SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prepare All Kids Act of 2007''.

SEC. 2. HIGH QUALITY FULL-DAY PREKINDERGARTEN PROGRAMS.

    Chapter 8 of subtitle A of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (Public Law 97-35; 95 Stat. 357) is amended 
by inserting after subchapter C the following:

     ``Subchapter D--High Quality Full-Day Prekindergarten Programs

``SEC. 661. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Investments in children and early education should be 
        a national priority.
            ``(2) The cost of high quality preschool is prohibitive for 
        poor families and is a significant financial strain for many 
        working- and middle-class families.
            ``(3) State-funded preschool is the most rapidly expanding 
        segment of the United States educational system, but in many 
        States a lack of stable funding poses an enormous threat to the 
        provision or continuation of high quality preschool.
            ``(4) The provision of high quality prekindergarten is a 
        cost-effective investment for children and for the Nation. 
        Research shows that for every $1 invested in high quality early 
        childhood programs, taxpayers save more than $17 in crime, 
        welfare, education, and other costs.
            ``(5) Fewer than half the Nation's poor preschool-age 
        children attend preschool. The result is a significant 
        preparation gap between poor and middle-class children and 
        between minority and white children.
            ``(6) High quality early education increases academic 
        success for schoolchildren who received that education by--
                    ``(A) increasing high school graduation rates;
                    ``(B) improving children's performance on 
                standardized tests;
                    ``(C) reducing grade repetition; and
                    ``(D) reducing the number of children placed in 
                special education.
            ``(7) High quality early education promotes responsible 
        behavior by teens and adults who received that education by--
                    ``(A) reducing crime, delinquency, and unhealthy 
                behaviors such as smoking and drug use;
                    ``(B) lowering rates of teen pregnancy;
                    ``(C) leading to greater employment and higher 
                wages for adults; and
                    ``(D) contributing to more stable families.
    ``(b) Purpose.--The purpose of this Act is to assist States in--
            ``(1) making voluntary high quality full-day 
        prekindergarten programs available and economically affordable 
        for the families of all children for at least 1 year preceding 
        kindergarten; and
            ``(2) making the prekindergarten programs available to a 
        target population of children from families with incomes at or 
        below 200 percent of the poverty line, for whom the 
        prekindergarten programs will be free of charge.

``SEC. 662. DEFINITIONS.

    ``(a) In this Act:
            ``(1) Full-day.--The term `full-day', used with respect to 
        a program, means a program with a minimum of a 6-hour schedule 
        per day.
            ``(2) Poverty line.--The term `poverty line' has the 
        meaning given the term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)) and includes any 
        revision required by that section.
            ``(3) Prekindergarten.--The term `prekindergarten' means a 
        program that--
                    ``(A) serves children who are ages 3 through 5;
                    ``(B) supports children's cognitive, social, 
                emotional, and physical development and approaches to 
                learning; and
                    ``(C) helps prepare children for a successful 
                transition to kindergarten.
            ``(4) Prekindergarten teacher.--The term `prekindergarten 
        teacher' means an individual who--
                    ``(A) has a bachelor of arts degree with a 
                specialization in early childhood education or early 
                childhood development; or
                    ``(B) during the 6-year period following the first 
                date on which the individual is employed as such a 
                teacher under this Act, is working toward that degree.
            ``(5) Qualified prekindergarten provider.--The term 
        `qualified prekindergarten provider' includes a provider of a 
        prekindergarten program, a Head Start agency, a provider of a 
        child care program, a school, and a for-profit or nonprofit 
        organization that--
                    ``(A) is in existence on the date of the 
                qualification determination; and
                    ``(B) has met applicable requirements under State 
                or local law that are designed to protect the health 
                and safety of children and that are applicable to child 
                care providers.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.

``SEC. 663. PROGRAM AUTHORIZATION.

    ``(a) Prekindergarten Incentive Fund.--The Secretary, in 
collaboration and consultation with the Secretary of Education, shall 
create a Prekindergarten Incentive Fund, to be administered by the 
Secretary of Health and Human Services.
    ``(b) Grants.--In administering the Fund, the Secretary shall award 
grants to eligible States, to pay for the Federal share of the cost of 
awarding subgrants to qualified prekindergarten providers to establish, 
expand, or enhance voluntary high quality full-day prekindergarten 
programs.

``SEC. 664. STATE APPLICATIONS AND REQUIREMENTS.

