146 
(A) are coordinated with local educational 
agencies serving children who are members of the 
tribe; and 
(B) include American Indian and Alaska 
Native Head Start and Early Head Start pro-
grams, tribal child care programs, Indian 
Health Service programs, and other tribal pro-
grams serving children. 
(3) QUALITY PATHWAYS GRANTS.— 
(A) IN GENERAL.—From the amount made 
available to carry out this title for a fiscal year 
and not reserved under paragraph (1) or (2), the 
Secretary shall reserve a percent (which shall be 
not greater than 65 percent for fiscal years 2010 
through 2012 and not greater than 85 percent 
for fiscal year 2013 and each succeeding fiscal 
year) determined under subparagraph (B) to 
carry out subsection (a). 
(B) DETERMINATION OF AMOUNT.—In de-
termining the amount to reserve under subpara-
graph (A), the Secretary, consistent with section 
403(e), shall take into account the following: 
(i) The total number of States deter-
mined by the Secretary to qualify for re-
ceipt of a grant under this title for the year. 
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(ii) The number of children under age 
5 from low-income families in each State 
with an approved application under section 
403 for the year. 
(C) REALLOCATION.—For fiscal year 2013 
and subsequent fiscal years, the Secretary may 
reallocate funds allocated for development grants 
under subsection (b) for the purpose of providing 
additional grants under subsection (a), if the 
Secretary determines that there is an insufficient 
number of applications that meet the require-
ments for a grant under subsection (b). 
(d) STATE APPLICATIONS.—In applying for a grant 
under this title, a State— 
(1) shall designate a State-level entity for ad-
ministration of the grant; 
(2) shall coordinate proposed activities with the 
State Advisory Council on Early Childhood Edu-
cation and Care (established pursuant to section 
642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
9837b(b)(1)(A))) and shall incorporate plans and rec-
ommendations from such Council in the application, 
where applicable; and 
(3) otherwise shall submit the application to the 
Secretary at such time, in such manner, and con-
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taining such information as the Secretary may rea-
sonably require. 
(e) PRIORITY IN AWARDING GRANTS.—In awarding 
grants under this title, the Secretary shall give priority to 
States— 
(1) whose applications contain assurances that 
the State will use, in part, funds reserved under sec-
tion 658G of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858e) for activities de-
scribed in section 403(f); 
(2) that will commit to dedicating a significant 
increase, in comparison to recent fiscal years, in 
State expenditures on early learning programs and 
services; and 
(3) that demonstrate efforts to build public-pri-
vate partnerships designed to accomplish the purposes 
of this title. 
(f) MAINTENANCE OF EFFORT.— 
(1) IN GENERAL.—With respect to each period 
for which a State is awarded a grant under this title, 
the aggregate expenditures by the State and its polit-
ical subdivisions on early learning programs and 
services shall be not less than the level of the expendi-
tures for such programs and services by the State and 
its political subdivisions for fiscal year 2006. 
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(2) STATE
EXPENDITURES.—For purposes of 
paragraph (1), expenditures by the State on early 
learning programs and services shall include, at a 
minimum, the following: 
(A) State matching and maintenance of ef-
fort funds for the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.). 
(B) State matching funds for the State Ad-
visory Council on Early Childhood Education 
and Care (established pursuant to section 
642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
9837b(b)(1)(A))). 
(C) State expenditures on public pre-kinder-
garten, Head Start (including Early Head 
Start), and other State early learning programs 
and services dedicated to children (including 
State expenditures under part C of the Individ-
uals with Disabilities Education Act (20 U.S.C. 
1431 et seq.)). 
(g) PROHIBITIONS ON USE OF FUNDS.—Funds under 
this title may not be used for any of the following: 
(1) Assessments that provide rewards or sanc-
tions for individual children or teachers. 
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(2) A single assessment used as the primary or 
sole method for assessing program effectiveness. 
(3) Evaluating children other than for— 
(A) improving instruction or classroom en-
vironment; 
(B) targeting professional development; 
(C) determining the need for health, mental 
health, disability, or family support services; 
(D) informing the quality improvement 
process at the State level; 
(E) program evaluation for the purposes of 
program improvement and parent information; 
or 
(F) research conducted as part of the na-
tional evaluation required by section 405(2). 
(h) FEDERAL ADMINISTRATION.— 
(1) IN GENERAL.—With respect to this title, the 
Secretary shall bear responsibility for obligating and 
disbursing funds and ensuring compliance with ap-
plicable laws and administrative requirements, sub-
ject to paragraph (2). 
(2) INTERAGENCY AGREEMENT.—The Secretary 
of Education and the Secretary of Health and 
Human Services shall jointly administer this title on 
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such terms as such secretaries shall set forth in an 
interagency agreement. 
SEC. 403. QUALITY PATHWAYS GRANTS. 
