Department of Education

SCHOOL READINESS

Fiscal Year 2014 Request

CONTENTS

Page

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

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

Appropriation Adjustments and Transfers .................................................................................. C-3

Authorizing Legislation................................................................................................................ C-4

Summary of Request .................................................................................................................. C-5

Activities:

Preschool Development Grants.................................................................................................. C-7

Preschool for All........................................................................................................................ C-10
C-1

Appropriations language

For carrying out activities authorized by part D of title V of the Elementary and Secondary 

Education Act of 1965, $750,000,000 for a preschool development grants program: Provided,

That the Secretary shall make competitive grants to States to carry out activities that support 

high-quality preschool programs for children from families at or below 200 percent of the Federal 

poverty line1: Provided further, That the Secretary may permit or require States to subgrant a 

portion of grant funds to local educational agencies, or local educational agencies in partnership 

with other early learning providers, for the implementation of high-quality preschool programs for 

children from families at or below 200 percent of the Federal poverty line2: Provided further, That 

up to 5 percent of such funds for competitive grants shall be available for national activities3.

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

Provided, That the Secretary shall make

competitive grants to States to carry out 

activities that support high-quality preschool 

programs for children from families at or 

below 200 percent of the Federal poverty line

This language authorizes the Secretary to 

make competitive Preschool Development 

grants to States.

2

Provided further, That the Secretary may 

permit or require States to subgrant a portion 

of grant funds to local educational agencies,

or local educational agencies in partnership 

with other early learning providers, 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 States to subgrant 

funds to local educational agencies or local 

educational agencies in partnership with 

other early learning providers.

3

Provided further, That up to 5 percent of 

such funds for competitive grants shall be 

available for national activities.

This language allows the Secretary to 

reserve up to 5 percent of program funds for 

national activities.
C-3

Appropriation Adjustments and Transfers

(dollars in thousands)

Appropriation/Adjustments/Transfers 2012 2013 2014

Discretionary:

Discretionary Appropriation ............................................................ 0 0 $750,000

Mandatory:

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

Total, discretionary and 

mandatory appropriation................................... 0 0 2,049,982
C-4

Authorizing Legislation

(dollars in thousands)

Activity

2013

Authorized

2013

Estimate

2014

Authorized

2014

Request

Preschool Development Grants

0 0

To be 

determined 750,000

Preschool for All 0 0

To be 

determined $1,299,982

Total discretionary appropriation (subject to reauthorization) 1,299,982

Total mandatory appropriation (not authorized) 750,000
C-5

Summary of Request

Click here for accessible version 

(in thousands of dollars) 2014

Category 2012 2013 President's

Account, Program and Activity Code Appropriation Appropriation Budget Amount Percent

School Readiness (proposed legislation)

 1. Preschool development grants D 0 0 750,000 750,000 ---

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

Total 0 0 2,049,982 2,049,982 ---

Discretionary D 0 0 750,000 750,000 ---

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

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

- FY 2013 discretionary appropriation amounts are based on P.L. 112-175, the Continuing Appropriations Resolution, 2013, that provided appropriations through March 27, 2013. FY 2013 mandatory amounts are 

either specifically authorized levels, or are based on FY 2013 President's Budget Policy, updated for more recent estimates of mandatory costs, or FY 2014 President's Budget Policy, as applicable.

- Programs authorized by the Elementary and Secondary Education Act for which funds are requested or that are proposed for consolidation in FY 2014 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 2012 and FY 2013 have been adjusted for comparability with the FY 2014 President's Budget.

Detail may not add to totals due to rounding.

Compared to 2012 Appropriation

2014 President's Budget 

C-5
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Summary of Request

The Administration requests $2.5 billion for FY 2014 to support school readiness. The request 

would provide $750 million for Preschool Development Grants to support grants to States to 

carry out the activities needed to ensure that every State willing to commit to expanding 

preschool access has the high-quality programs required to successfully serve 4-year-old 

children. The Department 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 kindergarten-through-12th-grade elementary and secondary education systems.
SCHOOL READINESS

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Preschool Development Grants

(Proposed legislation)

(dollars in thousands)

FY 2014 Authorization: To be determined

Budget Authority:

2012 2013 2014

Change 

from 2012

0 0 $750,000 +$750,000

PROGRAM DESCRIPTION

The Administration’s 2014 request 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. This 

historic new program calls for a Federal-State partnership that would provide high-quality 

preschool to all 4-year-olds from low- and moderate-income families, while also creating 

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

promoting 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 to provide high-quality preschool through the Preschool for All 

program, the Administration is requesting $750 million in discretionary funds for Preschool 

Development Grants, which would pave the way for the successful implementation of Preschool 

for All by providing competitive grants to the States most willing to commit to creating or 

expanding a high-quality preschool system that can serve all of their 4-year-olds from low- and 

moderate-income families, including children with disabilities. The grants would address 

fundamental needs like facility creation and workforce development, as well as quality 

improvement efforts and the scale-up of proven preschool models. The Department would 

make awards to (1) low-capacity States—those with small State-funded preschool programs or 

without any State-funded preschool programs— to develop the critical physical and program 

quality infrastructure needed to participate in the Preschool for All program, and (2) States with 

more robust State-funded preschool systems to improve the quality of existing programs and 

support the expansion of high-quality local programs that could serve as models for the 

Preschool for All initiative. 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 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. 
SCHOOL READINESS

Preschool Development Grants

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

access to preschool in the neediest areas of the State, (2) the State’s strategy for ensuring an 

adequate supply of high-quality early learning spaces, and (3) the capacity of its teacher training 

and certification programs to develop a workforce that can serve additional children effectively. 

In some instances, States 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 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 Secretary would permit States that meet certain quality benchmarks to 

subgrant a portion of their grants to local educational agencies (LEAs), or other early learning 

providers in partnership with LEAs, to scale up high-quality preschool programs that can serve 

as national models for the Preschool for All initiative.

FY 2014 BUDGET REQUEST

The Administration requests $750 million in fiscal year 2014 for Preschool Development Grants 

to support the first year of the program. This new program would support State efforts to 

establish the infrastructure for high-quality preschool to enable more States to meet the eligibility 

requirements for the Preschool for All program. The Department would award competitive 

grants to States with preschool systems at various stages of development that are planning to 

provide universal access to high-quality preschool for 4-year-old children from low- and 

moderate-income families.

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. A review of various long-term studies show 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. 

There are currently 52 State-funded preschool programs in 39 States and the District of 

Columbia; however, the quality of these programs varies substantially across and within States 

due to the wide range of early learning standards and program requirements among the States.1

Fewer than 3 in 10 4-year olds are enrolled in high-quality programs. According to the National 

Institute for Early Education Research, 29 States’ programs require preschool teachers to have 

a bachelor’s degree, and 45 require some specialized training in early childhood education. 

Further, 11 States offer full-day programs; 12 States offer only half-day; and 28 States allow this 

decision to be determined locally. These data demonstrate that while several States are wellprepared to participate in Preschool for All, others would benefit from targeted quality 

 1 2010 Yearbook, National Institute for Early Education Research, Rutgers, NJ.
SCHOOL READINESS

Preschool Development Grants

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investments to prepare them to offer high-quality preschool to all 4-year-olds from low- and 

moderate-income families.

Preschool Development Grants would help States to overcome these quality challenges and 

support systemic workforce, facility, or comprehensive services improvements to accelerate their 

participation in Preschool for All. This program is a key part of the Administration’s overall 

strategy to address both the quality and start-up costs of universal preschool that would bring the

benefits of high-quality preschool to more than a million children from low- and moderate-income 

families and expand access for children from additional middle-class families.

