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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-136

======================================================================



 
                      SCHOOL READINESS ACT OF 2005

                                _______
                                

 June 16, 2005.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2123]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 2123) to reauthorize the Head Start Act 
to improve the school readiness of disadvantaged children, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``School Readiness Act of 2005''.

SEC. 2. PURPOSE.

  Section 636 of the Head Start Act (42 U.S.C. 9831) is amended to read 
as follows:

``SEC. 636. STATEMENT OF PURPOSE.

  ``It is the purpose of this subchapter to promote school readiness by 
enhancing the development of low-income children, including development 
of cognitive abilities, through educational instruction in prereading 
skills, premathematics skills, language, and social and emotional 
development linked to school readiness and through the provision to 
low-income children and their families of health, educational, 
nutritional, social and other services that are determined, based on 
family needs assessments, to be necessary.''.

SEC. 3. DEFINITIONS.

  Section 637 of the Head Start Act (42 U.S.C. 9832) is amended--
          (1) in paragraph (17) by striking ``, but for fiscal years'' 
        and all that follows down to the period;
          (2) by redesignating paragraphs (16) and (17) as paragraphs 
        (23) and (24), respectively;
          (3) by redesignating paragraph (15) as paragraph (21);
          (4) by redesignating paragraphs (11) through (14) as 
        paragraphs (16) through (19), respectively;
          (5) by redesignating paragraph (10) as paragraph (14);
          (6) by redesignating paragraphs (3) through (9) as paragraphs 
        (6) through (12), respectively;
          (7) by redesignating paragraph (2) as paragraph (4);
          (8) by inserting after paragraph (1) the following:
          ``(2) The term `challenging State developed academic content 
        standards' has the meaning given such term in paragraphs (1) 
        and (5) of section 1111(b) of the Elementary and Secondary 
        Education Act of 1965.
          ``(3) The term `deficient' means--
                  ``(A) systemic or significant failure of a Head Start 
                agency in an area of performance that the Secretary 
                determines involves--
                          ``(i) a threat to the health, safety, or 
                        civil rights of children or staff;
                          ``(ii) a denial to parents of the exercise of 
                        their full roles and responsibilities related 
                        to program governance;
                          ``(iii) a failure to perform the requirements 
                        of section 641A(a), as determined by the 
                        Secretary;
                          ``(iv) the misuse of funds received under 
                        this subchapter;
                          ``(v) loss of legal status (as determined by 
                        the Secretary) or financial viability, loss of 
                        permits, debarment from receiving Federal 
                        grants or contracts, or the improper use of 
                        Federal funds; or
                          ``(vi) failure to meet any other Federal or 
                        State requirement;
                  ``(B) failure of the board of directors of a Head 
                Start agency to fully exercise its legal and fiduciary 
                responsibilities;
                  ``(C) failure of a Head Start agency to meet the 
                administrative requirements of section 644(b); or
                  ``(D) failure of a Head Start agency to meet the 
                integration requirements of section 642B(a).'';
          (9) by inserting after paragraph (4), as so redesignated, the 
        following:
          ``(5) The term `eligible entities' means an institution of 
        higher education or other agency with expertise in delivering 
        training in early childhood development, family support, and 
        other assistance designed to improve the quality of early 
        childhood education programs.'';
          (10) by inserting after paragraph (12), as so redesignated, 
        the following:
          ``(13) The term `homeless children' has the meaning given 
        such term in subtitle B of title VII of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11431-11435).'';
          (11) by inserting after paragraph (14), as so redesignated, 
        the following:
          ``(15) Limited english proficient; limited english 
        proficiency.--The terms `limited English proficient' and 
        `limited English proficiency' mean with respect to an 
        individual, that such individual--
                  ``(A)(i) was not born in the United States or has a 
                native language that is not English;
                  ``(ii)(I) is a Native American, an Alaska Native, or 
                a native resident of a territory or possession of the 
                United States; and
                  ``(II) comes from an environment in which a language 
                that is not English has had a significant impact on 
                such individual's level of English language 
                proficiency; or
                  ``(iii) is migratory, has a native language that is 
                not English, and comes from an environment in which a 
                language that is not English is dominant; and
                  ``(B) has difficultly in speaking or understanding 
                the English language to an extent that may be 
                sufficient to deny such individual--
                          ``(i) the ability to successfully achieve in 
                        classrooms in which the language of instruction 
                        is English; or
                          ``(ii) the opportunity to fully participate 
                        in society.'';
          (12) by inserting after paragraph (19), as so redesignated, 
        the following:
          ``(20) Professional development.--The term `professional 
        development' means high quality activities that will enhance 
        the school readiness of eligible children and prevent such 
        children from encountering difficulties once they enter school 
        by improving the knowledge and skills of Head Start teachers 
        and staff, as relevant to their roles and functions, including 
        activities that--
                  ``(A) provide teachers with the content knowledge and 
                teaching strategies needed to provide effective 
                instruction and other school readiness services in 
                early language and literacy, early mathematics, 
                cognitive skills, approaches to learning, creative 
                arts, science, physical health and development, and 
