‘‘(2) CONDUCT
OF
REVIEWS.—The Secretary 
shall ensure that reviews described in subparagraphs 
(A) through (C) of paragraph (1)—
‘‘(A) are conducted by review teams that—
‘‘(i) 
include 
individuals 
who 
are 
knowledgeable about Head Start programs 
and, to the maximum extent practicable, 
the diverse (including linguistic and cul-
tural) needs of eligible children (including 
children with disabilities) and limited-
English proficient children and their fami-
lies; and 
‘‘(ii) include, to the maximum extent 
practicable, current or former employees of 
the Department of Health and Human 
Services who are knowledgeable about 
Head Start programs; 
‘‘(B) include as part of the reviews of the 
programs, a review and assessment of program 
strengths and areas in need of improvement; 
‘‘(C) 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 limited English pro-
ficiency and children of migrant and seasonal 
farm-working families); 
‘‘(D) 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); 
‘‘(E) include as part of the review the im-
plementation by qualified individuals with dem-
onstrated reliability, of a valid and reliable re-
search-based observational instrument that as-
sesses classroom quality, including multiple di-
mensions of teacher-child interactions that are 
linked to positive child development and later 
achievement; 
‘‘(F) are conducted in a manner that eval-
uates program performance, quality, and overall 
operations with consistency and objectivity, and 
based on a transparent and reliable system of 
review; 
‘‘(G) in the case of Early Head Start pro-
grams, are conducted by a review team that in-
cludes individuals who are knowledgeable about 
the development of infants and toddlers; and 
‘‘(H) include as part of the review a pro-
tocol for fiscal management that shall be used
to assess the compliance with program require-
ments for—
‘‘(i) using federal funds appropriately; 
‘‘(ii) using federal funds specifically to 
purchase property and to compensate per-
sonnel; 
‘‘(iii) securing and using qualified fis-
cal officer support; and 
‘‘(iv) reporting financial information 
and implementing appropriate internal 
controls to safeguard federal funds. 
‘‘(3) USE OF REVIEW FINDINGS.—The findings 
of the review shall, at a minimum—
‘‘(A) be presented to an agency in a timely, 
transparent, and uniform manner that conveys 
information of program strengths and weak-
nesses and assists with program improvement; 
and 
‘‘(B) be used by the Head Start agencies 
to inform the development and implementation 
of their plan for training and technical assist-
ance. 
‘‘(d) EVALUATIONS AND CORRECTIVE ACTIONS FOR 
DELEGATE AGENCIES.—
‘‘(1) PROCEDURES.—The Head Start agency 
shall establish procedures relating to its delegate 
agencies, including—
‘‘(A) procedures for evaluating delegate 
agencies; 
‘‘(B) procedures for defunding delegate 
agencies; and 
‘‘(C) procedures for appealing a defunding 
decision relating to a delegate agency. 
‘‘(2) EVALUATIONS.—Each Head Start agen-
cy—
‘‘(A) shall evaluate its delegate agencies 
using the procedures established under this sec-
tion; and 
‘‘(B) shall inform the delegate agencies of 
the deficiencies identified through the evalua-
tion that are required to be corrected. 
‘‘(3) REMEDIES TO ENSURE CORRECTIVE AC-
TIONS.—If the Head Start agency identifies a defi-
ciency of a delegate agency through the evaluation, 
the Head Start agency may—
‘‘(A) initiate procedures to terminate the 
designation of the delegate agency unless such 
agency corrects the deficiency; and
‘‘(B) conduct monthly monitoring visits to 
such delegate agency until all deficiencies are 
corrected or the Head Start agency decides to 
defund such delegate agency. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to modify, super-
sede, or affect the powers, duties, or functions of the 
Secretary with respect to Head Start agencies or 
delegate agencies that receive financial assistance 
under this subchapter. 
‘‘(e) CORRECTIVE ACTION; TERMINATION.—
‘‘(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 fails to adequately ad-
dress the community needs and strategic plan identi-
fied in section 640(g)(2)(C), the Secretary shall—
‘‘(A) inform the agency of the deficiencies 
that shall be corrected; 
‘‘(B) with respect to each identified defi-
ciency, require the agency—
‘‘(i) to correct the deficiency imme-
diately, if the Secretary finds that the defi-
ciency threatens the health or safety of
staff or program participants or poses a 
threat to the integrity of Federal funds; 
‘‘(ii) to correct the deficiency not later 
than 90 days after the identification of the 
deficiency if the Secretary finds, in the dis-
cretion of the Secretary, that such a 90-
day period is reasonable, in light of the na-
ture and magnitude of the deficiency; or 
‘‘(iii) in the discretion of the Sec-
retary (taking into consideration the seri-
ousness of the deficiency and the time rea-
sonably required to correct the deficiency), 
to comply with the requirements of para-
graph (2) concerning a quality improve-
ment plan; and 
‘‘(C) initiate proceedings to terminate the 
designation of the agency unless the agency cor-
rects the deficiency. 
‘‘(2) QUALITY IMPROVEMENT PLAN.—
‘‘(A) AGENCY AND PROGRAM RESPONSIBIL-
ITIES.—To retain a designation as a Head 
Start agency under this subchapter, or in the 
case of a Head Start program to continue to re-
ceive funds from such agency, a Head Start 
agency, or Head Start program that is the sub-
ject of a determination described in paragraph 
(1) (excluding an agency or program required 
to correct a deficiency immediately or during a 
90-day period under clause (i) or (ii) of para-
graph (1)(B)) shall—
‘‘(i) develop in a timely manner, a 
quality improvement plan that 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 10 months 
after the date the agency or program ob-
tains approval of its quality improvement 
plan).
‘‘(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 Head Start agency shall 
either approve such proposed plan or specify 
the reasons why the proposed plan cannot be 
approved. 
‘‘(3) TRAINING AND TECHNICAL ASSISTANCE.—
The Secretary shall provide training and technical 
assistance to Head Start agencies and programs 
with respect to the development or implementation 
of such quality improvement plans to the extent the 
Secretary finds such provision to be feasible and ap-
propriate given available funding and other statutory 
responsibilities. 
‘‘(f) 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 (e), during such fiscal year. Such report shall 
be made available to all parents with children receiving 
assistance under this subchapter in an understandable and 
uniform format, and to the extent practicable, provided 
in a language that the parents can understand, and in ad-
dition, make the information widely available through pub-
lic means such as distribution through public agencies, 
and at a minimum posting such information on the Inter-
net immediately upon publication. Such reports shall con-
tain detailed data on compliance with specific performance 
standards and measures sufficient to allow individual 
Head Start agencies to use such data to improve the qual-
ity of their program. 
