[Federal Register Volume 89, Number 215 (Wednesday, November 6, 2024)]
[Rules and Regulations]
[Pages 87977-87981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25440]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 1304

RIN 0970-AD09


Head Start Program CLASS Implementation Date Delay

AGENCY: Office of Head Start (OHS), Administration for Children and 
Families (ACF), Department of Health and Human Services (HHS).

ACTION: Final rule; delay of implementation date.

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SUMMARY: This final rule describes how the Office of Head Start 
officially delays the date for programs to meet the new competitive 
threshold for the Instructional Support domain of the Classroom 
Assessment Scoring System (CLASS[supreg]) used to determine whether a 
Head Start agency will be subject to an open competition under the 
Designation Renewal System (DRS). The implementation date in the Head 
Start Program Performance Standards that raises the CLASS[supreg] 
Instructional Support competitive threshold from 2.3 to 2.5 was August 
1, 2025. This final rule officially delays this implementation date to 
August 1, 2027.

DATES: 
    Effective date: This final rule is effective on November 6, 2024.
    Implementation date: The implementation date for the increased 
CLASS[supreg] Instructional Support competitive threshold of 2.5 as 
described in 45 CFR 1304.11(c)(1)(iii) is delayed until August 1, 2027.

FOR FURTHER INFORMATION CONTACT: Jessica Bialecki, Office of Head 
Start, 202-240-3901 or <a href="/cdn-cgi/l/email-protection#0b416e787862686a2549626a676e6860624b6a686d25636378256c647d"><span class="__cf_email__" data-cfemail="5e143b2d2d373d3f701c373f323b3d35371e3f3d387036362d70393128">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Table of Abbreviations
II. Executive Summary
III. Background and Purpose
    A. Background and History
    B. Authority
    C. Basis and Purpose of Regulatory Action
IV. Discussion of Elements of the Final Rule
V. Waiver of Notice and Comment Process
VI. Regulatory Process Matters
VII. Regulatory Impact Analysis

I. Table of Abbreviations

ACF--Administration for Children and Families
CLASS[supreg]--Classroom Assessment Scoring System
DRS--Designation Renewal System
HHS--U.S. Department of Health and Human Services
HSPPS--Head Start Program Performance Standards
OHS--Office of Head Start

II. Executive Summary

    This final rule describes how the Office of Head Start (OHS) 
officially delays the date for programs to meet the new competitive 
threshold for the Instructional Support domain of the Classroom 
Assessment Scoring System (CLASS[supreg]) used to determine whether a 
Head Start agency will be subject to an open competition under the 
Designation Renewal System (DRS). The implementation date in the Head 
Start Program Performance Standards (HSPPS) that raises the 
CLASS[supreg] Instructional Support competitive threshold from 2.3 to 
2.5 was August 1, 2025. This final rule officially delays

[[Page 87978]]

this implementation date to August 1, 2027. The 2.3 competitive 
threshold that was established through regulation in 2020 has not yet 
been fully implemented due to a pause in CLASS[supreg] observations 
during the COVID-19 pandemic. Therefore, the fiscal year 2024 (FY24) 
OHS monitoring cycle (2023-2024 program year) was the first time the 
2.3 competitive threshold is fully implemented. The graduated approach 
established by the 2020 rule was put in place to allow sufficient time 
for grant recipients to make necessary quality improvements. However, 
the unexpected pause in CLASS[supreg] observations due to the pandemic 
shortened the 5-year implementation time frame to less than 2 years. 
This decision to delay the Instructional Support competitive threshold 
increase is also based on OHS' anticipated timeline for adopting an 
updated CLASS[supreg] tool--CLASS[supreg] 2nd Edition--and the 
associated training, technical assistance, and certification procedures 
required for both OHS and Head Start programs to implement this revised 
tool.