                social and emotional development linked to school 
                readiness;
                  ``(B) assist teachers in meeting the requirements in 
                paragraphs (1) and (2) of section 648A(a), as 
                appropriate;
                  ``(C) improve teachers' classroom management skills, 
                as appropriate;
                  ``(D) for teachers, are sustained, intensive, and 
                classroom-focused in order to have a positive and 
                lasting impact on classroom instruction and teachers' 
                performance in the classroom;
                  ``(E) are not primarily 1-day or short-term workshops 
                or conferences, and attendance at activities that are 
                1-day or short-term workshops or conferences must be as 
                part of the professional development plan defined in 
                section 648A(f);
                  ``(F) assist teachers and staff in increasing their 
                knowledge and skills in program administration, program 
                quality, and the provision of services and instruction, 
                as appropriate, in a manner that improves service 
                delivery to eligible children and families;
                  ``(G) are part of a sustained effort to improve 
                overall program quality and outcomes for eligible 
                children and families;
                  ``(H) advance teacher understanding of effective 
                instructional strategies that are--
                          ``(i) based on scientifically based research; 
                        and
                          ``(ii) strategies for improving school 
                        readiness or substantially increasing the 
                        knowledge and teaching skills of teachers;
                  ``(I) are, where applicable, aligned with and 
                directly related to--
                          ``(i) challenging State academic content 
                        standards, student academic achievement 
                        standards, assessments, and the Head Start 
                        Child Outcomes Framework developed by the 
                        Secretary;
                          ``(ii) the curricula, ongoing assessments, 
                        and other instruction and services designed to 
                        help meet the standards described in section 
                        641A(a)(1); and
                          ``(iii) the Head Start Child Outcomes 
                        Framework developed by the Secretary;
                  ``(J) are developed or selected with extensive 
                participation of administrators and teachers from Head 
                Start programs;
                  ``(K) are developmentally appropriate for the 
                children being served;
                  ``(L) are designed to give teachers of limited 
                English proficient children, and other teachers and 
                instructional staff, the knowledge and skills to 
                provide instruction and appropriate language and 
                support services to increase the English language 
                skills of such children;
                  ``(M) as a whole, are regularly evaluated for their 
                impact on increased teacher and staff effectiveness and 
                improved ability of teachers to support learning and 
                increase participating children's school readiness, 
                with the findings of the evaluations used to improve 
                the quality of professional development;
                  ``(N) provide instruction in methods of teaching 
                children with special needs, as appropriate;
                  ``(O) include instruction in ways that Head Start 
                personnel may work more effectively with parents, as 
                appropriate; and
                  ``(P) are designed to give teachers and staff the 
                knowledge and skills to provide instruction and 
                appropriate support services to children of diverse 
                backgrounds, as appropriate.'';
          (13) by inserting after paragraph (21), as so redesignated, 
        the following:
          ``(22) The term `scientifically based research'--
                  ``(A) means research that involves the application of 
                rigorous, systematic and objective procedures to obtain 
                reliable and valid knowledge relevant to education 
                activities and programs; and
                  ``(B) includes research that--
                          ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                          ``(ii) involves rigorous data analyses that 
                        are adequate to test the stated hypotheses and 
                        justify the general conclusions drawn;
                          ``(iii) relies on measurements or 
                        observational methods that provide reliable and 
                        valid data across evaluators and observers, 
                        across multiple measurements and observations, 
                        and across studies by the same or different 
                        investigators;
                          ``(iv) is evaluated using experimental or 
                        quasi-experimental designs in which 
                        individuals, entities, programs or activities 
                        are assigned to different conditions and with 
                        appropriate controls to evaluate the effects of 
                        the condition of interest, with a preference 
                        for random assignment experiments, or other 
                        designs to the extent that those designs 
                        contain within-condition or across-condition 
                        controls;
                          ``(v) ensures that experimental studies are 
                        presented in sufficient detail and clarity to 
                        allow for replication or, at a minimum, offer 
                        the opportunity to build systematically on 
                        their findings; and
                          ``(vi) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.''; and
          (14) by inserting after paragraph (24), as so redesignated, 
        the following:
          ``(25) The term `State educational agency' has the meaning 
        given such term in the Elementary and Secondary Education Act 
        of 1965.
          ``(26) The term `unresolved area of noncompliance' means a 
        failure to correct a noncompliance item within 90 days, or 
        within such additional time (if any) authorized by the 
        Secretary, after receiving from the Secretary notice of such 
        noncompliance item.''.

SEC. 4. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS.

  Section 638 of the Head Start Act (42 U.S.C. 9833) is amended by 
inserting ``for a period of 5 years'' after ``provide financial 
assistance to such agency''.