‘‘(g) SELF-ASSESSMENTS.—
‘‘(1) IN GENERAL.—Not less frequently than 
once each program year, with the consultation and 
participation of policy councils, and as applicable, 
policy committees, and as appropriate, other commu-
nity members, each Head Start agency and each del-
egate agency that receives financial assistance under 
this subchapter shall conduct a comprehensive self-
assessment of its effectiveness and progress in meet-
ing program goals and objectives (including profes-
sional development plans) and in implementing and 
complying with Head Start program performance 
standards. 
‘‘(2) REPORT AND IMPROVEMENT PLANS.—
‘‘(A) REPORT.—An agency conducting a 
self-assessment shall report the findings of the 
self-assessment to the relevant policy council, 
policy committee, governing body, and Sec-
retary. Each self-assessment shall identify areas 
of strength and weakness. 
‘‘(B) IMPROVEMENT
PLAN.—The agency 
shall develop and report to the Secretary an im-
provement plan approved by the governing body 
of the agency to strengthen any areas identified 
in the self-assessment as weaknesses or in need 
of improvement. 
‘‘(3) ONGOING MONITORING.—Each Head Start 
agency, delegate Head Start agency, and entity that 
carries out an Early Head Start program shall es-
tablish and implement procedures for the ongoing 
monitoring of their respective programs, to ensure 
that the operations of the programs work toward 
meeting program goals and objectives and Head 
Start performance standards.
‘‘(h) ENROLLMENT REPORTING REQUIREMENT.—
‘‘(1) Head Start agencies shall report on a reg-
ular basis to the Secretary—
‘‘(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. 
‘‘(2) The Secretary shall determine on a regular 
basis which Head Start agencies are operating with 
an actual enrollment that is less than the funded en-
rollment and shall provide appropriate and timely 
training and technical assistance to increase actual 
enrollment, as appropriate. 
‘‘(3) In this subsection: 
‘‘(A) The term ‘actual enrollment’ means, 
with respect to a Head Start program, the ac-
tual number of children enrolled in such pro-
gram in a given month. 
‘‘(B) The term ‘base grant’ means, with 
respect to Head Start agency for a fiscal year, 
that portion of the grant derived from—
‘‘(i) amounts reserved for use in ac-
cordance 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) amounts reserved for payments 
under section 640(a)(2)(B); or 
‘‘(iii) amounts available under section 
640(a)(2)(D) or allotted among States 
under section 640(a)(4). 
‘‘(C) 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 program during such fiscal year, 
as indicated in the grant award. 
‘‘(i) REDISTRIBUTION OF FUNDS.—Funds held by 
the Secretary as a result of recapturing, withholding, or 
reducing a base grant, except when such action is the re-
sult of an open competition 641(d)) or termination 646(d) 
shall be redistributed in such fiscal year as follows: 
‘‘(1) If such funds are derived from an Indian 
Head Start program, then such funds shall be redis-
tributed to increase enrollment in such fiscal year in 
1 or more Indian Head Start programs. 
‘‘(2) If such funds are derived from the oper-
ation of a migrant and seasonal Head Start pro-
gram, then such funds shall be redistributed to in-
crease enrollment in such fiscal year in 1 or more 
migrant and seasonal Head Start programs. 
‘‘(3) If such funds are derived from the oper-
ation of a Head Start program in a State (excluding 
Indian Head Start program and migrant and sea-
sonal Head Start programs), then such funds shall 
be redistributed to increase enrollment in such fiscal 
year in 1 or more Head Start programs (excluding 
Indian Head Start programs and migrant and sea-
sonal Head Start programs) that are carried out in 
such State, except that—
‘‘(A) not less than 50 percent of the funds 
shall be prioritized to increase the program par-
ticipation of children and families served under 
Early Head Start; and 
‘‘(B) not less than 25 percent of the funds 
shall be prioritized to increase program partici-
pation of underserved populations of eligible 
children.’’. 
SEC. 8. POWERS AND FUNCTIONS OF HEAD START AGEN-
CIES. 
Section 642 of the Head Start Act (42 U.S.C. 9837) 
is amended to read as follows:
‘‘SEC. 642. POWERS AND FUNCTIONS OF HEAD START AGEN-
CIES. 
‘‘(a) LEGAL AUTHORITY.—To be designated as a 
Head Start agency under this subchapter, an agency must 
have authority under its charter or applicable law to re-
ceive and administer funds under this subchapter, funds 
and contributions from private or local public sources 
which may be used in support of a Head Start program, 
and funds under any Federal or State assistance program 
pursuant to which a public or private nonprofit or for-
profit agency (as the case may be) organized in accordance 
with this subchapter, could act as grantee, contractor, or 
sponsor of projects appropriate for inclusion in a Head 
Start program. Such an agency must also be empowered 
to transfer funds so received, and to delegate powers to 
other agencies, subject to the powers of its governing 
board and its overall program responsibilities. The power 
to transfer funds and delegate powers must include the 
power to make transfers and delegations covering compo-
nent projects in all cases where this will contribute to effi-
ciency and effectiveness or otherwise further program ob-
jectives. 
‘‘(b) FAMILY AND COMMUNITY INVOLVEMENT; FAM-
ILY SERVICES.—To be so designated, a Head Start agency 
shall, at a minimum, do all the following to involve and 
serve families and communities:
‘‘(1) 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. 
‘‘(2) Seek the involvement of parents, area resi-
dents, and local business in the design and imple-
mentation of the program. 
‘‘(3) Establish effective procedures to facilitate 
and seek the involvement of parents of participating 
children in activities designed to help such parents 
become full partners in the education of their chil-
dren, and to afford such parents the opportunity to 
participate in the development and overall conduct of 
the program at the local level, including a process 
through which parents of children currently partici-
pating in a Head Start program or an Early Head 
Start program select the parent representatives to 
serve on the council under section 642(b)(4)(B)(ii). 
‘‘(4) Offer (directly or through referral to local 
entities, such as entities carrying out Even Start 
programs under subpart 3 of part B of title I of the 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 2741 et seq.)), to parents of partici-
pating children, family literacy services and par-
enting skills training.
‘‘(5) Offer to parents of participating children 
mental health services (either directly or through re-
ferral to local entities), including substance abuse 
counseling, and including information on maternal 
depression and on drug-exposed infants and fetal al-
cohol syndrome. 