III. Background and Purpose

A. Background and History

    OHS provides grant awards to local public and private non-profit 
and for-profit agencies to provide comprehensive education and child 
development services to economically disadvantaged children, birth to 
age five, and their families, to help young children develop the skills 
they need to be successful in school. The HSPPS define requirements 
grant recipients must meet to operate high quality Head Start programs. 
The HSPPS also provide a structure for OHS to monitor and enforce 
quality standards. One of these requirements is that programs meet or 
exceed a threshold score on each of three domains measured by the 
CLASS[supreg]. The CLASS[supreg] is an observation instrument that 
assesses the quality of teacher-child interactions in center-based 
preschool classrooms. The three domains of the CLASS[supreg] include: 
Emotional Support, Classroom Organization, and Instructional Support. A 
grant recipient is subject to an open competition if their average 
score across all classrooms observed is below the competitive threshold 
on any of these three domains. In 2020, OHS published a final rule 
establishing an increased competitive threshold of 2.3 for the 
Instructional Support domain through July 31, 2025. However, this 
threshold is being fully implemented for the first time during the FY24 
monitoring cycle, due to delays caused by the COVID-19 pandemic. As 
described in 45 CFR 1304.11(c)(1)(iii), the competitive threshold for 
this domain would have further increased to 2.5 on August 1, 2025. This 
timeline was initially developed prior to the COVID-19 pandemic, to 
allow programs more time to ramp up the Instructional Support threshold 
for accountability. This notification officially extends the 
implementation deadline for the increased Instructional Support 
competitive threshold of 2.5 to August 1, 2027. Accordingly, the lower 
competitive threshold of 2.3 will be in place for CLASS[supreg] 
observations collected as part of monitoring reviews that occur through 
July 31, 2027.
    The HSPPS requires that programs are observed using the 
CLASS[supreg] as part of the Head Start DRS (outlined in Sec.  
1304.11), and programs are required to meet specific thresholds for 
non-competitive grant renewal. While individual classrooms are observed 
and scored, OHS averages scores across all classrooms observed for a 
given program and calculates a program-level average score, which is 
used for competition determination. Through at least the fiscal year 
2025 (FY25) monitoring cycle, OHS is using the 2008 version of the 
CLASS[supreg], which consists of three domains: Emotional Support, 
Classroom Organization, and Instructional Support. The current 
thresholds for competition are 5, 5, and 2.3, respectively. Since OHS 
did not conduct CLASS[supreg] reviews for two years due to the COVID-19 
pandemic, the 2020 final rule that established the new Instructional 
Support threshold of 2.3 was implemented for the first time in FY24. 
This final rule provides an extended timeframe for increasing the 
Instructional Support competitive threshold and gives OHS sufficient 
time to fully implement the 2.3 threshold before it increases to 2.5.
    Further, in 2022, Teachstone, the company that owns the 
CLASS[supreg] tool, published CLASS[supreg] 2nd Edition. The second 
edition of the CLASS[supreg] tool is described as a more inclusive and 
equitable approach to observing adult-child interactions in the 
classroom. As a result, several, but not all, Head Start programs are 
opting to re-train program staff members on CLASS[supreg] 2nd Edition 
for their own professional development and classroom quality tracking 
purposes. This process requires additional time, as well as training 
and technical assistance support materials, to take the new 
certification test. However, for OHS to shift its entire oversight and 
technical assistance systems to CLASS[supreg] 2nd Edition, there needs 
to be a substantial scale-up of the training and certification 
processes that Teachstone and the Head Start technical assistance 
network provide. A number of these training supports have not yet been 
available at the capacity needed for a universal shift by OHS and the 
Head Start community to the updated measure. OHS understands the 
urgency with which its oversight system must adapt to CLASS[supreg] 2nd 
Edition. However, due to lack of adequate supports in place to train 
the entire Head Start system of observers and trainers, it will not be 
possible for OHS to transition to CLASS[supreg] 2nd Edition prior to 
the date originally set by the 2020 final rule for the increase in the 
Instructional Support competitive threshold (August 1, 2025).

B. Authority

    We publish this final rule under the authority granted to the 
Secretary of Health and Human Services by section 641 (42 U.S.C. 9836) 
as amended by the Improving Head Start for School Readiness Act of 2007 
(Pub. L. 110-134). Under this section, the Secretary is required to 
develop a system for designation renewal Specifically, the Act requires 
the Secretary to ``. . . modify, as necessary, program performance 
standards by regulation applicable to Head Start agencies and programs 
. . .'' \1\ This rule meets the statutory requirements Congress put 
forth in its 2007 bipartisan reauthorization of the Head Start and 
addresses Congress's mandate that called for the Secretary to review 
and revise the performance standards. The Secretary has determined that 
the modifications to performance standards contained in this regulation 
are appropriate and needed to effectuate the goals of the performance 
standards and the purposes of the Act.
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    \1\ See section 641A(a)(1) and (2) of the Act.
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C. Basis and Purpose of Regulatory Action