SEC. 5. AUTHORIZATION.

  Section 639 of the Head Start Act (42 U.S.C. 9834) is amended to read 
as follows:

``SEC. 639. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated for 
carrying out the provisions of this subchapter $6,899,000,000 for the 
fiscal year 2006 and such sums as may be necessary for the fiscal years 
2007 through 2011.
  ``(b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available not more than 
$20,000,000 for fiscal year 2006, and such sums as may be necessary for 
fiscal years 2007 through 2011 to carry out such other research, 
demonstration, and evaluation activities, including longitudinal 
studies, under section 649, of which not more than $7,000,000 for each 
of the fiscal years 2006 through 2011 to carry out impact studies under 
section 649(g).''.

SEC. 6. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE.

  (a) Allotments.--Section 640(a) of the Head Start Act (42 U.S.C. 
9835(a)) is amended--
          (1) in paragraph (2)--
                  (A) by amending subparagraph (A) to read as follows:
                  ``(A) Indian Head Start programs, services for 
                children with disabilities, and migrant and seasonal 
                Head Start programs, except that--
                          ``(i) there shall be made available for each 
                        fiscal year for use by Indian Head Start 
                        programs and by migrant and seasonal Head Start 
                        programs, on a nationwide basis, not less than 
                        the amount that was obligated for use by Indian 
                        Head Start programs and by migrant and seasonal 
                        Head Start programs for fiscal year 2005;
                          ``(ii) migrant and seasonal Head Start 
                        programs shall receive at least 5 percent of 
                        the amount appropriated for such fiscal year 
                        until such time as the Secretary can make 
                        funding decisions to ensure access to funding 
                        for eligible children of migrant and seasonal 
                        farmworkers is comparable to access to funding 
                        for other eligible children based on the data 
                        collected and reported pursuant to section 
                        648(j), except that no future reduction in 
                        funding shall result in the termination of Head 
                        Start services provided to any eligible child 3 
                        years of age or older who is participating in 
                        any such program on the date a reduction in 
                        funding occurs, and shall, to the extent 
                        possible, continue participation for children 
                        less than 3 years of age receiving services 
                        prior to such reduction in funding; and
                          ``(iii) Indian Head Start programs shall 
                        receive at least 3.5 percent of the amount 
                        appropriated for such fiscal year until such 
                        time as the Secretary can make funding 
                        decisions to ensure access to funding for 
                        eligible Indian children is comparable to 
                        access to funding for other eligible 
                        children;''; and
                  (B) by amending subparagraph (B) to read as follows:
          ``(B) payments, subject to paragraph (7) to Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, and 
        the Virgin Islands of the United States, and subject to the 
        requirements of section 105(f)(1)(B)(ix) of Public Law 108-188 
        to Palau;'';
                  (C) by amending (C) to read as follows:
          ``(C) training and technical assistance activities to foster 
        program quality and management improvement as described in 
        section 648, in an amount for each fiscal year which is equal 
        to 2 percent of the amount appropriated for such fiscal year, 
        of which--
                  ``(i) not less than 50 percent shall be made 
                available to local Head Start agencies to make program 
                improvements identified by such agencies and comply 
                with the standards described in section 641A(a)(1), of 
                which not less than 50 percent shall be used to comply 
                with the standards described in section 641A(a)(1)(B) 
                and for the uses described in clauses (iii), (iv), and 
                (vii) of subsection (a)(3)(B);
                  ``(ii) not less than 20 percent shall be made 
                available to support a State system of early childhood 
                education training and technical assistance, including 
                the State Early Learning Council described in section 
                642B(b);
                  ``(iii) not less than 30 percent shall be made 
                available to the Secretary to assist local programs in 
                meeting the standards described in section 641A(a)(1) 
                and shall be allocated to address program weaknesses 
                identified by monitoring activities conducted by the 
                Secretary under section 641A(c); and
                  ``(iv) not less than $3,000,000 of the amount in 
                clause (iii) appropriated for such fiscal year shall be 
                made available to carry out activities described in 
                section 648(d)(4);''; and
                  (D) by striking the last sentence.
          (2) in paragraph (3)--
                  (A) in subparagraph (A)--
                          (i) in clause (i)(I) by striking ``year 
                        1999'' and all that follows down to the 
                        semicolon and inserting ``years 2006 through 
                        2011''; and