‘‘(6) At the option of such agency, offer (di-
rectly or through referral to local entities) to such 
parents—
‘‘(A) training in basic child development 
(including cognitive, social, and emotional devel-
opment); 
‘‘(B) assistance in developing literacy and 
communication skills; 
‘‘(C) opportunities to share experiences 
with other parents (including parent-mentor re-
lationships); 
‘‘(D) mental and behavioral health serv-
ices; 
‘‘(E) regular in-home visitation; or 
‘‘(F) any other activity designed to help 
such parents become full partners in the edu-
cation of their children. 
‘‘(7) Provide, with respect to each participating 
family, a family needs assessment that includes con-
sultation with such parents, in a manner and lan-
guage that such parents can understand, about the 
benefits of parent involvement and about the activi-
ties described in paragraphs (5) through (8) in 
which such parents may choose to be involved (tak-
ing into consideration their specific family needs, 
work schedules, and other responsibilities). 
‘‘(8) Consider providing services to assist 
younger siblings of children participating in its Head 
Start program to obtain health, including mental 
health, services from other sources. 
‘‘(9) Perform community outreach to encourage 
individuals previously unaffiliated with Head Start 
programs to participate in its Head Start program 
as volunteers. 
‘‘(10)(A) Inform custodial parents in single-par-
ent families that participate in programs, activities, 
or services carried out or provided under this sub-
chapter about the availability of child support serv-
ices for purposes of establishing paternity and ac-
quiring child support; and 
‘‘(B) Refer eligible parents to the child support 
offices of State and local governments. 
‘‘(11) Provide parents of limited English pro-
ficient children outreach and services under this sub-
chapter, in an understandable and uniform format 
and, to the extent practicable, in a language that 
such parents can understand. 
‘‘(12) Provide technical and other support need-
ed to enable parents and area residents to secure on 
their own behalf available assistance from public and 
private sources. 
‘‘(13) Promote the continued involvement of the 
parents (including grandparents and kinship care-
givers, as appropriate) of children that participate in 
Head Start programs in the education of their chil-
dren upon transition to school, the Head Start agen-
cy shall work with the local educational agency—
‘‘(A) to provide training to the parents; 
‘‘(i) to inform the parents about their 
rights and responsibilities concerning the 
education of their children; and 
‘‘(ii) to enable the parents—
‘‘(I) to understand and work with 
schools in order to communicate with 
teachers and other school personnel; 
‘‘(II) to support the schoolwork 
of their children; and
‘‘(III) to participate as appro-
priate in decisions relating to the edu-
cation of their children; and 
‘‘(B) to take other actions, as appropriate 
and feasible, to support the active involvement 
of the parents with schools, school personnel, 
and school-related organizations. 
‘‘(14) Provide parents of a child suspected of 
having a disability information about services avail-
able under section 619 or part C of the Individuals 
With Disabilities Education Act (20 U.S.C. 1419, 
1431 et seq.) and refer such child to the appropriate 
agency for an evaluation of eligibility under such 
Act. 
‘‘(c) PROGRAM GOVERNANCE.—Head Start agencies 
must establish and maintain a formal structure of shared 
governance through which an independent governing body 
with legal and fiscal responsibility for administering and 
overseeing programs under this subchapter and a parent 
policy council and parent policy committee, as appropriate, 
shall ensure that such agency operates a high quality 
Head Start program in compliance with all applicable 
Federal, State, and local laws. 
‘‘(1) GOVERNING BODY.—
‘‘(A) COMPOSITION.—The governing body 
shall be composed as follows: 
‘‘(i) Not less than 1 member with sig-
nificant financial management or account-
ing experience. 
‘‘(ii) Not less than 1 member shall 
have a background and expertise in early 
childhood development. 
‘‘(iii) Not less than 1 member shall be 
a licensed attorney familiar with issues 
that come before the governing body. 
‘‘(iv) Additional members shall be se-
lected for their expertise in education, 
business administration, and community 
affairs and shall reflect the community 
served. 
‘‘(v) Exceptions shall be made when 
members of the governing body oversee a 
public entity and are selected by public 
election or are political appointments. 
‘‘(B) CONFLICT OF INTEREST.—Members 
of the governing body shall—
‘‘(i) not have a conflict of interest 
with the Head Start agency or delegate 
agencies, exceptions shall be made when a
board member of a public entity is selected 
by election or politically appointed; 
‘‘(ii) not receive compensation for the 
purposes of serving on the governing body 
or for providing services to the Head Start 
agency, exceptions shall be made when a 
board member of a public entity is selected 
by election or politically appointed; 
‘‘(iii) not be employed nor shall mem-
bers of their immediate family be employed 
by the Head Start agency or one of its del-
egate agencies, exceptions shall be made 
when a board member of a public entity is 
selected by election or politically appointed; 
and 
‘‘(iv) operate as an entity independent 
of staff employed by the Head Start agen-
cy entity or applicant, exceptions shall be 
made when a board member of a public en-
tity is selected by election or politically ap-
pointed. 
‘‘(C) CONSULTANTS.—In the case that 
persons described in subparagraph (A) are not 
available to serve as members, the governing 
body shall make use of consultants in the areas
described in subparagraph (A) to work directly 
with the governing body. 
‘‘(D) TRAINING.—All members of the gov-
erning body shall receive training in manage-
ment responsibilities and obligations, ethics, 
and financial literacy management. 
‘‘(E) RESPONSIBILITIES
OF
GOVERNING 
BODY.—The governing body shall be responsible 
for—
‘‘(i) adoption of practices that assure 
active, independent and informed govern-
ance of the Head Start agency; 
‘‘(ii) oversight to ensure that the 
Head Start agency under the direction of 
the executive director is delivering high 
quality services to children and families in 
compliance with all applicable standards in 
effect under this subchapter and with the 
applicable performance measures estab-
lished by the Secretary under section 644; 
‘‘(iii) establish an audit and finance 
committee whose primary responsibility 
shall be—
‘‘(I) to approve annually the op-
erating budget of the Head Start 
agency; 
‘‘(II) to review and recommend 
to the governing body the selection of 
independent auditors who shall report 
all critical accounting policies and 
practices to the finance and audit 
committee, except when the auditor is 
assigned by the State under State 
law; 
‘‘(III) to review and recommend 
to the governing body the termination 
or extension of the existing audit firm 
at least once every 5 years; 
‘‘(IV) to review and advise the 
governing body of the audit manage-
ment letter provided pursuant to the 
chapter 75 of title 31, United States 
Code, and of any audit findings; and 
‘‘(V) 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; 
‘‘(iv) approve all major policies of the 
agency, including the mission of the agency 
and policies addressing accounting, finan-
cial management, procurement, record con-
fidentiality, and personnel (including spe-
cific standards governing salaries, salary 
adjustments, travel and per diem allow-
ances, and other employee benefits); 
‘‘(v) approve all major financial ex-
penditures of the agency; 
‘‘(vi) approve the selection or dis-
missal of the Head Start Director or the 
equivalent position within the Head Start 
agency; 
‘‘(vii) approve or disapprove all poli-
cies, applications, and decisions of the Pol-
icy Council made under the authority of 
paragraph (2); 
‘‘(viii) to oversee the program plan-
ning of the Head Start agency, including 
adoption of policies for setting long- and 
short-range goals and objectives;
‘‘(ix) oversee and approve the agency’s 
applications to receive funds made avail-
able under this subchapter; and 
‘‘(x) to establish, adopt and periodi-
cally update written standards of conduct 
that establish standards and formal proce-
dures for disclosing, addressing, and re-
solving—
‘‘(I) any conflict of interest, and 
any appearance of a conflict of inter-
est, by members of the governing 
body, officers, employees, consultants 
and agents who provide services or 
furnish goods to the Head Start agen-
cy; and 
‘‘(II) complaints, including inves-
tigations, when appropriate. 
