Department of Education

SCHOOL READINESS

Fiscal Year 2016 Request

CONTENTS

Page

Appropriations language..............................................................................................................B-1

Analysis of Language Provisions and Changes ..........................................................................B-2

Appropriation, Adjustments and Transfers ..................................................................................B-4

Authorizing Legislation.................................................................................................................B-5

Account Summary Table..............................................................................................................B-6

Summary of Request ...................................................................................................................B-7

Activities:

Preschool development grants................................................................................................B-8

Preschool for all.....................................................................................................................B-13
SCHOOL READINESS

Appropriations language

Provided, That $750,000,000 of the funds for part D of title V of the ESEA shall be 

available through December 31, 2016 for carrying out, in accordance with the applicable 

requirements of part D of title V of the ESEA, a preschool development grants program:1 

Provided further, That the Secretary, jointly with the Secretary of HHS, shall make competitive 

awards to States, the Bureau of Indian Education, tribal educational agencies, territories, or the 

Outlying Areas, for activities that build the capacity within the State to develop, enhance, or 

expand high-quality preschool programs, including comprehensive services and family 

engagement, for preschool-aged children from families at or below 200 percent of the Federal 

poverty line:2 Provided further, That each State, the Bureau of Indian Education, tribal 

educational agencies, territories, or the Outlying Areas may subgrant a portion of such grant 

funds to local educational agencies and other early learning providers (including, but not limited 

to, Head Start programs and licensed child care providers), or consortia thereof, for the 

implementation of high-quality preschool programs for children from families at or below 200 

percent of the Federal poverty line:3 Provided further, That subgrantees that are local 

educational agencies shall form strong partnerships with early learning providers and that 

subgrantees that are early learning providers shall form strong partnerships with local 

educational agencies, in order to carry out the requirements of the subgrant:4 Provided further, 

That up to 5 percent of such funds for preschool development grants shall be available for 

technical assistance, evaluation, early education research, pilots to improve the integration of 

early learning programs, support the transition from preschool to elementary school, and 

improve outcomes in the early grades, and other national activities related to such grants.45

NOTE

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document, which follows the appropriations language.

B-1
SCHOOL READINESS

Analysis of Language Provisions and Changes

Language Provision Explanation

1 Provided, That $750,000,000 of the 

funds for part D of title V of the ESEA 

shall be available through December 31, 

2016 for carrying out, in accordance with the 

applicable requirements of part D of title V of 

the ESEA, a preschool development grants 

program:

This language earmarks funds for the 

Preschool Development Grants program, and 

gives the Department an additional 3 months 

beyond the end of fiscal year 2016 to obligate 

them.

2 Provided further, That the Secretary, jointly 

with the Secretary of HHS, shall make 

competitive awards to States, the Bureau of 

Indian Education, tribal educational agencies, 

territories, or the Outlying Areas, for activities 

that build the capacity within the State to 

develop, enhance, or expand high-quality 

preschool programs, including 

comprehensive services and family 

engagement, for preschool-aged children 

from families at or below 200 percent of the 

Federal poverty line

This language authorizes the Department to 

make competitive Preschool Development 

grants to States, the Bureau of Indian 

Education, tribal educational agencies, 

territories, or the Outlying Areas.

3 Provided further, That each State, the 

Bureau of Indian Education, tribal educational 

agencies, territories, or the Outlying Areas

may subgrant a portion of such grant funds to 

local educational agencies and other early 

learning providers (including, but not limited 

to, Head Start programs and licensed child 

care providers), or consortia thereof, for the 

implementation of high-quality preschool 

programs for children from families at or 

below 200 percent of the Federal poverty line

This language allows grantees to subgrant 

funds to local educational agencies, other 

early learning providers, or consortia thereof.

4 Provided further, That subgrantees that are 

local educational agencies shall form strong 

partnerships with early learning providers 

and that subgrantees that are early learning 

providers shall form strong partnerships with 

local educational agencies, in order to carry 

out the requirements of the subgrant

This language requires subgrantees that are 

local educational agencies to form strong 

partnerships with early learning providers and 

subgrantees that are early learning providers 

to form strong partnerships with local 

educational agencies.