                          (ii) by adding at the end the following:
  ``(iii) After the reservation of amounts under paragraph (2) and the 
60 percent amount referred to in subparagraph (A) of this paragraph, a 
portion of the remaining funds shall be made available--
          ``(I) to expand services to underserved populations, such as 
        children receiving services under Early Head Start programs and 
        under migrant and seasonal Head Start programs; and
          ``(II) to increase funding to grantees with full enrollment 
        and whose aggregate amount of financial assistance provides 
        funding per child that is below the national average.'';
                  (B) by amending subparagraph (B) to read as follows:
  ``(B) Funds reserved under this paragraph (in this paragraph referred 
to as `quality improvement funds') shall be used to accomplish the 
following goals:
          ``(i) Ensuring that Head Start programs meet or exceed 
        standards pursuant to section 641A(a)(1).
          ``(ii) Ensuring that such programs have adequate numbers of 
        qualified staff, and that such staff is furnished adequate 
        training, including developing skills to promote the 
        development of language skills, premathematic skills, and 
        prereading in young children and in working with children with 
        limited English proficiency, children referred by child welfare 
        services, and children with disabilities, when appropriate.
          ``(iii) Developing and financing the salary scales described 
        under section 644(a)(3) and section 653, in order to ensure 
        that salary levels and benefits are adequate to attract and 
        retain qualified staff for such programs.
          ``(iv) Using salary increases--
                  ``(I) to assist with the implementation of quality 
                programs and improve staff qualifications;
                  ``(II) to ensure that staff can promote the language 
                skills and literacy growth of children and can provide 
                children with a variety of skills that have been 
                identified, through scientifically based early reading 
                research, as predictive of later reading achievement; 
                and
                  ``(III) to encourage the staff to continually improve 
                their skills and expertise by informing the staff of 
                the availability of Federal and State incentive and 
                loan forgiveness programs for professional development.
          ``(v) Improving community-wide strategic planning and needs 
        assessments for such programs and collaboration efforts for 
        such programs, including collaborations to increase program 
        participation by underserved populations of eligible children.
          ``(vi) Ensuring that the physical environments of Head Start 
        programs are conducive to providing effective program services 
        to children and families, and are accessible to children with 
        disabilities and their parents.
          ``(vii) Ensuring that such programs have qualified staff that 
        can promote language skills and literacy growth of children and 
        that can provide children with a variety of skills that have 
        been identified, through scientifically based reading research, 
        as predictive of later reading achievement.
          ``(viii) Providing assistance to complete postsecondary 
        course work including scholarships or other financial 
        incentives, such as differential and merit pay, to enable Head 
        Start teachers to improve competencies and the resulting child 
        outcomes.
          ``(ix) Upgrading the qualifications and skills of educational 
        personnel to meet the professional standards established under 
        section 648A(a)(1), including certification and licensure as 
        bilingual education teachers and other educational personnel 
        who serve limited English proficient children.
          ``(x) Promoting the regular attendance and stability of all 
        children participating in Head Start programs, with particular 
        attention to highly mobile children, including children from 
        migrant and seasonal farm worker families (if appropriate), 
        homeless children, and children in foster care.
          ``(xi) Making such other improvements in the quality of such 
        programs as the Secretary may designate.''; and
                  (C) by amending subparagraph (C) to read as follows:
  ``(C) Quality improvement funds shall be used to carry out the 
activities in any or all of the following clauses:
          ``(i)(I) Not less than one-half of the amount reserved under 
        this paragraph, to improve the compensation (including 
        benefits) of classroom teachers and other staff of Head Start 
        agencies providing instructional services and thereby enhancing 
        recruitment and retention of qualified staff, including 
        recruitment and retention pursuant to achieving the 
        requirements set forth in section 648A(a). The expenditure of 
        funds under this clause shall be subject to section 653. Salary 
        increases, in excess of cost-of-living allowance, provided with 
        such funds shall be subject to the specific standards governing 
        salaries and salary increases established pursuant to section 
        644(a).
          ``(II) If a Head Start agency certifies to the Secretary for 
        such fiscal year that part of the funds set aside under 
        subclause (I) to improve wages cannot be expended by such 
        agency to improve wages because of the operation of section 
        653, then such agency may expend such part for any of the uses 
        specified in this subparagraph (other than wages).
          ``(III) From the remainder of the amount reserved under this 
        paragraph (after the Secretary carries out subclause (I)), the 