‘‘(2) POLICY COUNCIL.—
‘‘(A) COMPOSITION.—The Policy Council 
or Policy Committee, as appropriate, shall be 
composed as follows: 
‘‘(i) Members of the Policy Council 
shall be either parents of children currently 
enrolled in the Head Start agency’s (or 
delegate’s) Head Start or Early Head
Start program or that are parents of chil-
dren who were enrolled in the program in 
the previous year (Parent Members) or 
shall be members of the community served 
by the Head Start agency or delegate 
(Community Members). 
‘‘(ii) Parent members of the Policy 
Council shall constitute a majority of the 
members of the Policy Council and shall be 
elected by parents of currently enrolled 
children. 
‘‘(iii) Parent members shall represent, 
proportionately, all program options and 
settings operated by the Head Start agen-
cy or delegate. 
‘‘(iv) The term of a Policy Council 
member shall be no more than 2 years and 
no Policy Council member shall serve 
longer than 6 years. 
‘‘(B) RESPONSIBILITIES OF POLICY COUN-
CIL.—In order to be designated as a Head 
Start agency, an entity or delegate of such an 
entity shall have a Policy Council which shall 
approve and submit to the governing body deci-
sions about the following activities:
‘‘(i) The strategic direction of the pro-
gram, including long and short-term plan-
ning goals and objectives (such planning 
and goals shall take into account the an-
nual community assessment and self-as-
sessment). 
‘‘(ii) Selection of delegate agencies 
and their service areas. 
‘‘(iii) Recruitment, selection and en-
rollment priorities. 
‘‘(iv) 
Funding 
applications 
and 
amendments to funding applications for 
Head Start or Early Head Start prior to 
submission of such applications. 
‘‘(v) Budget planning for program ex-
penditures. 
‘‘(vi) Bylaws for the operation of the 
Policy Council including procedures by 
which Policy Council members are chosen. 
‘‘(vii) Program personnel policies, in-
cluding standards of conduct for program 
staff, contractors and volunteers. 
‘‘(viii) Decisions regarding employ-
ment of Head Start staff other than the 
director and executive director.
‘‘(ix) Activities to support the active 
involvement of parents in supporting pro-
gram operations. 
‘‘(x) Program responsiveness to com-
munity and parent needs. 
‘‘(C) TRAINING.—Appropriate training and 
technical assistance shall be provided to the 
members of the Policy Council to ensure that 
the members understand the information the 
members receive and effectively oversee and 
participate in the programs of the Head Start 
agency or delegate. 
‘‘(3) IMPASSE POLICY.—The Secretary shall de-
velop policies and procedures describing how Head 
Start agencies will implement shared decision-mak-
ing, including a process for resolving any impasse 
between the Governing Body and the Policy Council. 
‘‘(d) COLLABORATION AND COORDINATION.—To be 
so designated, a Head Start agency must collaborate and 
coordinate with public and private entities to improve the 
available services to Head Start children and families, in-
cluding the following activities: 
‘‘(1) Conduct outreach to schools in which chil-
dren participating in Head Start programs enroll, 
local educational agencies, the local business commu-
nity, community-based organizations, faith-based or-
ganizations, museums, and libraries to generate sup-
port and leverage the resources of the entire local 
community in order to improve school readiness. 
‘‘(2) In communities where both public pre-
kindergarten programs and Head Start programs 
operate, a Head Start agency shall collaborate and 
coordinate activities with the local educational agen-
cy or other public agency responsible for the oper-
ation of the prekindergarten program and providers 
of prekindergarten, including outreach activities to 
identify eligible children, as possible. 
‘‘(3) Head Start agency staff shall, with the 
permission of the parents of children enrolled in 
Head Start programs, regularly communicate with 
the elementary schools such children will be attend-
ing—
‘‘(A) to share information about such chil-
dren; and 
‘‘(B) to ensure a smooth transition to ele-
mentary school for such children. 
‘‘(4) Each Head Start agency shall collaborate, 
as appropriate, with providers of social and commu-
nity services available to children and families par-
ticipating in Head Start programs, and may support
such partnerships with financial agreements, when 
applicable, for the provision of such services. 
‘‘(5) A Head Start agency shall take steps to 
coordinate activities with the local educational agen-
cy serving the community involved and with schools 
in which children participating in a Head Start pro-
gram operated by such agency will enroll following 
such program, including—
‘‘(A) collaborating on the shared use of 
transportation and facilities; 
‘‘(B) collaborating to enhance the effi-
ciency of services while increasing the program 
participation of underserved populations of eli-
gible children; and 
‘‘(C) exchanging information on the provi-
sion of noneducational services to such children. 
‘‘(6) The Secretary, in consultation with the 
Secretary of Education, shall—
‘‘(A) evaluate the effectiveness of the 
projects and activities funded under section 
642A; 
‘‘(B) disseminate to Head Start agencies 
information (including information from the 
evaluation required by subparagraph (A)) on ef-
fective policies and activities relating to the
transition of children from Head Start pro-
grams to public schools; and 
‘‘(C) provide technical assistance to such 
agencies to promote and assist such agencies to 
adopt and implement such effective policies and 
activities. 
‘‘(e) QUALITY STANDARDS, CURRICULA AND ASSESS-
MENT.—To be so designated, each Head Start agency 
shall—
‘‘(1) take steps to ensure, to the maximum ex-
tent possible, that children maintain the develop-
mental and educational gains achieved in Head Start 
programs and build upon such gains in further 
schooling; 
‘‘(2) 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; 
‘‘(3) implement a research-based early child-
hood curriculum that promotes young children’s 
school readiness in the areas of language and cog-
nitive 
development, 
early 
reading 
and 
premathematics skills, socio-emotional development, 
physical development, and approaches to learning. 