B-2
SCHOOL READINESS

Analysis of Language Provisions and Changes

Language Provision Explanation

5 Provided further, That up to 5 percent of 

such funds for preschool development grants 

shall be available for technical assistance, 

evaluation, early education research, pilots to 

improve the integration of early learning 

programs, support the transition from 

preschool to elementary school, and improve 

outcomes in the early grades, and other 

national activities related to such grants

This language allows the Department to 

reserve up to 5 percent of program funds for 

national activities.

B-3
SCHOOL READINESS

Appropriation, Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2014 2015 2016

Discretionary:

Discretionary Appropriation ...................................................... 0 0

$750,000

Comparative transfer from:

Innovation and Improvement Programs for:

Race to the top............................................. $250,000 0 0

Fund for the improvement of education 0 $250,000 0

Total, adjusted discretionary appropriation.. 250,000 250,000 750,000

Mandatory:

Appropriation...................................................

 0 0 1,299,982

Total, discretionary and 

mandatory appropriation ................................. 250,000 250,000 2,049,982

B-4
SCHOOL READINESS

Authorizing Legislation

(dollars in thousands)

Activity

2015

Authorized

2015

Estimate

2016

Authorized

2016

Request

Preschool Development 

Grants (ESEA V-D) Indefinite $250,000

To be

determined $750,000

Preschool for All (mandatory) 

(proposed legislation) 0 0

To be

determined 1,299,982

Total discretionary 

appropriation (portion of 

discretionary request not 

authorized) 250,000 750,000

Total mandatory appropriation 

(portion of mandatory 

request not authorized) 1,299,982

B-5
AA

Account Summary Table

DEPARTMENT OF EDUCATION FISCAL YEAR 2016 PRESIDENT'S BUDGET 

Click here for accessible version 

(in thousands of dollars) 2016

Category 2014 2015 President's 

Account, Program and Activity Code Appropriation Appropriation Budget Amount Percent

School Readiness (proposed legislation) 

1. Preschool development grants 1 D 250,000 250,000 750,000 500,000 200.000%

2. Preschool for all M 0 0 1,299,982 1,299,982 ---

Total 250,000 250,000 2,049,982 1,799,982 719.993%

Discretionary 250,000 250,000 750,000 500,000 200.000%

Mandatory 0 0 1,299,982 1,299,982 ---

NOTES: D = discretionary program; M = mandatory program; FY = fiscal year 

Accounts are shown under the administering office that has primary responsibility for most programs in that account; however, there may be some programs that are administered by another office.

For mandatory programs, the levels shown in the 2014 Appropriation column reflect the 7.2 percent sequester that went into effect October 1, 2013, and the levels shown in the 2015 Appropriation column

reflect the 7.3 percent sequester that went into effect October 1, 2014, pursuant to the Budget Control Act of 2011 (P.L. 112-25).

Detail may not add to totals due to rounding. 

1 The Department of Education Appropriations Act, 2014, provided funds under Race to the Top, and the Department of Education Appropriations Act, 2015, provided 

funds under the Fund for the Improvement of Education, both in the Innovation and Improvement account.

2016 President's Budget 

Compared to 2015 Appropriation

B-6
SCHOOL READINESS

Summary of Request

The Administration’s 2016 School Readiness request includes significant investments that will 

establish a continuum of high-quality early learning through kindergarten entry. The signature 

program in this effort is Preschool for All, a proposed $75 billion mandatory investment over 

10 years that would build upon existing State systems to provide high-quality preschool to all 

4-year-olds from low- and moderate-income families. The program would also create incentives 

for States to expand publicly funded preschool services to middle-class families and promote 

access to high-quality full-day kindergarten and high-quality early learning programs for children 

under the age of 4. 

In order to enable more States and communities to be ready to provide high-quality preschool 

through the Preschool for All program, the Administration is requesting $750 million in 

discretionary funds for Preschool Development Grants. This level of funding would help support 

26 to 32 grants to States. This funding would reach nearly all States by 2016. These grants 

would pave the way for the successful implementation of Preschool for All by ensuring that 

States most willing commit to expanding preschool access are able to make the critical 

investments necessary to support high-quality programs. One key goal of the grants would 

address fundamental needs like workforce development, and quality infrastructure components 

such as program standards, monitoring, and evaluation. A second key goal would support the 

scale-up of high-quality local programs that could serve as models for Preschool for All. 