        Secretary may carry out the activities described in clauses 
        (ii) through (vii).
          ``(ii) To train classroom teachers and other staff to meet 
        the education standards described in section 641A(a)(1)(B), 
        through activities--
                  ``(I) to promote children's language and prereading 
                growth, through techniques identified through 
                scientifically based reading research;
                  ``(II) to promote the acquisition of the English 
                language for limited English proficient children and 
                families, while ensuring that children are making 
                meaningful progress in attaining the knowledge, skills, 
                abilities, and development described in section 
                641A(a)(1)(B);
                  ``(III) to foster children's school readiness through 
                activities described in section 648A(a)(1); and
                  ``(IV) to provide education and training necessary to 
                improve the qualifications of Head Start staff, 
                particularly assistance to enable more instructors to 
                be fully competent and to meet the degree requirements 
                under section 648A(a)(2)(A), and to support staff 
                training, child counseling, and other services 
                necessary to address the challenges of children 
                participating in Head Start programs, including 
                children from immigrant, refugee, and asylee families, 
                children from families in crisis, children who 
                experience chronic violence in their communities, 
                children who experience substance abuse in their 
                families, and children with emotional and behavioral 
                problems.
          ``(iii) To employ additional Head Start staff, including 
        staff necessary to reduce the child-staff ratio, lead 
        instructors who meet the qualifications of section 648A(a) and 
        staff necessary to coordinate a Head Start program with other 
        services available to children participating in such program 
        and to their families.
          ``(iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and thereby 
        maintain or expand Head Start services.
          ``(v) To supplement amounts provided under paragraph (2)(C) 
        to provide training necessary to improve the qualifications of 
        the staff of the Head Start agencies, and to support staff 
        training, child counseling, and other services necessary to 
        address the problems of children participating in Head Start 
        programs, including children from dysfunctional families, 
        children who experience chronic violence in their communities, 
        and children who experience substance abuse in their families.
          ``(vi) To conduct outreach to homeless families in an effort 
        to increase the program participation of homeless children.
          ``(vii) To conduct outreach to migrant and seasonal farm-
        working families and families with children with a limited 
        English proficiency.
          ``(viii) Such other activities as the Secretary may 
        designate.'';
          (3) in paragraph (4) by striking ``1998'' in subparagraph (A) 
        and inserting ``2005'';
          (4) in paragraph (5) by amending subparagraphs (A), (B), and 
        (C) to read as follows:
  ``(A) From amounts reserved and allotted pursuant to paragraph (4), 
the Secretary shall award the collaboration grants described in 
subparagraphs (B) and (D).
  ``(B) From the reserved sums in paragraph (4), the Secretary shall 
award a collaboration grant to any State that submits a written 
request. Such grant shall be equal to the amount the State received 
under this paragraph for such activity for fiscal year 2005. Such grant 
shall be used by the State to facilitate collaboration regarding 
activities carried out in the State under this subchapter, and other 
activities carried out in and by the State that are designed to benefit 
low-income children and families and to encourage Head Start agencies 
to collaborate with entities involved in State and local planning 
processes (including the State lead agency administering the financial 
assistance under the Child Care and Development Block Grant Act of 1990 
and the entities that provide child care resource and referral services 
in the State) in order to better meet the needs of low-income children 
and their families.
  ``(C) In order to improve results for children, a State that receives 
a grant under subparagraph (B) shall appoint an individual to serve as 
the State Director of Head Start Collaboration to be a liaison between 
the appropriate regional office of the Administration for Children and 
Families and agencies carrying out Head Start programs in the State. 
The State shall--
          ``(i) ensure that such Director holds a position with 
        sufficient authority and access to ensure that the 
        collaboration described in subparagraph (B) is effective and 
        involves a range of State agencies and local entities, 
        including--
                  ``(I) the State educational agency;
                  ``(II) the State Department of Health and Human 
                Services;
                  ``(III) the State agency that oversees child care;
                  ``(IV) the State agency that assists children with 
                developmental disabilities;
                  ``(V) the State Head Start Association;
                  ``(VI) the State network of child care resource and 
                referral agencies;
                  ``(VII) local educational agencies;
                  ``(VIII) community-based and faith-based 
                organizations;
                  ``(IX) representatives of migrant and seasonal Head 
                Start programs located in the State;