Such curricula shall be—
‘‘(A) based on scientifically based research 
and have standardized training procedures and 
curriculum materials to support implementa-
tion; 
‘‘(B) comprehensive, linked to ongoing as-
sessment, with developmental and learning 
goals and measurable objectives; and focused on 
improving the learning environment, teaching 
practices, family involvement, and child out-
comes across all areas of development; and 
‘‘(C) aligned to the Head Start Child Out-
comes Framework developed by the Secretary 
and to State early learning standards, as appro-
priate; 
‘‘(4) use ongoing, research-based assessment 
methods that are developmentally appropriate, cul-
turally and linguistically responsive, and tied to chil-
dren’s daily activities in order to support the edu-
cational instruction of children in the program, in-
cluding language skills, prereading knowledge and 
premathematics knowledge. Assessment instruments 
shall be those designed and validated for making de-
cisions about teaching and learning and aligned with 
the programs curricula and section 641A(a)(1);
100
‘‘(5) use high-quality research-based develop-
mental screening tools that have been demonstrated 
to be standardized, reliable, valid, and accurate for 
children from a range of racial, ethnic, linguistic, 
and cultural backgrounds, for the purpose of meet-
ing the relevant performance standards; 
‘‘(6) adopt, in consultation with experts in child 
development and with classroom teachers, an assess-
ment to be used when hiring or evaluating any class-
room teacher in a center-based Head Start program. 
Such assessment shall measure whether such teacher 
has mastered the functions described in section 
648A(a)(1) and attained a level of literacy appro-
priate to implement Head Start curricula; 
‘‘(7) use the information provided from the as-
sessment conducted under section 640A(c)(2)(H) to 
adopt a professional development plan that leads to 
improved teacher effectiveness; 
‘‘(8) establish measurable objectives for the pro-
vision of health, educational, nutritional, and social 
services related to the program mission and to 
school readiness and provided under this subchapter; 
and 
‘‘(9) develop procedures for identifying children 
as limited English proficient, and inform the parents
101
of such children as to the instructional services used 
to help children make progress towards acquiring 
the knowledge and skills described in section 
641A(a)(1)(B) and acquisition of the English lan-
guage. 
‘‘(f) FUNDED ENROLLMENT; WAITING LIST.—Each 
Head Start agency shall enroll 100 percent of its funded 
enrollment and maintain an active waiting list at all times 
with ongoing outreach to the community and activities to 
identify underserved populations. 
‘‘(g) 
TECHNICAL
ASSISTANCE
AND
TRAINING 
PLAN.—In order to receive funds under this subchapter, 
a Head Start agency shall develop an annual technical as-
sistance and training plan. Such plan shall be based on 
the agency’s self-assessment, the community-wide needs 
assessment, the needs of parents and children to be serv-
iced by such agency, and the results of the reviews con-
ducted under section 641A(c). 
‘‘(h) FINANCIAL MANAGEMENT.—In order to receive 
funds under this subchapter, a Head Start agency shall 
document strong fiscal controls, including the employment 
of well-qualified fiscal staff with a history of successful 
management of a public or private organization.’’.
102
SEC. 9. HEAD START TRANSITION AND ALIGNMENT WITH K-
12 EDUCATION. 
Section 642A of the Head Start Act (42 U.S.C. 
9837a) is amended to read as follows: 
‘‘SEC. 642A. HEAD START TRANSITION AND ALIGNMENT 
WITH K-12 EDUCATION. 
‘‘Each Head Start agency shall take steps to coordi-
nate with the local educational agency serving the commu-
nity involved and with schools in which children partici-
pating in a Head Start program operated by such agency 
will enroll following such program to promote continuity 
of services and effective transitions, including—
‘‘(1) developing and implementing a systematic 
procedure for transferring, with parental consent, 
Head Start program records for each participating 
child to the school in which such child will enroll; 
‘‘(2) establishing ongoing channels of commu-
nication between Head Start staff and their counter-
parts in the schools (including teachers, social work-
ers, McKinney-Vento liaisons as established under 
section 722 (g)(1)(J)(ii) of the McKinney-Vento 
Homeless 
Assistance 
Act 
(42 
U.S.C. 
11432(g)(1)(J)(ii)), and health staff) to facilitate co-
ordination of programs; 
‘‘(3) establish on-going communication for de-
veloping continuity of developmentally appropriate
103
curricula between Head Start and local educational 
agencies to ensure an effective transition and appro-
priate shared expectations for children’s learning 
and development as they make such transition to 
school; 
‘‘(4) organizing and participating in joint train-
ing, including transition-related training for school 
staff and Head Start staff; 
‘‘(5) conducting meetings involving parents, 
kindergarten or elementary school teachers, and 
Head Start program teachers to discuss the edu-
cational, developmental, and other needs of indi-
vidual children; 
‘‘(6) helping parents of limited English Pro-
ficient children understand the method of instruction 
and other services provided by the school in which 
such child will enroll after participation in Head 
Start and as appropriate, information provided to 
parents of limited English proficient children under 
section 3302 of title III of the Elementary and Sec-
ondary Education Act of 1965 (20U.S.C. 7012); 
‘‘(7) developing and implementing a family out-
reach and support program in cooperation with enti-
ties carrying out parental involvement efforts under 
title I of the Elementary and Secondary Education
104
Act of 1965 (20 U.S.C. 6301 et seq.) and family 
outreach and support efforts under subtitle B of title 
VII of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11431–11435); 
‘‘(8) assisting families, administrators, and 
teachers in enhancing educational and developmental 
continuity and continuity in parental involvement ac-
tivities between Head Start services and elementary 
school classes; 
‘‘(9) linking the services provided in such Head 
Start program with the education services, including 
services 
relating 
to 
language, 
literacy, 
and 
numeracy, provided by such local educational agen-
cy; 
‘‘(10) helping parents (including grandparents 
and kinship caregivers, as appropriate) to under-
stand the importance of parental involvement in a 
child’s academic success while teaching them strate-
gies for maintaining parental involvement as their 
child moves from Head Start to elementary school; 
‘‘(11) developing and implementing a system to 
increase program participation of underserved popu-
lations of eligible children; and
105
‘‘(12) coordinating activities and collaborating 
to ensure that curricula used in the Head Start pro-
gram are aligned with—
‘‘(A) the Head Start Child Outcomes 
Framework as developed by the Secretary; and 
‘‘(B) State early learning standards, as ap-
propriate, with regard to cognitive, social, emo-
tional, and physical competencies that children 
entering kindergarten are expected to dem-
onstrate.’’. 
