‘‘(M) as a whole, are regularly evaluated 
for their impact on increased staff effectiveness 
and improved ability of teachers to support 
learning and increase participating children’s 
school readiness, with the findings of the eval-
uations used to improve the quality of profes-
sional development;’’. 
‘‘(N) provide instruction in methods of 
teaching children with special needs; and 
‘‘(O) include instruction in ways that Head 
Start personnel may work more effectively with 
parents.’’, and 
(10) by adding at the end the following: 
‘‘(22) The term ‘unresolved area of noncompli-
ance’ means a failure to correct a noncompliance 
item within 90 days, or within such additional time 
(if any) authorized by the Secretary, after receiving 
from the Secretary notice of such noncompliance 
item.’’. 
SEC. 4. FINANCIAL ASSISTANCE FOR HEAD START PRO-
GRAMS. 
Section 638 of the Head Start Act (42 U.S.C. 9833) 
is amended by inserting ‘‘for a period of 5 years’’ after 
‘‘provide financial assistance to such agency’’.
SEC. 5. AUTHORIZATION. 
Section 639 of the Head Start Act (42 U.S.C. 9834) 
is amended to read as follows: 
‘‘SEC. 639. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated for carrying out the provisions of this sub-
chapter $6,899,000,000 for the fiscal year 2006 and such 
sums as may be necessary for the fiscal years 2007 
through 2011. 
‘‘(b) SPECIFIC PROGRAMS.—From the amount ap-
propriated under subsection (a), the Secretary shall make 
available not more than $20,000,000 for fiscal year 2006, 
and such sums as may be necessary for fiscal years 2007 
through 2011 to carry out such other research, dem-
onstration, and evaluation activities, including longitu-
dinal studies, under section 649, of which not more than 
$7,000,000 for each of the fiscal years 2006 through 2011 
to carry out impact studies under section 649(g).’’. 
SEC. 6. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSIST-
ANCE. 
(a) ALLOTMENTS.—Section 640(a) of the Head Start 
Act (42 U.S.C. 9835(a)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A) by striking 
‘‘1998’’ and inserting ‘‘2005’’;
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) payments, subject to paragraph (7) to 
Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the Virgin Islands of 
the United States;’’; 
(C) by amending (C) to read as follows: 
‘‘(C) training and technical assistance activities 
to foster program quality and management improve-
ment as described in section 648, in an amount for 
each fiscal year which is equal to 2 percent of the 
amount appropriated for such fiscal year, of which—
‘‘(i) not less than 50 percent shall be made 
available to local Head Start agencies to make 
program improvements identified by such agen-
cies and comply with the standards described in 
section 641A(a)(1), of which not less than 50 
percent shall be used to comply with the stand-
ards described in section 641A(a)(1)(B) and for 
the uses described in clauses (iii), (iv), and (vii) 
of subsection (a)(3)(B); 
‘‘(ii) not less than 20 percent shall be 
made available to support a State system of 
early childhood education training and technical
assistance, including the State Early Learning 
Council described in section 642B; 
‘‘(iii) not less than 30 percent shall be 
made available to the Secretary to assist local 
programs in meeting the standards described in 
section 641A(a)(1) and shall be allocated to ad-
dress program weaknesses identified by moni-
toring activities conducted by the Secretary 
under section 641A(c); and 
‘‘(iv) not less than $3,000,000 of the 
amount in clause (iii) appropriated for such fis-
cal year shall be made available to carry out ac-
tivities described in section 648(c)(4);’’; and 
(D) by striking the last sentence. 
(2) in paragraph (3)—
(A) in subparagraph (A)—
(i) in clause (i)(I) by striking ‘‘1999’’ 
and all that follows down to the semicolon 
and inserting ‘‘2006 through 2011’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(iii) After the reservation of amounts under para-
graph (2) and the 60 percent amount referred to in sub-
paragraph (A) of this paragraph, a portion of the remain-
ing funds shall be made available for quality—
‘‘(I) to expand services to underserved popu-
lations, such as children receiving services under the 
Early Head Start and migrant and seasonal Head 
Start programs; and 
‘‘(II) to increase funding to grantees with full 
enrollment and whose aggregate amount of financial 
assistance provides funding per child that is below 
the national average.’’; 
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) Funds reserved under this paragraph (in this 
paragraph referred to as ‘quality improvement funds’) 
shall be used to accomplish any or all of the following 
goals: 
‘‘(i) Ensuring that Head Start programs meet 
or exceed standards pursuant to section 641A(a)(1). 
‘‘(ii) Ensuring that such programs have ade-
quate numbers of qualified staff, and that such staff 
is furnished adequate training, including developing 
skills to promote the development of language skills, 
premathematic skills, and prereading in young chil-
dren and in working with children with non-English 
language background, children referred by child wel-
fare services, and children with disabilities, when ap-
propriate.
‘‘(iii) Developing and financing the salary scales 
described under section 644(a) and section 653, in 
order to ensure that salary levels and benefits are 
adequate to attract and retain qualified staff for 
such programs. 
‘‘(iv) Using salary increases—
‘‘(I) to assist with the implementation of 
quality programs and improve staff qualifica-
tions; 
‘‘(II) to ensure that staff can promote the 
language skills and literacy growth of children 
and can provide children with a variety of skills 
that have been identified, through scientifically 
based early reading research, as predictive of 
later reading achievement; and 
‘‘(III) to encourage the staff to continually 
improve their skills and expertise by informing 
the staff of the availability of Federal and State 
incentive and loan forgiveness programs for 
professional development. 
‘‘(v) Improving community-wide strategic plan-
ning and needs assessments for such programs and 
collaboration efforts for such programs, including 
collaborations to increase program participation by 
underserved populations of eligible children.
‘‘(vi) Ensuring that the physical environments 
of Head Start programs are conducive to providing 
effective program services to children and families, 
and are accessible to children with disabilities and 
their parents. 
‘‘(vii) Ensuring that such programs have quali-
fied staff that can promote language skills and lit-
eracy growth of children and that can provide chil-
dren with a variety of skills that have been identi-
fied, through scientifically based reading research, as 
predictive of later reading achievement. 
‘‘(viii) Providing assistance to complete postsec-
ondary coursework including scholarships or other fi-
nancial incentives, such as differential and merit 
pay, to enable Head Start teachers to improve com-
petencies and the resulting child outcomes. 
‘‘(ix) Making such other improvements in the 
quality of such programs as the Secretary may des-
ignate. 
‘‘(x) Promoting the regular attendance and sta-
bility of all Head Start children with particular at-
tention to highly mobile children, including children 
from migrant and seasonal farmworker families (if 
appropriate), homeless children, and children in fos-
ter care.’’; and
(C) by amending subparagraph (C) to read 
as follows: 
‘‘(C) Quality improvement funds shall be used to 
carry out the activities in any or all of the following 
clauses: 
‘‘(i)(I) Not less than one-half of the amount re-
served under this paragraph, to improve the com-
pensation (including benefits) of classroom teachers 
and other staff of Head Start agencies providing in-
structional services and thereby enhancing recruit-
ment and retention of qualified staff, including re-
cruitment and retention pursuant to achieving the 
requirements set forth in section 648A(a). The ex-
penditure of funds under this clause shall be subject 
to section 653. Salary increases, in excess of cost-of-
living allowance, provided with such funds shall be 
subject to the specific standards governing salaries 
and salary increases established pursuant to section 
644(a). 