    ``(a) Designated State Agency.--To be eligible to receive a grant 
under this Act, a State shall designate a State agency to administer 
the State program of assistance for prekindergarten programs funded 
through the grant, including receiving and administering funds and 
monitoring the programs.
    ``(b) State Application.--In order for a State to be eligible to 
receive a grant under this Act, the designated State agency shall 
submit an application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may reasonably 
require, including--
            ``(1) an assurance that, for prekindergarten programs 
        funded through the grant, the State will ensure that the 
        qualified prekindergarten providers target children from 
        families with incomes at or below 200 percent of the poverty 
        line, and provide prekindergarten programs to children from 
        those families free of charge;
            ``(2) an assurance that the State will award subgrants for 
        prekindergarten programs that are sufficient to provide a high 
        quality prekindergarten experience;
            ``(3) an assurance that not less than 25 percent of the 
        qualified prekindergarten providers receiving such subgrants 
        will be providers of community-based programs;
            ``(4) a description of the number of children in the State 
        who are eligible for the prekindergarten programs and the needs 
        that will be served through the prekindergarten programs;
            ``(5) a description of how the State will ensure that the 
        subgrants are awarded to a wide range of types of qualified 
        prekindergarten providers;
            ``(6) a description of how the designated State agency will 
        collaborate and coordinate activities with State-funded 
        providers of prekindergarten programs, providers of federally 
        funded programs such as Head Start agencies, local educational 
        agencies, and child care providers;
            ``(7) a description of how the State will ensure, through a 
        monitoring process, that qualified prekindergarten providers 
        receiving the subgrants continue to place priority on the 
        target population of children described in paragraph (1), 
        provide programs that meet the standards of high quality early 
        education, and use funds appropriately;
            ``(8) a description of how the State will meet the needs of 
        working parents; and
            ``(9) a description of how the State will assist in 
        providing professional development assistance to 
        prekindergarten teachers and teacher aides.
    ``(c) Federal Share.--The Federal share of the cost described in 
section 663(b) shall be 50 percent. The State shall provide the non-
Federal share of the cost in cash.
    ``(d) Supplementary Federal Funding.--Funds made available under 
this Act may be used only to supplement and not supplant other Federal, 
State, local, or private funds that would, in the absence of the funds 
made available under this Act, be made available for early childhood 
programs.
    ``(e) Maintenance of Effort.--A State that receives a grant under 
this Act for a fiscal year shall maintain the expenditures of the State 
for early childhood programs at a level not less than the level of such 
expenditures of the State for the preceding fiscal year.

``SEC. 665. STATE SET ASIDES AND EXPENDITURES.

    ``(a) Infant and Toddler Set Aside.--Notwithstanding sections 662 
and 663, a State shall set aside not less than 10 percent of the funds 
made available through a grant awarded under this Act for the purpose 
of funding high quality early childhood development programs for 
children who are ages 0 through 3. Funds made available under this 
subsection may also be used for professional development for teachers 
and teacher aides in classrooms for children who are ages 0 through 3.
    ``(b) Extended Day and Extended Year Set Aside.--Notwithstanding 
section 663, a State shall set aside not less than 10 percent of the 
funds made available through a grant awarded under this Act for the 
purpose of extending the hours of early childhood programs to create 
extended day and extended year programs.
    ``(c) Administrative Expenses.--Not more than 5 percent of the 
funds made available through such a grant may be used for 
administrative expenses, including monitoring.

``SEC. 666. LOCAL APPLICATIONS.

    ``To be eligible to receive a subgrant under this Act, a qualified 
prekindergarten provider shall submit an application to the designated 
State agency at such time, in such manner, and containing such 
information as the agency may reasonably require, including--
            ``(1) a description of how the qualified prekindergarten 
        provider will meet the diverse needs of children in the 
        community to be served, including children with disabilities, 
        whose native language is not English, or with other special 
        needs, children in the State foster care system, and homeless 
        children;
            ``(2) a description of how the qualified prekindergarten 
        provider will serve eligible children who are not served 
        through similar services or programs;
            ``(3) a description of a plan for involving families in the 
        prekindergarten program;
            ``(4) a description of how children in the prekindergarten 
        program, and their parents and families, will receive 
        assistance through supportive services provided within the 
        community;
            ``(5) a description of how the qualified prekindergarten 
        provider collaborates with providers of other programs serving 
        children and families, including Head Start agencies, providers 
        of child care programs, and local educational agencies, to meet 
        the needs of children, families, and working families, as 
        appropriate; and
            ``(6) a description of how the qualified prekindergarten 
        provider will collaborate with local educational agencies to 
        ensure a smooth transition for participating students from the 
        prekindergarten program to kindergarten and early elementary 
        education.