    In this final rule, OHS extends the timeline for the increased 
competitive threshold of 2.5 to August 1, 2027, to give programs more 
time to adjust to the Instructional Support competitive threshold of 
2.3 that is being implemented for the first time in FY24, provide 
additional time to acclimate to the CLASS[supreg] 2nd Edition measure, 
and to strengthen ongoing technical assistance for program staff on the 
updated CLASS[supreg] measure.
    This extended timeframe gives OHS additional time to consider the 
implications of adopting CLASS[supreg] 2nd Edition universally and 
determine the most appropriate plan for this change, and to ensure that 
grant recipients have sufficient notice to adjust to and adopt

[[Page 87979]]

this revised tool. Grant recipients will be provided ample notice from 
OHS before it begins using CLASS[supreg] 2nd Edition for monitoring 
purposes. Switching Head Start monitoring and technical assistance to 
use CLASS[supreg] 2nd Edition should not be implemented in the same 
year as the change in the competitive threshold for Instructional 
Support. This will place undue burden on programs and the Head Start 
monitoring and technical assistance system.
    Extending the implementation date for the increased competitive 
threshold for the Instructional Support domain also allows OHS to 
prepare relevant program staff and members of the Head Start Training 
and Technical Assistance (TTA) network to be responsive to program 
needs for TTA as they make the transition to CLASS[supreg] 2nd Edition. 
Re-training the entire Head Start TTA network on CLASS 2nd Edition 
requires a multiple-day, in-person or online training and a 
certification test where staff must score within a specific range to 
pass. OHS anticipates needing the time that this extension allows to 
ensure its network of observers and trainers are certified on 
CLASS[supreg] 2nd Edition.
    ACF recognizes that some Head Start programs are already starting 
to re-train their staff and several members of the TTA network have 
done so as well. At the same time, programs are learning and 
understanding what the new CLASS[supreg] 2nd Edition scores mean and 
how to interpret them, and the TTA network is learning how to provide 
follow-up TTA to support programs once they receive their new scores. 
The longer implementation window for the increased Instructional 
Support threshold allows programs and OHS to adjust programming, 
policies, and procedures to be responsive to this changing landscape.

IV. Discussion of Elements of the Final Rule

Section 1304.11 Basis for Determining Whether a Head Start Agency Will 
Be Subject to an Open Competition

    ACF is changing the implementation date for the instructional 
support competitive threshold domain increase to 2.5 from August 1, 
2025, to August 1, 2027.

V. Waiver of Notice and Comment Process

    When engaging in rulemaking, HHS will ordinarily publish a notice 
of proposed rulemaking in the Federal Register to provide a period for 
public comment before the provisions of a rule take effect in 
accordance with section 553(b) of the Administrative Procedure Act 
(APA).\2\ However, we can waive this notice and comment procedure if we 
find, for good cause, that the notice and comment process is 
impracticable, unnecessary, or contrary to the public interest, and 
incorporate a statement of the finding and the reasons therefore in the 
notice. HHS finds good cause to waive public comment under section 
553(b) of the APA because it is unnecessary and contrary to the public 
interest to provide for public comment in this instance. The existing 
CLASS[supreg] competitive thresholds for Head Start programs continue 
to be in effect for competition determinations. As such, the delayed 
implementation date poses no harm or burden to programs or the public. 
A period for public comment would have only extended programs' concerns 
about meeting the new threshold by the previous implementation date of 
August 1, 2025.
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    \2\ 5 U.S.C. 553(b).
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VI. Regulatory Process Matters

    We have examined the impacts of the final rule under Executive 
Order 12866, Executive Order 13563, Executive Order 13132, the 
Regulatory Flexibility Act (5 U.S.C. 601-612), and the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4). Executive Orders 12866 and 
13563 direct us to assess all benefits, costs, and transfers of 
available regulatory alternatives and, when regulation is necessary, to 
select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity).
    Section 3(f) of Executive Order 12866, as amended by Executive 
Order 14094, defines a ``significant regulatory action'' as an action 
that is likely to result in a rule: (1) Having an annual effect on the 
economy of $200 million or more, or adversely affecting in a material 
way the economy, a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, 
territorial, or Tribal governments or communities; (2) creating a 
serious inconsistency or otherwise interfering with an action taken or 
planned by another agency; (3) materially altering the budgetary 
impacts of entitlement grants, user fees, or loan programs or the 
rights and obligations of recipients thereof; or (4) raising legal or 
policy issues for which centralized review would meaningfully further 
the President's priorities or the principles set forth in Executive 
Order 12866, as specifically authorized in a timely manner by the 
Administrator of the Office of Information and Regulatory Affairs in 
each case. The Regulatory Impact Analysis (RIA) for this final rule 
does not identify economic impacts that exceed the threshold for 
significance under Section 3(f)(1) of Executive Order 12866.