‘‘(II) If a Head Start agency certifies to the 
Secretary for such fiscal year that part of the funds 
set aside under subclause (I) to improve wages can-
not be expended by such agency to improve wages 
because of the operation of section 653, then such
agency may expend such part for any of the uses 
specified in this subparagraph (other than wages). 
‘‘(III) From the remainder of the amount re-
served under this paragraph (after the Secretary 
carries out subclause (I)), the Secretary may carry 
out the activities described in clauses (ii) through 
(vii). 
‘‘(ii) To train classroom teachers and other 
staff to meet the education standards described in 
section 641A(a)(1)(B), through activities—
‘‘(I) to promote children’s language and 
prereading growth, through techniques identi-
fied through scientifically based reading re-
search; 
‘‘(II) to promote the acquisition of the 
English language for non-English background 
children and families; 
‘‘(III) to foster children’s school readiness 
skills through activities described in section 
648A(a)(1); and 
‘‘(IV) to provide education and training 
necessary to improve the qualifications of Head 
Start staff, particularly assistance to enable 
more instructors to be fully competent and to 
meet the degree requirements under section
648A(a)(2)(A), and to support staff training, 
child counseling, and other services necessary to 
address the challenges of children participating 
in Head Start programs, including children 
from immigrant, refugee, and asylee families, 
children from families in crisis, children who ex-
perience chronic violence in their communities, 
and children who experience substance abuse in 
their families. 
‘‘(iii) To employ additional Head Start staff, in-
cluding staff necessary to reduce the child-staff 
ratio, lead instructors who meet the qualifications of 
section 648A(a) and staff necessary to coordinate a 
Head Start program with other services available to 
children participating in such program and to their 
families. 
‘‘(iv) To pay costs incurred by Head Start 
agencies to purchase insurance (other than employee 
benefits) and thereby maintain or expand Head 
Start services. 
‘‘(v) To supplement amounts provided under 
paragraph (2)(C) to provide training necessary to 
improve the qualifications of the staff of the Head 
Start agencies, and to support staff training, child 
counseling, and other services necessary to address
the problems of children participating in Head Start 
programs, including children from dysfunctional 
families, children who experience chronic violence in 
their communities, and children who experience sub-
stance abuse in their families. 
‘‘(vi) To conduct outreach to homeless families 
in an effort to increase the program participation of 
homeless children. 
‘‘(vii) Such other activities as the Secretary 
may designate. 
‘‘(viii) To conduct outreach to migrant and sea-
sonal farm-working families and families with chil-
dren with a limited English proficiency.’’; 
(3) in paragraph (4) by striking ‘‘1998’’ in sub-
paragraph (A) and inserting ‘‘2005’’; 
(4) in paragraph (5) by amending subpara-
graphs (A), (B), and (C) to read as follows: 
‘‘(A) From amounts reserved and allotted pursuant 
to paragraph (4) and the amounts reserved in Section 
640(a)(2)(C)(ii), the Secretary shall award the grants de-
scribed in Section 642B(b). 
‘‘(B) From the reserved sums in paragraph (4) the 
Secretary shall award a collaboration grant to any State 
that submits a written request outlining why it is unable 
to comply with Section 642B(b). Such grant shall be equal
to the amount the State received under this paragraph for 
such activity for fiscal year 2005. Such grant shall be used 
by the State to facilitate collaboration regarding activities 
carried out in the State under this subchapter, and other 
activities carried out in and by the State that are designed 
to benefit low-income children and families and to encour-
age Head Start agencies to collaborate with entities in-
volved in State and local planning processes (including the 
State lead agency administering the financial assistance 
under the Child Care and Development Block Grant Act 
of 1990 and the entities that provide child care resource 
and referral services in the State) in order to better meet 
the needs of low-income children and their families. 
‘‘(C) In order to improve results for children, a State 
that receives a grant under subparagraph (B) shall—
‘‘(i) appoint an individual to serve as the State 
Director of Collaboration between—
‘‘(I) the appropriate regional office of the 
Administration for Children and Families; 
‘‘(II) the State educational agency; 
‘‘(III) the State Department of Health and 
Human Services; 
‘‘(IV) the State agency that oversees child 
care;
‘‘(V) the State agency that assists children 
with developmental disabilities; 
‘‘(VI) the State Head Start Association; 
‘‘(VII) the State network of child care re-
source and referral agencies; 
‘‘(VIII) local educational agencies; 
‘‘(IX) community-based and faith-based or-
ganizations; 
‘‘(X) State representatives of migrant and 
seasonal Head Start programs; 
‘‘(XI) State representatives of Indian Head 
Start programs; 
‘‘(XII) State and local providers of early 
childhood education and child care; and 
‘‘(XIII) other entities carrying out pro-
grams serving low-income children and families 
in the State; 
‘‘(ii) ensure that the State Director of Collabo-
ration holds a position with sufficient authority and 
access to ensure that the collaboration described in 
subparagraph (B) is effective and involves a range 
of State agencies; 
‘‘(iii) involve the entities described in section 
clause (i) to develop a strategic plan for the coordi-
nated outreach to identify eligible children and im-
plementation strategies based on a needs assessment 
conducted by the Office of the State Director of Col-
laboration which shall include an assessment of the 
availability of high quality prekindergarten services 
for low-income children in the State. Such assess-
ment shall be completed within one year after the 
date of enactment of the ‘School Readiness Act of 
2005’ and be updated on an annual basis and shall 
be made available to the general public within the 
State; 
‘‘(iv) ensure that the collaboration described in 
subparagraph (B) involves coordination of Head 
Start services with health care, welfare, child care, 
child protective services, education, and community 
service activities, family literacy services, activities 
relating to children with disabilities (including co-
ordination of services with those State officials who 
are responsible for administering part C and section 
619 of the Individuals with Disabilities Education 
Act), and services for homeless children (including 
coordination of services with the Office of Coordi-
nator for Education of Homeless Children and 
Youth designated under section 722 (g)(1)(J)(ii) of 
the McKinney-Vento Homeless Assistance Act of 
2001;
‘‘(v) consult with the chief State school officer, 
local educational agencies, and representatives of 
local Head Start agencies and providers of early 
childhood education and care in unified planning re-
garding early care and education services at both the 
State and local levels, including collaborative efforts 
to develop school readiness standards; and 
‘‘(vi) consult with the chief State school officer, 
local educational agencies, State child care adminis-
trators, State human services administrators, rep-
resentatives of local resource and referral agencies, 
local early childhood councils, providers of early 
childhood education and care and other relevant 
State and local agencies, and representatives of the 
State Head Start Associations to plan for the provi-
sion of full-working-day, full calendar year early care 
and education services for children.’’; 
(C) in subparagraph (D)(i) by inserting 
‘‘and providers of services supporting early 
childhood education and child care’’ after ‘‘As-
sociations’’; and 
(D) by amending paragraph (6)(A) to read 
as follows: 
‘‘(A) From amounts reserved and allotted pursuant 
to paragraphs (2) and (4), the Secretary shall use, for
grants for programs described in section 645A(a) of this 
subchapter, a portion of the combined total of such 
amounts equal to at least 10 percent for each of the fiscal 
years 2006 through 2011, of the amount appropriated 
pursuant to section 639(a), except as provided in subpara-
graph (B).’’. 
