PRESCHOOL DEVELOPMENT GRANTS

FY 2014 Competition

Preschool Development Grants--Development Grants 

& 

Preschool Development Grants--Expansion Grants

Guidance and Frequently Asked Questions for Applicants 

U.S. Department of Education

U.S. Department of Health and Human Services

Washington, D.C. 

Revised October 3, 2014
2

Purpose of the Guidance

The purpose of this guidance is to provide information about the Fiscal Year (FY) 

2014 competition of the Preschool Development Grants program. The U.S. 

Department of Education (ED) and the U.S. Department of Health and Human 

Services (HHS) (the Departments) are jointly administering the Preschool 

Development Grants program. This guidance, which should be read in conjunction 

with the FY 2014 notices inviting applications (NIAs), provides the Departments’ 

interpretation of various statutory provisions and does not impose any 

requirements beyond those included in Sections 14005 and 14006 of the American 

Recovery and Reinvestment Act (ARRA), as amended; the FY 2014 NIAs; and 

other applicable laws and regulations. In addition, it does not create or confer any 

rights for or on any person.

The Departments will provide additional or updated program guidance as 

necessary on the Preschool Development Grants program Web site, 

www.ed.gov/programs/preschooldevelopmentgrants. If you have further questions 

that are not answered here or other comments, please email us at

Preschool.Development.Grant@ed.gov.

Contents

A. FY 2014 Preschool Development Grants General Information.................3

B. FY 2014 Preschool Development Grants Eligibility, Participation, and Program 

Requirements..............................................................................5

C. Priorities, Definitions, and Selection Criteria.......................................17

D. Application Process and Submission Procedures...................................22

E. Budget and Uses of Funds...............................................................25

F. Matching Funds...........................................................................31

G. Accountability and Reporting Requirements.......................................34

H. Resources and Information.............................................................35
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A. FY 2014 Preschool Development Grants General Information

A-1 What is the Preschool Development Grants program? 

The Preschool Development Grants program supports States in: (1) developing or 

enhancing State Preschool Program1infrastructure to enable the delivery of High-Quality 

Preschool Programs; and (2) implementing and sustaining High-Quality Preschool 

Programs in targeted communities to reach and serve additional Eligible Children. 

Eligible Children, as defined in the NIAs, means four-year-old children from families

whose income is at or below 200 percent of the Federal Poverty Line. The Preschool 

Development Grants program is authorized under sections 14005 and 14006 of the 

ARRA (Public Law 111-5), as amended by section 1832(b) of division B of the 

Department of Defense and Full-Year Continuing Appropriations Act, 2011 (Public Law 

112-10), the Department of Education Appropriations Act, 2012 (title III of division F of 

Public Law 112-74, the Consolidated Appropriations Act, 2012), and the Consolidated 

Appropriations Act, 2014 (Public Law 113-76), the language for which can be found at 

www.ed.gov/blog/public-comment-sought-for-new-competition-to-build-develop-andexpand-high-quality-preschool-programs/comment-page1/#commentswww.ed.gov/blog/public-comment-sought-for-new-competition-to-builddevelop-and-expand-high-quality-preschool-programs/comment-page-1/#comments.

A-2 What is the difference between Preschool Development Grants--Development 

Grants and Preschool Development Grants--Expansion Grants?

Preschool Development Grants--Development Grants support States with small or no 

State Preschool Programs, while Preschool Development Grants--Expansion Grants 

support States that have more robust State Preschool Programs or that have been awarded 

a Race to the Top – Early Learning Challenge grant. 

Preschool Development Grants--Development Grants help States to: (1) develop or 

enhance State Preschool Program infrastructure and capacity to deliver High-Quality 

Preschool Programs; and (2) implement and sustain High-Quality Preschool Programs to 

reach and serve additional Eligible Children in one or more High-Need Communities. 

Preschool Development Grants--Expansion Grants help States to: (1) enhance State 

Preschool Program infrastructure and quality to deliver High-Quality Preschool

Programs; and (2) implement and sustain High-Quality Preschool Programs to reach and 

serve additional Eligible Children in two or more High-Need Communities.

For other differences between the two grants, please also see questions B-1, B-26, C-4, 

C-5, E-7, and F-10.

A-3 What is the timeline for obligating and expending FY 2014 Preschool Development 

Grants funds? 

 

1 Defined terms are used throughout the guidance and are indicated by capitalization.
4

The Departments must obligate all funds to States no later than December 31, 2014. In 

their plans, States will propose a project period of up to four years. Depending on the 

availability of funds, the Departments will make continuation awards for years two, three, 

and four of the project period in accordance with section 75.253 of the Education 

Department General Administrative Regulations (EDGAR) (34 CFR 75.253). 

In making a continuation award, the Secretaries of Education and Health and Human 

Services (collectively referred to as Secretaries) may consider, under 34 CFR 75.253, the 

extent to which a grantee has made “substantial progress in achieving the goals and 

objectives of the project.” This consideration includes the review of a grantee’s progress 

in meeting the targets and projected outcomes established in its approved application as 

outlined in section III Part 2: Budget Information of the application, and whether the 

grantee has expended funds in a manner that is consistent with its approved application 

and budget. In making a continuation grant, the Secretaries also consider whether the 

grantee is operating in compliance with the assurances in its approved application, 

including those applicable to Federal civil rights laws that prohibit discrimination in 

programs or activities receiving Federal financial assistance from the Departments (34 

CFR 100.4, 104.5, 106.4, 108.8, and 110.23). 

A-4 What are the selection criteria on which the applications will be scored? 

The selection criteria for this program are set forth in sections (A)-(H) of the NIA and 

vary slightly between the two types of grants (See the Preschool Development Grants--

Development Grants NIA and Preschool Development Grants--Expansion Grants NIA 

for specific selection criteria). A panel of reviewers will assign points to an application 

based on how well (or how completely) the applicant (in this case, the State) addresses 

these areas. The Preschool Development Grants--Development Grants and Preschool 

Development Grants--Expansion Grants have eight application section headings with 

slightly differing selection criteria:

Preschool Development Grants--Development Grants

A. Executive Summary 

B. Commitment to High-Quality Preschool Programs

C. Ensuring Quality in Preschool Programs

D. Expanding High-Quality Preschool Programs in Each High-Need Community

E. Collaborating with Each Subgrantee and Ensuring Strong Partnerships

F. Alignment within a Birth through Third Grade Continuum

G. Budget and Sustainability

Preschool Development Grants--Expansion Grants

A. Executive Summary 

B. Commitment to State Preschool Programs

C. Ensuring Quality in Preschool Programs

D. Expanding High-Quality Preschool Programs in Each High-Need Community

E. Collaborating with Each Subgrantee and Ensuring Strong Partnerships
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F. Alignment within a Birth through Third Grade Continuum

G. Budget and Sustainability

A-5 Who must sign the State’s application?

The State’s application must be signed by the Governor (or an authorized representative) 

and an authorized representative from the Lead Agency. The State must provide the 

required signatures in section IV, Application Assurances and Certifications, of the 

application. 

B. FY 2014 Preschool Development Grants Eligibility, Participation, and Program 

Requirements

B-1 What are the eligibility requirements for the Preschool Development Grants 

competition? 

Eligibility requirements are the requirements that an applicant must meet in order to be 

eligible to receive funding. Under section 14006(a)(2) of the ARRA and section 14013 of 

the ARRA, States are the only applicants eligible to apply for the Preschool Development 

Grants program. “State” is defined to mean “each of the 50 States, the District of 

Columbia, and the Commonwealth of Puerto Rico.” All “States” are eligible to apply for 

either the Preschool Development Grants--Development Grants or Preschool 

Development Grants--Expansion Grants, depending upon the criteria outlined in section 

V of the application.

Preschool Development Grants--Development Grants 

To be eligible to compete for funding under this program a State must--

 (a) Serve less than 10 percent of four-year-old children in a State Preschool Program 

or not have a State Preschool Program2;and

 (b) Not have received an award under a Race to the Top – Early Learning Challenge 

competition.

 Therefore, only the States of Alabama, Alaska, Arizona, Hawaii, Idaho, Indiana, 

Mississippi, Missouri, Montana, Nevada, New Hampshire, North Dakota, Puerto Rico, 

South Dakota, Utah, and Wyoming are eligible to apply for Preschool Development 

Grants--Development Grants.

Preschool Development Grants--Expansion Grants 

To be eligible to compete for funding under this program a State must--

 (a) Serve 10 percent or more of four-year-old children in a State Preschool Program3; 

or

 

2 Based on current data from: Barnett, W.S., Carolan, M.E, Squires, J.H., and Clarke-Brown, K. (May 2014). State 

of Preschool 2013: First Look (NCES 2014-078). U.S. Department of Education. Washington, DC: National Center 

for Education Statistics. Available at: http://nces.ed.gov/pubsearch.
6

 (b) Have received an award under a Race to the Top – Early Learning Challenge 

competition.

 Therefore, only the States of Arkansas, California, Colorado, Connecticut, Delaware, 

District of Columbia, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, 

Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Jersey, New 

Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode 

Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, West 

Virginia, and Wisconsin are eligible to apply for Preschool Development Grants--

Expansion Grants.

B-2 How have the FY 2014 Preschool Development Grants funding categories been 

determined?

To support States in planning their budgets, the Departments have developed annual 

budget caps for each State that is eligible to receive a Preschool Development Grants--

Development Grant or Preschool Development Grants--Expansion Grant. The 

Departments will not consider for funding an application from a State that proposes a 

budget in any year that exceeds the applicable cap set for that State. The Departments 

developed grant funding categories by ranking every State according to its relative share 

of Eligible Children and then identifying the natural breaks in the rank order. Then, 

based on population, budget caps were developed for each category 

(http://www2.ed.gov/programs/preschooldevelopmentgrants/4-year-old-poverty-status2012.pdf). 

Preschool Development Grants--Development Grants

Category 1 – up to $20M – Arizona and Indiana

Category 2 – up to $17.5M – Alabama, Missouri, and Puerto Rico

Category 3 – up to $15M – Idaho, Mississippi, Nevada, and Utah

Category 4 – up to $10M – Alaska, Hawaii, Montana, New Hampshire, and South Dakota 

Category 5 – up to $5M – North Dakota and Wyoming 

Preschool Development Grants--Expansion Grants

Category 1 – up to $35M – California

Category 2 – up to $30M – Texas

Category 3 – up to $25M – Florida and New York

Category 4 – up to $20M – Georgia, Illinois, Michigan, North Carolina, Ohio, and 

Pennsylvania 

Category 5 – up to $17.5M – New Jersey, South Carolina, Tennessee, Virginia, and 

Washington 

Category 6 – up to $15M – Arkansas, Colorado, Kansas, Kentucky, Louisiana, Maryland, 

Massachusetts, Minnesota, Oklahoma, Oregon, and Wisconsin

 

3 Based on current data from: Barnett, W.S., Carolan, M.E, Squires, J.H., and Clarke-Brown, K. (May 2014). State 

of Preschool 2013: First Look (NCES 2014-078). U.S. Department of Education. Washington, DC: National Center 

for Education Statistics. Available at: http://nces.ed.gov/pubsearch.
7

Category 7 – up to $12.5M – Connecticut, Iowa, Maine, Nebraska, New Mexico, and 

West Virginia

Category 8 – up to $10M – Delaware, District of Columbia, Rhode Island, and Vermont

B-3 Are Indian tribes and the Department of the Interior/Bureau of Indian Education 

eligible to apply for grants under the Preschool Development Grants program?