SEC. 10. LOCAL AND STATE INTEGRATION OF EARLY 
CHILDHOOD EDUCATION. 
The Head Start Act (42 U.S.C. 9831) is amended 
by inserting after section 642A the following: 
‘‘SEC. 642B. LOCAL AND STATE INTEGRATION OF EARLY 
CHILDHOOD EDUCATION. 
‘‘(a) LOCAL INTEGRATION.—In general, Head Start 
agencies shall enter into ongoing partnerships with local 
educational agencies and with State-funded preschool and 
other early childhood programs. 
‘‘(1) MEMORANDA OF UNDERSTANDING.—Each 
Head Start agency shall enter into a memorandum 
of understanding with any local educational agencies 
or local councils, responsible for managing publicly 
funded prekindergarten programs in the service area
106
of the Head Start agency (or if such agencies and 
such councils are not applicable in the service area, 
with the largest provider of publicly funded pre-
kindergarten in the service area), that shall include 
plans to coordinate the following activities: 
‘‘(A) Educational activities, curricula, and 
instruction. 
‘‘(B) Public information dissemination and 
access to programs for families contacting any 
of the early childhood programs. 
‘‘(C) Selection priorities for eligible chil-
dren to be served by programs. 
‘‘(D) Service delivery areas. 
‘‘(E) Staff training, including opportunities 
for joint staff training on topics such as aca-
demic content standards, instructional methods, 
and social and emotional development. 
‘‘(F) Program technical assistance. 
‘‘(G) Provision of additional services to 
meet the needs of working parents. 
‘‘(H) Planning and parent education for 
smooth transitions to kindergarten as required 
in section 642A(3) and 642A(6). 
‘‘(I) Provision and use of facilities, trans-
portation, and other program elements.
107
‘‘(J) Other elements mutually agreed to by 
the parties to such memorandum. 
‘‘(2) TIMING
OF
MEMORANDA.—Each Head 
Start agency shall enter into a memorandum of un-
derstanding under paragraph (1) not later than 1 
year after the effective date of this section. 
‘‘(3) 
SECRETARIAL
REVIEW.—Each 
memo-
randum of understanding entered into under para-
graph (1) shall be submitted to the Secretary not 
later than 30 days after entering into such memo-
randum. 
‘‘(A) If a Head Start agency is unable to 
comply with the requirement in paragraph (1) 
the Head Start agency shall notify the Sec-
retary and the chief executive officer of the 
State not later than 30 days after determining 
that they are unable to enter into such memo-
randum. The Secretary, in cooperation with the 
State Early Learning Council and the State Di-
rector of Head Start Collaboration, shall evalu-
ate the causes of failure to enter into a memo-
randum of understanding under paragraph (1). 
With the assistance of the State Early Learning 
Council and the State Director of Head Start 
Collaboration, all parties shall again attempt to
108
enter into a memorandum of understanding 
under paragraph (1). Then if no such memo-
randum of understanding is entered into, the 
Secretary shall make 1 of the following deter-
minations: 
‘‘(i) The local educational agency, 
local council, or other appropriate entity is 
unable or unwilling to enter into such a 
memorandum despite reasonable efforts on 
the part of the Head Start agency. 
‘‘(ii) The Head Start agency has not 
engaged in reasonable efforts to success-
fully negotiate and enter into a memo-
randum of understanding pursuant to 
paragraph (1). 
‘‘(iii) There is an absence of publicly 
funded prekindergarten in the service area 
of the Head Start agency. 
‘‘(B) If the Secretary determines the Head 
Start agency is not making reasonable efforts 
to enter into a memorandum of understanding 
pursuant to paragraph (1), the Head Start 
agency shall be found to be noncompliant with 
program performance standards.
109
‘‘(C) If the Secretary concludes that the 
local educational agency, local council, or other 
appropriate entity is not making reasonable ef-
forts to reach such a memorandum of under-
standing, the Head Start agency shall not be 
found out of compliance with paragraph (1). 
‘‘(4) REVISION OF MEMORANDA.—Each memo-
randum of understanding shall be revised and re-
newed annually by the parties to such memorandum, 
in alignment with the beginning of the school year. 
‘‘(5) ABSENCE OF PREKINDERGARTEN.—In the 
absence of publicly funded prekindergarten in the 
service area of a Head Start agency, the Head Start 
agency shall submit notice to the Secretary and the 
chief executive officer of the State and shall work 
with the State Early Learning Council and the State 
Director of Head Start Collaboration to improve co-
ordination in their service area. 