(b) SERVICE DELIVERY MODELS.—Section 640(f) of 
the Head Start Act (42 U.S.C. 9835(f)) is amended by 
inserting before the period at the end the following: ‘‘, in-
cluding models that leverage the existing capacity and ca-
pabilities of the delivery system of early childhood edu-
cation and child care’’; 
(c) MAINTENANCE
OF SERVICE LEVELS.—Section 
640(g)(2) of the Head Start Act (42 U.S.C. 9835(g)(2)) 
is amended—
(1) by striking ‘‘For purposes of expanding 
Head Start programs, in’’ and inserting ‘‘in’’; 
(2) by amending subparagraph (C) to read as 
follows: 
‘‘(C) the extent to which the applicant has un-
dertaken community-wide strategic planning and 
needs assessments involving other community orga-
nizations and Federal, State, and local public agen-
cies serving children and families (including organi-
zations and agencies providing family support serv-
ices and protective services to children and families 
and organizations serving families in whose homes 
English is not the language customarily spoken), 
and individuals, organizations, and public entities 
serving children with disabilities and homeless chil-
dren including the local educational agency liaison 
designated under section 722(g)(1)(J)(ii) of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11432(g)(1)(J)(ii));’’; 
(3) in subparagraph (D) by striking ‘‘other 
local’’ and inserting ‘‘the State and local’’; 
(4) in subparagraph (E) by inserting ‘‘would 
like to participate but’’ after ‘‘community who’’; 
(5) in subparagraph (G)—
(A) by inserting ‘‘leverage the existing de-
livery systems of such services and’’ after 
‘‘manner that will’’; and 
(B) by striking ‘‘and’’ at the end; 
(6) in subparagraph (H)—
(A) by inserting ‘‘, including the local edu-
cational agency liaison designated under section 
722(g)(1)(J)(ii) of the McKinney-Vento Home-
less 
Assistance 
Act 
(42 
U.S.C. 
11432(g)(1)(J)(ii)),’’ 
after 
‘‘community 
in-
volved’’;
(B) by striking ‘‘plans to coordinate’’ and 
inserting ‘‘successfully coordinated its activi-
ties’’; and 
(C) by striking the period at the end and 
inserting ‘‘; and’’; and 
(7) by adding at the end the following: 
‘‘(I) the amount of funds used by such agency 
to pay administrative expenses and the amount of 
available funds received by such agency under this 
section to serve each enrolled child.’’. 
(d) VEHICLE
SAFETY
REQUIREMENTS.—Section 
640(i) of the Head Start Act (42 U.S.C. 9835(i)) is 
amended— 
(1) by striking ‘‘(i) The’’ and inserting the fol-
lowing: 
‘‘(i) TRANSPORTATION SAFETY.—
‘‘(1) REGULATIONS.—The’’; and 
(2) by adding at the end the following: 
‘‘(2) WAIVER AUTHORITY.—
‘‘(A) IN
GENERAL.—The Secretary may 
waive for a period of up to one year the require-
ments of regulations promulgated under para-
graph (1) for one or more vehicles used by the 
agency or its designee in transporting children
enrolled in a Head Start program or an Early 
Head Start program if—
‘‘(i) such requirements pertain to 
child restraint systems and bus monitors; 
‘‘(ii) the agency demonstrates that 
compliance with such requirements will re-
sult in a significant disruption to the Head 
Start or Early Head Start program; and 
‘‘(iii) is in the best interest of the 
child. 
‘‘(B) 
RENEWAL.—The 
Secretary 
may 
renew a waiver under subparagraph (A)’’. 
(e) MIGRANT AND SEASONAL HEAD START PRO-
GRAMS.—Section 640(l) of the Head Start Act (42 U.S.C. 
9835(l)) is amended—
(1) in paragraph (3) by adding at the end the 
following: 
‘‘In carrying out this subchapter, the Secretary shall con-
tinue the administrative arrangement at the National level 
for meeting the needs of Indian children and children of 
migrant and seasonal farmworkers to ensure that appro-
priate funding is provided to meet such needs.’’; and 
(2) by adding at the end the following: 
‘‘(4)(A) For the purposes of paragraph (3), the Sec-
retary shall conduct an annual consultation in each af-
fected Head Start region, with tribal governments oper-
ating Head Start programs and Early Head Start pro-
grams. 
‘‘(B) The consultations shall be for the purpose of 
better meeting the needs of American Indian and Alaska 
Native children and families pertinent to subsections (a), 
(b), and (c) of section 641, taking into consideration fund-
ing allocations, distribution formulas, and other issues af-
fecting the delivery of Head Start services within tribal 
communities. 
‘‘(C) The Secretary shall publish a notification of the 
consultations in the Federal Register prior to conducting 
the consultations. 
‘‘(D) A detailed report of each consultation shall be 
prepared and made available, on a timely basis, to all trib-
al governments receiving funds under this subchapter.’’. 
(f) ENROLLMENT OF HOMELESS CHILDREN.—Sec-
tion 640 of the Head Start Act (42 U.S.C. 9835) is 
amended by adding at the end the following: 
‘‘(m) ENROLLMENT OF HOMELESS CHILDREN.—The 
Secretary shall by regulation prescribe policies and proce-
dures to remove barriers to the enrollment and participa-
tion of homeless children in Head Start programs. Such 
regulations shall require Head Start agencies—
‘‘(1) to implement policies and procedures to 
ensure that homeless children are identified and 
prioritized for enrollment; 
‘‘(2) to allow homeless families to apply to, en-
roll in and attend Head Start programs while re-
quired documents, such as proof of residency, immu-
nization and other medical records, birth certificates 
and other documents, are obtained within a reason-
able time frame; and 
‘‘(3) coordinate individual Head Start centers 
and programs with efforts to implement Subtitle 
VII–B of the McKinney-Vento Homeless Assistance 
Act. 
‘‘(n) SAVINGS PROVISION.—Nothing in this sub-
chapter shall be construed to require a State to establish 
a program of early education for children in the State, 
to require any child to participate in a program of early 
education, to attend school, or to participate in any initial 
screening prior to participation in such program, except 
as provided under section 612(a)(3), (consistent with sec-
tion 614(a)(1)(C)), of the Individuals with Disabilities 
Education Act. 