No. Indian tribes and the Department of the Interior/Bureau of Indian Education are not 

eligible to apply for grants under the Preschool Development Grants competition. States 

are the only eligible applicants under section 14006(a)(2) of the ARRA and section 

14013 of the ARRA does not include Indian tribes or the Department of the 

Interior/Bureau of Indian Education within the definition of “State.”

However, tribes and Indian organizations are included in the definitions of Early Leaning 

Providers and Subgrantees, and tribal areas are included in the definition of High-Need 

Community. Under both the Development and Expansion Grants programs, States are 

required to make subgrants to Early Learning Providers who will implement and carry 

out a High-Quality Preschool Program in a High-Need Community. While grants can be 

made only to States, these groups can receive subgrants to provide High-Quality 

Preschool Programs. 

Tribal areas are included in the definition of a High-Need Community. Under Selection 

Criteria (D), Expanding High-Quality Preschool Programs in High-Need Communities, 

applicants are evaluated on the extent to which the State has an ambitious and achievable 

plan for expanding High-Quality Preschool Programs in High-Need Communities that 

includes a description of the High-Need Communities that will be served and their 

geographic diversity, including rural and tribal areas, if any. Under selection criteria 

(D)(3), States must conduct outreach to potential Subgrantees, including tribal 

consultations as appropriate.

Under Selection Criteria (E), Collaborating with Each Subgrantee, State applicants are 

evaluated on the extent to which the State has an ambitious and achievable plan to ensure 

that the Subgrantees are effectively implementing High-Quality Preschool Programs, 

including a description of how the Subgrantees will deliver High-Quality Preschool 

Programs to Eligible Children. This includes Eligible Children who may be in need of 

additional supports, such as those who have disabilities or developmental delays; who are 

English learners; who reside on “Indian lands” as that term is defined by section 8013(7) 

of the Elementary and Secondary Education Act (ESEA); who are migrant; who are 

“homeless,” as defined in subtitle VII-B of the McKinney-Vento Homeless Assistance 

Act (McKinney-Vento Act) (42 U.S.C. §11434a(2)); who are in the child welfare system; 

who reside in rural or tribal areas; who are from military families; and other children as 

identified by the State.

B-4 Are the U.S. Territories or Outlying Areas eligible to apply?
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No. The U.S. Territories and Outlying Areas are not eligible to apply in the Preschool 

Development Grants competition. States are the only eligible applicants under section 

14006(a)(2) of the ARRA. As was stated in B-1, under section 14013 of the ARRA, the 

term "State'' means each of the 50 States, the District of Columbia, and the 

Commonwealth of Puerto Rico and does not include the U.S. Territories and Outlying 

Areas within the definition of “State.”

B-5 Are States required to apply for the Preschool Development Grants?

No. States are not required to apply for a Preschool Development Grant. All States, the 

District of Columbia, and Puerto Rico are eligible to apply, if they wish, for one of the 

two types of discretionary grants: Development Grants or Expansion Grants. 

Participation is completely voluntary and each State may decide whether or not to apply. 

We encourage all States to apply.

B-6 In what other programs must a State participate if it receives a Preschool 

Development Grant? 

Under Program Requirement (a), a State that receives a Preschool Development Grant 

must continue, for the duration of the grant, to participate in the programs authorized by 

part C and section 619 of part B of the Individuals with Disabilities Act (IDEA); the 

Child Care and Development Fund (CCDF) program (pursuant to the Child Care and 

Development Block Grant Act (42 U.S.C. 9858 et seq.); section 418 of the Social 

Security Act (42 U.S.C. 618); the Maternal, Infant, and Early Childhood Home Visiting 

program (section 511 of title V of the Social Security Act, as amended by section 2951 of 

the Affordable Care Act of 2010 (Public Law 111-148)); and subtitle VII-B of the 

McKinney-Vento Act. 

As described under Program Requirement (b) and in E-14, funds made available under 

this grant must be used to supplement, not supplant other Federal, State, or local early 

learning funds. 

B-7 May parents choose whether or not to send their children to preschool programs 

funded under the Preschool Development Grants program?

Yes. High-Quality Preschool Programs funded under the Preschool Development Grants 

competition are voluntary for children to attend.

B-8 What is a Lead Agency and how is the Lead Agency selected?

The Governor of a State must designate, in the application, a State-level agency to serve 

as the Lead Agency to administer the grant, if awarded. The Lead Agency is a State-level 

agency that administers public funds related to early learning and development and is 

participating in the State’s ambitious and achievable plan for this grant; this agency is 

designated by the Governor for the administration of the Preschool Development Grant 

funds and is the fiscal agent for the grant. If the Governor’s Office meets the definition 

of Lead Agency, then the Governor’s Office may serve as the Lead Agency.
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B-9 Must a State have a Tiered Quality Rating and Improvement System (TQRIS) in 

order to apply?

No. As part of their response to Selection Criterion (B)(4), States are expected to submit 

evidence of their support for program monitoring and improvement, which may be 

accomplished through the use of a TQRIS or an alternative system. 

B-10 How does the definition of a High-Quality Preschool Program align with a State’s 

TQRIS?

The definition of a High-Quality Preschool Program specifies the minimum requirements 

for ensuring program quality. A State may enhance the requirements for its programs

funded under the Preschool Development Grants competition by including in its 

minimum program requirements, for example, elements of quality measured and 

supported by its TQRIS, or by requiring that programs achieve a specific tiered level of 

quality.

B-11 What are examples of evidence-based and nationally recognized standards for a 

High-Quality Preschool Program?

Examples of evidence-based, nationally recognized standards for a High-Quality 

Preschool Program include Head Start Program Performance Standards, the National 

Association for the Education of Young Children Accreditation Standards, and the 

National Institute for Early Education Research. The standards specified in the definition 

of High-Quality Program are informed by, but not the same as, these standards for 

preschool programs of high quality and are described in the NIAs.

B-12 Must a High-Quality Preschool Program funded under either a Preschool 

Development Grants--Development Grant or a Preschool Development Grants--

Expansion Grant be staffed by a teacher with a bachelor’s degree?

Yes. By definition, High-Quality Preschool Programs funded under these grants must 

have staff with high qualifications, including a teacher with a bachelor’s degree in early 

childhood education or bachelor’s in any field with a State-approved alternate pathway

for acquiring knowledge and competency in early childhood education, which may 

include course work, clinical practice, and evidence of knowledge of content and 

pedagogy relating to early childhood, as well as teaching assistantships that meet State or 

local requirements.

B-13 Must every teacher have a bachelor’s degree in order to meet the staff-child ratio of 

not more than 10 children to 1 teacher (10:1) described in the High Quality 

Preschool Program definition? 

No. Only one teacher in each classroom of 20 or fewer children served through this grant 

program must meet the high staff qualifications, as outlined in paragraph (a) of the HighQuality Preschool Program definition. The second staff person in the classroom is 
10

required to, at a minimum, meet the qualifications for an instructional assistant or 

classroom aide as set out in State or local requirements. 

B-14 Will States that have State Preschool Programs that do not require preschool 

teachers to have a bachelor’s degree be eligible for funds?

Yes. All States are eligible to apply. Only preschool programs that receive Preschool 

Development Grant funds will need to meet the competition’s requirements for a HighQuality Preschool Program (including the staff qualifications standard requiring that a 

teacher have a bachelor’s degree). Other preschool programs within the State will not be 

required to have a teacher with a bachelor’s degree.

B-15 What role can parents, providers, and other stakeholders play in the Preschool 

Development Grants program? 

The Preschool Development Grants program values the engagement of parents and 

families. The importance of parents’ voices is signaled from the start, in that the 

application calls for a letter of support from the Head Start State Advisory Council, or 

similar State Council, which must include parent representatives [Application 

Requirement (b)].

As part of the priorities, selection criteria, and program requirements, States and 

Subgrantees must show how they plan to coordinate and increase parental and family 

engagement, including by helping parents to support children’s learning at home, 

involving parents in decisions about education and development, and encouraging 

strategies that strengthen families [e.g., Competitive Preference Priority 2; Selection 

Criteria (B)(6), (C)(1)(j), (E)(5), (F)(2)(b), (F)(2)(g), and (G)(2)(c)]. In order to receive a 

continuation grant, States must demonstrate that programs are coordinating funds to 

support parents and that Subgrantees are being held accountable for engaging and 

supporting parents [Requirements under IDEA and title I, as applicable, and Continuation 

Awards Requirement (g)]. 

Under Selection Criterion (A), applicants will be evaluated on the extent to which the 

State includes an ambitious and achievable plan for expanding access to High-Quality 

Preschool Programs that clearly articulates how the plans proposed under each criterion 

in this section, when taken together, will be supported by a broad group of stakeholders, 

including Early Learning Intermediary Organizations and, if applicable, State and local 

early learning councils [Selection Criterion (A)(6)].

B-16 Are private, including faith-based, early learning providers eligible to receive a 

subgrant under the Preschool Development Grants program? 

Yes. Private preschool providers, including faith-based providers that meet the definition 

in the NIAs of Early Learning Providers may receive subgrants under a State’s Preschool 

Development Grant like any other eligible Early Learning Provider. Under that 

definition, an Early Learning Provider is an entity that carries out an early childhood 

education program, including an LEA, charter school, educational service agency, Head 
11

Start program, licensed child care provider, municipality or other local government 

agency, tribe or Indian organization, institution of higher education, libraries and 

museums, and other eligible licensed providers as defined by the State, or a consortium 

thereof, if defined as such by the State. However, while Preschool Development Grants 

funds may not be used to support religious activities as detailed in 34 CFR 75.52(d) and 

34 CFR 80.36(j), faith-based organizations, whether or not they participate in the State’s 

Preschool Development Grants program, retain their independence, autonomy, right of 

expression, religious character, and authority over their governance.

B-17 Are private, including faith-based, Early Learning Providers required to participate 

in the Preschool Development Grants program? 

No. The Preschool Development Grants competition requirements do not require the 

participation of any Early Learning Provider, including private or faith-based providers.

The Preschool Development Grants program is a voluntary competitive grant program. 

Faith-based organizations operating an early childhood education program are eligible to 

receive a subgrant under a State’s Preschool Development Grant on the same basis as 

other entities providing such services in the State. 