Congressional Review Act

    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (also known as the Congressional Review Act or CRA) allows 
Congress to review ``major'' rules issued by Federal agencies before 
the rules take effect, see 5 U.S.C. 801(a). The CRA defines a major 
rule as one that has resulted, or is likely to result, in (1) an annual 
effect on the economy of $100 million or more; (2) a major increase in 
costs or prices for consumers, individual industries, Federal, State, 
or local government agencies, or geographic regions; or (3) significant 
adverse effects on competition, employment, investment, productivity, 
or innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and export markets, 
see 5 U.S.C. 804(2). This action is not a major rule because it will 
not have an annual effect on the economy of $100 million or more.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), see 5 U.S.C. 605(b) as 
amended by the Small Business Regulatory Enforcement Fairness Act, 
requires federal agencies to determine, to the extent feasible, a 
rule's impact on small entities, explore regulatory options for 
reducing any significant impact on a substantial number of such 
entities, and explain their regulatory approach. The term ``small 
entities,'' as defined in the RFA, comprises small businesses, not-for-
profit organizations that are independently owned and operated and are 
not dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000. Under this definition, some Head Start 
grant recipients may be small entities. We consider a rule to have a 
significant impact on a substantial number of small entities if it has 
at least a three percent impact on revenue on at least five percent of 
small entities. However, the Secretary certifies, under 5 U.S.C. 
605(b), as enacted by the Regulatory Flexibility Act (Pub. L. 96-354), 
that this rule will not have a significant impact on a substantial 
number of small entities. This final rule simply delays the date by 
which the threshold will increase for the CLASS[supreg] Instructional 
Support domain that would trigger competition for a Head Start grant

[[Page 87980]]

recipient. We do not expect increased costs for recipients due to this 
delayed implementation date; therefore, we do not expect there to be a 
significant impact on a substantial number of small entities.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, section 
202(a)) requires us to prepare a written statement, which includes 
estimates of anticipated impacts, before proposing ``any rule that 
includes any Federal mandate that may result in the expenditure by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector, of $100,000,000 or more (adjusted annually for 
inflation) in any one year.'' The current threshold after adjustment 
for inflation is $183 million, using the most current (2023) Implicit 
Price Deflator for the Gross Domestic Product. This final rule will not 
result in expenditures that meet or exceed this amount. Head Start 
grant recipients receive over $12 billion annually in Federal funding 
to implement the requirements of the program, including changes as a 
result of this final rule.

Federalism Assessment Executive Order 13132

    Executive Order 13132 requires Federal agencies to consult with 
State and local government officials if they develop regulatory 
policies with federalism implications. Federalism is rooted in the 
belief that issues that are not national in scope or significance are 
most appropriately addressed by the level of government close to the 
people. This final rule will not have substantial direct impact on the 
States, on the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, it is determined that this action does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement.

Treasury and General Government Appropriations Act of 1999

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 requires Federal agencies to determine whether a policy or 
regulation may negatively affect family well-being. If the agency 
determines a policy or regulation negatively affects family well-being, 
then the agency must prepare an impact assessment addressing seven 
criteria specified in the law. ACF believes it is not necessary to 
prepare a family policymaking assessment, see Public Law 105-277, 
because the action it takes in this final rule will not have any impact 
on the autonomy or integrity of the family as an institution.

Paperwork Reduction Act of 1995

    The Paperwork Reduction Act (PRA) of 1995, 44 U.S.C. 3501 et seq., 
minimizes government-imposed burden on the public. In keeping with the 
notion that government information is a valuable asset, it also is 
intended to improve the practical utility, quality, and clarity of 
information collected, maintained, and disclosed.
    The PRA requires that agencies obtain Office of Management and 
Budget (OMB) approval, which includes issuing an OMB number and 
expiration date, before requesting most types of information from the 
public. Regulations at 5 CFR part 1320 implemented the provisions of 
the PRA and Sec.  1320.3 of this part defines a ``collection of 
information,'' ``information,'' and ``burden.'' PRA defines 
``information'' as any statement or estimate of fact or opinion, 
regardless of form or format, whether numerical, graphic, or narrative 
form, and whether oral or maintained on paper, electronic, or other 
media (5 CFR 1320.3(h)). This includes requests for information to be 
sent to the government, such as forms, written reports and surveys, 
recordkeeping requirements, and third-party or public disclosures (5 
CFR 1320.3(c)). ``Burden'' means the total time, effort, or financial 
resources expended by persons to collect, maintain, or disclose 
information. This action does not include any new information 
collection requirements or changes to existing information collection 
requirements.