‘‘(o) MATERIALS.—All curricula and instructional 
materials funded under this subchapter shall be scientif-
ically based and age appropriate. Parents shall have the
ability to inspect, upon request, any curricula or instruc-
tional materials.’’.
SEC. 7. DESIGNATION OF AGENCIES. 
(a) AUTHORITY TO DESIGNATE.— Section 641(a) of 
the Head Start Act (42 U.S.C. 9836(a)) is amended to 
read as follows: 
‘‘(a) AUTHORITY TO DESIGNATE.—
‘‘(1) IN GENERAL.—The Secretary is authorized 
to designate as a Head Start agency any local public 
or private nonprofit or for-profit agency within a 
State, including a community-based or faith-based 
organization that—
‘‘(A) has power and authority to carry out 
the purpose of this subchapter and perform the 
functions set forth in section 642 within a 
State; and 
‘‘(B) is determined to be capable of plan-
ning, conducting, administering, and evaluating, 
either directly or by other arrangements, a 
Head Start program. 
‘‘(2) DESIGNATION REQUIREMENTS.—In order 
to be designated as a Head Start agency and to re-
ceive a financial assistance under this subchapter, an 
entity described in paragraph (1) shall establish 
measurable objectives for improving the school readi-
ness of children participating in a program under 
this subchapter, including measurable objectives for 
meeting the performance standards described in sec-
tion 641A and for—
‘‘(A) educational instruction in prereading, 
premathematical, and language skills; 
‘‘(B) the provision of health, educational, 
nutritional, social, and other services related to 
school readiness standards; and 
‘‘(C) school readiness standards that are 
aligned with State-developed K–12 academic 
content standards. 
‘‘(3) ELIGIBILITY FOR SUBSEQUENT FINANCIAL 
ASSISTANCE.—In order to receive a financial assist-
ance under this subchaptersubsequent to the initial 
financial assistance provided following the effective 
date of this subsection, an entity described in para-
graph (1) shall demonstrate that the entity has met 
the measurable objectives described in paragraph 
(2); 
‘‘(4) 
MEASURING
PROGRESS.—Progress 
in 
meeting such measurable objectives shall not be 
measured primarily or solely by the results of assess-
ments.’’
(b) PRIORITY IN DESIGNATION.—Section 641(c) of 
the Head Start Act (42 U.S.C. 9836(c)) is amended to 
read as follows: 
‘‘(c) CONSULTATION.—In the administration of this 
section, the Secretary shall, in consultation with the chief 
executive officer of the State involved, give priority in the 
designation of Head Start agencies to Head Start agencies 
that—
‘‘(1) are receiving assistance under this sub-
chapter on the effective date of this subsection; 
‘‘(2) meet or exceeds program and financial 
management requirements, standards described in 
section 641A(a)(1); 
‘‘(3) meet or exceed the results-based perform-
ance measures developed by the Secretary under sec-
tion 641A(b)(4); 
‘‘(4) have no unresolved areas of noncompli-
ance; 
‘‘(5) have not been deemed deficient; 
‘‘(6) employ qualified staff (including, in center-
based programs, a teaching staff of whom at least 
50 percent have a associate, baccalaureate, or ad-
vanced degree in early child education or a related 
field);
‘‘(7) were not deemed by the Secretary as 
chronically under-enrolled at any time during the 
term for which financial assistance was provided; 
‘‘(8) utilize research-based curricula that are 
aligned with State-developed K–12 academic content 
standards; 
‘‘(9) demonstrate active partnerships with local 
educational agencies serving the same communities 
to facilitate smooth transitions to kindergarten; 
‘‘(10) actively implement a memorandum of un-
derstanding with any local educational agency within 
the service area and additional partnership agree-
ments with organizations that enhance the delivery 
of services to children; 
‘‘(11) demonstrate success in improving child 
outcomes across all domains of development, includ-
ing 
measurable 
progress 
in 
language 
skills, 
prereading knowledge, and premathematics knowl-
edge; 
‘‘(12) maintain classroom environments con-
structive to early learning and future school success; 
‘‘(13) demonstrate strong parental involvement 
and activities to develop parent skills to support 
their children’s educational development and ability
to participate effectively in decisions relating to the 
education of their children; 
‘‘(14) are overseen by a local governance board 
that provides direction and actively oversees all pro-
gram activities; 
‘‘(15) document strong fiscal controls, includ-
ing—
‘‘(A) the employment of well-qualified fis-
cal staff with a history of successful manage-
ment of a public or private organization; 
‘‘(B) having no reportable noncompliance 
with applicable laws and regulations on all an-
nual financial audits performed since the most 
recent designation; 
‘‘(C) meeting or exceeding annual require-
ments for financial support under section 
640(b); and 
‘‘(D) maintaining total administrative costs 
at or below 15 percent of total program costs; 
‘‘(16) are licensed to operate in accordance with 
all applicable State child care regulations; 
‘‘(17) conduct outreach activities to ensure that 
services are provided to the most at-risk families in 
the community;
‘‘(18) have developed strong community part-
nerships with public and private organizations, such 
as businesses, health, and social service providers; 
and 
‘‘(19) provide opportunities for ongoing profes-
sional development.’’. 
(c) DESIGNATION WHEN NO ENTITY HAS PRI-
ORITY.—Section 641(d) of the Head Start Act (43 U.S.C. 
9836(d)) is amended to read as follows: 
‘‘(d) DESIGNATION WHEN NO ENTITY HAS PRI-
ORITY.—
‘‘(1) IN GENERAL.—If no entity in a commu-
nity is entitled to the priority specified in subsection 
(c), the Secretary shall, after conducting an open 
competition, designate a Head Start agency from 
among qualified applicants in such community.’’. 