B-18 Are Comprehensive Services required of High-Quality Preschool Programs similar 

to those required in Head Start?

Yes. Early Head Start and Head Start comprehensive services meet children's needs 

across all domains of development that support school readiness including: education, 

health, mental health, nutrition, and family engagement. Services are individualized 

based on initial and ongoing assessment of children. Children with disabilities 

additionally receive special education and related services and are fully included in all 

aspects of the program. 

These are similar to the requirements in the definition of Comprehensive Services in the 

Preschool Development Grants NIAs. In the Preschool Development Grants program, 

Comprehensive Services include screenings and referrals, family engagement, nutrition 

services, coordinated early intervention services, physical activity services, family 

community services, on-site coordination of services, and additional support services 

determined by the State.

B-19 Can three-year-olds be served by the Preschool Development Grants program?

No. Grant funds must be used for Eligible Children, which are defined as those who are 

four-years old and from families whose income is at or below 200 percent of the Federal 

Poverty Line. To determine a child’s age, States should use their eligibility 

determination date for preschool in the year before kindergarten. States without a 

preschool program may use their eligibility determination date for kindergarten entry 

(e.g., if a child must be five years old by September 30 to be eligible for kindergarten, 

then a child must be four years old by September 30 to be eligible for preschool). 

However, three-year-old children may be served by the same Early Learning Providers 
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(i.e., in the same settings as Eligible Children), but must be supported through a different 

funding mechanism or source.

B-20 What are the roles of a Subgrantee and Early Learning Provider?

A Subgrantee is an Early Learning Provider that the State enters into a binding agreement 

with to implement and carry out a High-Quality Preschool Program in a High-Need 

Community or Communities as articulated in the State’s plan. An Early Learning 

Provider does not need to be engaged in the direct delivery of High-Quality Preschool 

Programs in order to be a Subgrantee. If a Subgrantee does not directly deliver HighQuality Preschool Porgrams, it may make arrangements through mechanisms authorized 

by State procurement laws, such as MOUs or contracts, for other Early Learning 

Providers to directly provide those services.

As stated in the definition in the NIA, an Early Learning Provider can be an LEA, charter 

school, educational service agency, Head Start program, licensed child care provider, 

municipality or other local government agency, tribe or Indian organization, institution of 

higher education, or other eligible provider as defined by the State, or a consortium 

thereof. For example, a municipality or tribal entity may be an Early Learning Provider 

if it arranges for the provision of preschool services, but does not directly deliver those 

services. 

From Addendum 1, published September 19, 2014.

B-20a What is the distinction among an Early Learning Provider, a Subgrantee, and a 

High-Need Community? 

In general, an Early Learning Provider is the entity that will implement or expand a HighQuality Preschool Program funded under the Preschool Development Grants program, 

and a Subgrantee is an Early Learning Provider that receives a subgrant from a 

participating State for this purpose. To receive such a subgrant, the Early Learning 

Provider must serve a High-Need Community.

In their ambitious and achievable plans, applicants to both the Preschool Development 

Grants--Development Grants and Preschool Development Grants--Expansion Grants will 

describe how they will provide voluntary, High-Quality Preschool Programs for Eligible 

Children through subgrants to Subgrantees that are Early Learning Providers serving 

High-Need Communities. Please see FAQ C-10 for clarification on the number of HighNeed Communities and Subgrantees that applicants for the two different competitions 

need to include in their applications.

As included in the definitions from the Notice Inviting Applications, a “High-Need 

Community” is a geographically defined area, such as a city, town, county, 

neighborhood, district, rural or tribal area, or consortium thereof, with a high level of 

need as determined by the State. An “Early Learning Provider” is an entity that carries 

out an early childhood education program in a High-Need Community. The entity could 

be an LEA, a charter school, an educational service agency, a Head Start program, a 

licensed child care provider, a municipality or other local government agency, a tribe or 
13

Indian organization, an institution of higher education, a library, a museum, another 

eligible licensed provider as defined by the State, or a consortium of these entities. A 

“Subgrantee” is an Early Learning Provider that serves at least one High-Need 

Community that receives a subgrant from the State, and is participating in the State’s 

ambitious and achievable plan.

B-21 May family child care home providers be included as Early Learning Providers? 

Yes. A State may include home providers of family child care, also known as “family, 

friend, and neighbor care,” in their State plan if the family child care home provider is a 

licensed provider and if the program implemented meets the definition of a High-Quality 

Preschool Program. 

B-22 May a non-profit organization that provides services to preschool providers (e.g., 

training, curriculum design) be considered an Early Learning Provider?

No. A non-profit organization that provides services such as training and curriculum 

design does not meet the definition of Early Learning Provider for the purposes of the 

Preschool Development Grants program and providing High-Quality Preschool 

Programs. However, a non-profit organization could be contracted by the State or 

Subgrantee to support efforts in the State’s plan through such activities as training and 

curriculum design.

B-23 Must a State have an operational State Longitudinal Data System that links early 

childhood data with the State’s kindergarten through grade 12 (K-12) data system 

in order to apply for a grant?

No. This is a program requirement. As such, at the time of application, the State does 

not have to have these elements in place, but must agree to satisfy the program 

requirements during the course of the grant period. 

Note that under Selection Criterion (C)(2)(b), applications will be reviewed on the extent 

to which the State has an ambitious and achievable plan to ensure program quality, 

including a description of how the State will implement a system for monitoring and 

supporting continuous improvement for each Subgrantee to ensure that each Subgrantee 

is providing High-Quality Preschool Programs (including through the use of a TQRIS or

other existing monitoring system), including the extent to which the State is using a 

Statewide Longitudinal Data System that is able to track student progress from preschool 

through third grade.

B-24 Must an applicant have a statewide Kindergarten Entry Assessment in order to 

apply?

No. A State is not required to have a Kindergarten Entry Assessment in place at the time 

it submits its application. However, States that have an ambitious and achievable plan to 

ensure program quality, including by measuring the outcomes of participating children 

across the five Essential Domains of School Readiness during the first few months of 
14

their admission into kindergarten (which may include a Kindergarten Entry Assessment) 

will receive more points than those that do not. It is important to note that, under 

Selection Criterion (C)(3), such an assessment or assessments must conform to the 

recommendations of the National Research Council report on early childhood4.

B-25 Must an applicant have all elements of the Early Learning and Development 

Standards in place in order to apply?

No. The State does not need to have all elements of the Early Learning and Development 

Standards in place at the time it submits its application. Under Selection Criterion 

(C)(1)(a), grantees may use funds received under this grant for program infrastructure 

and quality improvements at the State level through activities such as enhancing or 

expanding Early Learning and Development Standards. 

Note that under Selection Criterion (B)(1), however, States will be evaluated on the 

extent to which they have the capacity to both deliver and increase access to HighQuality Preschool Programs for Eligible Children and their families, as evidenced by, 

among other things, their implementation of State Early Learning and Development 

Standards.

B-26 When must a State begin to serve children in High-Quality Preschool Programs?

A State that receives a Preschool Development Grants--Expansion Grant must begin 

serving children by no later than the end of the first year of the grant (December 31, 

2015). A State that receives a Preschool Development Grants--Development Grant must

begin serving children by no later than the end of the second year of the grant (December 

31, 2016).

B-27 Must the State have an operational State Advisory Council?

No. Under Application Requirement (b), States must include in their application a letter 

of support from an operational State Advisory Council on Early Childhood Education and 

Care that meets the requirements described in section 642B(b) of the Head Start Act (42 

U.S.C. 9837(b)) and Program Requirement (l). If the State does not have an operational 

State Advisory Council, the application must include a letter of support from a similar 

State council on early childhood education and care established by the State’s legislature 

or assigned the duties of the State Advisory Council on Early Childhood Education and 

Care by the State’s Governor that meets the requirements described in section 642B(b) of 

the Head Start Act (42 U.S.C. 9837(b)) and in Program Requirement (l). The letter must 

describe the council’s level of support and, if applicable, participation in the grant. 

 

4 National Research Council (2008). Early Childhood Assessment: Why, What, and How. Committee on 

Developmental Outcomes and Assessments for Young Children, C.E. Snow and S.B. Van Hemel, Editors. Board on 

Children, Youth, and Families, Board on Testing and Assessment, Division of Behavioral and Social Sciences and 

Education. Washington, DC: The National Academies Press. Available at: 

www.nap.edu/catalog.php?record_id=12446.
15

B-28 Are States required to ensure that part C and section 619 of part B of IDEA 

programs are involved in the activities proposed in the State’s plan? 

Yes. To ensure that part C and section 619 of part B of IDEA programs are involved in 

the activities proposed in the State’s plan, States must include a letter of support from an 

operational State Advisory Council on Early Childhood Education and Care, which must 

include State agency coordinators from both part C and section 619 of part B of IDEA. 

If the State does not have an operational State Advisory Council, the application must 

include a letter of support from a similar State council on early childhood education and 

care established by the State’s legislature or assigned the duties of the State Advisory 

Council on Early Childhood Education and Care by the State’s Governor that meets the 

requirements described in section 642B(b) of the Head Start Act (42 U.S.C. 9837(b)) as 

described in Application Requirement (b). Involving both part C and section 619 of part 

B of IDEA representatives in support of the grant will help ensure that part C and section 

619 of part B of IDEA services are fully integrated into grant activities and that necessary 

supports and services are available to preschool children with disabilities and their 

families. 

There are a number of ways in which section 619 of part B of IDEA programs are

included in the implementation of the Preschool Development Grants. One of the 

elements of High-Quality Preschool Programs is the full inclusion of children with 

disabilities. To support this, the State must establish policies and procedures to ensure 

collaboration between Subgrantees and programs authorized by section 619 of part B of 

IDEA to ensure that Eligible Children with Disabilities in the High-Need Community are 

being appropriately identified and served in the least restrictive environment. 

Additionally, to ensure that Eligible Children with Disabilities have access to HighQuality Preschool Programs, the State must establish policies and procedures to ensure 

that the percentage of Eligible Children with Disabilities served by the High-Quality 

Preschool Programs is not less than either the percentage of four-year-old children served 

statewide through part B, section 619 of IDEA, or the current national average, 

whichever is greater. Accordingly, the State, Subgrantees, and programs authorized by 

section 619 of part B of IDEA will be required to collaborate to implement High-Quality 

Preschool Programs in a way that meaningfully includes Eligible Children with 

Disabilities and ensures access to and full participation across learning opportunities. 

Selection Criterion (D)(4)(i) describes how applicants will be scored based on how they 

will ensure that they and the Subgrantee are coordinating the delivery of High-Quality 

Preschool Programs with services provided to Eligible Children with Disabilities being 

served under IDEA.

Furthermore, Program Requirement (k) states that the State Advisory Council on Early 

Childhood Education and Care must include the State agency coordinators from both 

IDEA part C and section 619 of part B. Program Requirement (a) states that the State 

must continue participating in both part C and section 619 of part B of IDEA. In 

addition, part C and section 619 of part B of IDEA are referenced throughout the 

selection criteria, program requirements, priorities, and definitions, including Selection 

Criteria (B)(5) and (G)(1).
16

B-29 What does it mean for a High-Quality Preschool Program to provide for full 

inclusion of a child with a disability?

In accordance with IDEA, children with disabilities ages 3 through 21 are entitled to a 

free appropriate public education in the least restrictive environment (LRE). The LRE 

provisions require that, to the maximum extent possible, children with disabilities should 

have access to the general education curriculum, along with learning activities and 

settings that are available to their peers without disabilities. 

A High-Quality Preschool Program will provide access to and full participation in a wide 

range of learning opportunities and activities across all Essential Domains of School 

Readiness to Eligible Children with Disabilities. To the maximum extent possible, and in 

alignment with their individualized education programs, Eligible Children with 

Disabilities should be included in the High-Quality Preschool Program throughout the 

entire day and across all learning opportunities. 

To support Eligible Children with Disabilities having access to and full participation in 

the High-Quality Preschool Program, modifications to the environment, multiple and 

varied formats for instruction, and individualized accommodations and supports may be 

necessary. These should be provided along a continuum to meet the needs of children 

with various types of disabilities and levels of severity. Special education and related 

services must be coordinated and integrated within the High-Quality Preschool Program 

as appropriate.

Within a High-Quality Preschool Program, the inclusion of Eligible Children with 

Disabilities should be not less than either the percentage of four-year-old children served 

statewide through part B, section 619 of IDEA, or the current national average, 

whichever is greater, and should not include self-contained classrooms of children with 

disabilities.

B-30 How should a State meet its enrollment requirements for the percentage of Eligible 

Children with Disabilities served by the High-Quality Preschool Programs?

In accordance with IDEA, children with disabilities ages 3 through 21 are entitled to a 

free appropriate public education in the least restrictive environment. To ensure that 

children with disabilities are served in the least restrictive environment, under Program 

Requirement (k), the State must establish policies and procedures to ensure that the 

percentage of Eligible Children with Disabilities served by the High-Quality Preschool 

Programs is not less than either the percentage of four-year-old children served statewide 

through part B, section 619 of IDEA, or the current national average, whichever is 

greater. Further, within each High-Quality Preschool Program, the inclusion of Eligible 

Children with Disabilities should be in proportion to their presence in the population. 

These requirements are similar to requirements in the Head Start Act (42 U.S.C. § 9837, 

Section 640(d)(1)).
17

To meet these requirements, the State, Subgrantee, and programs authorized by section 

619 of part B of IDEA must collaborate to establish policies and procedures to recruit, 

enroll, and identify Eligible Children with Disabilities in the High-Quality Preschool 

Program and ensure that Eligible Children with Disabilities are being served in the least 

restrictive environment. It is expected that the State’s policies and procedures will allow 

High-Quality Preschool Programs to meet the enrollment requirements by both enrolling 

Eligible Children with Disabilities previously identified under IDEA and identifying 

Eligible Children with Disabilities after they enroll in the High-Quality Preschool 

Program, as the High-Quality Preschool Program may be the first opportunity for the 

child to participate in a Comprehensive Early Learning Assessment System.

Although the High-Quality Preschool Program will be expected to meet the enrollment 

requirements as early in the program year as possible, the initial identification of Eligible 

Children with Disabilities requires time for an evaluation and the development of an 

individualized education program. Therefore it is expected that the State’s policies and 

procedures will allow the High-Quality Preschool Program to meet the enrollment 

requirements no later than the mid-point of the program year. The State’s policies and 

procedures should ensure that each High-Quality Preschool Program documents how it 

met the enrollment requirements and maintained the enrollment of Eligible Children with 

Disabilities. 

The State’s policies and procedures must also require that a High-Quality Preschool 

Program provide a written rationale for not meeting the enrollment requirements relating 

to Eligible Children with Disabilities, including documentation of the specific steps taken

and strategies used by the High-Quality Preschool Program to meet the enrollment 

requirements and how they worked with programs authorized by section 619 of part B of 

IDEA to recruit and identify Eligible Children with Disabilities. 

The State must have policies and procedures in place to show how it will support HighQuality Preschool Programs in meeting the enrollment requirements and the types of 

technical assistance it will provide to High-Quality Preschool Programs that have 

difficulty meeting the requirement. 

B-31 What data should the State use to determine the percentage of four-year-old 

children receiving services under part B, section 619 of IDEA?

As a requirement of IDEA section 618 data collections, State educational agencies 

(SEAs) administering part B of IDEA must annually report to ED the number of children 

receiving IDEA services. Specifically, SEAs must report the number of four-year-old 

children receiving special education and related services statewide under part B, section 

619 of IDEA on the State-designated child count date (one day between October 1 and 

December 1) on an annual basis. SEAs report these data to ED in EDFacts file C089 via 

the EDEN Submission System (ESS).

ED annually calculates the percentage of children served statewide through IDEA as a 

percentage of the State’s population. ED uses the population counts provided on the U.S.

Census Bureau’s American Fact Finder Web site 
18

(http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml ) for this calculation. ED

encourages SEAs to use the number of children with disabilities (IDEA), age four, 

receiving special education and related services that is reported in the part B child count 

data in EDFacts file C089 as the numerator and the number of children in the population, 

age four, that is reported in the Census data as the denominator. 

The State should work with the SEA to identify its most recent IDEA section 618 child 

count data to calculate the percentage of four-year-old children served statewide through 

part B, section 619 of IDEA. This data should be listed in the application and the State 

should describe how it will ensure that the percentage of Eligible Children with 

Disabilities served by the High-Quality Preschool Programs is not less than either the 

percentage of four-year-old children served statewide through part B, section 619 of 

IDEA, or the current national average, whichever is greater. Additionally, States should 

describe a plan to review their most recent IDEA section 618 child count data on an 

annual basis to calculate the percentage of four-year-old children served statewide 

through part B, section 619 of IDEA to determine if additional guidance should be given 

to the High-Quality Preschool Programs.

C. Priorities, Definitions, and Selection Criteria

C-1 How do the priorities, definitions, and selection criteria increase the engagement of 

families of Eligible Children in their children’s early learning and development? 

Family engagement strategies are encouraged throughout the priorities, requirements, 

definitions, and selection criteria. To receive a Preschool Development Grant, States are 

required in their applications to demonstrate that they have an ambitious and achievable 

plan to deliver High-Quality Preschool Programs that are evaluated on the basis on which 

they meet Program Standards, including the use of culturally and linguistically responsive 

strategies to engage families and strengthen their capacity to support children’s learning 

and development. We also expect States to make available to Subgrantees professional 

development on effective family engagement designed to sustain improved early learning 

outcomes through the third grade.

C-2 May funding be used in programs that implement various approaches to early 

education, such as Montessori, Reggio-Emilio, Waldorf, Head Start, and arts-based 

programs?

Yes, provided that those programs meet the requirements of a High-Quality Preschool 

Program when serving children funded by a Preschool Development Grant. The 

Departments recognize the unique philosophies of various approaches to early education

and welcome a diverse selection of Early Learning Providers to meet the needs of 

families and communities. 

Any references made to specific Early Learning Providers are for illustrative purposes 

only and are not in any manner endorsements by the Departments. Note, in section XII 

of the application, we advise that because grantees must use appropriate procurement 

procedures to select contractors, applicants should not include information in their grant 
19

applications about specific contractors that may be used to provide services or goods for 

the proposed project if a grant is awarded. 

C-3 Can funding be used to support four-year-old children in mixed-age settings?

Yes. Funds may be used to support High-Quality Preschool Programs for Eligible 

Children in a mixed-age classroom as long as the program meets the definition of a HighQuality Preschool Program, and grant funds are used only to serve Eligible Children.

C-4 What are the priorities that an applicant must meet in order to receive a Preschool 

Development Grants award under each of the Preschool Development Grants--

Development Grant and Preschool Development Grants--Expansion Grant 

categories? 

Preschool Development Grants--Development Grant Absolute Priority 

In order to receive a Development Grant, a State must address in its application the 

absolute priority described below. A State will be determined to meet the absolute 

priority if a majority of the reviewers determine so. Only applications that meet the 

absolute priority will be considered for funding.

Absolute Priority 1: Building Capacity to Deliver, and Increasing Access to, HighQuality Preschool Programs.

To meet this priority, the State must demonstrate in its application how it will build 

capacity to deliver, and increase access to, High-Quality Preschool Programs for Eligible 

Children by having an ambitious and achievable plan to--

(1) Begin serving Eligible Children no later than year two of the grant period;

(2) Subgrant at least 65 percent of its Federal grant funds received over the grant 

period to one or more Subgrantees to implement and sustain voluntary, HighQuality Preschool Programs for Eligible Children in one or more High-Need 

Communities in the State; and

(3) Use no more than 35 percent of its Federal grant funds received over the grant 

period to develop or enhance State Preschool Program infrastructure and make 

quality improvements at the State level, such as those described in Selection 

Criterion (C)(1), and build the capacity to deliver High-Quality Preschool 

Programs.

Preschool Development Grants--Expansion Grant Absolute Priorities

In order to be eligible to receive an Expansion Grant, a State must address, in its 

application, Absolute Priority 1 and either Absolute Priority 2 or Absolute Priority 3 

(described below). A State will be determined to meet the absolute priorities if a majority 

of the reviewers determine so. Only applications that meet the absolute priorities will be 

considered for funding. 
20

Absolute Priority 1: Increasing Access to High-Quality Preschool Programs in HighNeed Communities.

To meet this priority, the State must demonstrate in its application how it will increase 

access to High-Quality Preschool Programs for Eligible Children by having an ambitious 

and achievable plan to--

(1) Begin serving Eligible Children no later than in year one of the grant period;

(2) Subgrant at least 95 percent of its Federal grant funds received over the grant 

period to one or more Subgrantees to implement and sustain voluntary, HighQuality Preschool Programs for Eligible Children in two or more High-Need 

Communities in the State; and

(3) Use no more than five percent of its Federal grant funds received during the grant 

period for State-level infrastructure and quality improvements, such as those 

described in Selection Criterion (C)(1).

 

Absolute Priority 2: Race to the Top – Early Learning Challenge States.

To meet this priority, an applicant must have received an award under a Race to the Top

– Early Learning Challenge competition.

Note: These States are California, Colorado, Delaware, Georgia, Illinois, Kentucky, 

Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, North 

Carolina, Ohio, Pennsylvania, Rhode Island, Oregon, Vermont, Washington, and 

Wisconsin. 

 

Absolute Priority 3: Non-Race to The Top – Early Learning Challenge States with More 

Robust State Preschool Programs.

To meet this priority, the applicant must not have received an award under a Race to the 

Top – Early Learning Challenge competition and must serve 10 percent or more of fouryear-old children in a State Preschool Program. 

Note: These States are Arkansas, Connecticut, District of Columbia, Florida, Iowa, 

Kansas, Louisiana, Maine, Nebraska, New York, Oklahoma, South Carolina, Tennessee, 

Texas, Virginia, and West Virginia.5

C-5 How will peer reviewers score the Absolute Priority in the Preschool Development 

Grants--Development Grants or the three Absolute Priorities in the Preschool 

Development Grants--Expansion Grants?

The peer reviewers for either the Preschool Development Grant--Development Grants or 

the Preschool Development Grant--Expansion Grants will not assign scores for the 

 

5 Based on current data from: Barnett, W.S., Carolan, M.E, Squires, J.H., and Clarke-Brown, K. (May 2014). State 

of Preschool 2013: First Look (NCES 2014-078). U.S. Department of Education. Washington, DC: National Center 

for Education Statistics. Available at: http://nces.ed.gov/pubsearch.
21

Absolute Priority 1; rather, reviewers will make a recommendation as to whether an 

application meets or does not meet this Absolute Priority. The Absolute Priority cuts

across the entire application and should not be addressed separately. The peer reviewers 

will assess applications against the Absolute Priority, after fully reviewing and evaluating 

the applications. In those cases where there is a disparity in the reviewers’ assessments, 

the Absolute Priority is met only if a majority of the reviewers on a panel determine that 

an application meets the priority. If the Departments determine that an applicant has not 

met the Absolute Priority, the applicant will not receive an award.

In selecting Preschool Development Grant--Expansion Grants grantees, the Secretaries of 

Education and Health and Human Services may consider high-ranking applications 

meeting Absolute Priority 2 and Absolute Priority 3 separately to ensure that a variety of 

States benefit from the Preschool Development Grants program and that States that have 

received Race to the Top – Early Learning Challenge awards are not unfairly advantaged 

in this competition.

C-6 How do applicants address the Competitive Preference Priorities? 

To meet the competitive preference priorities Contributing Matching Funds, Supporting a 

Continuum of Early Learning and Development, and Creating New High-Quality StatePreschool Program Slots, applicants must complete the narrative section identified in the 

application for each priority. Peer reviewers will consider the quality of those responses. 

Specifically, for the Contributing Matching Funds competitive preference priority, peer 

reviewers will award a range of points based on the size of the match as described in the 

NIAs. Matching funds may be comprised of State, local, and philanthropic funds 

provided during the grant period and may also include increased State funding 

appropriated beginning in the State fiscal year prior to the first year of the grant period. 

More information on matching is provided in Section F. For the Supporting a Continuum 

of Early Learning and Development competitive preference priority, peer reviewers will 

award a range of points based on the applicant’s response. Points for the Creating New 

High-Quality State Preschool Program Slots competitive preference priority will be 

awarded on an all or nothing basis. 

C-7 What does “Indian lands” mean as used in Selection Criteria (E)(8) and (F)(2)(d); 

Application Requirement (f); and Appendix A (Scoring Rubric)?

Selection Criteria (E)(8) and (F)(2)(d); Application Requirement (f); and Appendix A 

(Scoring Rubric) refer to children who reside on “Indian lands” as that term is defined in

section 8013 of the ESEA for the Impact Aid program. Section 8013 defines “Indian 

lands” as follows: 

(5)(A)(ii) “[R]eal property that is not subject to taxation by any State or any political 

subdivision of a State due to Federal agreement, law, or policy, and that is—

(I) held in trust by the United States for individual Indians or Indian tribes; 
22

(II) held by individual Indians or Indian tribes subject to restrictions on alienation 

imposed by the United States; 

(III) conveyed at any time under the Alaska Native Claims Settlement Act [43 U.S.C. 

1601 et seq.] to a Native individual, Native group, or village or regional 

corporation; 

(IV) public land owned by the United States that is designated for the sole use and 

benefit of individual Indians or Indian tribes; or

(V) used for low-rent housing, as described in Section 8013(10), that is located on 

land described in subclause (I), (II), (III), or (IV) of this clause or on land that met 

one of those descriptions immediately before such property’s use for such 

housing; or

. . . 

(5)(F) [A]ny real property located in the State of Oklahoma that--

(i) is owned by an Indian housing authority and used for low-income housing 

(including housing assisted under or authorized by the Native American Housing

Assistance and Self-Determination Act of 1996 [25 U.S.C. 4101 et seq.]); and

(ii) at any time--

(I) was designated by treaty as tribal land; or

(II) satisfied the definition of Federal property under section 403(1)(A) of 

the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such Act was 

in effect on the day preceding October 20, 1994).”

You may want to check with your SEA to see if it has a staff person assigned to Impact 

Aid issues and, if so, whether that person is familiar with the specifics regarding any 

Indian lands in your State.

C-8 Do the Early Learning and Development Standards referenced in Selection 

Criterion (B)(1) and (C)(1)(a) support the maintenance of a child’s first language? 

As defined in the NIAs, the Early Learning and Development Standards described in 

Selection Criterion (B)(1) and (C)(1)(a) do not explicitly require that the standards 

support the maintenance of a child’s first language, but they must, among other things, be 

appropriate for English learners, cover all Essential Domains of School Readiness, and be 

developmentally, culturally, and linguistically appropriate.

While not explicitly encouraged or discouraged, there is nothing that would prevent 

States from developing and using statewide, high-quality Early Learning and 

Development Standards that support the maintenance of a child’s first language.

C-9 How can a Subgrantee that is or is not an LEA demonstrate a strong partnership 

with an LEA or other Early Learning Providers, as appropriate, as referenced in 

Selection Criteria (E)?

A Subgrantee that is not an LEA would need to demonstrate through its actions and 

policies that it has a strong partnership with the LEA or LEAs where its children 
23

transition into kindergarten in order to support the children’s transitions. These activities 

may include developing procedures for sharing data, providing teacher professional 

development on kindergarten standards and expectations, and working with LEAs to 

share facilities. Likewise, a Subgrantee that is an LEA would need to demonstrate a 

strong partnership with other Early Learning Providers in the community, for example, 

by engaging in collaborative teacher professional development and family engagement 

activities.

From Addendum 1, published September 19, 2014.

C-10 How many communities does an applicant need to include in its application? 

Preschool Development Grant--Development Grants

A Preschool Development Grant--Development Grants applicant must ensure that at least

one High-Need Community in the State is included in its plan.

Preschool Development Grant--Expansion Grants

A Preschool Development Grant--Expansion Grants applicant must ensure that at least 

two High-Need Communities in the State are included in its plan. Note that the 

applicant must propose to work with at least one Subgrantee, but one Subgrantee may 

serve two or more High-Need Communities.

From Addendum 1, published September 19, 2014.

C-11 May Preschool Development Grant funds be used to support preschool services for 

children from families with incomes above 200 percent of the Federal Poverty Line?

No. Grantees may serve only Eligible Children, defined as four-year-old children from 

families whose income is at or below 200 percent of the Federal Poverty Line. However, 

we strongly encourage Eligible Children be served in mixed-income class settings, as 

described in Selection Criteria (E)(7), provided that Preschool Development Grant funds 

are used only to support Eligible Children and that the program meets the definition of a 

High-Quality Preschool Program.

From Addendum 2, published October 3, 2014

C-12 Must High-Quality Preschool Programs funded by the Preschool Development 

Grant program be provided for the equivalent of a full school week and the 

equivalent of a full school year?

Yes. To meet the definition of High-Quality Preschool Programs, preschool programs 

must be Full-Day programs, which mean they must operate for the same number of hours 

as public elementary schools in the State, and must serve children for at least five hours. 

The High-Quality Preschool Programs must be provided for, at a minimum, the 

equivalent of a full school week and a full school year at the public elementary schools in 

the State.

From Addendum 2, published October 3, 2014
24

C-13 May a fee, such as a sliding-scale fee based on family income, be charged for Eligible 

Children to attend a High-Quality Preschool Program funded by the Preschool 

Development Grant program?

No. Subgrantees are required to implement and sustain voluntary, High-Quality 

Preschool Programs for Eligible Children free of charge. They may not charge a fee for 

High-Quality Preschool Programs for Eligible Children funded by this grant. This does 

not include any early care and education programs provided before or after the HighQuality Preschool Programs. 

We strongly encourage, that Eligible Children (See C-11) be served in mixed-income 

class settings, as described in Selection Criteria (E)(7), provided that Preschool 

Development Grant funds are used only to support Eligible Children and that the program 

meets the definition of a High-Quality Preschool Program. Preschool Development 

Grant funds may only be used to support the proportion of the services provided in the 

High-Quality Preschool Program, such as the teacher’s salary, reflective of the proportion 

of the number of Eligible Children in the class. Grantees will need to show through their 

budget and accounting systems that Preschool Development Grants funds are only used 

to support Eligible Children. 

D. Application Process and Submission Procedures

D-1 What is the application schedule?

The timeline for the Preschool Development Grants competition is posted on our Web 

site at http://www2.ed.gov/programs/preschooldevelopmentgrants/applicant.html. 

D-2 Where can a prospective applicant obtain an application package for the FY 2014 

Preschool Development Grants competition?

The application package will be available on the Grants.gove Web site. Through the 

Grants.gov Web site, a prospective applicant can download a copy of either the Preschool 

Development Grants--Development Grants or the Preschool Development Grants--

Expansion Grants application package, complete it offline, and then upload and submit 

the application. A prospective applicant may access the electronic grant applications for 

the competitions at www.Grants.gov. A prospective applicant must search for the 

downloadable application package for the Preschool Development Grants program by the 

CFDA number — 84.419. No alpha suffix should be included in the search for the 

application. The application titles will indicate whether the application is specific to the 

“Development” or “Expansion” Preschool Development Grants competition.

D-3 Will the Departments post a list and the applications of the States that submit FY 

2014 Preschool Development Grants applications?

Yes. Shortly after the deadline for the submission of FY 2014 Preschool Development 

Grants applications, the Departments will post on the Preschool Development Grants 

Web site the States that submitted applications. Additionally, we intend to post all 
25

applications submitted by the eligible States soon after the conclusion of the competition 

and once the appropriate redactions have been completed. Therefore, please limit the 

personally identifiable information, proprietary information, or other non-public 

information that you include in your application to enable the redaction process to be 

completed as quickly as possible.

D-4 What technical assistance will the Departments offer to prospective applicants?

The Departments will host a technical assistance Webinar for potential Preschool 

Development Grants--Development Grant applicants and for Preschool Development 

Grants--Expansion Grant applicants, in order to provide applicants with an orientation to 

the respective applications. Dates and additional details can be found on our Web site at 

http://www2.ed.gov/programs/preschooldevelopmentgrants/applicant.html. The purpose 

of the workshop will be to review the application requirements, selection criteria, and 

priorities in depth, and to answer States’ questions about the program, the NIA, and the 

application package. For those who cannot participate in the technical assistance 

Webinars, a link to a recording of the Webinar will be made available on the Preschool 

Development Grants Web site. The Departments may host additional conference calls or 

Webinars to answer applicant questions, if needed.