‘‘(b) STATE EARLY LEARNING COUNCILS.—From 
the amounts reserved under section 640(a)(2)(C)(iii), the 
Secretary shall award, upon submission of a written re-
quest and pursuant to the requirements of paragraph (2), 
an early learning collaboration grant to each State for the 
purposes of supporting a State Early Learning Council re-
sponsible for advancing the development of a coordinated
110
early childhood services delivery system in the State. A 
State that receives a grant under this subparagraph 
shall—
‘‘(1) establish a State Early Learning Council, 
which shall include—
‘‘(A) the State Director of Head Start Col-
laboration; 
‘‘(B) representatives from the State pre-
school programs; 
‘‘(C) representatives of local educational 
agencies; 
‘‘(D) the State official who oversees child 
care programs; 
‘‘(E) the State official who oversees section 
619 and part C of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419, 1431 et 
seq.); 
‘‘(F) the State official who oversees the 
State educational agency; 
‘‘(G) representatives from Head Start 
agencies located in the State, including migrant 
and seasonal Head Start programs and Indian 
Head Start programs; 
‘‘(H) representatives of local child care 
programs or organizations; and
111
‘‘(I) a representative of the State agency 
responsible for health and mental health care; 
except that the chief executive officer of the State 
may designate an existing entity to serve as the 
Early Learning Council if such entity includes rep-
resentatives described in this paragraph; 
‘‘(2) ensure that allotted funds distributed to a 
State for a fiscal year to carry out this subsection 
may be used by the State to pay not more than 50 
percent of the cost of carrying out this subsection; 
‘‘(3) direct the early learning council to improve 
the coordination and quality of early childhood serv-
ices within the State, including—
‘‘(A) to increase coordination and collabo-
ration among State preschool, Head Start pro-
grams, child care programs, early childhood 
special education, and other early childhood 
programs, including in the areas of outcomes 
and standards, technical assistance, coordina-
tion of services, cross-sector professional devel-
opment and training, community outreach, com-
munication, and better serving the needs of 
working families through provision of full-day 
and full-year early education services;
112
‘‘(B) to work with State agencies respon-
sible for education, child care, and early inter-
vention to provide leadership and assistance to 
local Head Start programs, local education 
agencies, and State and locally funded pre-
school and child care programs to increase inte-
gration 
among 
early 
childhood 
programs 
through adoption of local memoranda of under-
standing described in subparagraph (A) and 
other means; 
‘‘(C) to work with State agencies respon-
sible for education, child care, and early inter-
vention to provide leadership and assistance to 
develop developmentally appropriate standards 
for children birth through the early elementary 
grades to effect a smooth transition to and suc-
cess in the early elementary grades; 
‘‘(D) to develop or conduct periodic State-
wide needs assessments concerning early care 
and education programs for children from birth 
to school entry; 
‘‘(E) to work to identify and address bar-
riers to and opportunities for integration be-
tween entities carrying out Federal and State
113
child development, child care, and early child-
hood education programs; 
‘‘(F) to develop recommendations regard-
ing means of establishing a unified data collec-
tion system for early care and education pro-
grams operating throughout the State; 
‘‘(G) to address coordination of early 
learning programs with health care (including 
mental and behavioral health care), welfare, 
family literacy and services for homeless chil-
dren; 
‘‘(H) to support a State system of early 
childhood education, and training and technical 
assistance that improves the quality of early 
learning programs and the capacity of such pro-
grams to deliver services pursuant to section 
648(b); 
‘‘(I) to develop a plan for increasing the 
participation of children underrepresented in 
State early childhood education and child care 
programs, including Head Start, State pre-
school programs, and programs carried out 
under the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.);
114
‘‘(J) developing a Statewide professional 
development and career ladder plan for early 
care and education in the State; and 
‘‘(K) assisting 2- and 4-year public and 
private institutions of higher education to de-
velop articulation agreements concerning de-
grees in early childhood and related fields. 
‘‘(4) Nothing in this subsection shall be con-
strued to provide the Early Learning Council with 
authority to modify, supersede, or affect the oper-
ation of this subchapter. 
‘‘(5) Funds made available under this section 
shall be used to supplement, and not supplant, other 
Federal, State, and local funds that would otherwise 
be expended to carry out the purposes of this sec-
tion.’’. 
SEC. 11. ADMINISTRATIVE REQUIREMENTS AND STAND-
ARDS. 
Section 644 of the Head Start Act (42 U.S.C. 9839) 
is amended—
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—
‘‘(1) STANDARDS.—Each Head Start agency 
shall observe standards of organization, manage-
115
ment, and administration which will ensure, so far 
as reasonably possible, that all program activities 
are conducted in a manner consistent with the pur-
poses of this subchapter and the objective of pro-
viding assistance effectively, efficiently, and free of 
any taint of partisan political bias or personal or 
family favoritism. Each such agency shall establish 
or adopt rules to carry out this section, which shall 
include rules to assure full staff accountability in 
matters governed by law, regulations, or agency pol-
icy. Each agency shall also provide for reasonable 
public access to information, including public hear-
ings at the request of appropriate community groups 
and reasonable public access to books and records of 
the agency or other agencies engaged in program ac-
tivities or operations involving the use of authority 
or funds for which it is responsible. 
‘‘(2) ANNUAL
REPORT.—Each Head Start 
agency shall make available to the public a report 
published at least once in each fiscal year that dis-
closes the following information from the then most 
recently concluded fiscal year, except that reporting 
such information shall not reveal personally identifi-
able information about an individual child or parent:
116
‘‘(A) The total amount of public and pri-
vate funds received and the amount from each 
source. 
‘‘(B) An explanation of budgetary expendi-
tures and proposed budget for the following fis-
cal year. 
‘‘(C) The total number of children and 
families served and percent of average monthly 
enrollment, including the percent of eligible 
children served. 
‘‘(D) The results of the most recent review 
by the Secretary and the financial audit. 
‘‘(E) The percentage of enrolled children 
that received medical and dental exams. 
‘‘(F) Information about parent involvement 
activities. 
‘‘(G) The agency’s efforts to prepare chil-
dren for kindergarten. 
‘‘(H) Any other information required by 
the Secretary. 
‘‘(3) 
PROCEDURAL
CONDUCT.—Each 
such 
agency shall adopt for itself and other agencies 
using funds or exercising authority for which it is 
responsible, rules designed to—
117
‘‘(A) establish specific standards governing 
salaries, salary increases, travel and per diem 
allowances, and other employee benefits; 
‘‘(B) assure that only persons capable of 
discharging their duties with competence and 
integrity are employed and that employees are 
promoted or advanced under impartial proce-
dures calculated to improve agency performance 
and effectiveness; 
‘‘(C) guard against personal or financial 
conflicts of interest; and 
‘‘(D) define employee duties in an appro-
priate manner which will in any case preclude 
employees from participating, in connection 
with the performance of their duties, in any 
form of picketing, protest, or other direct action 
which is in violation of law.’’, and 
(2) by amending subsection (f) to read as fol-
lows: 
‘‘(f) FACILITIES.—
‘‘(1) The Secretary shall establish uniform pro-
cedures for Head Start agencies to request approval 
to purchase facilities, or to request approval of the 
purchase (after December 31, 1986) of facilities, to 
be used to carry out Head Start programs. The Sec-
118
retary shall suspend any proceedings pending 
against any Head Start agency to claim costs in-
curred in purchasing such facilities until the agency 
has been afforded an opportunity to apply for ap-
proval of the purchase and the Secretary has deter-
mined whether the purchase will be approved. The 
Secretary shall not be required to repay claims pre-
viously satisfied by Head Start agencies for costs in-
curred in the purchase of such facilities. 
‘‘(2) Financial assistance provided under this 
subchapter may not be used by a Head Start agency 
to purchase a facility (including paying the cost of 
amortizing the principal and paying interest on 
loans) to be used to carry out a Head Start program 
unless the Secretary approves a request that is sub-
mitted by such agency and contains—
‘‘(A) a description of the consultation con-
ducted by the Head Start agency with the pro-
viders in the community demonstrating capacity 
and capability to provide services under this 
subchapter, and of the potential for collabora-
tion with such providers and the cost effective-
ness of such collaboration as opposed to the 
cost effectiveness of the purchase of a facility;
119
‘‘(B) a description of the site of the facility 
proposed to be purchased or that was previously 
purchased; 
‘‘(C) the plans and specifications of such 
facility; 
‘‘(D) information demonstrating that—
‘‘(i) the proposed purchase will result, 
or the previous purchase has resulted, in 
savings when compared to the costs that 
would be incurred to acquire the use of an 
alternative facility to carry out such pro-
gram; or 
‘‘(ii) the lack of alternative facilities 
will prevent, or would have prevented, the 
operation of such program; 
‘‘(E) in the case of a request regarding a 
previously purchased facility, information dem-
onstrating that the facility will be used prin-
cipally as a Head Start center, or a direct sup-
port facility for a Head Start program; and 
‘‘(F) such other information and assur-
ances as the Secretary may require. 