‘‘(2) CONSIDERATIONS
IN
DESIGNATION.—In 
selecting from among qualified applicants for des-
ignation as a Head Start agency, the Secretary shall 
consider the effectiveness of each such applicant to 
provide Head Start services, based on—
‘‘(A) any past performance of such appli-
cant in providing services comparable to Head 
Start services, including how effectively such 
applicant provided such comparable services;
‘‘(B) the plan of such applicant to provide 
comprehensive health, educational, nutritional, 
social, and other services needed to prepare 
children to succeed in school; 
‘‘(C) the capacity of such applicant to 
serve eligible children with scientifically based 
programs that promote the school readiness of 
children participating in the program; 
‘‘(D) the plan of such applicant to meet 
standards set forth in section 641A(a)(1), with 
particular attention to the standards set forth 
in subparagraphs (A) and (B) of such section; 
‘‘(E) the proposed budget and plan of such 
applicant to maintain strong fiscal controls and 
cost effective fiscal management; 
‘‘(F) the plan of such applicant to coordi-
nate the Head Start program the applicant pro-
poses to carry out with other educational pro-
grams for young children, including—
‘‘(i) the Early Reading First and 
Even Start programs under subparts 2 
and 3 of part B of title I of the Elemen-
tary and Secondary Education Act of 1965 
(20 U.S.C. 6371 et seq., 6381 et seq.);
‘‘(ii) programs under section 619 and 
part C of the Individuals with Disabilities 
Education Act (20 U.S.C. 1419, 1431 et 
seq.); 
‘‘(iii) State prekindergarten programs; 
‘‘(iv) child care programs; 
‘‘(v) the educational programs that 
the children participating in the Head 
Start program involved will enter at the 
age of compulsory school attendance; and 
‘‘(vi) reading readiness programs such 
as those conducted by public and school li-
braries; 
‘‘(G) the plan of such applicant to coordi-
nate the Head Start program that the applicant 
proposes to carry out, with public and private 
entities that are willing to commit resources to 
assist the Head Start program in meeting its 
program needs; 
‘‘(H) the plan of such applicant—
‘‘(i) to seek the involvement of parents 
of children participating in the proposed 
Head Start program, in activities (at home 
and, if practicable, at the location of the 
Head Start program) designed to help
such parents become full partners in the 
education of their children; 
‘‘(ii) to afford such parents the oppor-
tunity to participate in the development 
and overall conduct of the program at the 
local level; 
‘‘(iii) to offer (directly or through re-
ferral to local entities, such as entities car-
rying out Even Start programs under sub-
part 3 of part B of title I of the Elemen-
tary and Secondary Education Act of 1965 
(20 U.S.C. 6381 et seq.), public and school 
libraries, and entities carrying out family 
support programs) to such parents—
‘‘(I) family literacy services; and 
‘‘(II) parenting skills training; 
‘‘(iv) to offer to parents of partici-
pating children, substance abuse coun-
seling (either directly or through referral 
to local entities), including information on 
the effect of drug exposure on infants and 
fetal alcohol syndrome; 
‘‘(v) at the option of such applicant, 
to offer (directly or through referral to 
local entities) to such parents—
‘‘(I) training in basic child devel-
opment (including cognitive develop-
ment); 
‘‘(II) assistance in developing lit-
eracy and communication skills; 
‘‘(III) opportunities to share ex-
periences with other parents (includ-
ing parent mentor relationships); 
‘‘(IV) regular in-home visitation; 
or 
‘‘(V) any other activity designed 
to help such parents become full part-
ners in the education of their children; 
‘‘(vi) to provide, with respect to each 
participating family, a family needs assess-
ment that includes consultation with such 
parents about the benefits of parent in-
volvement and about the activities de-
scribed in subparagraphs (C), (D), and (E) 
in which such parents may choose to be-
come involved (taking into consideration 
their specific family needs, work schedules, 
and other responsibilities); and 
‘‘(vii) to extend outreach to fathers, in 
appropriate cases, in order to strengthen
the role of fathers in families, in the edu-
cation of their young children, and in the 
Head Start program, by working directly 
with fathers and father figures through ac-
tivities such as—
‘‘(I) in appropriate cases, includ-
ing fathers in home visits and pro-
viding opportunities for direct father-
child interactions; and 
‘‘(II) targeting increased male 
participation in the conduct of the 
program; 
‘‘(I) the ability of such applicant to carry 
out the plans described in paragraphs (2), (4), 
and (5); 
‘‘(J) the plan of such applicant to meet the 
needs of non-English background children and 
their families, including procedures to identify 
such children, plans to provide trained per-
sonnel, and plans to provide services to assist 
the children in making progress toward the ac-
quisition of the English language; 
‘‘(K) the plan of such applicant to meet 
the needs of children with disabilities;
‘‘(L) the plan of such applicant who choos-
es to assist younger siblings of children who will 
participate in the Head Start program, to ob-
tain health services from other sources; 
‘‘(M) the plan of such applicant to collabo-
rate with other entities carrying out early child-
hood education and child care programs in the 
community; 
‘‘(N) the plan of such applicant to meet 
the needs of homeless children, including trans-
portation needs, and children in foster care; 
‘‘(O) the plan of such applicant to main-
tain a qualified staff, including a teaching staff 
qualified to implement research-based edu-
cational curricula aligned with State-developed 
K–12 academic content standards; 
‘‘(P) the plan of such applicant to enter 
into memoranda of understanding with local 
educational agencies, child care providers, and 
other entities within the service area; and 
‘‘(Q) other factors related to the require-
ments of this subchapter.’’.
SEC. 8. QUALITY STANDARDS; MONITORING OF HEAD 
START AGENCIES AND PROGRAMS. 
(a) QUALITY STANDARDS.—Section 641A(a) of the 
Head Start Act (42 U.S.C. 9836a(a)) is amended—
(1) by amending paragraph (1)(B)—
(A) in clause (i)—
(i) by inserting ‘‘based on sound sci-
entific evidence’’ after ‘‘standards’’; and 
(ii) by inserting ‘‘and sustained aca-
demic gains’’ after ‘‘readiness’’; and 
(B) by amending clause (ii) to read as fol-
lows: 
‘‘(ii) additional scientifically-based edu-
cation standards to ensure that the children 
participating in the program, at a minimum de-
velop and demonstrate—
‘‘(I) language knowledge and skills, 
including language and listening com-
prehension; 
‘‘(II) prereading knowledge and skills 
that prepare children for early literacy in 
schools, including phonological awareness, 
print awareness, and alphabetic knowledge; 
‘‘(III) premathematics knowledge and 
skills, including aspects of classification,
seriation, number, spatial relations, and 
time; 
‘‘(IV) cognitive abilities related to aca-
demic achievement and child development; 
‘‘(V) social and emotional development 
related to constructive child development, 
early learning, and school success and sus-
tained academic gains; and 
‘‘(VI) in the case of limited-English 
proficient children, progress toward acqui-
sition of the English language while mak-
ing meaningful progress in attaining the 
knowledge, skills, abilities, and develop-
ment described in subclauses (I) through 
(IV);’’; 
(2) in paragraph (2)—
(A) by amending subparagraph (B) to read 
as follows: 
‘‘(B) take into consideration—
‘‘(i) past experience with use of the 
standards in effect under this subchapter 
on October 27, 1998; 
‘‘(ii) changes over the period since Oc-
tober 27, 1998, in the circumstances and
problems typically facing children and fam-
ilies served by Head Start agencies; 
‘‘(iii) developments concerning re-
search based practices with respect to early 
childhood education and development, chil-
dren with disabilities, family services, pro-
gram administration, and financial man-
agement; 
‘‘(iv) projected needs of an expanding 
Head Start program; 
‘‘(v) guidelines and standards cur-
rently in effect or under consideration that 
promote child health services, and pro-
jected needs of expanding Head Start pro-
grams; 
‘‘(vi) changes in the population of 
children who are eligible to participate in 
Head Start programs, including the lan-
guage background and family structure of 
such children; 
‘‘(vii) the need for, and state-of-the-
art developments relating to, local policies 
and activities designed to ensure that chil-
dren participating in Head Start programs
make a successful transition to schools 
that the children will be attending; and 
‘‘(viii) the unique challenges faced by 
individual programs, including those that 
are seasonal or short term, and those that 
serve rural populations; and’’; and 
(B) in subparagraph (C)(ii) by striking 
‘‘the date’’ and all that follows through ‘‘Act 
of’’, and inserting ‘‘October 27, 1998’’; and 
(3) by adding at the end the following: 
‘‘(4) EVALUATIONS AND CORRECTIVE ACTIONS 
FOR DELEGATE AGENCIES.—
‘‘(A) 
PROCEDURES.—The 
Head 
Start 
agency shall establish procedures relating to its 
delegate agencies, including—
‘‘(i) procedures for evaluating delegate 
agencies; 
‘‘(ii) procedures for defunding dele-
gate agencies; and 
‘‘(iii) procedures for appealing a 
defunding decision relating to a delegate 
agency. 