VII. Regulatory Impact Analysis

Need for Regulatory Action

    As summarized previously, the 2.3 competitive threshold for the 
CLASS[supreg] Instructional Support domain that was established through 
regulation in 2020 has not yet been fully implemented due to a pause in 
CLASS[supreg] observations through OHS monitoring during the COVID-19 
pandemic. Therefore, the FY24 OHS monitoring cycle (2023-2024 program 
year) was the first year in which the 2.3 competitive threshold was 
fully implemented with grant recipients. The graduated approach 
established by the 2020 final rule was put in place to allow sufficient 
time for grant recipients to make necessary quality improvement in the 
Instructional Support domain (a domain in which early childhood 
programs nationally tend to score lower, relative to other domains of 
the CLASS[supreg]). Increasing the competitive threshold to 2.5 in 
August 2025 does not allow sufficient time for the phase in approach 
envisioned in the 2020 final rule.
    In addition, OHS currently uses the 2008 version of the 
CLASS[supreg]. But in 2022, the developer of the CLASS[supreg] tool 
released an updated version called CLASS[supreg] 2nd Edition. This 
updated version is marketed as a more equitable and inclusive measure 
of teacher-child interactions in classroom settings. As a result, many 
Head Start programs are already re-training staff members on 
CLASS[supreg] 2nd Edition; this process requires additional technical 
assistance and training support materials, multi-day training 
workshops, and additional time to take the new certification test, as 
well as significant costs. A number of these supports have not yet been 
available at the capacity or scale needed for a universal shift by 
OHS's monitoring system to the updated version of the tool. In 
addition, it will take time to ensure all OHS reviewers are certified 
in the new edition, and to revise OHS monitoring processes, materials, 
and training to reflect CLASS[supreg] 2nd Edition. Accordingly, OHS has 
not yet adopted this new version of the tool for federal monitoring 
purposes and is continuing to use the 2008 version of CLASS[supreg] 
through at least the FY25 monitoring cycle. However, we do intend to 
transition to CLASS[supreg] 2nd Edition in the future, and we want to 
provide programs with an adequate adjustment period with the new tool 
before making another system-wide change by increasing the competitive 
threshold for Instructional Support.

Cost Savings Analysis

    There are approximately 1,900 grants in Head Start. Absent this 
final rule, the competitive threshold for the CLASS[supreg] 
Instructional Support threshold will increase from a 2.3 to a 2.5 on 
August 1, 2025. During the 2025-2026 program year, we estimate that 
approximately 280 grants will receive a CLASS[supreg] review from OHS. 
During the 2026-2027 program year, we estimate that approximately 400 
grants will a receive a CLASS[supreg] review from OHS. Based on OHS 
monitoring data from CLASS[supreg] reviews conducted during the 2023-
2024 program year, we estimate that approximately seven percent of 
grants reviewed in a given year would receive a score below 2.3 on 
CLASS[supreg] Instructional Support and approximately 13 percent would 
receive a score below 2.5. If we apply these percentages to the 
expected number of

[[Page 87981]]

CLASS[supreg] reviews to be conducted in the 2025-2026 and 2026-2027 
program years, we observe the following approximate numbers of grants 
that would be triggered to compete under DRS due to their CLASS[supreg] 
Instructional Support score, either in the presence or absence of this 
final rule.

