Department of Education

SCHOOL READINESS

Fiscal Year 2015 Request

CONTENTS

Page

Appropriations language............................................................................................................. C-1

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

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

Authorizing Legislation................................................................................................................ C-5

Summary of Request .................................................................................................................. C-6

Activities:

Preschool development grants................................................................................................C-8

Preschool for all.....................................................................................................................C-11
SCHOOL READINESS

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Appropriations language

For carrying out, in accordance with the applicable requirements of part D of title V of the 

Elementary and Secondary Education Act of 1965, $500,000,000, for obligation through 

December 31, 2015, for a preschool development grants program:

1 Provided, That the Secretary 

shall use all funds made available under this heading to make competitive awards to States, 

local education agencies, or local governmental entities (as determined by the Secretary) 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 preschoolaged children from families at or below 200 percent of the Federal poverty line:

2 Provided 

further, That the Secretary may permit or require States, local education agencies, or local 

governmental entities to subgrant a portion of grant funds to local educational agencies or 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, notwithstanding the second proviso, up to 3 percent of such 

funds for preschool development grants shall be available for technical assistance, evaluation, 

and other national activities related to such grants.

5

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.
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Analysis of Language Provisions and Changes

Language Provision Explanation

1 For carrying out, in accordance with the 

applicable requirements of part D of title V of 

the Elementary and Secondary Education Act 

of 1965, $500,000,000, for obligation through 

December 31, 2015, for a preschool 

development grants program

This language expands the period of 

availability for the appropriation to 

December 31, 2015.

2 Provided, That the Secretary shall use all 

funds made available under this heading to 

make competitive awards to States, local 

education agencies, or local governmental 

entities (as determined by the Secretary) for 

activities that build the capacity within the 

State to develop, enhance, or expand highquality preschool programs, including 

comprehensive services and family 

engagement, for preschool-aged children

from families at or below 200 percent of the 

Federal poverty line2

This language authorizes the Department to 

make competitive Preschool Development 

grants to States.

3 Provided further, That the Secretary may 

permit or require States, local education 

agencies, or local governmental entities to 

subgrant a portion of grant funds to local 

educational agencies or 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.
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Analysis of Language Provisions and Changes

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Language Provision Explanation

5 Provided further, That, notwithstanding the 

second proviso, up to 3 percent of such funds 

for preschool development grants shall be 

available for technical assistance, evaluation, 

and other national activities related to such 

grants

This language allows the Department to 

reserve up to 3 percent of program funds for 

national activities.
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Appropriation, Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2013 2014 2015

Discretionary:

Discretionary Appropriation ............................................................. 0 0 $500,000

Comparative transfer from:

Innovation and Improvement Programs for:

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

Total, adjusted discretionary appropriation......... 0 250,000 500,000

Mandatory:

Appropriation.......................................................... 0 0 1,299,982

Total, discretionary and 

mandatory appropriation ........................................ 0 250,000 1,799,982
SCHOOL READINESS

Authorizing Legislation

(dollars in thousands)

Activity

2014

Authorized

2014

Estimate

2015

Authorized

2015

Request

Preschool Development Grants (ESEA V-D)

Indefinite $250,000

To be 

determined $500,000

Preschool for All (mandatory) (proposed legislation) 0 0

To be 

determined 1,299,982

Total discretionary appropriation (subject to authorization) 250,000 500,000

Total mandatory appropriation (not authorized) 1,299,982

C-5
SCHOOL READINESS

DEPARTMENT OF EDUCATION FISCAL YEAR 2015 PRESIDENT'S BUDGET 

Click here for accessible version 

(in thousands of dollars) 2015

Category 2013 2014 President's

Account, Program and Activity Code Appropriation Appropriation Budget Amount Percent

School Readiness (proposed legislation)

1. Preschool development grants 1 D 0 250,000 500,000 250,000 100.000%

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

Total 0 250,000 1,799,982 1,549,982 619.993%

Discretionary D 0 250,000 500,000 250,000 100.000%

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

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

- Programs authorized by the Elementary and Secondary Education Act for which funds are requested or that are proposed for consolidation in FY 2015 are proposed under new authorizing legislation.

- Multiple programs affected by the proposed ESEA reauthorization have been renamed and moved among accounts, some of which also have been renamed.

- Account totals and programs shown within accounts in FY 2013 and FY 2014 have been adjusted for comparability to FY 2015.

- 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.

Detail may not add to totals due to rounding. 

1 The Department of Education Appropriations Act, 2014, provided funds under Race to the Top in the Innovation and Improvement account, now the Innovation and Instructional Teams account.

Compared to 2014 Appropriation

2015 President's Budget 

Summary of Request

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Summary of Request

The Administration’s 2015 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 $500 million in 

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

16 to 20 grants to States and communities. An additional $250 million would be provided 

through the Opportunity, Growth, and Security Initiative, for a total discretionary investment of 

$750 million. This additional funding would reach two-thirds of States by 2015. These grants 

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

States and localities 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. 
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Activities:

Preschool development grants

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

(dollars in thousands)

FY 2015 Authorization: To be determined

Budget Authority:

2014 2015 Change

$250,0001 $500,000 +$250,000

1 The Consolidated Appropriations Act, 2014, provided funds under Race to the Top in the Innovation and 

Improvement account.