‘‘(B) EVALUATIONS.—Each Head Start 
agency—
‘‘(i) shall evaluate its delegate agen-
cies using the procedures established pur-
suant to this section, including subpara-
graph (A); and 
‘‘(ii) shall inform the delegate agen-
cies of the deficiencies identified through 
the evaluation that shall be corrected. 
‘‘(C) REMEDIES TO ENSURE CORRECTIVE 
ACTIONS.—In the event that the Head Start 
agency identifies a deficiency for a delegate 
agency through the evaluation, the Head Start 
agency may—
‘‘(i) initiate procedures to terminate 
the designation of the agency unless the 
agency corrects the deficiency; 
‘‘(ii) conduct monthly monitoring vis-
its to such delegate agency until all defi-
ciencies are corrected or the Head Start 
agency decides to defund such delegate 
agency; and 
‘‘(iii) release funds to such delegate 
agency only as reimbursements until all de-
ficiencies are corrected or the Head Start 
agency decides to defund such delegate 
agency.
‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to impact 
or obviate the responsibilities of the Secretary 
with respect to Head Start agencies or delegate 
agencies receiving funding under this sub-
chapter.’’. 
(b) RESULTS-BASED PERFORMANCE MEASURES.—
Section 641A(b) of the Head Start Act (42 U.S.C. 
9836a(b)) is amended—
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) CHARACTERISTICS
OF
MEASURES.—The 
performance measures developed under this sub-
section shall—
‘‘(A) be used to assess the impact of the 
various services provided by Head Start pro-
grams and, to the extent the Secretary finds 
appropriate, administrative and financial man-
agement practices of such programs; 
‘‘(B) be adaptable for use in self-assess-
ment, peer review, and program evaluation of 
individual Head Start agencies and programs; 
‘‘(C) be developed for other program pur-
poses as determined by the Secretary;
‘‘(D) be appropriate for the population 
served; and 
‘‘(E) be reviewed no less than every 4 
years, based on advances in the science of early 
childhood development. 
The performance measures shall include the per-
formance 
standards 
described 
in 
subsection 
(a)(1)(A) and (B).’’; and 
(2) by amending subsection (b)(4) to read as 
follows: 
‘‘(4) EDUCATIONAL MEASURES.—Results based 
measures shall be designed for the purpose of pro-
moting the competencies of children participating in 
Head Start programs specified in subsection 
(a)(1)(B)(ii), with an emphasis on measuring those 
competencies that have a strong scientifically-based 
predictability of a child’s school readiness and later 
performance in school.’’. 
(c) MONITORING OF LOCAL AGENCIES AND PRO-
GRAMS.—Section 641A(c) of the Head Start Act (42 
U.S.C. 9836a(c)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph 
(A) by inserting ‘‘develop and utilize a risk-
based assessment system to’’ after ‘‘shall’’;
(B) by amending subparagraph (C) to read 
as follows: 
‘‘(C) Unannounced site inspections of 
Head Start centers, as appropriate.’’; 
(C) by redesignating subparagraph (D) as 
subparagraph (E); and 
(D) by inserting after subparagraph (C) 
the following: 
‘‘(D) Followup reviews including a review 
of programs with citations that include 1 or 
more findings of deficiencies not later than 6 
months after the date of such citation.’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) CONDUCT
OF
REVIEWS.—The Secretary 
shall ensure that reviews described in subparagraphs 
(A) through (C) of paragraph (1)—
‘‘(A) that incorporate a monitoring visit, 
do so without prior notice of the visit to the 
local agency or program; 
‘‘(B) are conducted by review teams com-
posed of individuals who are knowledgeable 
about the program areas they are reviewing 
and, to the maximum extent practicable, the di-
verse (including linguistic and cultural) needs of
eligible children (including children with disabil-
ities) and limited-English proficient children 
and their families; 
‘‘(C) include as part of the reviews of the 
programs, a review and assessment of program 
effectiveness, including strengths and areas for 
improvement, as measured in accordance with 
the results-based performance measures devel-
oped by the Secretary pursuant to subsection 
(b) and with the standards established pursuant 
to subparagraphs (A) and (B) of subsection 
(a)(1); 
‘‘(D) seek information from the commu-
nities and the States involved about the per-
formance of the programs and the efforts of the 
Head Start agencies to collaborate with other 
entities carrying out early childhood education 
and child care programs in the community; 
‘‘(E) seek information from the commu-
nities where Head Start programs exist about 
innovative or effective collaborative efforts, bar-
riers to collaboration, and the efforts of the 
Head Start agencies and programs to collabo-
rate with the entities carrying out early child-
hood education and child care programs in the 
community; 
‘‘(F) include as part of the reviews of the 
programs, a review and assessment of whether 
a program is in conformity with the income eli-
gibility requirements, as defined in section 645 
and regulations promulgated thereunder; 
‘‘(G) include as part of the reviews of the 
programs, a review and assessment of whether 
programs have adequately addressed the popu-
lation and community needs (including popu-
lations of children with a limited English pro-
ficiency and children of migrant and seasonal 
farm-working families); 
‘‘(H) include as part of the review the ex-
tent to which the program addresses the com-
munity needs and strategic plan identified in 
section 640(g)(2)(C); and 
‘‘(I) are conducted in a manner that evalu-
ates program performance, quality, and overall 
operations with consistency and objectivity, and 
based on a transparent and reliable system of 
review.’’.