The Administration is also proposing $1.3 billion in mandatory funding for Preschool for All to 

support grants to States for the implementation of high-quality preschool programs that are 

aligned with elementary and secondary education systems. The proposed investment reflects 

both the recognition that the path to college completion begins during a child’s earliest years and 

that high-quality preschool can eliminate the school readiness gap that exists between children 

from low- and higher-income families. High-quality preschool drives increased school readiness 

across multiple domains, including: language and literacy development; cognition and general 

knowledge (including early mathematics and science development); approaches toward 

learning; physical well-being and motor development; and social and emotional development. 

Longer-term improved outcomes include narrower achievement gaps, fewer placements in 

special education programs and services, and a reduced need for remediation in the early 

elementary grades. 

B-7
SCHOOL READINESS

Activities:

Preschool development grants

(Elementary and Secondary Education Act of 1965, Title V, Part D)

(dollars in thousands)

FY 2016 Authorization: To be determined1

Budget Authority:

2015 2016 Change

$250,0002 $750,000 +$500,000

1 The GEPA extension expired September 30, 2008; new authorizing legislation is sought for FY 2016. 2 The Department of Education Appropriations Act, 2015, provided funds under Fund for the Improvement of 

Education in the Innovation and Improvement account.

PROGRAM DESCRIPTION

The Preschool Development Grants program is designed to build State and local capacity to 

implement universal preschool for all 4-year-olds from low- and moderate-income families, 

consistent with the President’s Preschool for All mandatory proposal. The Department, in 

collaboration with Health and Human Services (HHS), awards Preschool Development Grants 

on a competitive basis to States to (1) build or enhance a preschool program infrastructure that 

would enable the delivery of high-quality preschool services to children, and (2) scale-up highquality preschool programs in targeted high-need communities that serve as models for 

expanding preschool to all 4-year-olds from low- and moderate-income families. 

Preschool Development Grants support two types of grants to States: (1) Development Grants 

for States with small or no State public preschool program to develop or enhance their preschool 

program infrastructure and capacity to deliver high-quality preschool services to eligible children

in one or more high-need communities; and (2) Expansion Grants to States with more robust 

preschool systems to implement and expand high-quality preschool programs to serve 

additional children in high-need communities. Services may be implemented through a mixeddelivery system of providers including schools, licensed child care centers, Head Start, or other 

community-based organizations.

Grantees are required to meet nationally recognized program quality standards, including the 

following elements: (1) high staff qualifications, including a bachelor of arts degree for teachers; 

(2) professional development for teachers and staff; (3) low staff-child ratios and small class 

sizes; (4) a full-day program; (5) developmentally appropriate, evidence-based curricula and 

learning environments that are aligned with State early learning and development standards; 

(6) individual accommodations and supports for children, (7) instructional staff salaries that are 

comparable to those for K-12 instructional staff; (8) ongoing program evaluation to ensure 

continuous improvement; (9) onsite comprehensive services for children; and (10) evidencebased health and safety standards. 

Each applicant is required to submit a plan that describes (1) how the State will expand

B-8
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Preschool development grants

preschool access to 4-year old children from families at or below 200 percent of the Federal 

poverty level in high-need areas; (2) its commitment to High-Quality Preschool Programs; 

(3) how it will ensure quality programs; (4) how it will encourage collaboration and strong 

partnerships between LEAs and other early learning providers; (5) its strategy to align programs 

within a birth through third grade continuum; and (6) a sustainability plan to maintain high-quality 

services for children after the grant period. In some instances, a State grantee might wish to use 

these funds to build components of the early education program quality infrastructure consistent 

with the requirements of the Preschool for All proposal, such as (1) developing or enhancing 

comprehensive early learning and development standards and high-quality preschool program 

standards; (2) linking preschool and elementary and secondary school data; (3) implementing or 

improving the State’s tiered quality rating and improvement systems (TQRIS); or 

(4) implementing a comprehensive early learning assessment system. The Department permits

grantees to subgrant funds to other high-quality early learning providers to implement preschool 

services to children from low- and moderate-income families.

In fiscal year 2014, the Department, in collaboration with HHS, awarded a total of 18 grants—

5 Development grants (Alabama, Arizona, Hawaii, Montana and Nevada) and 13 Expansion 

grants (Arkansas, Connecticut, Illinois, Louisiana, Maine, Maryland, Massachusetts, New 

Jersey, New York, Rhode Island, Tennessee, Vermont, and Virginia).

This is an extended availability program. Funds are available for obligation for 15 months, from 

October 1 of the fiscal year for which funds are appropriated through December 31 of the 

following fiscal year.

FY 2016 BUDGET REQUEST

The Administration requests $750 million in fiscal year 2016 for Preschool Development Grants, 

an increase of $500 million over the 2015 level. This additional funding will support a significant 

expansion of the program, allowing it to make competitive awards to nearly every State that 

submits a high-quality application. Funds also would be used for continuation grants to the 

18 States that received fiscal year 2014 Preschool Development Grant awards. The program, 

which provides competitive grants to States to develop, enhance, or expand high-quality 

preschool programs for children from families at or below 200 percent of the Federal poverty 

line, is a key part of the Administration’s overall Preschool for All strategy to expand universal 

preschool to more than 1 million children from low- and moderate-income families. Grants made 

in 2014 provide support for low-capacity States to build the fundamental components of a highquality preschool system and for high-capacity States to expand high-quality preschool models. 

For example, Connecticut will use its fiscal year 2014 PDG award to improve quality in its State 

preschool program by offering comprehensive services; paying teachers a salary equal to K-12 

teachers; deepening family engagement; forging a seamless birth-through-third-grade 

continuum; and enhancing its professional development system to offer more targeted coaching, 

mentoring, and consultation designed to meet the unique needs of programs and 

teachers. Montana will use its PDG funds to establish the first-ever State preschool program 

that will improve access to high quality preschool education in 16 communities, 8 of which are on 

Indian lands. And Alabama will add 400 classrooms to its existing State preschool program, 

increasing the availability of high-quality preschool from 9 percent of eligible children to 

26 percent by 2018.

B-9
SCHOOL READINESS

Preschool development grants

The fiscal year 2016 request would support two types of grants to States: (1) Development 

Grants to build or enhance State Preschool Program infrastructure and capacity that would 

enable the delivery of high-quality preschool services to eligible children in one or more highneed community; and (2) Expansion Grants to implement and sustain high-quality preschool 

programs in States with more robust preschool systems to reach and serve additional children. 

This effort will continue to lay the groundwork to ensure that more States are ready and able to 

participate in the proposed Preschool for All program, which supports universal access to highquality preschool services for children from low- and moderate-income families. The request 

also expands eligibility beyond States to include the Bureau of Indian Education, tribal 

educational agencies, territories, and the Outlying Areas. 

Research findings provide strong justification for Federal investment in high-quality preschool 

programs. Children who attend high-quality preschool are better prepared for school; less likely 

to be retained in grade; score higher on reading and math assessments in the elementary 

grades; and are more likely to graduate from high school than children who do not attend such 

programs.1

 These benefits are particularly strong for children from low-income families. 

In addition to the educational gains, investment in high-quality preschool provides economic 

benefits, with an estimated return on investment of $7 to $10 for every $1 invested in high-quality 

preschool due to lower remedial education costs, increased labor productivity, and reduction in 

crime.2

 Yet, despite these benefits, only 1 in 3 children attend a high-quality preschool 

program.3

According to the National Institute for Early Education Research, only 30 State programs require 

preschool teachers to have a bachelor’s degree, 22 States offer full-day programs, and 32 State 

programs require site visits. 

These data demonstrate that while some States have put in place elements of high-quality 

preschool programs consistent with the Preschool for All proposal, there remains a significant 

need for targeted investments in many States to prepare them to offer high-quality preschool to 

all 4-year-olds from low- and moderate-income families. 

The request would allow the Secretary to reserve up to 5 percent of Preschool Development 

Grants funds for national activities, including technical assistance to support program grantees, 

1 Campbell, F. A., Ramey, C. T., Pungello, E., Sparling, J., & Miller-Johnson, S. (2002). Early childhood 

education: Young adult outcomes from the Abecedarian project. Applied Developmental Science, 6, 42-57; Gormley, 

W., Gayer, T., Phillips, D.A., & Dawson, B. (2005). The effects of universal Pre-K on cognitive development. 