(a) GRANT PERIOD.—Grants under section 402(a)— 
(1) may be awarded for a period not to exceed 
5 years; and 
(2) may be renewed, subject to approval by the 
Secretary, and based on the State’s progress in— 
(A) increasing the percentage of disadvan-
taged children in each age group (infants, tod-
dlers, and preschoolers) who participate in high- 
quality early learning programs; 
(B) increasing the number of high-quality 
early learning programs in low-income commu-
nities; 
(C) implementing an early learning system 
that includes the components described in sub-
section (c)(3); and 
(D) incorporating the findings and rec-
ommendations reported by the commission estab-
lished under section 405(1) into the State system 
of early learning. 
(b) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—Subject to subsection (g), to be 
eligible to receive a grant under section 402(a), a 
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State shall contribute to the activities assisted under 
the grant non-Federal matching funds in an amount 
equal to not less than the applicable percent of the 
amount of the grant. 
(2) APPLICABLE
PERCENT.—For purposes of 
paragraph (1), the applicable percent means— 
(A) 10 percent in the first fiscal year of the 
grant; 
(B) 10 percent in the second fiscal year of 
the grant; 
(C) 15 percent in the third fiscal year of the 
grant; and 
(D) 20 percent in the fourth fiscal year of 
the grant and subsequent fiscal years. 
(3) NON-FEDERAL FUNDS.—A State may use the 
following to satisfy the requirement of paragraph (1): 
(A) Cash. 
(B) In-kind contributions for the acquisi-
tion, construction, or improvement of early 
learning program facilities serving disadvan-
taged children. 
(C) Technical assistance related to subpara-
graph (B). 
(4) PRIVATE CONTRIBUTIONS.—Private contribu-
tions made as part of public-private partnerships to 
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increase the number of low-income children in high- 
quality early learning programs in a State may be 
used by the State to satisfy the requirement of para-
graph (1). 
(5) FINANCIAL
HARDSHIP
WAIVER.—The Sec-
retary may waive or reduce the non-Federal share of 
a State that has submitted an application for a grant 
under section 402(a) if the State demonstrates a need 
for such waiver or reduction due to extreme financial 
hardship, as defined by the Secretary by regulation. 
(c) STATE APPLICATIONS.—In order to be considered 
for a grant under section 402(a), a State’s application 
under section 402(d) shall include the following: 
(1) A description of how the State will use the 
grant to implement quality initiatives to improve 
early learning programs serving disadvantaged chil-
dren from birth to age 5 to lead to a greater percent-
age of such children participating in higher quality 
early learning programs. 
(2) A description of the goals and benchmarks 
the State will establish to lead to a greater percentage 
of disadvantaged children participating in higher 
quality early learning programs to improve school 
readiness outcomes, including an established baseline 
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of the number of disadvantaged children in high-qual-
ity early learning programs. 
(3) A description of how the State will imple-
ment a governance structure and a system of early 
learning programs and services that includes the fol-
lowing components: 
(A) Not later than 12 months after receiv-
ing notice of an award of the grant, complete 
State early learning and development standards 
that include social and emotional, cognitive, and 
physical development domains, and approaches 
to learning that are developmentally appropriate 
(including culturally and linguistically appro-
priate) for all children. 
(B) A process to ensure that State early 
learning and development standards are inte-
grated into the instructional and programmatic 
practices of early learning programs and serv-
ices, including services provided to children 
under section 619 and part C of the Individuals 
with Disabilities Education Act (20 U.S.C. 1419, 
1431 et seq.). 
(C) A program rating system that builds on 
licensing requirements, as appropriate, and other 
State regulatory standards and that— 
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(i) is designed to improve quality and 
effectiveness across different types of early 
learning settings; 
(ii) integrates evidence-based program 
quality standards that reflect standard lev-
els of quality and has progressively higher 
levels of program quality; 
(iii) integrates the State’s early learn-
ing and development standards for the pur-
pose of improving instructional and pro-
grammatic practices; 
(iv) addresses quality and effective in-
clusion of children with disabilities or devel-
opmental delays across different types of 
early learning settings; 
(v) addresses staff qualifications and 
professional development; 
(vi) provides financial incentives and 
other supports to help programs meet and 
sustain higher levels of quality; 
(vii) includes mechanisms for evalu-
ating how programs are meeting those 
standards and progressively higher levels of 
quality; and 
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(viii) includes a mechanism for public 
awareness and understanding of the pro-
gram rating system, including rating levels 
of individual programs. 
(D) A system of program review and moni-
toring that is designed to rate providers using 
the system described in subparagraph (C) and to 
assess and improve programmatic practices, in-
structional practices, and classroom environ-
ment. 
(E) A process to support early learning pro-
grams 
integrating 
instructional 
and 
pro-
grammatic practices that— 
(i) include developmentally appro-
priate (including culturally and linguis-
tically appropriate), ongoing, classroom- 
based instructional assessments for each do-
main of child development and learning 
(including social and emotional, cognitive, 
and physical development domains and ap-
proaches to learning) to guide and improve 
instructional practice, professional develop-
ment of staff, and services; and 
(ii) are aligned with the curricula used 
in the early learning program and with the 
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State early learning and development 
standards or the Head Start Child Out-
comes Framework (as described in the Head 
Start Act), as applicable. 
(F) Minimum preservice early childhood de-
velopment and education training requirements 
for providers in early learning programs. 
(G) A comprehensive plan for supporting 
the professional preparation and the ongoing 
professional development of an effective, well- 
compensated early learning workforce, which 
plan includes training and education that is sus-
tained, intensive, and classroom-focused and 
leads toward a credential or degree and is tied 
to improved compensation. 
(H) An outreach strategy to promote under-
standing by parents and families of— 
(i) how to support their child’s early 
development and learning; 
(ii) the State’s program rating system, 
as described in subparagraph (C); and 
(iii) the rating of the program in 
which their child is enrolled. 
(I) A coordinated system to facilitate 
screening, referral, and provision of services re-
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lated to health, mental health, disability, and 
family support for children participating in 
early learning programs. 
(J) A process for evaluating school readiness 
in children that reflects all of the major domains 
of development, and that is used to guide prac-
tice and improve early learning programs. 
(K) A coordinated data infrastructure that 
facilitates— 
(i) uniform data collection about the 
quality of early learning programs, essen-
tial information about the children and 
families that participate in such programs, 
and the qualifications and compensation of 
the early learning workforce in such pro-
grams; and 
(ii) alignment and interoperability be-
tween the data system for early learning 
programs for children and data systems for 
elementary and secondary education. 
(4) A description of how the funds provided 
under the grant will be targeted to prioritize increas-
ing the number and percentage of low-income children 
in high-quality early learning programs, including 
children— 
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(A) in each age group (infants, toddlers, 
and preschoolers); 
(B) with developmental delays and disabil-
ities; 
(C) with limited English proficiency; and 
(D) living in rural areas. 
(5) An assurance that the grant will be used to 
improve the quality of early learning programs across 
a range of types of settings and providers of such pro-
grams. 
(6) A description of the steps the State will take 
to make progress toward including all center-based 
child care programs, family child care programs, 
State-funded prekindergarten, Head Start programs, 
and other early learning programs, such as those 
funded under title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.) or re-
ceiving funds under section 619 or part C of the Indi-
viduals with Disabilities Education Act (20 U.S.C. 
1419, 1431 et seq.) in the State program rating sys-
tem described in paragraph (3)(C). 
(7) An assurance that the State, not later than 
18 months after receiving notice of an award of the 
grant, will conduct an analysis of the alignment of 
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the State’s early learning and development standards 
with— 
(A) appropriate academic content standards 
for grades kindergarten through 3; and 
(B) elements of program quality standards 
for early learning programs. 
(8) An assurance that the grant will be used only 
to supplement, and not to supplant, Federal, State, 
and local funds otherwise available to support exist-
ing early learning programs and services. 
(9) A description of any disparity by age group 
(infants, toddlers, and preschoolers) of available high- 
quality early learning programs in low-income com-
munities and the steps the State will take to decrease 
such disparity, if applicable. 
(10) A description of how the State early learn-
ing and development standards will address the needs 
of children with limited English proficiency, includ-
ing by incorporating benchmarks related to English 
language development. 
(11) A description of how the State’s professional 
development plan will prepare the early learning 
workforce to support the early learning needs of chil-
dren with limited English proficiency. 
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(12) A description of how the State will improve 
interagency collaboration and coordinate the purposes 
of this title with the activities funded under— 
(A) section 658G of the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C. 
9858e); 
(B) section 619 and part C of the Individ-
uals with Disabilities Education Act (20 U.S.C. 
1419, 1431 et seq.); 
(C) title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.); 
(D) 
State-funded 
pre-kindergarten 
pro-
grams (where applicable); 
(E) Head Start programs; and 
(F) other early childhood programs and 
services. 
(13) A description of how the State’s early learn-
ing policies, including child care policies, facilitate 
access to high-quality early learning programs for 
children from low-income families. 
(14) An assurance that the State will continue to 
participate in part C of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1431 et seq.) for the 
duration of the grant. 
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(d) CRITERIA
USED
IN
AWARDING
GRANTS.—In 
awarding grants under section 402(a), the Secretary shall 
evaluate the applications, and award grants under such sec-
tion on a competitive basis, based on— 
(1) the quality of the application submitted pur-
suant to section 402(d); 
(2) the priority factors described in section 
402(e); 
(3) evidence of significant progress in estab-
lishing a system of early learning for children that 
includes the components described in subsection 
(c)(3); and 
(4) the State’s capacity to fully complete imple-
mentation of such a system. 
(e) CRITERION USED IN DETERMINING AMOUNT OF 
AWARD.—In determining the amount to award a State 
under section 402(a), the Secretary shall take into ac-
count— 
(1) the proportion of children under age 5 from 
low-income families in the State relative to such pro-
portion in other States; and 
(2) the State plan and capacity to implement 
the criteria described in paragraphs (3) and (4) of 
subsection (d). 
(f) STATE USES OF FUNDS.— 
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(1) IN
GENERAL.—A State receiving a grant 
under section 402(a) shall use the grant as follows: 
(A) Not less than 65 percent of the grant 
amount shall be used for two or more of the fol-
lowing activities to improve the quality of early 
learning programs serving disadvantaged chil-
dren: 
(i) Initiatives that improve the creden-
tials of early learning providers and are 
tied to increased compensation. 
(ii) Initiatives that help early learning 
programs meet and sustain higher program 
quality standards, such as— 
(I) improving the ratio of early 
learning provider to children in early 
learning settings; 
(II) reducing group size; 
(III) improving the qualifications 
of early learning providers; and 
(IV) 
supporting 
effective 
edu-
cation and training for early learning 
providers. 
(iii) Implementing classroom observa-
tion assessments and data-driven decisions 
(which may include implementation of a re-
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search-based prevention and intervention 
framework designed to build social com-
petence and prevent challenging behaviors) 
tied to activities that improve instructional 
practices, programmatic practices, or class-
room environment and promote school read-
iness. 
(iv) Providing financial incentives to 
early learning programs— 
(I) for undertaking quality im-
provements that promote healthy devel-
opment and school readiness; and 
(II) 
maintaining 
quality 
im-
provements that promote healthy devel-
opment and school readiness. 
(v) Integrating State early learning 
and development standards into instruc-
tional and programmatic practices in early 
learning programs. 
(vi) Providing high-quality, sustained, 
intensive, and classroom-focused profes-
sional development that improves the knowl-
edge and skills of early learning providers, 
including professional development related 
to meeting the needs of diverse populations. 
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(vii) Building the capacity of early 
learning programs and communities to pro-
mote the understanding of parents and fam-
ilies of the State’s early learning system 
and the rating of the program in which 
their child is enrolled and to encourage the 
active involvement and engagement of par-
ents and families in the learning and devel-
opment of their children. 
(viii) Building the capacity of early 
learning programs and communities to fa-
cilitate screening, referral, and provision of 
services related to health, mental health, dis-
ability, and family support for children 
participating in early learning programs. 
(ix) Other innovative activities, pro-
posed by the State and approved in advance 
by the Secretary that are— 
(I) based on successful practices; 
(II) designed to improve the qual-
ity of early learning programs and 
services; and 
(III) advance the system compo-
nents described in subsection (c)(3). 
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(B) The remainder of the grant amount 
may be used for one or more of the following: 
(i) Implementation or enhancement of 
the State’s data system described in sub-
section (c)(3)(K), including interoperability 
across agencies serving children, and unique 
child and program identifiers. 
(ii) Enhancement of the State’s over-
sight system for early learning programs, 
including the implementation of a program 
rating system. 
(iii) The development and implementa-
tion of measures of school readiness of chil-
dren that reflect all of the major domains of 
child development and that inform the qual-
ity improvement process. 
(2) PRIORITY.—A State receiving a grant under 
section 402(a) shall use the grant so as to prioritize 
improving the quality of early learning programs 
serving children from low-income families. 
(g) SPECIAL RULE.— 
(1) IN GENERAL.—Beginning with the second fis-
cal year of a grant under section 402(a), a State with 
respect to which the Secretary certifies that the State 
has made sufficient progress in implementing the re-
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quirements of the grant may apply to the Secretary 
to reserve up to 25 percent of the amount of the grant 
to expand access for children from low-income fami-
lies to the highest quality early learning programs 
that offer full-day services, except that the State must 
agree to contribute for such purpose non-Federal 
matching funds in an amount equal to not less than 
20 percent of the amount reserved under this sub-
section. One-half of such non-Federal matching funds 
may be provided by a private entity. 
(2) NON-FEDERAL FUNDS.—A State may use the 
following to satisfy the matching requirement of para-
graph (1): 
(A) Cash. 
(B) In-kind contributions for the acquisi-
tion, construction, or improvement of early 
learning program facilities serving disadvan-
taged children. 
(C) Technical assistance related to subpara-
graph (B). 
(3) FINANCIAL
HARDSHIP
WAIVER.—The Sec-
retary may waive or reduce the non-Federal share of 
a State under paragraph (1) if the State dem-
onstrates a need for such waiver or reduction due to 
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extreme financial hardship, as defined by the Sec-
retary by regulation. 
(h) IMPROVEMENT PLAN.—If the Secretary determines 
that a State receiving a grant under section 402(a) is en-
countering barriers to reaching goals described in subsection 
(c)(2), the State shall develop a plan for improvement in 
consultation with, and subject to approval by, the Sec-
retary. 
SEC. 404. DEVELOPMENT GRANTS. 
(a) GRANT PERIOD.—Grants under section 402(b) 
may be awarded for a period not to exceed 3 years, and 
may not be renewed. 