                  ``(X)representatives of Indian Head Start programs 
                located in the State;
                  ``(XI) State and local providers of early childhood 
                education and child care, including providers with 
                experience serving children with limited English 
                proficiency; and
                  ``(XII) other entities carrying out programs serving 
                low-income children and families in the State;
          ``(ii) involve the entities described in clause (i) to 
        develop a strategic plan for the coordinated outreach to 
        identify eligible children and to implement strategies based on 
        a needs assessment, which shall include an assessment of the 
        availability of high quality prekindergarten services for low-
        income children in the State. Such assessment shall be 
        completed not later than 1 year after the date of enactment of 
        the School Readiness Act of 2005 and be updated on an annual 
        basis and shall be made available to the general public within 
        the State;
          ``(iii) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start services 
        with health care, welfare, child care, child protective 
        services, education, and community service activities, family 
        literacy services, activities relating to children with 
        disabilities (including coordination of services with those 
        State officials who are responsible for administering part C 
        and section 619 of the Individuals with Disabilities Education 
        Act (20 U.S.C. 1419, 1431 et seq.)), and services for homeless 
        children (including coordination of services with the Office of 
        Coordinator for Education of Homeless Children and Youth 
        designated under section 722(g)(1)(J)(ii) of the McKinney-Vento 
        Homeless Assistance Act of 2001 (42 U.S.C. 11432(g)(1)(J)(ii));
          ``(iv) require the State Director of Head Start Collaboration 
        to--
                  ``(I) serve on the Early Learning Council pursuant to 
                section 642B(b);
                  ``(II) consult with the Early Learning Council, chief 
                State school officer, local educational agencies, 
                representatives of local Head Start agencies and 
                providers of early childhood education and care in 
                unified planning regarding early care and education 
                services at both the State and local levels, including 
                collaborative efforts to develop school readiness 
                standards;
                  ``(III) consult with the chief State school officer, 
                local educational agencies, State child care 
                administrators, State human services administrators, 
                representatives of local child care resource and 
                referral agencies, local early childhood councils, 
                providers of early childhood education and care, and 
                other relevant State and local agencies, and 
                representatives of the State Head Start Association to 
                plan for the provision of full-working-day, full-
                calendar-year early care and education services for 
                eligible children with working parents who have a 
                demonstrated need;
                  ``(IV) consult with the chief State school officer, 
                local educational agencies and Head Start agencies to 
                improve alignment between Head Start programs and 
                State-funded prekindergarten activities to meet shared 
                goals of school readiness; and
                  ``(V) establish improved linkages between Head Start 
                agencies and other children and family agencies, 
                including agencies that provide health, mental health 
                or family services or other child and family support 
                services.'';
                  (C) in subparagraph (D)(i) by inserting ``and 
                providers of services supporting early childhood 
                education and child care'' after ``Associations''; and
                  (D) by amending paragraph (6)(A) to read as follows:
  ``(A) From amounts reserved and allotted pursuant to paragraphs (2) 
and (4), the Secretary shall use, for grants for programs described in 
section 645A(a) of this subchapter, a portion of the combined total of 
such amounts equal to at least 10 percent for each of the fiscal years 
2006 through 2011, of the amount appropriated pursuant to section 
639(a), except as provided in subparagraph (B).''.
  (b) Service Delivery Models.--Section 640(f) of the Head Start Act 
(42 U.S.C. 9835(f)) is amended by inserting before the period at the 
end the following: ``, including models that leverage the existing 
capacity and capabilities of the delivery system of early childhood 
education and child care''.
  (c) Maintenance of Service Levels.--Section 640(g)(2) of the Head 
Start Act (42 U.S.C. 9835(g)(2)) is amended--
          (1) by striking ``For the purpose of expanding Head Start 
        programs, in'' and inserting ``In'';
          (2) by amending subparagraph (C) to read as follows:
          ``(C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and Federal, State, and 
        local public agencies serving children and families (including 
        organizations and agencies providing family support services 
        and protective services to children and families and 
        organizations serving families in whose homes English is not 
        the language customarily spoken), and individuals, 
        organizations, and public entities serving children with 
        disabilities and homeless children including the local 
        educational agency liaison designated under section 
        722(g)(1)(J)(ii) of the McKinney-Veto Homeless Assistance Act 