Developmental Psychology, 41, 872-884; Schweinhart, L.J., Barnett, W.S., & Belfield, C.R. (2005). Lifetime 

effects:The High/Scope Perry Preschool Study through age 40. Ypsilanti, MI: High/Scope Press; Weiland, C., & 

Yoshikawa, H. (2013). Impacts of a prekindergarten program on children’s mathematics, language, literacy, 

executive function, and emotional skills. Child Development. 2 Heckman, James J., Seong Hyeok Moon, Rodrigo Pinto, Peter A. Savelyev, and Adam Yavitz. (2010). "The 

Rate of Return to the High/Scope Perry Preschool Program." Journal of Public Economics, 94(1): 114-128.

3 Department of Education, National Center for Education Statistics, Early Childhood Longitudinal Study, Birth 

Cohort, Longitudinal 9-month–Kindergarten Restricted-Use Data File. (Table was prepared December 2010 

http://nces.ed.gov/programs/digest/d11/tables/dt11_057.asp.)

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SCHOOL READINESS

Preschool development grants

program evaluation, research to strengthen the evidence base around the effective 

implementation of early learning programs, and a pilot program described in more detail below. 

Pilots in Integrated Programming for Early Results (PIPER)

Up to $20 million of the proposed 5 percent set-aside would be used to fund Pilots in Integrated 

Programming for Early Results (PIPER) in 5–6 communities to test innovative approaches to 

strengthening the effectiveness of early learning interventions and improving the transitions of 

children eligible for services under the PDG program (i.e., children from low-income families) 

from preschool into kindergarten through third grade. The Department would make awards to 

consortia that include a local educational agency (LEA) and early learning programs in the 

community (such as State or local preschool, child care, Head Start, and private providers). The 

PIPER pilot would be designed to increase understanding about the essential elements of early 

learning programs, the transition to kindergarten, and early grade experiences that contribute to 

school success, with the overarching goal of improving student outcomes by third grade. 

The PIPER pilot would support the integration of developmental, academic, health, and family 

data across multiple programs—which may include Federal, State- or locally-funded preschool, 

special education and early intervention programs, Head Start, child care, and K-12 schools—to 

track children’s cognitive, physical, social, and emotional development and continuously improve 

the services they receive in both early learning and K-3 settings. In addition, the pilot would 

place a special emphasis on the use of vertically-aligned, evidence-based curricula in early 

learning programs and the early elementary grades to improve child outcomes, while supporting 

teachers with materials and strategies that will help children achieve demonstrable gains in key 

areas of childhood development and learning. 

PROGRAM OUTPUT MEASURES (dollars in thousands) 

Measures 2014 2015 2016

Amount for new awards $240,000 0 $471,000

Total number of new awards 18 0 26–32

Number of new Development awards 5 0 6–11

Number of new Expansion awards 13 0 19–22

Amount for continuation awards 0 $240,000 $248,740

Number of continuation awards 0 18 18

Peer review of new award applications $2,500 0 $1,500

National Activities $7,500 $7,500 $37,500

Total, Preschool Development Grants $250,000 $250,000 $750,000

_________________

NOTE: The fiscal year 2014 appropriations act authorized the Department to pool evaluation funds reserved 

under section 9601 of the ESEA and use those pooled funds to evaluate any ESEA program. The fiscal year 2015 

appropriations act provided the same authority and the Administration’s fiscal year 2016 budget would continue this 

authority. The Department may reserve funds from the Preschool Development Grants program under this authority 

in fiscal years 2015 and 2016.

B-11
SCHOOL READINESS

Preschool development grants

PROGRAM PERFORMANCE INFORMATION

The Department developed the following performance measures for the Preschool Development 

program: (1) The number and percentage of Eligible Children served in High-Quality Preschool 

Programs funded by the grant; (2) The number and percentage of children served overall in the 

State Preschool Program; and (3) The number and percentage of children in the High-Need 

Communities served by the grant that are ready for kindergarten as determined by the State's 

Kindergarten Entry Assessment or, if the State does not yet have a Kindergarten Entry 

Assessment, other valid and reliable means of determining school readiness.