----------------------------------------------------------------------------------------------------------------
                                                        Grants to compete absent    Grants to compete with final
                    Program year                        final rule (instructional    rule (instructional support
                                                        support threshold = 2.5)          threshold = 2.3)
----------------------------------------------------------------------------------------------------------------
2025-2026 (280 grants)..............................                            36                            20
2026-2027 (400 grants)..............................                            52                            28
                                                     -----------------------------------------------------------
    Total...........................................                            88                            48
----------------------------------------------------------------------------------------------------------------

    In other words, with this final rule, approximately 40 total fewer 
grants would be designated to compete due to their CLASS[supreg] 
Instructional Support scores received as a part of OHS monitoring 
during the 2025-2026 and 2026-2027 program years. The cost for 
competition associated with completing a competitive application is 
estimated at $3,538 per applicant. This assumption includes 60 hours 
per competitive application at a cost of approximately $58.96 per hour 
in staff time (we multiply an hourly wage of approximately $29.48 by 
two to account for fringe benefits). Applications would likely be 
completed by a combination of the Head Start assistant director and 
other managers in an early childhood program (i.e., child development 
manager or family and community partnership manager). We base the 
average hourly wage for these positions on the U.S. Bureau of Labor 
Statistics Job Code 11-9031. We then multiply $3,538 per applicant by 
80 to account for the 40 incumbent grant recipients applying for funds 
as well as 40 nonincumbent applicants for those service areas. This 
results in a baseline estimated cost of $283,040 for these 40 grant 
recipients to complete competitive applications if they did in fact 
have to compete, as well as 40 additional applicants. With this final 
rule, these baseline costs would not apply and are therefore cost 
savings in this analysis.
    With this final rule, those 40 grant recipients that would have 
been triggered to compete due to receiving a CLASS[supreg] 
Instructional Support score below 2.5 (but not below 2.3) would instead 
need to complete an noncompetitive grant application for a continuing 
annual award. We assume it takes approximately 33 hours of staff time 
to complete a noncompetitive application. Using the same assumptions as 
above for hourly wage, we estimate that it costs approximately $1,946 
per grant to complete a noncompetitive application. We multiply this by 
40 grants, which results in a total cost of approximately $77,840 for 
these grant recipients to complete a noncompetitive continuation 
application. Taking this cost into account, the total cost savings 
associated with this final rule is approximately $205,200. This 
includes cost savings to those entities that are not existing Head 
Start recipients as there would be no funding opportunity to which they 
would submit a competitive application.
    A qualitative opportunity cost for this new rule is fewer 
opportunities for entities that are not existing Head Start grant 
recipients to be able to compete and potentially grow as an early 
childhood provider in their community, for the 40 communities where 
grants were not designated for competition due to potentially low 
CLASS[supreg] Instructional Support scores. There is also a potential 
qualitative cost of children continuing to be served by grant 
recipients who may be providing lower-quality classroom learning 
environments that would have led to competition. However, for all the 
reasons summarized in the preamble of this final rule, ACF believes 
there is an added benefit of existing grant recipients not experiencing 
undue stress and potential increased financial burden associated with 
the competitive threshold increasing from 2.3 to 2.5 in August 2025. 
Additionally, these grant recipients will be able to continue to access 
and receive support through OHS's extensive TTA system, to facilitate 
continued quality improvement in classroom quality care and service 
provision for children and families. This RIA analyzes a 2-year time 
horizon covering FY 2026 and FY 2027.
    Overall, ACF does not believe there will be a significant economic 
impact from this regulatory action since this final rule only delays 
the implementation date by two years for the CLASS[supreg] 
Instructional Support competitive threshold.
    Jeff Hild, Principal Deputy Assistant Secretary of the 
Administration for Children and Families, performing the delegable 
duties of the Assistant Secretary, approved this document on October 8, 
2024.

List of Subjects in 45 CFR Part 1304

    Early learning and development, Education, Education of 
disadvantaged, Grant programs-social programs.

    Dated: October 28, 2024.
Xavier Becerra,
Secretary, Department of Health and Human Services.

    For the reasons set forth in the preamble, the ACF amends 45 CFR 
part 1304 as follows:

PART 1304--FEDERAL ADMINISTRATIVE PROCEDURES

0
1. The authority citation for part 1304 continues to read as follows:

    Authority:  42 U.S.C. 9801 et seq.

Subpart B--Designation Renewal

0
2. Amend Sec.  1304.11 by revising paragraph (c)(1)(iii) to read as 
follows:


Sec.  1304.11   Basis for determining whether a Head Start agency will 
be subject to an open competition.

* * * * *
    (c) * * *
    (1) * * *
    (iii) For the Instructional Support domain, the competitive 
threshold is 2.3 through July 31, 2027, and 2.5 on and after August 1, 
2027.
* * * * *

[FR Doc. 2024-25440 Filed 11-5-24; 8:45 am]
BILLING CODE 4184-40-P


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