D-5 Who will review the Preschool Development Grants applications? 

The Departments are identifying qualified external peer reviewers to evaluate 

applications for the Preschool Development Grants competition. These independent 

reviewers will be chosen from a pool of qualified educators, scholars, and other 

individuals knowledgeable in early learning and development. The Departments will 

require potential peer reviewers to indicate their degree of expertise or experience in 

areas such as: cross-sector systems-building, policy development, and administering a 

preschool program at Federal, State, regional, or local levels; research or professional 

development for preschool programs serving four-year-old children from families at or 

below 200 percent of the Federal Poverty Line; family engagement initiatives; providing 

comprehensive services; and direct service preschool teachers and/or administrators. In 

addition, the peer reviewers may have expertise in areas such as children with disabilities, 

English learners, and addressing the needs of children in rural areas. The Departments 

will thoroughly screen all reviewers for conflicts of interest to ensure a fair and 

competitive review process.

 

D-6 Will reviewers’ comments for all applications be made public?

Yes. The Departments plan to post reviewers’ comments for each application--both 

successful and unsuccessful--on the Preschool Development Grants Web site soon after 

the conclusion of the competition. Also after the conclusion of the competition, we will 

release the names of reviewers who scored applications during the competition, although

we will not link reviewers to the specific State applications they reviewed. 

D-7 Will peer reviewers review only portions of a State’s application?
26

No. All peer reviewers will review each full application assigned to them.

D-8 What should a prospective applicant know about Grants.gov in order to register for 

and use Grants.gov to submit an application?

When using Grants.gov, early registration is important. Grants.gov registration is a onetime process that may take five or more business days to complete. The document 

“Grants.gov Submission Procedures and Tips for Applicants” in the application package 

provides important submission procedures and references to further instructions for using 

Grants.gov, including: 

1) REGISTER EARLY – Grants.gov registration may take five or more business 

days to complete. You may begin working on your application while completing the 

registration process, but you cannot submit an application until all of the registration 

steps are complete. For detailed information on the registration steps, please go to: 

www.grants.gov/web/grants.register.html. [Note: Your organization will need to update 

its SAM registration annually (formerly Central Contractor Registry (CCR)*.]

2) SUBMIT EARLY – We strongly recommend that you do not wait until the last 

day to submit your application. Grants.gov will put a date/time stamp on your 

application and then process it after it is fully uploaded. The time it takes to upload an 

application will vary depending on a number of factors including the size of the 

application and the speed of your Internet connection, and the time it takes Grants.gov to 

process the application will vary as well. 

D-9 Will stakeholder letters of support submitted directly to the Departments be 

considered as part of Preschool Development Grants applications?

No. Under Applicant Requirement (b) and Selection Criterion (A), peer reviewers 

consider the strength of letters of support from stakeholders that a State submits as part of 

its application. To be considered, such letters must be included in a State’s application. 

As with any question about a State’s Preschool Development Grants application, 

stakeholders who wish to submit letters should contact their State Governor’s office.

D-10 Should a State include hyperlinks in its application?

No. A State should not include hyperlinks to Web sites in its application. Peer reviewers 

will be instructed not to open or follow such hyperlinks. We understand that hyperlinks 

can be a convenient way to provide information. However, to ensure the integrity and 

fairness of the competitive process, the peer reviewers will consider only information 

submitted as part of an application, by the application deadline. Because hyperlinks can 

be updated after the deadline for submitting applications, we will not consider them to be 

part of an application.

D-11 Should a State format its application in color or in black and white?

We recommend that States format their applications in black and white as we will print 

the applications in black and white for peer reviewers.
27

D-12 Recommended page limits are provided throughout the application. Will an 

application be penalized for exceeding the recommended page limits?

No. The recommended page lengths for narratives and appendices are not binding limits. 

Applicants will not be penalized for exceeding them. But keep in mind, from a 

reviewer’s point of view, clarity matters and brevity will be appreciated.

E. Budget and Uses of Funds

E-1 What are the allowable uses of funds associated with the costs of a new State 

Preschool Program slot?

Funds that are provided to Subgrantees to implement and sustain High-Quality Preschool 

Programs must be used for the direct provision of High-Quality Preschool Programs for 

Eligible Children, and may include the following operational costs: staff salaries and 

benefits; instructional supplies, food, and building operations and maintenance; in-service 

training and professional development; individualized accommodations and supports for 

Eligible Children with Disabilities; Comprehensive Services; and program 

administration.

As specified in Program Requirement (l), funds, including any matching funds, cannot be 

used for construction, renovation, modernization, or other facilities-related activities. 

However, construction does not include “minor remodeling” as defined in 34 CFR 

77.1(c). Under that definition, “minor remodeling” means, in general, minor alterations 

to a previously completed building. “Minor remodeling” does not include building 

maintenance and repairs and is an allowable expenditure to the extent it is necessary and 

reasonable for grant purposes, e.g. to ensure safe and appropriate environments for 

preschoolers. 

E-2 How may a State spend funds for the improvement of existing State Preschool 

Program slots to bring them to the level of a High-Quality Preschool Program slot?

As specified in Program Requirement (m), for activities involved in improving existing 

State Preschool Program slots to meet the definition of High-Quality Preschool Programs, 

the State and each Subgrantee may spend grant funds, including any matching funds, if 

applicable, only on costs related to the improvements listed in Selection Criterion 

(D)(4)(b), which include extending programs from half-day to Full-Day; limiting class 

size and decreasing child to staff ratios; employing and compensating a teacher with a 

bachelor’s degree; providing in-service, evidence-based professional development such 

as coaching; or providing Comprehensive Services.

E-3 For what types of State-level infrastructure and quality improvements can States 

use their grant funds?
28

States may use up to their respective percentage of grant funds—up to 35 percent of

Preschool Development Grants--Development Grant funds and up to 5 percent of

Preschool Development Grants--Expansion Grant funds over the grant period—for 

activities that support the overall quality of the State Preschool Program infrastructure, 

such as teacher training and professional development, implementation of program 

standards, program coordination, monitoring and evaluation, and other activities that 

build or improve a State Preschool Program system.

E-4 What budgetary information are States required to submit with their applications?

States are required to submit budgetary information in both the application and in 

separate budget spreadsheets. In the application, States must provide the following 

budgetary information required in response to:

 A narrative response that addresses (A)(3) and (A)(7) and filling out Table A; 

 A narrative response that addresses (B)(2) and filling out Table B; and 

 The budget tables and narratives requested in the Budget Section of the 

application (Section VIII) and that address Selection Criterion (G)(1) and (G)(2). 

States must also fill out and submit with their application the budget spreadsheets. States 

are responsible for transferring the information from these spreadsheets to the Budget 

Section of the application. These spreadsheets can be found on the Preschool 

Development Grants Web site at:

http://www2.ed.gov/programs/preschooldevelopmentgrants/index.html. 

E-5 What are the Excel spreadsheets referred to in the NIAs and application, and why 

are States required to submit them?

The Departments have prepared a set of Excel spreadsheets that contain all budget tables 

States are required to fill out and submit as part of their application (See Section 5 of the 

application). However, applicants are required to download these Excel spreadsheets 

from the Preschool Development Grants Website at 

http://www2.ed.gov/programs/preschooldevelopmentgrants/index.html and then upload

them under Part 5: Other Attachments Form in Grants.gov. These Excel spreadsheets 

will: 

 Guide States in developing their Preschool Development Grant budget;

 Help States produce overall statewide budgets that are accurate and consistent 

because the spreadsheets contain formulas that will automatically calculate the 

States’ overall statewide budget tables; and

 When complete, help the Departments conduct budget reviews for the highestscoring applicants prior to award. 

The separate Excel spreadsheets contain detailed instructions to States on how to 

complete them when preparing their Preschool Development Grant budget. The 

Departments recommend that after downloading the Excel spreadsheets from the 
29

Preschool Development Grants Website, each applicant completes all the Excel 

spreadsheets, then uploads all Excel spreadsheets in their entirety into Part 5: Other 

Attachments Form in Grants.gov. 

E-6 What budgetary information will peer reviewers score?

Peer reviewers will review and score only the budgetary information that a State includes 

in the narrative and Excel spreadsheet in its application. This information should include 

the State’s narrative response to Selection Criterion (B)(2), (G)(1), and (G)(2), the State’s 

completed Tables A and B, and any additional information the State refers to in its 

narratives and chooses to include in an appendix.

From FAQs originally published August 13, 2014. Revised version posted in Addendum 

1, published on September 19, 2014.

E-7 Are States required to submit a memorandum of understanding (MOU) with each 

Subgrantee as part of their applications?

Preschool Development Grants--Development Grants

No. States applying for Preschool Development Grants--Development Grants are not 

required to submit MOUs as part of their applications. Nor are these States required to 

have chosen each Subgrantee at the time they apply. 

However, as explained in Selection Criterion (D)(1), a Preschool Development Grant--

Development Grants applicant that has already selected each High-Need Community to 

be served will be eligible for additional points. As part of the evidence for Selection 

Criterion (D)(1)(a), the applicant could choose to present a letter of support or 

preliminary MOU from identified Subgrantees in each High-Need Community that the 

applicant has chosen to work with. However, an applicant is not required to do so in 

order to be eligible for the additional points under that criterion. An applicant could 

present other evidence of support from each High-Need Community, such as a letter of 

support from representatives of the High-Need Community. 

Preschool Development Grants--Expansion Grants

Yes. Under Application Requirement (f), a State applying for a Preschool Development 

Grant--Expansion Grant must submit a letter of support or preliminary binding 

agreement, such as a preliminary MOU, from each identified Subgrantee attesting to the 

Subgrantee’s participation. Program Requirement (n) requires the State to submit a final, 

signed MOU or other binding agreement between the State’s Lead Agency and each 

Subgrantee within 90 days after receiving an award. The Departments have included a 

model MOU in the application package to assist grantees in fulfilling Program 

Requirement (n).

E-8 How may a State include indirect costs in its FY 2014 Preschool Development 

Grants budget?
30

A State may apply its indirect cost rate against subawards only to a very limited extent. 

Specifically, a State may apply its approved indirect cost rate only against the first 

$25,000 of each subaward (i.e., each subgrant or contract) on a yearly basis, and not 

against the full amount of each subaward. Therefore, for example, a State may apply its 

indirect cost rate only against the first $25,000 of each subgrant included in line 6 

(Contractual) of the Budget Summary Tables. As part of a grantee’s budget review and 

ongoing implementation, the Departments will determine whether a State has allocated 

the appropriate portion of its Preschool Development Grant to Subgrantees, as specified 

in Absolute Priority 1.