        (42 U.S.C. 11432(g)(1)(J)(ii));'';
          (3) in subparagraph (D) by striking ``other local'' and 
        inserting ``the State and local'';
          (4) in subparagraph (E) by inserting ``would like to 
        participate but'' after ``community who'';
          (5) in subparagraph (G)--
                  (A) by inserting ``leverage the existing delivery 
                systems of such services and'' after ``manner that 
                will''; and
                  (B) by striking ``and'' at the end;
          (6) in subparagraph (H)--
                  (A) by inserting ``, including the local educational 
                agency liaison designated under section 
                722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)),'' after 
                ``community involved'';
                  (B) by striking ``plans to coordinate'' and inserting 
                ``successfully coordinated its activities''; and
                  (C) by striking the period at the end and inserting 
                ``; and''; and
          (7) by adding at the end the following:
          ``(I) the amount of funds used by such agency to pay 
        administrative expenses and the amount of available funds 
        received by such agency under this section to serve each 
        enrolled child.''.
  (d) Vehicle Safety Requirements.--Section 640(i) of the Head Start 
Act (42 U.S.C. 9835(i)) is amended--
          (1) by striking ``(i) The'' and inserting the following:
  ``(i) Transportation Safety.--
          ``(1) Regulations.--The''; and
          (2) by adding at the end the following:
          ``(2) Waiver authority.--
                  ``(A) In general.--The Secretary may waive for a 
                period of up to one year the requirements of 
                regulations promulgated under paragraph (1) for one or 
                more vehicles used by the agency or its designee in 
                transporting children enrolled in a Head Start program 
                or an Early Head Start program if--
                          ``(i) such requirements pertain to child 
                        restraint systems and bus monitors;
                          ``(ii) the agency demonstrates that 
                        compliance with such requirements will result 
                        in a significant disruption to the Head Start 
                        program or the Early Head Start program; and
                          ``(iii) is in the best interest of the child.
                  ``(B) Renewal.--The Secretary may renew a waiver 
                under subparagraph (A).''.
  (e) Migrant and Seasonal Head Start Programs.--Section 640(l) of the 
Head Start Act (42 U.S.C. 9835(l)) is amended--
          (1) by amending paragraph (3) to read as follows:
  ``(3) In carrying out this subchapter, the Secretary shall continue 
the administrative arrangement at the national level for meeting the 
needs of Indian children and children of migrant and seasonal 
farmworkers and shall ensure that appropriate funding is provided to 
meet such needs, including training and technical assistance and the 
appointment of a national migrant and seasonal Head Start collaboration 
director and a national Indian Head Start collaboration director.''; 
and
          (2) by adding at the end the following:
  ``(4)(A) For the purposes of paragraph (3), the Secretary shall 
conduct an annual consultation in each affected Head Start region, with 
tribal governments operating Head Start programs and Early Head Start 
programs.
  ``(B) The consultations shall be for the purpose of better meeting 
the needs of American Indian and Alaska Native children and families 
pertinent to subsections (a), (b), and (c) of section 641, taking into 
consideration funding allocations, distribution formulas, and other 
issues affecting the delivery of Head Start services within tribal 
communities.
  ``(C) The Secretary shall publish a notification of the consultations 
in the Federal Register prior to conducting the consultations.
  ``(D) A detailed report of each consultation shall be prepared and 
made available, on a timely basis, to all tribal governments receiving 
funds under this subchapter.''.
  (f) Enrollment of Homeless Children.--Section 640 of the Head Start 
Act (42 U.S.C. 9835) is amended by adding at the end the following:
  ``(m) Enrollment of Homeless Children.--The Secretary shall by 
regulation prescribe policies and procedures to remove barriers to the 
enrollment and participation of homeless children in Head Start 
programs. Such regulations shall require Head Start agencies--
          ``(1) to implement policies and procedures to ensure that 
        homeless children are identified and prioritized for 
        enrollment;
          ``(2) to allow homeless families to apply to, enroll in and 
        attend Head Start programs while required documents, such as 
        proof of residency, immunization and other medical records, 
        birth certificates and other documents, are obtained within a 
        reasonable time frame; and
          ``(3) coordinate individual Head Start centers and programs 
        with efforts to implement subtitle B of title VII of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11431-11435).
  ``(n) Rule of Construction.--Nothing in this subchapter shall be 
construed to require a State to establish a program of early education 
for children in the State, to require any child to participate in a 
program of early education, to attend school, or to participate in any 
initial screening prior to participation in such program, except as 
provided under section 612(a)(3), (consistent with section 
614(a)(1)(C)), of the Individuals with Disabilities Education Act.
  ``(o) Materials.--All curricula and instructional materials funded 
under this subchapter shall be scientifically based and age 
appropriate. Parents shall have the ability to inspect, upon request, 
any curricula or instructional materials.''.