(b) STATE USES OF FUNDS.— 
(1) IN
GENERAL.—A State receiving a grant 
under section 402(b) shall use the grant to undertake 
activities to develop the early learning system compo-
nents described in section 403(c)(3) and that will 
allow a State to become eligible and competitive for 
a grant described in section 402(a). 
(2) PRIORITY.—A State receiving a grant under 
section 402(b) shall use the grant so as to prioritize 
improving the quality of early learning programs 
serving low-income children. 
(c) MATCHING REQUIREMENT.— 
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(1) IN
GENERAL.—To be eligible to receive a 
grant under section 402(b), a State shall contribute to 
the activities assisted under the grant non-Federal 
matching funds in an amount equal to not less than 
the applicable percent of the amount of the grant. 
(2) APPLICABLE
PERCENT.—For purposes of 
paragraph (1), the applicable percent means— 
(A) 20 percent in the first fiscal year of the 
grant; 
(B) 25 percent in the second fiscal year of 
the grant; and 
(C) 30 percent in the third fiscal year of the 
grant. 
(3) NON-FEDERAL FUNDS.—A State may use the 
following to satisfy the requirement of paragraph (1): 
(A) Cash. 
(B) In-kind contributions for the acquisi-
tion, construction, or improvement of early 
learning program facilities serving disadvan-
taged children. 
(C) Technical assistance related to subpara-
graph (B). 
(4) PRIVATE CONTRIBUTIONS.—Private contribu-
tions made as part of public-private partnerships to 
increase the number of low-income children in high- 
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quality early learning programs in a State may be 
used by the State to satisfy the requirement of para-
graph (1). 
(5) FINANCIAL
HARDSHIP
WAIVER.—The Sec-
retary may waive or reduce the non-Federal share of 
a State that has submitted an application for a grant 
under section 402(b) if the State demonstrates a need 
for such waiver or reduction due to extreme financial 
hardship, as defined by the Secretary by regulation. 
SEC. 405. RESEARCH AND EVALUATION. 
From funds reserved under section 402(c)(1), the Sec-
retary of Education and the Secretary of Health and 
Human Services, acting jointly, shall carry out the fol-
lowing activities: 
(1) Establishing a national commission whose 
duties shall include— 
(A) reviewing the status of State and Fed-
eral early learning program quality standards 
and early learning and development standards; 
(B) recommending benchmarks for program 
quality standards and early learning and devel-
opment standards, including taking into consid-
eration the school readiness needs of children 
with limited English proficiency; and 
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(C) reporting to the Secretaries of Edu-
cation and Health and Human Services not 
later than 2 years after the date of the enactment 
of this Act on the commission’s findings and rec-
ommendations. 
(2) Conducting a national evaluation of the 
grants made under this title through the Institute of 
Education Science in collaboration with the appro-
priate research divisions within the Department of 
Health and Human Services. 
(3) Supporting a research collaborative among 
the Institute of Education Sciences, the National In-
stitute of Child Health and Human Development, the 
Office of Planning, Research, and Evaluation within 
the Administration for Children and Families in the 
Department of Health and Human Services, and, as 
appropriate, other Federal entities to support research 
on early learning that can inform improved State 
and other standards and licensing requirements and 
improved child outcomes, which collaborative shall— 
(A) biennially prepare and publish for pub-
lic comment a detailed research plan; 
(B) support early learning research activi-
ties that could include determining— 
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(i) the characteristics of early learning 
programs that produce positive develop-
mental outcomes for children; 
(ii) the effects of program quality 
standards on child outcomes; 
(iii) the relationships between specific 
interventions and types of child and family 
outcomes; 
(iv) the effectiveness of early learning 
provider training in raising program qual-
ity and improving child outcomes; 
(v) the effectiveness of professional de-
velopment strategies in raising program 
quality and improving child outcomes; and 
(vi) how to improve the school readi-
ness outcomes of children with limited 
English proficiency, special needs, and 
homeless children, including evaluation of 
professional 
development 
programs 
for 
working with such children; and 
(C) disseminate relevant research findings 
and best practices. 
(4) Evaluating barriers to improving the quality 
of early learning programs serving low-income chil-
dren, including evaluating barriers to successful 
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interagency collaboration and coordination, by con-
ducting a review of the statewide strategic reports de-
veloped by the State Advisory Councils on Early Care 
and Education and other relevant reports, reporting 
the findings of such review to Congress, and dissemi-
nating relevant research findings and best practices. 
SEC. 406. REPORTING REQUIREMENTS. 
(a) REPORTS TO CONGRESS.—For each year in which 
funding is provided under this title, the Secretary shall sub-
mit an annual report to the Committee on Education and 
Labor of the House of Representatives and the Committee 
on Health, Education, Labor and Pensions of the Senate 
on the activities carried out under this title, including, at 
a minimum, information on the following: 
(1) The activities undertaken by States to in-
crease the availability of high-quality early learning 
programs. 
(2) The number of children in high-quality early 
learning programs, and the change from the prior 
year, disaggregated by State, age, and race. 