For more information about indirect cost rates, please refer to ED’s Cost Allocation 

Guide for State and Local Governments. This guide may be found at: 

http://www2.ed.gov/about/offices/list/ocfo/fipao/guideigcwebsite.pdf.

E-9 May Subgrantees charge indirect costs? For a subrecipient to charge indirect costs, 

would it first have to have an approved indirect cost rate? 

Yes. Subrecipients (entities receiving subawards from a State Preschool Development 

Grants grantee) may charge indirect costs to their Preschool Development Grants awards, 

subject to the limitations of applicable Federal and State rules regarding indirect 

costs. Under a Preschool Development Grant a State may make subawards through 

MOUs, interagency agreements, contracts, or other mechanisms authorized by State 

procurement laws, or through subgrants to its specified Subgrantees.

If a subrecipient of Preschool Development Grants funds is an LEA, it may charge 

indirect costs to its Preschool Development Grants subaward under the LEA’s indirect 

cost rate, which is generally approved annually by its SEA. If a subrecipient other than 

an LEA has an indirect cost rate approved by the cognizant Federal agency or approved 

by the State under a delegation agreement between the State and the cognizant Federal 

agency, then it must apply the approved rate. If a subrecipient does not have an approved 

indirect cost rate, the State must ensure that the indirect costs the subrecipient proposes to 

charge are reasonable and necessary to the subrecipient’s performance under the 

Preschool Development Grant, and comply with all applicable State and Federal rules. 

States are responsible for ensuring that each Preschool Development Grant subrecipient 

charges only reasonable and allowable indirect costs to the Preschool Development 

Grants. Please note that although the approved rate is the maximum rate that a 

subrecipient may apply, a subrecipient may choose to apply a lesser rate. The grantor 

will expect States to regularly monitor subrecipients charging indirect costs to the grant 

to ensure that the costs charged are reasonable and necessary to performance under the 

grant.

Please note that States and subrecipients may apply their approved or recognized indirect 

cost rate only against the first $25,000 of any contract or subgrant, and only under 

circumstances that require meaningful administrative support in distributing and handling 

the contracted or subgranted funds.
31

E-10 What are the rules that govern the amount of Preschool Development Grant funds 

that a grantee or Subgrantee may draw down at any one time? 

A State must have an effective system for managing the flow of funds that ensures funds 

may be drawn down as needed to pay program costs and that also minimizes the time that 

elapses between the transfer of the funds and their disbursement by the grantee or 

subrecipient, in accordance with U.S. Treasury regulations at 31 CFR 205 (see 34 CFR 

80.21(b)). When advances are made by letter of credit or electronic transfer of funds, the 

grantee must make drawdowns of grant funds as close as possible to the time of 

disbursement and must ensure that Subgrantees adhere to a similar standard. Grantees 

and subrecipients must promptly, but at least quarterly, remit to ED any interest earned 

on advances (34 CFR 80.21(i)). Additionally, as required by 34 CFR 80.20 and OMB 

Cost Circular A-87, a grantee must keep adequate records of all salaries and wages 

charged to the grant. ED will take appropriate actions against grantees and subrecipients 

that fail to comply with these requirements.

E-11 How must a grantee account for Preschool Development Grants funds? 

Consistent with 34 CFR 80.20(a), each grantee must expend and account for grant funds 

in accordance with State laws and procedures and, among other things, must maintain 

fiscal control and accounting procedures sufficient to permit the tracing of grant funds to 

a level of expenditures adequate to establish that such funds have been used for allowable 

costs. Similarly, each grantee must ensure that its Subgrantees adhere to this same 

standard and that all grant and subrecipient costs incurred using grant funds are necessary 

and reasonable. 

As such, a grantee must not commingle grant funds with other funds under control of the 

grantee, even if such other funds are used for similar purposes. Allowable activities may 

be funded from multiple funding sources; however, grantees must ensure that funds are 

accounted for separately. In this context, commingling means combining funds without 

maintaining separate accounting records for each funding source. The burden of proof is 

on the grantee to establish that any grant costs incurred are necessary and reasonable.

E-12 How must States use the $25,000 annual set aside for technical assistance?

Under Program Requirement (b), grantees must use the technical assistance set-aside 

funds for travel expenses to meetings held by the Departments. Grantees must continue 

to hold these funds in reserve pending further guidance from the Departments after grants 

are awarded on additional uses of these funds. These funds may not be used to provide 

technical assistance to local early learning programs and other stakeholders.

E-13 May a grantee use Preschool Development Grant funds to pay for activities (such as 

increasing access to and improving the quality of preschool programs) that were 

funded by another program prior to the State receiving a Preschool Development 

Grant?
32

Yes. Preschool Development Grant funds may be used to supplement any Federal, State, 

or local funds that, in the absence of the funds awarded under a Preschool Development 

Grant, would be available for increasing access to, and improving the quality of, early 

learning and development programs.

However, in no case may Preschool Development Grant funds be used to supplant--i.e.,

take the place of--funds from Federal, State, or local sources available for these purposes. 

Unlike many supplement, not supplant provisions, a grantee cannot use Preschool 

Development Grant funds to supplant other Federal funds, as described in Program 

Requirement (i). 

E-14 How does the “supplement not supplant” requirement work (see Program 

Requirement (b))?

At the State level

All State applicants are required to ensure that neither they nor their Subgrantees violate 

this program’s non-supplanting requirements. A State may use these grant funds only to 

the extent that the grant funds and the non-Federal match, if applicable, would 

supplement the total amount of funding, regardless of whether from Federal, State, or 

other sources, provided for preschool services for any type of cost, including 

implementation and infrastructure costs.

For example, if a State has been providing $1 million per year to build a State early 

learning data system and intends to continue that level of funding in future years, it would 

be supplanting if the State reduced the level of its financial contribution after it received a 

Preschool Development Grant. 

At the Subgrantee level

Subgrantees may use these grant funds only to the extent that the grant funds and the nonFederal match, if applicable, would supplement the total amount of Federal, State, and 

local funding provided to support preschool programs.

For example, if a county has been providing $500,000 per year for the implementation of 

High-Quality Preschool Programs for low- and moderate-income children and intends to 

continue that level of funding in future years, it would be supplanting if it reduced the 

level of its financial contribution after it received grant funds from the State.

Please see Program Requirement (a) and B-6 for information about the other programs 

that a State must participate in if it receives a Preschool Development Grant.

E-15 Is there a maintenance-of-effort requirement for Preschool Development Grants? 

No. There is no specific maintenance-of-effort requirement for this program, even 

though, as described in Program Requirement (b) and E-14, there is a supplement not 

supplant requirement. If a State, however, is using funds from another funding source to 
33

support elements of its Preschool Development Grants plan, the State must comply with 

all applicable requirements associated with that funding source, including any 

maintenance-of-effort requirements. 

In addition, each State that receives a Preschool Development Grant will be responsible 

for implementing its ambitious and achievable plan, including meeting its stated goals for 

expanding the number and percentage of Eligible Children served by High-Quality 

Preschool Programs. While there is no specific maintenance-of-effort requirement for 

this program, we strongly encourage States during and after the grant period not only to 

implement with fidelity, but to sustain and build on the strengths of their existing 

programs to improve the quality of, and ultimately deliver, a coordinated set of services 

and experiences that support young children’s success in school and beyond.

From Addendum 1, published September 19, 2014.

E-16 How does an applicant determine whether a State Preschool Program slot is “new” 

or “improved”? (See Selection Criterion (D)(4)(b))

A “new” State Preschool Program slot is a slot that will be created through the work 

described in the State’s application using the Preschool Development Grants funds, and 

will be created using the additional funding described in the State’s application to the 

Preschool Development Grants Program. If the State receives a grant and can fund the 

“new” slot, it will increase the number of overall State Preschool Program slots in the 

State, and therefore will count towards Competitive Preference Priority 3. 

An “improved” State Preschool Program slot is a State Preschool Program slot that 

already existed at the time of application and will be improved to meet the definition of a 

High-Quality Preschool Program slot through the work described in the State’s 

application. Specifically, Preschool Development Grant funds can be spent on any of the 

five improvements described in Selection Criterion (D)(4)(b)(ii):

 Extending programs from half-day to Full-Day; 

 Limiting class size to 20 and decreasing child-to-staff ratios to 1:10; 

 Employing and compensating a teacher with a bachelor’s degree; 

 Providing in-service, evidence-based professional development, such as 

coaching; or 

 Providing Comprehensive Services.

Note that, any preschool program must meet all of the characteristics specified in that 

definition in order to qualify as a High-Quality Preschool Program. However, only 

preschool programs receiving Preschool Development Grant funds must meet this 

definition.

Although funding an “improved” slot will increase the number of children served in 

High-Quality Preschool, funding an “improved” slot will not increase the total number of 

State Preschool Program slots in the State, and therefore will not count towards 

Competitive Preference Priority 3. 
34

On the other hand, using Preschool Development Grant funds to improve a slot that is not 

a State Preschool Program slot so that it is a High-Quality Preschool Program slot will 

increase the total number of State Preschool Program slots in the State, and therefore will 

count toward Competitive Priority 3. For example, an existing federally-funded Head 

Start slot is not currently part of the State’s Preschool Program because it does not meet 

the definition of State Preschool Program; it is not “predominately supported with State 

funds.” Therefore, using Preschool Development Grant funds to enhance a federallyfunded Head Start slot would not count as “improving” that slot. If the slot funded with 

Preschool Development Grant funds meets the definition of High-Quality Preschool 

Program, it would count as a “new” slot. 

F. Matching Funds

F-1 What funds can a State use that will qualify as matching funds if a State chooses to 

address the competitive preference priority Contributing Matching Funds?

Only contributions from non-Federal sources count towards the match. Contributions 

may be cash or in-kind. Existing private-sector support may count towards the match so 

long as these funds are reallocated in support of the project for which the applicant seeks 

funding and the applicant can provide appropriate evidence of this commitment. 

Matching funds may come from either a single entity or multiple entities.

If a State chooses to address the competitive preference priority, the matching funds or 

in-kind donations must be provided from non-Federal sources, such as increased State 

funding appropriated beginning in State fiscal year prior to the first year of the grant 

period, local funds, and philanthropic funds, consistent with the requirements of ED’s 

administrative regulations on matching funds in 34 CFR 80.24.

As discussed in E-14, the matching funds must be in addition to the State or local funds 

that would otherwise be available for improving the quality of State Preschool Programs 

and increasing access to High-Quality Preschool Programs. The Departments generally 

consider that State and local funds would be available for this purpose at least in the 

amount that was available in the preceding comparison year and that the Federal funds 

and matching non-Federal funds under this program would supplement that amount.

F-2 May volunteer services count towards the private-sector match? 