(d) CORRECTIVE ACTION; TERMINATION.—Section 
641A(d) of the Head Start Act (42 U.S.C. 9836a(d)) is 
amended—
(1) in paragraph (1) by amending the matter 
preceding subparagraph (A) to read as follows: 
‘‘(1) DETERMINATION.—If the Secretary deter-
mines, on the basis of a review pursuant to sub-
section (c), that a Head Start agency designated 
pursuant to section 641 fails to meet the standards 
described in subsection (a) or results-based perform-
ance measures developed by the Secretary under 
subsection (b), or fails to adequately address the 
community needs and strategic plan identified in 
640(g)(2)(C), the Secretary shall—’’; 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) QUALITY IMPROVEMENT PLAN.—
‘‘(A) AGENCY AND PROGRAM RESPONSIBIL-
ITIES.—In order to retain a designation as a 
Head Start agency under this subchapter, or in 
the case of a Head Start Program, in order to 
continue to receive funds from such agency, a 
Head Start agency, or Head Start program 
that is the subject of a determination described 
in paragraph (1) (other than an agency or pro-
gram required to correct a deficiency imme-
diately or during a 90-day period under clause 
(i) or (ii) of paragraph (1)(B)) shall—
‘‘(i) develop in a timely manner, a 
quality improvement plan which shall be 
subject to the approval of the Secretary, or 
in the case of a program, the sponsoring 
agency, and which shall specify—
‘‘(I) the deficiencies to be cor-
rected; 
‘‘(II) the actions to be taken to 
correct such deficiencies; and 
‘‘(III) the timetable for accom-
plishment of the corrective actions 
specified; and 
‘‘(ii) eliminate each deficiency identi-
fied, not later than the date for elimination 
of such deficiency specified in such plan 
(which shall not be later than 1 year after 
the date the agency or program received 
notice of the determination and of the spe-
cific deficiency to be corrected). 
‘‘(B) SECRETARIAL RESPONSIBILITY.—Not 
later than 30 days after receiving from a Head 
Start agency a proposed quality improvement
plan pursuant to subparagraph (A), the Sec-
retary shall either approve such proposed plan 
or specify the reasons why the proposed plan 
cannot be approved. 
‘‘(C) AGENCY RESPONSIBILITY FOR PRO-
GRAM IMPROVEMENT.—Not later than 30 days 
after receiving from a Head Start program, a 
proposed quality improvement plan pursuant to 
subparagraph (A), the sponsoring agency shall 
either approve such proposed plan or specify 
the reasons why the proposed plan cannot be 
approved.’’; 
(3) in paragraph (3) by inserting ‘‘and pro-
grams’’ after ‘‘agencies’’; 
(4) by amending subsection (e) to read as fol-
lows: 
‘‘(e) SUMMARIES OF MONITORING OUTCOMES.—Not 
later than 120 days after the end of each fiscal year, the 
Secretary shall publish a summary report on the findings 
of reviews conducted under subsection (c) and on the out-
comes of quality improvement plans implemented under 
subsection (d), during such fiscal year. Such information 
shall be made available to all parents with children receiv-
ing assistance under this subchapter in a understandable 
and uniform format, and to the extent practicable, pro-
vided in a language that the parents can understand, and 
in addition, make the information widely available through 
public means such as distribution through public agencies, 
and at a minimum posting such information on the Inter-
net immediately upon publication.’’; and 
(5) by adding at the end the following: 
‘‘(f) REDUCTION OF GRANTS AND REDISTRIBUTION 
OF FUNDS IN CASES OF UNDER-ENROLLMENT.—
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ACTUAL
ENROLLMENT.—The term 
‘actual enrollment’ means, with respect to the 
program of a Head Start agency, the actual 
number of children enrolled in such program 
and reported by the agency (as required in 
paragraph (2)) in a given month. 
‘‘(B) BASE GRANT.—The term ‘base grant’ 
means, with respect to a Head Start agency for 
a fiscal year, that portion of the grant de-
rived—
‘‘(i) from amounts reserved for use in 
accordance with section 640(a)(2)(A), for a 
Head Start agency administering an In-
dian Head Start program or migrant and 
seasonal Head Start program;
‘‘(ii) from amounts reserved for pay-
ments under section 640(a)(2)(B); or 
‘‘(iii) from amounts available under 
section 640(a)(2)(D) or allotted among 
States under section 640(a)(4). 
‘‘(C) FUNDED
ENROLLMENT.—The term 
‘funded enrollment’ means, with respect to the 
program of a Head Start agency in a fiscal 
year, the number of children that the agency is 
funded to serve through a grant for the pro-
gram during such fiscal year, as indicated in 
the grant agreement. 
‘‘(2) ENROLLMENT REPORTING REQUIREMENT 
FOR CURRENT FISCAL YEAR.—Each entity carrying 
out a Head Start program shall report on a monthly 
basis to the Secretary and the relevant Head Start 
agency—
‘‘(A) the actual enrollment in such pro-
gram; and 
‘‘(B) if such actual enrollment is less than 
the funded enrollment, any apparent reason for 
such enrollment shortfall. 
‘‘(3) SECRETARIAL
REVIEW
AND
PLAN.—The 
Secretary shall—
‘‘(A) on a semiannual basis, determine 
which Head Start agencies are operating with 
an actual enrollment that is less than the fund-
ed enrollment based on not less than 4 consecu-
tive months of data; 
‘‘(B) for each such Head Start agency op-
erating a program with an actual enrollment 
that is less than 98 percent of its funded enroll-
ment, as determined under subparagraph (A), 
develop, in collaboration with such agency, a 
plan and timetable for reducing or eliminating 
under-enrollment taking into consideration—
‘‘(i) the quality and extent of the out-
reach, recruitment, and community needs 
assessment conducted by such agency; 
‘‘(ii) changing demographics, mobility 
of populations, and the identification of 
new underserved low-income populations; 
‘‘(iii) facilities-related issues that may 
impact enrollment; 
‘‘(iv) the ability to provide full-day 
programs, where needed, through Head 
Start funds or through collaboration with 
entities carrying out other preschool or
child care programs, or programs with 
other funding sources (where available); 
‘‘(v) the availability and use by fami-
lies of other preschool and child care op-
tions (including parental care) in the local 
catchment area; and 
‘‘(vi) agency management procedures 
that may impact enrollment; and 
‘‘(C) provide timely and ongoing technical 
assistance to each agency described in subpara-
graph (B) for the purpose of implementing the 
plan described in such subparagraph. 
‘‘(4) IMPLEMENTATION.—Upon receipt of the 
technical assistance described in paragraph (3)(C), a 
Head Start agency shall immediately implement the 
plan described in paragraph (3)(B). 
‘‘(5) SECRETARIAL
ACTION
FOR
CONTINUED 
UNDER-ENROLLMENT.—If, 1 year after the date of 
implementation of the plan described in paragraph 
(3)(B), the Head Start agency continues to operate 
a program at less than full enrollment, the Secretary 
shall, where determined appropriate, continue to 
provide technical assistance to such agency. 
‘‘(6) SECRETARIAL REVIEW AND ADJUSTMENT 
FOR CHRONIC UNDER-ENROLLMENT.—
‘‘(A) IN
GENERAL.—If, after receiving 
technical assistance and developing and imple-
menting a plan to the extent described in para-
graphs (3), (4), and (5) for 6 months, a Head 
Start agency is still operating a program with 
an actual enrollment that is less than 98 per-
cent of its funded enrollment, the Secretary 
may—
‘‘(i) designate such agency as chron-
ically under-enrolled; and 
‘‘(ii) recapture, withhold, or reduce 
the base grant for the program by, a per-
centage equal to the percentage difference 
between funded enrollment and actual en-
rollment for the program for the most re-
cent year in which the agency is deter-
mined to be under-enrolled under para-
graph (2)(B). 