``SEC. 667. LOCAL PREKINDERGARTEN PROGRAM REQUIREMENTS.

    ``(a) Mandatory Uses of Funds.--A qualified prekindergarten 
provider that receives a subgrant under this Act shall use funds 
received through the grant to establish, expand, or enhance 
prekindergarten programs for children who are ages 3 through 5, 
including--
            ``(1) providing a prekindergarten program that supports 
        children's cognitive, social, emotional, and physical 
        development and approaches to learning, and helps prepare 
        children for a successful transition to kindergarten;
            ``(2) purchasing educational equipment, including 
        educational materials, necessary to provide a high quality 
        prekindergarten program; and
            ``(3) extending part-day prekindergarten programs to full-
        day prekindergarten programs.
    ``(b) Permissible Use of Funds.--A qualified prekindergarten 
provider that receives a subgrant under this Act may use funds received 
through the grant to--
            ``(1) pay for transporting students to and from a 
        prekindergarten program; and
            ``(2) provide professional development assistance to 
        prekindergarten teachers and teacher aides.
    ``(c) Program Requirements.--A qualified prekindergarten provider 
that receives a subgrant under this Act shall carry out a high quality 
prekindergarten program by--
            ``(1) maintaining a maximum class size of 20 children, with 
        at least 1 prekindergarten teacher per classroom;
            ``(2) ensuring that the ratio of children to 
        prekindergarten teachers and teacher aides shall not exceed 10 
        to 1;
            ``(3) utilizing a prekindergarten curriculum that is 
        research- and evidence-based, developmentally appropriate, and 
        designed to support children's cognitive, social, emotional, 
        and physical development, and approaches to learning;
            ``(4) providing a program with a minimum of a 6-hour 
        schedule per day; and
            ``(5) ensuring that prekindergarten teachers meet the 
        requirements of this Act.

``SEC. 668. REPORTING.

    ``(a) Qualified Prekindergarten Provider Reports.--Each qualified 
prekindergarten provider that receives a subgrant from a State under 
this Act shall submit an annual report, to the designated State agency, 
that reviews the effectiveness of the prekindergarten program provided. 
Such annual report shall include--
            ``(1) data specifying the number and ages of enrolled 
        children, and the family income, race, gender, disability, and 
        native language of such children;
            ``(2) a description of--
                    ``(A) the curriculum used by the program;
                    ``(B) how the curriculum supports children's 
                cognitive, social, emotional, and physical development 
                and approaches to learning; and
                    ``(C) how the curriculum is appropriate for 
                children of the culture, language, and ages of the 
                children served; and
            ``(3) a statement of all sources of funding received by the 
        program, including Federal, State, local, and private funds.
    ``(b) State Reports.--Each State that receives a grant under this 
Act shall submit an annual report to the Secretary detailing the 
effectiveness of all prekindergarten programs funded under this Act in 
the State.
    ``(c) Report to Congress.--The Secretary shall submit an annual 
report to Congress that describes the State programs of assistance for 
prekindergarten programs funded under this Act.

``SEC. 669. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this Act--
            ``(1) $5,000,000,000 for fiscal year 2008;
            ``(2) $6,000,000,000 for fiscal year 2009;
            ``(3) $7,000,000,000 for fiscal year 2010;
            ``(4) $8,000,000,000 for fiscal year 2011; and
            ``(5) $9,000,000,000 for fiscal year 2012.''.
Prepare All Kids Act of 2007 - Amends the Omnibus Budget Reconciliation Act of 1981 to direct the Secretary of Health and Human Services to establish a Prekindergarten Incentive Fund from which matching grants shall be awarded to states and, through them, subgrants to qualified prekindergarten providers to establish, expand, or enhance voluntary high quality full-day prekindergarten programs serving children ages three through five.

Requires prekindergarten providers to target children from families with incomes at or below 200% of the poverty line and provide them with program services free of charge.

Directs state grantees to set aside: (1) at least 10% of a grant for quality early childhood development programs for children ages zero through three; and (2) at least 10% of a grant to extend the hours of early childhood programs to create extended day and year programs.
A bill to assist States in making voluntary high quality full-day prekindergarten programs available and economically affordable for the families of all children for at least 1 year preceding kindergarten.