Yes. Volunteer services may count as an in-kind contribution under Education 

Department General Administrative Regulations (EDGAR). For LEAs and consortia of 

schools, 34 CFR 80.24(c) provides the following:

(c)(1) Volunteer Services. Unpaid services provided to a grantee or subgrantee by 

individuals will be valued at rates consistent with those ordinarily paid for similar work 

in the grantee's or subgrantee's organization. If the grantee or subgrantee does not have 

employees performing similar work, the rates will be consistent with those ordinarily 
35

paid by other employers for similar work in the same labor market. In either case, a 

reasonable amount for fringe benefits may be included in the valuation.

(2) Employees of other organizations. When an employer other than a grantee, 

subgrantee, or cost-type contractor furnishes free of charge the services of an employee in 

the employee's normal line of work, the services will be valued at the employee's regular 

rate of pay exclusive of the employee's fringe benefits and overhead costs. If the services 

are in a different line of work, paragraph (c)(1) [immediately above] of this section 

applies.

F-3 May discounts on services or materials count towards the private-sector match?

Yes. Discounts on services or materials may count towards the match as in-kind 

contributions if the contributions are consistent with ED’s regulations set forth in 34 CFR 

80.24. In particular, any in-kind contribution, including discounts on services or 

materials, may count toward meeting the matching requirement only if the contribution 

would qualify as an allowable cost that could be charged to the Preschool Development 

Grant [See 34 CFR 80.24(b)(7)]. Applicants should refer to ED’s regulations on 

matching funds, including in-kind contributions, which are set forth in 34 CFR 74.23 and 

80.24, for clarification on requirements pertaining to in-kind donations. 

F-4 May a grantee procure goods or services from a private-sector entity that also 

provides funds or in-kind donations towards the non-Federal match?

Yes. A private-sector entity that provides funds or in-kind donations to a Preschool 

Development Grant grantee is not prohibited from also providing goods or services 

through a procurement relationship with the grantee. However, as discussed in Section G 

of these FAQs, grantees obtaining goods or services that are necessary to carry out their 

projects must follow the applicable procurement rules in EDGAR.

F-5 May an applicant count toward the match non-Federal funds or in-kind donations 

expended prior to receipt of a Preschool Development Grant?

No. In order to count toward the matching requirement, funds or in-kind donations from 

non-Federal sources, must be expended during the project period. However, an applicant 

may count existing non-Federal support towards the required match so long as these 

funds are reallocated in support of the Preschool Development Grant, the applicant can 

provide appropriate evidence of this commitment, and this support is expended during the 

Preschool Development Grant project period (See F-8).

F-6 Is there a limit on the amount of in-kind donations an applicant may count towards 

the match?

No. An applicant may meet the matching requirement using funds or in-kind donations 

from the private sector and is not limited in the amount of in-kind donations it may count 

towards the matching requirement.
36

F-7 Must an applicant have matching funds or in-kind contributions in hand or simply 

committed by the time of the grant award?

Applicants are not required to have the full match in hand at the time of the award. A 

grantee may arrange for the match to be provided throughout the project period of the

grant. A grantee under the program that does not ultimately receive or spend the match 

during its project period may be subject to enforcement actions, including placement on 

high-risk status, withholding or suspension of funds, or denial of a continuation award. 

The Departments will monitor, throughout the project period, the amount of matching 

funds and in-kind contributions grantees are receiving and expending to ensure they are 

on track to meeting their commitments. 

F-8 What documentation may a highest-rated applicant submit to establish that it has 

secured the required match?

Examples of evidence that applicants may provide to demonstrate that funds or in-kind 

contributions have been committed include funding agreements with a private-sector 

entity or other signed documents (such as commitment letters) indicating the source, 

amount, purpose, and date of receipt of funds or in-kind contributions. Other signed 

documents (such as commitment letters) should not include contingencies that raise 

concerns about the funding commitment other than that the applicant must be awarded a 

Preschool Development Grant.

F-9 Can State matching funds include existing State funding for preschool programs or 

does it have to be new funds specifically tied to the Federal funds?

Matching funds may be comprised of State, local, and philanthropic funds and include 

increased State funding appropriated beginning in the State fiscal year prior to the first 

year of the grant period.

F-10 For applicants for Preschool Development Grants--Development Grants and 

Preschool Development Grants--Expansion Grants, must a State allocate its 

matching funds between Subgrantees and State-level infrastructure according to the 

prescribed breakdown under Absolute Priority 1? 

No. To meet Absolute Priority 1, applicants for Preschool Development Grants--

Development Grants must subgrant at least 65 percent of the Federal funds received to 

Subgrantees to implement High-Quality Preschool Programs and must use no more than 

35 percent of the Federal funds received to develop or enhance State Preschool Program 

infrastructure. Applicants for Preschool Development Grants--Expansion Grants must 

subgrant at least 95 percent of the Federal funds received to Subgrantees to implement 

High-Quality Preschool Programs and must use no more than 5 percent of the Federal 

funds received to develop or enhance State Preschool Program infrastructure. However, 

matching funds do not need to conform to these breakdowns of funds. Reviewers will 
37

evaluate how a State proposes to use its total funds in evaluating the overall strength of 

the State’s ambitious and achievable plan.

F-11 Can matching funds only be spent on allowable costs under the Preschool 

Development program?

Yes. Under EDGAR section 80.24, matching funds can only be spent on allowable costs 

under the Preschool Development Grant program. Allowable uses of Preschool 

Development Grant funds are explained in Section E of the FAQs and in the NIAs.

From Addendum 1, published September 19, 2014.

F-12 May all of a State’s funds appropriated for the fiscal year prior to the first year of 

the grant period (i.e. FY 2014 funds) be used to meet the requirements of 

Competitive Preference Priority 1?

No. Only increased State funding in FY 2014 or the State fiscal year prior to the first 

year of the grant period may count towards the State’s match as part of Competitive 

Preference Priority 1. For example, a State that invested $3,000,000 in its State Preschool 

Program in FY 2013 and $4,000,000 in FY 2014 may count $1,000,000 towards its match 

as part of Competitive Priority 1. This amount should be entered into Competitive 

Preference Priority 1 Table in the cell labeled “FY 2014 Investment.”

Note that the instructions to Part II of Table A in the Excel spreadsheets have been 

modified to clarify that only increased State funding in the State fiscal year prior to the 

first year of the grant period may count towards Competitive Preference Priority 1.

From Addendum 2, published October 3, 2014

F-13 Must the increased State funds for the fiscal year prior to the first year of the grant 

period be used to support only High-Quality Preschool Programs in order to be 

considered as State match funds in Competitive Priority 1?

To the extent States propose to include increased State funding from the year prior to the 

first year of the grant period, funds are not required to have been used to support only 

High-Quality Preschool Programs. States will receive credit for investments under 

Competitive Preference Priority 1 if they justify that the funds were used to support their

State Preschool Program. 

States will list these funds in the Competitive Preference Priority 1 table under the 

column labeled, “Increased State Funding in Fiscal Year 2014.” To the extent States 

propose to provide matching funds in years 1 through 4 per the Competitive Preference 

Priority 1 table, as described in F-11, these funds can only be counted towards the match 

if they constitute allowable costs under the Preschool Development Grant program. 

Please see FAQs E-1, E-2, and E-3 for more information on allowable uses of funds.
38

G. Accountability and Reporting Requirements

G-1 What are the reporting requirements for Preschool Development Grants?

A State receiving Preschool Development Grant funds must submit an annual report that 

includes, in addition to the standard elements, a description of the State’s progress to date 

on its goals, on meeting its timelines, and on its adherence to budgets, as well as a 

description of actual performance compared to the annual targets the State established in 

its application with respect to each performance measure. For more details, see the 

reporting requirement published in section VI.3 of the NIAs. We will provide additional 

information and technical assistance on completing the annual report at a later date.

G-2 Does the receipt of Preschool Development Grant funds require recipients to comply 

with Federal civil rights laws?

Yes. States receiving Federal Preschool Development Grant funds must comply with 

Federal civil rights laws that prohibit discrimination based on race, color, national origin, 

sex, disability, and age. State agencies, intermediary organizations, and local providers 

receiving Preschool Development Grant funds from the Lead State Agency must also 

comply with Federal civil rights laws.

G-3 Are States accountable for the commitments that they propose in their applications?

Yes. States are accountable for meeting the goals, timelines, budgets, and targets 

established in their applications and should adhere to a drawdown schedule that is tied to 

meeting those goals, timelines, budgets, and targets. In addition the Departments will 

review a State’s performance against these items on a regular basis. If a State receives a 

grant, it is conceivable that it may need to make some revisions, provided that such 

revisions do not change the overall scope and objectives of the approved proposal.

Significant changes to a proposal could affect the State’s ability to deliver on its grant 

goals or affect the scope of its grant proposal. Such changes would need to be reviewed 

and considered on a case-by-case basis by the Departments, and could result in changes 

in, or possible partial or complete termination of, the State’s grant. Based on the grant 

condition documents for this program, States must inform and seek the prior approval of 

the Departments on any substantive changes in their approved grant applications. 

If a grantee or subgrantee fails to comply with requirements governing the funds, the 

Departments may, consistent with applicable administrative procedures, take one or more 

enforcement actions, including withholding or suspending, in whole or part, funds 

awarded under the program, or recovering misspent funds following an audit.

G-4 What are the reporting requirements for the Federal Funding Accountability and 

Transparency Act (FFATA) and the ARRA? 

For new Federal grants as of October 1, 2010, if the initial award is equal to, or more than 

$25,000, reporting of subaward and executive compensation data under FFATA is 
39

required. Grantees, referred to as “prime awardees,” must report using the FFATA 

Subaward Reporting System (FSRS), and must, therefore, register in FSRS. The key 

FFATA data reporting elements are: name of entity receiving award; amount of award; 

funding agency; Catalog of Federal Domestic Assistance (CFDA) program number for 

grants; program source; award title; and location of the entity. To facilitate subaward 

reporting, the prime awardee must report information related to a subaward by the end of 

the month following the month the subaward or obligation was made. Similarly, the 

prime awardee must report the subawardee’s executive compensation data by the end of 

the month following the month the award or obligation was made. Additional 

information about FFATA reporting is available on the FSRS Web site at: 

www.fsrs.gov/, which includes links to FFATA FAQs and the Office of Management and 

Budget Guidance on FFATA. 

Unlike grantees under the Race to the Top State Competition, Preschool Development 

Grants grantees do not need to meet the reporting requirements that apply to ARRAfunded programs, such as quarterly reports under section 1512(c) of the ARRA (ARRA 

division A, section 1512(c)).

H. Resources and Information

H-1 Where can one obtain updated information or answers to questions about the 

Preschool Development Grants program?

The Departments will post updated information about the FY 2014 Preschool 

Development Grants program on the Preschool Development Grants Web site at: 

http://www2.ed.gov/programs/preschooldevelopmentgrants/index.html.

You may submit specific questions about the FY 2014 Preschool Development Grants 

competition to the following e-mail address: PreschoolDevelopmentGrant@ed.gov. We 

encourage eligible applicants to submit questions and will make every effort to respond 

promptly.