B-12
SCHOOL READINESS

Preschool for all

(Proposed legislation)

(dollars in thousands)

FY 2016 Authorization: To be determined

Budget Authority (mandatory):

2015 2016 Change

0 $1,299,982 +$1,299,982

PROGRAM DESCRIPTION

The Administration’s 2016 budget includes significant new investments that will establish a 

continuum of high-quality early learning through kindergarten entry. The signature program in 

this effort is Preschool for All, a proposed $75 billion mandatory investment over 10 years, 

beginning with $1.3 billion in fiscal year 2016. This groundbreaking proposal calls for a new 

Federal-State partnership that would build upon existing State systems to provide all low- and 

moderate-income 4-year-olds with high-quality, publicly funded preschool, while also 

encouraging the expansion of these programs to include children from middle class families. In 

addition, Preschool for All would promote access to full-day kindergarten and high-quality early 

learning programs for children under the age of 4.

Preschool for All funds would be used to improve outcomes for children by expanding the 

number and availability of high-quality preschool programs and improving the quality of existing 

programs. The definition of high-quality preschool, based on nationally recognized standards, 

includes, at a minimum, the following elements: (1) high staff qualifications, including a 

bachelor’s degree for teachers; (2) professional development for teachers and staff; (3) low staffchild ratios and small class sizes; (4) a full-day program; (5) developmentally appropriate, 

evidence-based curricula and learning environments that are aligned with the State early 

learning and development standards; (6) individual accommodations and supports for children; 

(7) instructional staff salaries that are comparable to those for K-12 instructional staff; 

(8) ongoing program evaluation to ensure continuous improvement; (9) onsite comprehensive 

services for children; and (10) evidence-based health and safety standards.

To receive a Preschool for All formula grant, States would have to demonstrate that they have: 

(1) early learning and development standards across the essential domains of school readiness, 

(2) high-quality program standards, (3) requirements for teacher and staff qualifications, and 

(4) the ability to link preschool data with K-12 data. In addition, each State would be required to 

submit a plan that describes how it will provide access, within a reasonable time period, to highquality preschool with open enrollment for all 4-year-olds from families with incomes at or below 

200 percent of the Federal poverty line. If a State opts to expand participation in high-quality 

preschool for children with family incomes above 200 percent of the Federal poverty line, its plan 

should also describe its expansion strategy and goals. Each State’s plan would also address 

how it would develop and implement the infrastructure that is crucial to ensuring program quality, 

such as a system that evaluates, rates, and makes public the quality of programs and a 

B-13
SCHOOL READINESS

Preschool for all

comprehensive early learning assessment system. Since a participating State would be 

permitted to expand federally funded activities once it has made preschool universally available 

to low- and moderate-income 4-year-olds, the plan would also address how the State will 

promote access to full-day kindergarten and, if full-day kindergarten is already provided, how the 

State will extend high-quality preschool to low- and moderate-income 3-year-olds.

Funds would be awarded through a cost-sharing model under which the Federal Government 

would assume a significant share of the program costs in the first years of the program with 

States gradually assuming more responsibility over time. Each State that receives a grant would 

be required to contribute non-Federal matching funds and would be eligible for a reduced 

(incentive) match rate if it has a plan to serve additional children from families with incomes 

above 200 percent of the Federal poverty line in high-quality public preschool programs. 

Allocations to States would be based on each State’s relative share of 4-year olds from families 

at or below 200 percent of the Federal poverty level. Program funds would support preschool for 

4-year-olds with family incomes at or below 200 percent of the Federal poverty level. The 

allocations to States would also take into account other factors, such as the level of program 

participation and the estimated cost of the activities specified in the State plan. 

During the first 4 years of the program, States would be permitted to reserve up to 20 percent of 

their funds for quality improvement efforts and an additional one half of 1 percent for 

administrative costs. States would be required to subgrant no less than 80 percent of their 

awards to local educational agencies (LEAs) or other early learning providers in partnership with 

LEAs. Examples of other early learning providers include child care centers, community-based 

organizations, and private providers. If a State does not reserve funds for quality improvement 

efforts, it would be required to use not less than 99 percent of its allocation to make subgrants to 

eligible local entities.