(3) The number of early learning providers en-
rolled, with assistance from funds under this title, in 
a program to obtain a credential or degree in early 
childhood education and the settings in which such 
providers work. 
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(4) A summary of State progress in imple-
menting a system of early learning with the compo-
nents described in section 403(c)(3). 
(5) A summary of the research activities being 
conducted under section 405 and the findings of such 
research. 
(b) REPORTS TO SECRETARY.—Each State that re-
ceives a grant under this title shall submit to the Secretary 
an annual report that includes, at a minimum, informa-
tion on the activities carried out by the State under this 
title, including the following: 
(1) The progress on fully implementing and inte-
grating into a system of early learning each of the 
components described in section 403(c)(3). 
(2) The State’s progress in meeting its goals for 
increasing the number of disadvantaged children par-
ticipating in high-quality early learning programs, 
disaggregated by child age. 
(3) The number and percentage of disadvantaged 
children participating in early learning programs at 
each level of quality, disaggregated by race, family in-
come, child age, disability, and limited English pro-
ficiency status. 
(4) The number of providers participating in the 
State quality rating system, disaggregated by setting, 
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rating, and the number of high-quality providers 
available in low-income communities. 
(5) Information on how the funds provided 
under this title were used to increase the availability 
of high-quality early learning programs for each age 
group, disaggregated by race and limited English 
proficient status, to the maximum extent practicable. 
(6) Information on professional development and 
training expenditures, including— 
(A) the number of early learning providers 
engaged in such activities; and 
(B) the number of early learning providers 
enrolled in programs to obtain a credential or 
degree 
in 
early 
childhood 
education, 
disaggregated by the type of credential and de-
gree. 
(7) The change in the number and percentage of 
early learning providers with appropriate credentials 
or degrees in early childhood education, including the 
change in compensation given to such providers, in 
comparison to the prior fiscal year, disaggregated by 
early learning setting and the type of credential or 
degree. 
(8) In the case of a State receiving a grant 
under section 402(a), the percentage of children re-
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ceiving assistance under the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.) who participate in the highest quality early 
learning programs, disaggregated by program setting 
and child age. 
(9) Barriers to expanding access to high-quality 
early learning programs for disadvantaged children. 
SEC. 407. CONSTRUCTION. 
Nothing in this title— 
(1) shall be construed to require a child to par-
ticipate in an early learning program; or 
(2) shall be used to deny entry to kindergarten 
for any individual if the individual is legally eligible, 
as defined by State or local law. 
SEC. 408. DEFINITIONS. 
For purposes of this title: 
(1) CHILD.—The term ‘‘child’’ refers to an indi-
vidual from birth through the day the individual en-
ters kindergarten. 
(2) DISADVANTAGED.—The term ‘‘disadvan-
taged’’, when used with respect to a child, means a 
child whose family income is described in section 
658P(4)(B) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858n(4)(B)). 
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(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has 
the meaning given such term in section 637 of the 
Head Start Act (42 U.S.C. 9832). 
(4) LIMITED ENGLISH PROFICIENT.—The term 
‘‘limited English proficient’’ has the meaning given 
such term in section 637 of the Head Start Act (42 
U.S.C. 9832). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(6) STATE.—The term ‘‘State’’ has the meaning 
given such term in section 9101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 
7801). 
SEC. 409. AVAILABILITY OF FUNDS. 
There are authorized to be appropriated, and there are 
appropriated, to carry out this title (in addition to any 
other amounts appropriated to carry out this title and out 
of any money in the Treasury not otherwise appropriated) 
$1,000,000,000 for each of fiscal years 2010 through 2017. 
TITLE V—AMERICAN 
GRADUATION INITIATIVE 
SEC. 501. AUTHORIZATION AND APPROPRIATION. 
(a) AUTHORIZATION AND APPROPRIATION.—There are 
authorized to be appropriated, and there are appropriated, 
to carry out this title (in addition to any other amounts 
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appropriated to carry out this title and out of any money 
in the Treasury not otherwise appropriated), $730,000,000 
for each of the fiscal years 2010 through 2013, and 
$680,000,000 for each of the fiscal years 2014 through 2019. 
(b) ALLOCATIONS.—Of the amount appropriated 
under subsection (a)— 
(1) $630,000,000 shall be made available for each 
of the fiscal years 2010 through 2013 to carry out sec-
tion 503; 
(2) $630,000,000 shall be made available for each 
of the fiscal years 2014 through 2019 to carry out sec-
tion 504; 
(3) $50,000,000 shall be made available for each 
of the fiscal years 2010 through 2019 to carry out 
subsection (a) of section 505; and 
(4) $50,000,000 shall be made available for each 
of the fiscal years 2010 through 2013 to carry out 
subsections (b) and (c) of section 505. 
(c) RESPONSIBILITY.— 
(1) IN GENERAL.—With respect to sections 503 
and 504, the Secretary of Education shall bear the re-
sponsibility for obligating and disbursing funds under 
such sections and ensuring compliance with applica-
ble law and administrative requirements, subject to 
paragraph (2). 
