal share or match for another Federal award;
(4) shall be provided from State or local sources,
contributions from philanthropy or

[[Page S4310]]

other private organizations, or a combination of such sources
and contributions; and
(5) shall count not more than 100 percent of the State's
current spending on prekindergarten programs, calculated as
the average amount of such spending by the State for fiscal
years 2020, 2021, and 2022, toward the State's non-Federal
share.
(h) Maintenance of Effort.--
(1) In general.--If a State reduces its combined fiscal
effort per child for the State preschool program (whether a
publicly funded preschool program or a program under this
section) or through State supplemental assistance funds for
Head Start programs assisted under the Head Start Act, or
through any State spending on preschool services for any
fiscal year that a State receives payments under subsection
(c)(2) (referred to in this paragraph as the ``reduction
fiscal year'') relative to the previous fiscal year, the
Secretary, in collaboration with the Secretary of Education,
shall reduce support for such State under such subsection by
the same amount as the total reduction in that State fiscal
effort for such reduction fiscal year.
(2) Waiver.--The Secretary, in collaboration with the
Secretary of Education, may waive the requirements of
paragraph (1) if--
(A) the Secretaries determine that a waiver would be
appropriate due to a precipitous decline in the financial
resources of a State as a result of unforeseen economic
hardship, or a natural disaster, that has necessitated
across-the-board reductions in State services during the 5-
year period preceding the date of the determination,
including for early childhood education programs; or
(B) due to the circumstance of a State requiring reductions
in specific programs, including early childhood education
programs, the State presents to the Secretaries a
justification and demonstration why other programs could not
be reduced and how early childhood education programs in the
State will not be disproportionately harmed by such State
reductions.
(i) Supplement Not Supplant.--Funds received under this
section shall be used to supplement and not supplant other
Federal, State, and local public funds expended on
prekindergarten programs in the State on the date of
enactment of this Act, calculated as the average amount of
such Federal, State, and local public funds expended for
fiscal years 2020, 2021, and 2022.
(j) Nondiscrimination Provisions.--The following provisions
of law shall apply to any program or activity that receives
funds provided under this section:
(1) Title IX of the Education Amendments of 1972.
(2) Title VI of the Civil Rights Act of 1964.
(3) Section 504 of the Rehabilitation Act of 1973.
(4) The Americans with Disabilities Act of 1990.
(k) Monitoring and Enforcement.--
(1) Review of compliance with requirements and state
plan.--The Secretary shall review and monitor compliance of
States, territories, Tribal entities, and local entities with
this section and State compliance with the State plan
described in subsection (c)(5) or State transitional plan
described in subsection (c)(7).
(2) Issuance of rule.--The Secretary shall establish by
rule procedures for--
(A) receiving, processing, and determining the validity of
complaints or findings concerning any failure of a State to
comply with the State plan or any other requirement of this
section;
(B) notifying a State when the Secretary has determined
there has been a failure by the State to comply with a
requirement of this section; and
(C) imposing sanctions under this subsection for such a
failure.
______