‘‘(3) Upon a determination by the Secretary 
that suitable facilities are not otherwise available to 
Indian tribes to carry out Head Start programs, and
120
that the lack of suitable facilities will inhibit the op-
eration of such programs, the Secretary may author-
ize the use of financial assistance, from the amount 
reserved under section 640(a)(2)(A), to make pay-
ments for the purchase of facilities owned by such 
tribes. The amount of such a payment for such a fa-
cility shall not exceed the fair market value of the 
facility.’’. 
SEC. 12. PARTICIPATION IN HEAD START PROGRAMS. 
Section 645 of the Head Start Act (42 U.S.C. 9840) 
is amended—
(1) in subsection (a)—
(A) by amending paragraph (1)(B)(i) to 
read as follows: 
‘‘(i) programs assisted under this sub-
chapter may include, to a reasonable ex-
tent, participation of children in the area 
served who would benefit from such pro-
grams, including children referred by child 
welfare services, but whose families do not 
meet the low-income criteria prescribed 
pursuant to subparagraph (A) (A homeless 
child shall be deemed to meet the low-in-
come criteria.); and’’, and 
(B) by adding at the end the following:
121
‘‘(3) The amount of a basic allowance provided under 
section 403 of title 37, United States Code, on behalf of 
an individual who is a member of the uniformed services 
for housing that is acquired or constructed under the au-
thority of subchapter IV of chapter 169 of title 10, United 
States Code, or any other related provision of law, shall 
not be considered to be income for purposes of deter-
mining the eligibility of a child of the individual for pro-
grams assisted under this subchapter. 
‘‘(4)(A) Upon written request and pursuant to the 
requirements of this paragraph, a Head Start agency may 
use funds under section 640(a) to serve infants and tod-
dlers if the agency submits an application to the Secretary 
containing the following information, as specified in rules 
issued by the Secretary—
‘‘(i) the amount of funds under section 
640(a) that are proposed to be used in accord-
ance with section 645A(b); 
‘‘(ii) a community-wide needs assessment 
demonstrating how the use of such funds would 
best meet the needs of the community; 
‘‘(iii) a description of how the needs of 
pregnant women, and of infants and toddlers, 
will be addressed in accordance with section 
645A(b), and with regulations prescribed by the
122
Secretary pursuant to section 641A in areas in-
cluding the agency’s approach to child develop-
ment and provision of health services, approach 
to family and community partnerships, and ap-
proach to program design and management; 
‘‘(iv) a description of how the needs of eli-
gible Head Start children will be met in the 
community; 
‘‘(v) assurances that the agency will par-
ticipate in technical assistance activities (includ-
ing a planning period, start-up site visits, and 
national training activities) in the same manner 
as recipients of grants under section 645A; and 
‘‘(vi) evidence that the agency meets the 
same eligibility criteria as recipients of grants 
under section 645A. 
‘‘(B) An application that satisfies the require-
ments specified in subparagraph (A) shall be ap-
proved by the Secretary unless the Secretary finds 
that—
‘‘(i) the agency lacks adequate capacity 
and capability to carry out an effective Early 
Head Start program; or 
‘‘(ii) the information provided under sub-
paragraph (A) is inadequate.
123
‘‘(C) Any Head Start agency approved under 
subparagraph (B) shall be considered to be an entity 
that receives assistance under section 645A, and 
such funds under (i) shall be subject to the same 
rules, regulations, and conditions as apply to recipi-
ents of grants under section 645A. 
‘‘(5)(A) Upon written request and pursuant to 
the requirements of this paragraph, a Head Start 
agency may consider children from low-income fami-
lies to be eligible for participation in programs as-
sisted under this subchapter if their family income 
is at or above the poverty line but below 130 percent 
of the poverty line, if the agency submits an applica-
tion to the Secretary containing the following infor-
mation, as specified in rules issued by the Sec-
retary—
‘‘(i) a description of how the needs of 
eligible Head Start children, as described 
in paragraph (1)(A) are being adequately 
met in the agency’s service area; 
‘‘(ii) a description of outreach efforts 
to the community to reach full enrollment 
under the eligibility guidelines under para-
graph (1), including using outreach efforts
124
that are linguistically and culturally appro-
priate; 
‘‘(iii) assurance that the agency will 
prioritize serving children currently eligible 
under the guidelines under paragraph (1); 
and 
‘‘(iv) a description of why increasing 
the number of infants and toddlers being 
served, as described in paragraph (4), is 
not appropriate based upon the com-
munitywide needs assessment or the agen-
cy’s capability. 
‘‘(B) In approving such applications, the 
Secretary shall take into account the—
‘‘(i) cost of living for families living in 
the area served by the Head Start agency; 
‘‘(ii) the efforts the Head Start agen-
cy has undertaken to be fully enrolled 
under the eligibility criteria in paragraph 
(1); and 
‘‘(iii) the policies and procedures the 
Head Start agency will implement to en-
sure that children currently eligible under 
the criteria described under paragraph (1) 
will be prioritized.
125
‘‘(C) No more than 20 percent of children 
served by such Head Start agency may be from 
families above the poverty line.’’, 
(2) in subsection (c) by striking ‘‘(age 3 to 
compulsory school attendance)’’, and 
(3) in subsection (d) by adding at the end the 
following: 
‘‘(4) Notwithstanding any other provision of this Act, 
an Indian tribe that operates both a Head Start program 
and an Early Head Start program under section 645A 
may, at its discretion, at any time during the grant period 
involved, reallocate funds between the Head Start pro-
gram and the Early Head Start program in order to ad-
dress fluctuations in client population, including pregnant 
women and children birth to compulsory school age. The 
reallocation of such funds between programs by an Indian 
tribe shall not serve as the basis for the Secretary to re-
duce a base grant (as defined in section 641A(g)(1)) for 
either program in succeeding years.’’. 
SEC. 13. EARLY HEAD START PROGRAMS. 
Section 645A of the Head Start Act (42 U.S.C. 
9840a) is amended to read as follows: