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(3) by adding at the end the following: 
‘‘(b) FEDERAL RATE LIMITATION.—Notwithstanding 
any other provision of law, no Federal funds shall be used 
to pay all or any part of the compensation of an individual 
employed by a Head Start agency in carrying out pro-
grams under this subchapter, either as direct or indirect 
costs or any proration thereof, at a rate in excess of the 
rate then payable for level II of the Executive Schedule 
under section 5316 of title 5, United States Code.’’. 
SEC. 23. LIMITATION ON USE OF FUNDS. 
The Head Start Act (42 U.S.C. 9831 et seq.) is 
amended by inserting after section 656 the following: 
‘‘SEC. 656A. LIMITATION ON CERTAIN USES OF FUNDS. 
‘‘No funds made available to carry out this sub-
chapter may be used— 
‘‘(1) for publicity or propaganda purposes not 
heretofore authorized by the Congress; or 
‘‘(2) unless authorized by law in effect on the 
effective date of this section, to produce any pre-
packaged news story intended for broadcast or dis-
tribution unless such story includes a clear notifica-
tion contained within the text or audio of such story 
stating that the prepackaged news story was pre-
pared or funded by the Department of Health and 
Human Services.’’.
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SEC. 24. CONFORMING AMENDMENT. 
Section 641A(a)(2)(A) of the Head Start Act (42 
U.S.C. 9836a(a)(2)(A)) is amended by striking ‘‘non- 
English language background’’ and inserting ‘‘limited 
English proficient’’. 
SEC. 25. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 
(a) GENERAL EFFECTIVE DATE.—Except as pro-
vided in subsections (b) and (c), this Act and the amend-
ments made by this Act shall take effect on the date of 
the enactment of this Act. 
(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by this Act shall not apply with respect to 
any fiscal year that begins before the date of the enact-
ment of this Act. 
(c) PRIORITY IN THE DESIGNATION OF HEAD START 
AGENCIES.— 
(1) EFFECTIVE
DATE.—Section 641(c), as 
amended by section 7(b) of this Act, shall take effect 
exactly twelve months from the date of the enact-
ment of this Act, except for section 641(c)(5), which 
shall take effect on the date of the enactment of this 
Act. 
(2) IMPLEMENTATION RULE.—For purposes of 
carrying out section 641(c) of the Head Start Act, 
as amended by section 7(b) of this Act, the Sec-
retary may only consider the performance of a Head
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Start program in meeting the requirements de-
scribed in section 641(c) of the Head Start Act, as 
amended by section 7(b) of this Act, from the date 
of enactment of this Act, except any performance 
that constitutes a deficiency since the then most re-
cent designation. 
SEC. 26. QUALITY STANDARDS; MONITORING OF HEAD 
START AGENCIES AND PROGRAMS. 
Section 641A of the Head Start Act (42 U.S.C. 
9836a) is further amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) In carrying out the provisions of section 641A, 
and in addition to the use of whatever other resources the 
Secretary deems appropriate, the Secretary shall— 
‘‘(1) contract with an intermediary organization 
which, in the determination of the Secretary, meets 
each of the following criteria— 
‘‘(A) focuses on improving the performance 
management and the use of technology for non- 
profit, educational, and social service organiza-
tions; 
‘‘(B) has demonstrated experience in pro-
viding a range of assistance, including but not 
limited to— 
‘‘(i) assessing performance metrics;
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‘‘(ii) the use of technology; 
‘‘(iii) improving financial manage-
ment; and 
‘‘(iv) developing recommendations to 
improve performance and the use of tech-
nology; 
‘‘(C) has a proven methodology for sys-
temic change in the not-for-profit sector, includ-
ing governmental and nongovernmental entities; 
‘‘(D) has demonstrated results in providing 
performance management support to small-, 
mid- and large-size not-for-profit organizations 
annually on a pro bono basis; 
‘‘(E) has demonstrated the ability to iden-
tify areas for program improvement related 
to— 
‘‘(i) accomplishing the goals and ob-
jectives as outlined in Head Start regula-
tions, reporting criteria and measurement 
of program outcomes; 
‘‘(ii) meeting reporting requirements; 
‘‘(iii) using technology in classrooms 
and enabling its use by administrators;
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‘‘(F) has demonstrated the ability to de-
velop an implementation plan for recommended 
improvements by the organizations it assists; 
‘‘(G) has demonstrated the ability to assist 
with and provide on-site, hands-on guidance 
with the implementation of the recommenda-
tions; 
‘‘(H) has demonstrated the ability to tailor 
the assessment and implementation process to 
the children and communities served (where ap-
propriate); and 
‘‘(I) has demonstrated the ability to create 
an online community that allows Head Start 
administrators, teachers, service providers, par-
ents, policy makers, and other stakeholders to 
communicate and provide support during and 
following the assessment and subsequent imple-
mentation process; 
‘‘(2) utilize the intermediary organization se-
lected in paragraph (1) not later than 90 days from 
the date of enactment of this Act to— 
‘‘(A) assess the performance of the Sec-
retary in overseeing the Head Start Bureau and 
ensuring the effective management of the Head