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(2) INTERAGENCY AGREEMENT.—The Secretary 
of Education and the Secretary of Labor shall jointly 
administer sections 503 and 504 on such terms as 
such Secretaries shall set forth in an interagency 
agreement. 
SEC. 502. DEFINITIONS; GRANT PRIORITY. 
(a) DEFINITIONS.—In this title: 
(1) AREA CAREER AND TECHNICAL EDUCATION 
SCHOOL.—The term ‘‘area career and technical edu-
cation school’’ has the meaning given such term in 
section 3 of the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2302). 
(2) COMMUNITY COLLEGE.—The term ‘‘commu-
nity college’’ means a public institution of higher edu-
cation at which the highest degree that is predomi-
nantly awarded to students is an associate’s degree. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a community college or community col-
lege district; 
(B) an area career and technical education 
school; 
(C) a public four-year institution of higher 
education that— 
(i) offers two-year degrees; 
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(ii) will use funds provided under this 
section for activities at the certificate and 
associate degree levels; and 
(iii) is not reasonably close, as deter-
mined by the Secretary, to a community 
college; 
(D) a public four-year institution of higher 
education that is in partnership with an eligible 
entity described in subparagraph (A), (B), or 
(C); 
(E) a State that— 
(i) is in compliance with section 137 of 
the Higher Education Act of 1965 (20 
U.S.C. 1015f); 
(ii) has an articulation agreement pur-
suant to section 486A of such Act (20 
U.S.C. 1093a); and 
(iii) is in partnership with an eligible 
entity described in subparagraph (A), (B), 
(C), or (D); or 
(F) a consortium of at least 2 entities de-
scribed in subparagraphs (A) through (E). 
(4) INDUSTRY OR SECTOR PARTNERSHIP.—The 
term ‘‘industry or sector partnership’’ has the mean-
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ing given such term in section 782(f) of the Higher 
Education Act of 1965. 
(5) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the mean-
ing given such term in section 101 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001). 
(6) PHILANTHROPIC ORGANIZATION.—The term 
‘‘philanthropic organization’’ has the meaning given 
such term in section 781(i) of the Higher Education 
Act of 1965 (20 U.S.C. 1141(i)). 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(8) STATE.—The term ‘‘State’’ has the meaning 
given such term in section 103 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1003). 
(9) STATE PUBLIC EMPLOYMENT SERVICE.—The 
term ‘‘State public employment service’’ refers to a 
State public employment service established under the 
Wagner-Peyser Act (29 U.S.C. 49 et seq.). 
(10) STATE
WORKFORCE
INVESTMENT
BOARD; 
LOCAL WORKFORCE INVESTMENT BOARD.—The terms 
‘‘State workforce investment board’’ and ‘‘local work-
force investment board’’ refer to a State workforce in-
vestment board established under section 111 of the 
Workforce Investment Act (29 U.S.C. 2821) and a 
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local workforce investment board established under 
section 117 of such Act (29 U.S.C. 2832), respectively. 
(11) SUPPORTIVE
SERVICES.—The term ‘‘sup-
portive services’’ has the meaning given such term in 
section 101(46) of the Workforce Investment Act of 
1998 (29 U.S.C. 2801(46)). 
(b) GRANT PRIORITY.—In addition to any grant pri-
orities established under any other provision of this title, 
the Secretary, in awarding grants under this title, shall 
give priority to applications focused on serving low-income, 
nontraditional students who do not have a bachelor’s degree, 
and who have one or more of the following characteristics: 
(1) Are the first generation in their family to at-
tend college. 
(2) Have delayed enrollment in college. 
(3) Have dependents. 
(4) Are independent students. 
(5) Work at least 25 hours per week. 
(6) Are out-of-school youth without a high school 
diploma. 
SEC. 503. GRANTS TO ELIGIBLE ENTITIES FOR COMMUNITY 
COLLEGE REFORM. 
(a) PROGRAM AUTHORIZATION.— 
(1) GRANTS AUTHORIZED.— 
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(A) IN
GENERAL.—Subject to paragraph 
(2), from the amount appropriated to carry out 
this section, the Secretary, in coordination with 
the Secretary of Labor, shall award grants to eli-
gible entities, on a competitive basis, to establish 
and support programs described in subpara-
graph (B) at eligible entities described in sub-
paragraphs (A) through (D) of section 502(a)(3). 
(B) PROGRAMS.—The programs to be estab-
lished and supported with grants under subpara-
graph (A) (and carried out through activities de-
scribed in subsection (f)) shall be programs— 
(i) that are— 
(I) innovative programs; or 
(II) programs of demonstrated ef-
fectiveness, based on the evaluations of 
similar programs funded by the De-
partment of Education or the Depart-
ment of Labor, or other research of 
similar programs; and 
(ii) that lead to the completion of a 
postsecondary degree, certificate, or indus-
try-recognized credential leading to a skilled 
occupation in a high-demand industry. 