PROGRAM OUTPUT MEASURES (dollars in thousands) 

Measures

2014

Amount for new awards $705,000

Number of new awards 8-15

Peer review of new award applications $7,500

National Activities $37,500

Total, Preschool Development Grants $750,000
SCHOOL READINESS

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Preschool for All

(Proposed legislation)

(dollars in thousands)

FY 2014 Authorization: To be determined

Budget Authority:

2012 2013 2014

Change 

from 2012

0 0 $1,300,000 +$1,300,000

PROGRAM DESCRIPTION

The Administration’s 2014 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 2014. This groundbreaking proposal calls for a new 

Federal-State partnership to provide all low- and moderate-income 4-year-olds with high-quality, 

publicly funded preschool. Preschool for All would also encourage the expansion of these 

programs to reach additional children from middle class families and promote access to full-day 

kindergarten and high-quality early learning programs for children under the age of 4.

This level of investment reflects the fact that the path to college completion begins during a 

child’s earliest years. High-quality preschool provides the foundation for children’s success in 

school and 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. 

The Preschool for All program would award Federal funds through a cost-sharing model with 

States to provide access to high-quality preschool for all 4-year-olds from low- and moderateincome families. Funds would be used to improve outcomes for children through enhancing the 

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

preschool 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 

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; 
SCHOOL READINESS

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

comprehensive services for children.

Under Preschool for All, States would increase access to and improve the quality of preschool 

programs in part by demonstrating 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 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 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 it is 

already provided, how the State will extend high-quality preschool to low- and moderate-income 

3-year-olds.

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 all or part of 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. The State match would be very modest in the early years, with 

Federal funds covering the majority of the program costs. For example, over the first 5 years, 

Federal funds would support 83-88 percent of the costs in a typical State, depending on whether 

the State qualified for the incentive rate. 

State Match

Regular 

Rate

Reduced 

(Incentive) 

Rate

Year 1 10% 5% 

Year 2 10% 5%

Year 3 20% 10%

Year 4 30% 20%

Year 5 40% 30%

Year 6 50% 40%

Year 7 75% 50%

Year 8 100% 75%

Year 9 150% 100%

Year 10 300% 250%
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A State may access its full match reduction once it serves 50 percent of its children from lowand moderate-income families statewide, has a plan to expand access to high-quality public 

preschool for additional children from middle class families, and demonstrates progress on 

expanding statewide access for children from low- and moderate-income families. A State may 

access a proportional share of its match rate reduction if it serves 50 percent of children from 

low- and moderate-income families in a particular region or service area(s) and demonstrates 

progress expanding statewide access for children from low- and moderate-income families. The 

share of the match rate reduction will be proportional to the share of low- and moderate-income 

children statewide that are in the region or service area served. Whether a State receives a full 

or partial match rate reduction, to continue to receive this reduced match rate, a State must 

make progress on expanding statewide access for children from low- and moderate-income 

families and children from families with incomes above 200 percent of the Federal poverty line.

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 a set of 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, each State 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. Such 

other early learning providers may 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 its 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 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 reserves up to 1 percent, 

not to exceed $30 million, for national activities. 

FY 2014 BUDGET

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

the new Preschool for All program, including $1.3 billion in fiscal year 2014 to support the first 

year of the new program. The $1.3 billion first-year request is based on estimated State 

participation rates, costs of high-quality preschool per child, and expected State expansion of 
SCHOOL READINESS

Preschool for All

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preschool services. The Administration estimates that 15 States will be approved to receive 

grant awards in the first year, with all States expected to qualify for grants by year 3. 

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. A review of various long-term studies show 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. 

States have led the way in translating this research into action. As of 2013, 39 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. Often, 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.1

 In addition, the quality of 

existing programs varies widely among providers because of the wide range of early learning 

standards and program requirements among the States.2

 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 $300 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 2014 would help expand highquality preschool to thousands of children in such communities.

 1 2010 Yearbook, National Institute for Early Education Research, Rutgers, NJ. 2 2010 Yearbook, National Institute for Early Education Research, Rutgers, NJ.
SCHOOL READINESS

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PROGRAM OUTPUT MEASURES (dollars in thousands) 

Measures

2014

Amount for new awards $1,261,000

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 $1,300,000

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.