‘‘(B) WAIVER OR LIMITATION OF REDUC-
TIONS.—If the Secretary, after the implementa-
tion of the plan described in paragraph (3)(B), 
finds that—
‘‘(i) the shortfall can reasonably be 
expected to be temporary; or
‘‘(ii) the number of slots allotted to 
the agency is small enough that under-en-
rollment does not constitute a significant 
shortfall, 
the Secretary may, as appropriate, waive or re-
duce the percentage recapturing, withholding, 
or reduction otherwise required by subpara-
graph (A). 
‘‘(C) PROCEDURAL
REQUIREMENTS; EF-
FECTIVE DATE.—The actions taken by the Sec-
retary under this paragraph with respect to a 
Head Start agency shall take effect 1 day after 
the date on which—
‘‘(i) the time allowed for appeal under 
section 646(a) expires without an appeal 
by the agency; or 
‘‘(ii) the action is upheld in an admin-
istrative hearing under section 646. 
‘‘(7) REDISTRIBUTION OF FUNDS.—
‘‘(A) IN
GENERAL.—The Secretary shall 
use amounts recovered from a Head Start agen-
cy through recapturing, withholding, or reduc-
tion under paragraph (6) in a fiscal year—
‘‘(i) in the case of a Head Start agen-
cy administering an Indian Head Start
program or a migrant and seasonal Head 
Start program, whose base grant is derived 
from amounts specified in paragraph 
(1)(C)(i), to redirect funds to 1 or more 
agencies that—
‘‘(I) 
are 
administering 
Head 
Start programs serving the same spe-
cial population; and 
‘‘(II) demonstrate that the agen-
cies will use such redirected funds to 
increase enrollment in their Head 
Start programs in such fiscal year; or 
‘‘(ii) in the case of a Head Start agen-
cy in a State, whose base grant is derived 
from amounts specified in clause (ii) or 
(iii) of paragraph (1)(C), to redirect funds 
to 1 or more agencies that—
‘‘(I) 
are 
administering 
Head 
Start programs in the same State; 
and 
‘‘(II) make the demonstration de-
scribed in clause (i)(II). 
‘‘(B) SPECIAL RULE.—If there is no agen-
cy located in a State that meets the require-
ments of subclauses (I) and (II) of subpara-
graph (A)(ii), the Secretary shall use amounts 
described in subparagraph (A) to redirect funds 
to Head Start agencies located in other States 
that make the demonstration described in sub-
paragraph (A)(i)(II). 
‘‘(C) ADJUSTMENT TO FUNDED ENROLL-
MENT.—The Secretary shall adjust as necessary 
the requirements relating to funded enrollment 
indicated in the grant agreement of a Head 
Start agency receiving redistributed amounts 
under this paragraph.’’. 
SEC. 9. POWERS AND FUNCTIONS OF HEAD START AGEN-
CIES. 
(a) QUALIFICATIONS
FOR DESIGNATION.—Section 
642(b) of the Head Start Act (42 U.S.C. 9837(b)) is 
amended to read as follows: 
‘‘(b) In order to be so designated, a Head Start agen-
cy shall do all of the following:—
‘‘(1) Establish a program with standards set 
forth in section 641A(a)(1), with particular atten-
tion to the standards set forth in subparagraphs (A) 
and (B) of such section. 
‘‘(2) Demonstrate capacity to serve eligible chil-
dren with scientifically-based curricula and other
interventions that help promote the school readiness 
of children participating in the program. 
‘‘(3) Establish effective procedures by which 
parents and area residents concerned will be enabled 
to directly participate in decisions that influence the 
character of programs affecting their interests.
‘‘(4) Establish an independent board of direc-
tors selected from among eligible individuals who 
shall serve on the board without compensation. An 
individual who has a conflict of interest is ineligible 
to serve as a member of the board. Members of the 
board shall include parents of children participating 
in the Head Start program and representatives of 
the local community (including at least 1 member 
with significant financial management or accounting 
experience). Additional members shall be selected for 
their expertise in education, business administration, 
community affairs, government, legal affairs, and 
such other areas of expertise as may contribute to 
effective governance of the Head Start agency. All 
members of the board shall receive training in the 
management responsibilities and obligations, ethics, 
and financial literacy and management, and shall 
adopt practices that assure active, independent and 
informed governance of the Head Start agency, in-
cluding independent oversight of the financial and 
management practices of such agency. The board 
shall operate as an entity independent of staff em-
ployed by the Head start agency, entity, or applicant 
and have the following duties and responsibilities: 
‘‘(A) To provide independent oversight to 
ensure that the Head Start agency is delivering 
high quality services to children and families in 
compliance with all applicable standards in ef-
fect under this subchapter and with the applica-
ble performance measures established by the 
Secretary under section 644. 
‘‘(B) To establish 2 or more standing com-
mittees to facilitate governance of the Head 
Start agency which shall include both of the fol-
lowing: 
‘‘(i) A finance committee whose pri-
mary responsibility shall be—
‘‘(I) to develop and recommend 
annually the operating budget of the 
Head Start agency; 
‘‘(II) to review and recommend 
to the board the selection or termi-
nation of independent auditors (or the
extension of existing audit firm) at 
least once every 4 years; 
‘‘(III) to review and advise the 
board of the audit management letter 
provided pursuant to the chapter 75 
of title 31 of the United States Code, 
and of any audit findings; and 
‘‘(IV) to monitor agency actions 
to correct any such audit findings or 
other actions necessary to comply with 
applicable laws (including regulations) 
governing financial statements and ac-
counting practices. 
‘‘(ii) A policy committee, a majority of 
whose representatives shall be parents of 
children participating in a Head Start pro-
gram or in an Early Head Start program, 
or of children who participated in a Head 
Start program or in an Early Head Start 
program in the then most recent 5-year pe-
riod preceding the selection of the par-
ticular representative involved, and whose 
primary responsibility shall be to serve as 
a link between parents and the Board of
Directors and to make recommendations 
on—
‘‘(I) the strategic direction of the 
program, including long and short-
term planning goals and objectives; 
‘‘(II) program operation policies, 
including standards of conduct for 
program staff and volunteers; and 
‘‘(III) activities to support the 
active involvement of parents in sup-
porting program operations. 
‘‘(C) To approve the selection and dis-
missal of the Head Start director, and to review 
annually the human resources available to en-
sure the effective operation of the Head Start 
agency. 
‘‘(D) To review and approve the major 
operational policies of the Head Start agency, 
including policies addressing accounting, finan-
cial management, procurement, record confiden-
tiality, and personnel (including specific stand-
ards governing salaries, salary adjustments, 
travel and per diem allowances, and other em-
ployee benefits).