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(2) LIMITATION.—For each fiscal year for which 
funds are appropriated to carry out this section, the 
aggregate amount of the grants awarded to eligible 
entities that are States, or consortia that include a 
State, shall be not more than 50 percent of the total 
amount appropriated under section 501(b)(1) for such 
fiscal year. 
(3) PROHIBITION.—The Secretary shall not 
award a grant to an eligible entity for the same ac-
tivities that are being supported by other Federal 
funds. 
(b) GRANT DURATION AND AMOUNT.— 
(1) DURATION.—A grant under this section shall 
be awarded to an eligible entity for a 4-year period, 
except that if the Secretary determines that the eligi-
ble entity has not made demonstrable progress in 
achieving the benchmarks developed pursuant to sub-
section (g) by the end of the third year of such grant 
period, no further grant funds shall be made available 
to the entity after the date of such determination. 
(2) AMOUNT.—The minimum amount of a total 
grant award under this section over the 4-year period 
of the award shall be $750,000. 
(c) PRIORITY.—In awarding grants under this section, 
the Secretary shall give priority to eligible entities that— 
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(1) enter into partnerships with— 
(A) philanthropic or research organizations 
with expertise in meeting the goals of this sec-
tion; 
(B) businesses or industry or sector partner-
ships that— 
(i) design and implement programs de-
scribed in subsection (a)(1)(B); 
(ii) pay a portion of the costs of such 
programs; and 
(iii) agree to collaborate with one or 
more eligible entities to hire individuals 
who have completed a particular postsec-
ondary degree, certificate, or credential pro-
gram; or 
(C) labor organizations that provide tech-
nical expertise for occupationally specific edu-
cation necessary for an industry-recognized cre-
dential leading to a skilled occupation in a high- 
demand industry; or 
(2) are institutions of higher education eligible 
for assistance under title III or V of the Higher Edu-
cation Act of 1965, or consortia that include such an 
institution. 
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(d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE-
MENT, NOT SUPPLANT.— 
(1) FEDERAL SHARE.—The amount of the Fed-
eral share under this section for a fiscal year shall be 
not greater than 1⁄2 of the costs of the programs, serv-
ices, and policies described in subsection (f) that are 
carried out under the grant. 
(2) NON-FEDERAL SHARE.— 
(A) IN GENERAL.—The amount of the non- 
Federal share under this section for a fiscal year 
shall be not less than 1⁄2 of the costs of the pro-
grams, services, and policies described in sub-
section (f) that are carried out under the grant. 
The non-Federal share may be in cash or in 
kind, and may be provided from State resources, 
local resources, contributions from private orga-
nizations, or a combination thereof. 
(B) FINANCIAL
HARDSHIP
WAIVER.—The 
Secretary may waive or reduce the non-Federal 
share of an eligible entity that has submitted an 
application under this section if the entity dem-
onstrates a need for such waiver or reduction due 
to extreme financial hardship, as defined by the 
Secretary by regulation. 
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(3) SUPPLEMENT, NOT SUPPLANT.—The Federal 
and non-Federal shares required by this section shall 
be used to supplement, and not supplant, State and 
private resources that would otherwise be expended to 
establish and support programs described in sub-
section (a)(1)(B) at eligible entities. 
(e) APPLICATION.—An eligible entity seeking to receive 
a grant under this section shall submit to the Secretary an 
application at such time, in such manner, and containing 
such information as the Secretary may require. Such appli-
cation shall describe the programs under subsection 
(a)(1)(B) that the eligible entity will carry out using the 
grant funds, (including the programs, services, and policies 
under subsection (f)), including— 
(1) the goals of such programs, services, and 
policies; 
(2) how the eligible entity will allocate grant 
funds for such programs, services, and policies; 
(3) how such programs, services, and policies, 
and the resources of the eligible entity, will enable the 
eligible entity to meet the benchmarks developed pur-
suant to subsection (g), and how the eligible entity 
will track and report the entity’s progress in reaching 
such benchmarks; 
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(4) how the eligible entity will use such pro-
grams, services, and policies to establish quantifiable 
targets for improving graduation rates and employ-
ment-related outcomes; 
(5) how the eligible entity will serve high-need 
populations through such programs, services, and 
policies; 
(6) how the eligible entity will partner with in-
dustry or sector partnerships in the State, the State 
public employment service, and State or local work-
force investment boards in carrying out such pro-
grams, services, and policies; 
(7) an assurance that the eligible entity will 
share information with the Learning and Earning 
Research Center established under section 505(b), once 
such Center is established; 
(8) an assurance that the eligible entity will par-
ticipate in the evaluation of such programs, services, 
and policies under subsection (i); and 
(9) the potential for such programs, services, and 
policies to be replicated at other institutions of higher 
education. 
(f) USES OF FUNDS.—An eligible entity receiving a 
grant under this section shall use the grant funds to carry 
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