Each State that receives grant funds would be required to maintain fiscal support of its Statefunded preschool programs. Additionally, Preschool for All funds must be used to supplement 

and not supplant other Federal, State, and local public funds expended on public preschool 

programs in the State.

The Administration’s proposal includes set-asides of one-half of 1 percent for both the 

Department of Interior’s Bureau of Indian Education (BIE) and the Outlying Areas; each of these 

entities would have to meet the same eligibility requirements as those established for States in 

order to receive Federal funding. The Administration’s proposal also would allow the 

Department to reserve up to 1 percent, not to exceed $30 million, for national activities. 

FY 2016 BUDGET REQUEST

The Administration is proposing to authorize $75 billion in mandatory funding over 10 years for 

Preschool for All, including $1.3 billion in fiscal year 2016 to support the first year of this StateFederal partnership. The $1.3 billion proposal is based on estimated State participation rates, 

costs of high-quality preschool per child, and expected State expansion of preschool services. 

The Administration estimates that 15 States would receive grant awards in the first year, with all 

States expected to qualify for grants by year 3. 

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SCHOOL READINESS

Preschool for all

Research findings provide strong justification for Federal investment in high-quality preschool 

programs. Children who attend high-quality preschool are better prepared for school, less likely 

to be retained in grade, score higher on reading and math assessments in the elementary 

grades, and are more likely to graduate from high school than children who do not attend such 

programs. Furthermore, these benefits are particularly strong for children from low-income 

families. 

In addition to the educational gains, investment in high-quality preschool provides economic 

benefits. Evidence shows that for every $1 invested in high-quality preschool, taxpayers saved 

an estimated average of $7 to $10 in future costs due to reduction in remedial education costs, 

increased labor productivity, and reduced crime.1

States have led the way in translating this research into action. As of 2014, 40 States and the 

District of Columbia have at least one publicly-funded State preschool program in place. Despite 

these efforts, the Department estimates that more than one-third of 4-year-olds from low-income 

families are not enrolled in any preschool program, and the high costs of private preschool and 

lack of public programs also narrow options for middle-class families. Moreover, access to 

publicly funded programs varies significantly across States and localities, ranging from no 

children served in some areas to near universal coverage in others.2

 

The quality of existing programs also varies widely among providers. Fewer than 3 in 10 

4-year-olds are enrolled in high-quality programs. Research consistently demonstrates that only 

high-quality preschool delivers school readiness benefits for children, which is why the 

Administration’s Preschool for All proposal includes requirements for quality, based on nationally 

recognized standards that research shows can lead to closing the opportunity gap between 

children from lower-income families and their peers from higher-income families.

The Preschool for All program is a key part of the Administration’s overall strategy to provide 

children with a high-quality foundation that will prepare them for success in school and in life. To 

support this goal, the Administration’s request would bolster high quality programs for infants 

and toddlers through an historic investment in quality child care; an expansion in Early Head 

Start, including through the Early Head Start-Child Care Partnerships; and expansion of 

evidence-based voluntary home visiting programs. The Budget also increases investment in 

Head Start to ensure that all programs are full-day and a full school year, which research shows 

is more effective at promoting school readiness. 

1 Heckman, J. J., Moon, S. H., Pinto, R., Savelyev, P. A., Yavitz, A. (2009). The rate of return to the High/Scope 

Perry Preschool Program. “National Bureau of Economic Research Working Paper 15471.” Retrieved from 

http://www.nber.org/papers/w15471 2 2012 Yearbook, National Institute for Early Education Research, Rutgers, NJ.

B-15

 
SCHOOL READINESS

Preschool for all

PROGRAM OUTPUT MEASURES (dollars in thousands) 

Measures

2016

Amount for new awards $1,260,982

Number of new awards 12–18

Set-Aside for the Outlying Areas $6,500

Set-Aside for BIE $6,500

National Activities (including technical assistance and evaluation) $26,000

Total, Preschool for All Grants $1,299,982

PROGRAM PERFORMANCE INFORMATION

The Department will develop performance measures for the Preschool for All program. At a 

minimum, these measures will track a State’s progress in: (1) increased school readiness; 

(2) decreased educational gaps; (3) decreased placement in special education programs and 

services; and (4) decreased need for remediation in the early elementary grades.

B-16