PROGRAM DESCRIPTION

The Department would make Preschool Development Grants on a competitive basis to States, 

local educational agencies, or local governmental entities 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 high-quality preschool programs in targeted communities that would 

serve as models for expanding preschool to all 4-year-olds from low- and moderate-income 

families. These grants would lay the groundwork to ensure that more States are ready to 

participate in the Preschool for All formula grant initiative. Services could be implemented 

through a mixed-delivery system of providers including schools, licensed child care centers, 

Head Start, or other community-based organizations.

Grantees would be required to meet nationally recognized, program quality standards, including,

at a minimum, the following elements: (1) high staff qualifications, including a bachelor of arts 

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 the State early learning standards; 

(6) employee salaries that are comparable to those for K-12 teaching staff; (7) ongoing program 

evaluation to ensure continuous improvement; and (8) onsite comprehensive services for 

children. 

Each applicant would be required to submit a plan that describes (1) how the entity will extend 

preschool access to children at or below 200 percent of the Federal poverty level; (2) its strategy 

for ensuring an adequate supply of high-quality preschool slots; (3) the capacity of its teacher 

workforce to effectively serve additional children; (4) a system of monitoring for continuous 

improvement; (5) how the entity will establish a strong partnership between local education 

agencies and other early learning providers; 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 that will be 

required under the Preschool for All program, such as (1) developing or enhancing 

comprehensive early learning and development standards and high-quality preschool program 
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standards; (2) linking preschool and elementary and secondary school data; (3) implementing or 

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

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

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

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

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

October 1 of the fiscal year appropriated through December 31 of the following fiscal year.

FY 2015 BUDGET REQUEST

The Administration requests $500 million in fiscal year 2015 for Preschool Development Grants 

to support the second year of this program. An additional $250 million would be provided 

through the Opportunity, Growth, and Security Initiative, for a total discretionary investment of 

$750 million. The program, which was funded in 2014 through Race to the Top in the Innovation 

and Improvement account, 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. Grants made in 2014 provide support for both low-capacity States to build 

the fundamental components of a high-quality preschool system, as well as for high-capacity 

States to scale-up proven preschool models. This additional funding would allow the 

Department to fund two-thirds of States by 2015.

The fiscal year 2015 request would again support States as well as local entities efforts to 

develop the needed infrastructure to implement high-quality preschool programs and scale-up 

model programs. These efforts would prepare more States to participate in Preschool for All 

and help to expand high-quality local programs that could be taken to scale.

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. 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 average of $7 in future costs due to lower remedial education costs, increased labor 

productivity, and reduction in crime.

1 Yet, despite these benefits, only 1 in 3 children attend a 

high-quality preschool program.

2

Currently, there are 52 State-funded preschool programs in 40 States and the District of 

Columbia; however, access to and the quality of these programs varies substantially across and 

 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 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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within States.

3

 Only three states—Georgia, Oklahoma, and West Virginia—and the District of 

Columbia provide universal access for all families that wish to enroll their children. According to 

the National Institute for Early Education Research, 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 several States are well prepared to participate in Preschool 

for All, others would benefit from targeted quality investments to prepare them to offer highquality preschool to all 4-year-olds from low- and moderate-income families.

At the local level, there are pockets of success to build on, which can serve as excellent 

examples for States to replicate through Preschool for All. Some local communities are 

investing public resources to provide high-quality preschool programs for their children. The 

Preschool Development Grants will help to strengthen and bring to scale these efforts by 

enabling local communities an opportunity to directly compete for funds. 

Preschool Development Grants would help jumpstart or expand high-quality preschool in 

communities across the Nation, laying the foundation for State participation in Preschool for All. 

This program is a key part of the Administration’s overall strategy to address the challenges of 

expanding universal preschool to more than 1 million children from low- and moderate-income 

families.

PROGRAM OUTPUT MEASURES (dollars in thousands) 

Measures 2014 2015

Amount for new awards $240,000 $480,000

Number of new awards 11-13 16-20

Peer review of new award applications $2,500 $5,000

National Activities $7,500 $15,000

Total, Preschool Development Grants $250,000 $500,000

 3 2012 Yearbook, National Institute for Early Education Research, Rutgers, NJ.
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Preschool for all

(Proposed legislation)

(dollars in thousands)

FY 2015 Authorization: To be determined

Budget Authority (mandatory):

2014 2015 Change

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

PROGRAM DESCRIPTION

The Administration’s 2015 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 2015. 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 standards; (6) employee salaries that are comparable to those for K-12 teaching staff; 

(7) ongoing program evaluation to ensure continuous improvement; and (8) onsite 

comprehensive services for children.

In order 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 to high-quality 

preschool with open enrollment for all 4-year-olds from families with incomes at or below 200 

percent of the Federal poverty line within a reasonable time period. 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 comprehensive early learning assessment system. Since a 
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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. 

In the first 4 years of its grant, States would be permitted to reserve up to 20 percent of its 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 2015 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 2015 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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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 average of $7 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 2013, 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 real 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. As 

part of this strategy, the Administration is launching Early Head Start-Child Care Partnerships in 

the Department of Health and Human Services (HHS) to expand high-quality early learning 

programs for infants and toddlers and proposing to expand HHS’s voluntary evidence-based 

home visiting services. 

Preschool for All is also integral to President Obama’s opportunity agenda, which involves a 

wide range of activities across the Federal Government—including a proposed $100 million 

investment in the Promise Neighborhoods program—designed to provide cradle-to-career 

support for children and families in America’s highest-poverty communities. The $1.3 billion 

investment in Preschool for All proposed for 2015 would help expand high-quality preschool to 

thousands of children in such communities.

 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.
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PROGRAM OUTPUT MEASURES (dollars in thousands) 

Measures

2015

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.