SEC. 7. DESIGNATION OF AGENCIES.

  (a) Authority To Designate.-- Section 641(a) of the Head Start Act 
(42 U.S.C. 9836(a)) is amended to read as follows:
  ``(a) Authority To Designate.--
          ``(1) In general.--The Secretary is authorized to designate 
        as a Head Start agency any local public or private nonprofit or 
        for-profit agency within a State, including a community-based 
        or faith-based organization that--
                  ``(A) has power and authority to carry out the 
                purpose of this subchapter and perform the functions 
                set forth in section 642 within a State; and
                  ``(B) is determined to be capable of planning, 
                conducting, administering, and evaluating, either 
                directly or by other arrangements, a Head Start 
                program.
          ``(2) Designation requirements.--To be designated as a Head 
        Start agency and to receive financial assistance under this 
        subparagraph, an entity described in sub paragraph (1) shall--
                  ``(A) establish measurable objectives for--
                          ``(i) the school readiness of children 
                        participating in the program under this 
                        subchapter;
                          ``(ii) meeting the performance standards 
                        described in section 641A;
                          ``(iii) educational instruction in 
                        prereading, premathematics, and language 
                        skills; and
                          ``(iv) the provision of health, educational, 
                        nutritional, social and other services related 
                        to school readiness; and
                  ``(B) align curricula to challenging State developed 
                academic content standards and the Head Start Child 
                Outcomes Framework developed by the Secretary.
          ``(3) Eligibility for subsequent financial assistance.--In 
        order to receive financial assistance under this subchapter 
        subsequent to the initial financial assistance provided 
        following the effective date of this subsection, an entity 
        described in paragraph (1) shall demonstrate that the entity 
        has met the measurable objectives described in paragraph (2);
          ``(4) Measuring Progress.--Progress in meeting such 
        measurable objectives shall not be measured primarily or solely 
        by the results of assessments.''
  (b) Priority in Designation.--Section 641(c) of the Head Start Act 
(42 U.S.C. 9836(c)) is amended to read as follows:
  ``(c) Consultation.--In the administration of this section, the 
Secretary shall, in consultation with the chief executive officer of 
the State involved, give priority in the designation of Head Start 
agencies to Head Start agencies that--
          ``(1) are receiving assistance under this subchapter on the 
        effective date of this subsection;
          ``(2) meet or exceed program and financial management 
        requirements, standards described in section 641A(a);
          ``(3) meet or exceed the education standards and requirements 
        described in section 641A(a)(1)(B);
          ``(4) have no unresolved area of noncompliance;
          ``(5) have not been deemed deficient since the then most 
        recent designation;
          ``(6) employ qualified staff (including in center-based 
        programs, a teaching staff of whom at least 50 percent have an 
        associate, baccalaureate, or advanced degree in early child 
        education or a related field), except that the Secretary may 
        waive the application of this paragraph, for a period not to 
        exceed 3 years, for Head Start programs operating in rural 
        areas, for migrant and seasonal Head Start programs, and for 
        Indian Head Start programs, on a case-by-case basis, if the 
        program demonstrates progress in increasing the qualifications 
        of teaching staff and demonstrates adequate instructional 
        supervision by qualified staff;
          ``(7) were not deemed by the Secretary as chronically under-
        enrolled since the then most recent designation;
          ``(8) utilize curricula based on scientifically based 
        research, that are aligned with challenging State developed 
        academic content standards and the Head Start Child Outcomes 
        Framework developed by the Secretary;
          ``(9) demonstrate active partnerships with local educational 
        agencies serving the same communities to facilitate smooth 
        transitions to kindergarten;
          ``(10) actively implement a memorandum of understanding 
        described in section 642B(a) and additional collaborative 
        partnerships with organizations that enhance the delivery of 
        services to children;
          ``(11) demonstrate success in improving child outcomes across 
        all domains of development, including measurable progress in 
        language skills, prereading knowledge, and premathematics 
        knowledge;
          ``(12) maintain classroom environments constructive to early 
        learning and future school success;
          ``(13) demonstrate strong parental involvement and activities 
        to develop parent skills to support their children's 
        educational development and ability to participate effectively 
        in decisions relating to the education of their children;
          ``(14) are overseen by a board described in section 642(b) 
        that provides direction and actively oversees all program 
        activities;
          ``(15) document strong fiscal controls, including--
                  ``(A) the employment of well-qualified fiscal staff 
                with a history of successful management of a public or 
                private organization;
                  ``(B) having no reportable material weaknesses with 
                applicable laws and regulations on all annual financial 
                audits performed since the most recent designation;
                  ``(C) meeting or exceeding annual requirements for 
                financial support under section 640(b); and
                  ``(D) maintaining total administrative costs at or 
                below 15 percent of total program costs;
          ``(16) are licensed to operate in accordance with all 
        applicable State child care regulations;
          ``(17) conduct outreach activities to ensure that services 
        are provided to the most at-risk families in the community;
          ``(18) have developed strong community partnerships with 
        public and private organizations, such as businesses, health, 
        and social service providers; and
          ``(19) provide opportunities for ongoing professional 
        development.''.
  (c) Designation When No Entity Has Priority.--Section 641(d) of the 
Head Start Act (43 U.S.C. 9836(d)) is amended to read as follows:
  ``(d) Designation When No Entity Has Priority.--
          ``(1) In general.--If no entity in a community is entitled to 
        the priority specified in subsection (c), the Secretary shall, 
        after conducting an open competition, designate for a 5-year 
        period a Head Start agency from among qualified applicants in 
        such community.
          ``(2) Considerations in designation.--In selecting from among 
        qualified applicants for designation as a Head Start agency, 
        the Secretary shall consider the effectiveness of each such 
        applicant to provide Head Start services, based on--
                  ``(A) any past performance of such applicant in 
                providing services comparable to Head Start services, 
                including how effectively such applicant provided such 
                comparable services;
                  ``(B) the plan of such applicant to provide 
                comprehensive health (including mental and behavioral 
                health), educational, nutritional, social, and other 
                services needed to prepare children to succeed in 
                school;
                  ``(C) the capacity of such applicant to serve 
                eligible children with curriculum and teaching 
                practices based on scientifically based research that 
                promote the school readiness of children participating 
                in the program;
                  ``(D) the plan of such applicant to meet standards 
                set forth in section 641A(a)(1), with particular 
                attention to the standards set forth in subparagraphs 
                (A) and (B) of such section;
                  ``(E) the proposed budget and plan of such applicant 
                to maintain strong fiscal controls and cost effective 
                fiscal management;
                  ``(F) the plan of such applicant to coordinate the 
                Head Start program the applicant proposes to carry out 
                with other educational programs for young children, 
                including--
                          ``(i) the Early Reading First and Even Start 
                        programs under subparts 2 and 3 of part B of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6371 et seq., 
                        6381 et seq.);
                          ``(ii) programs under section 619 and part C 
                        of the Individuals with Disabilities Education 
                        Act (20 U.S.C. 1419, 1431 et seq.);
                          ``(iii) State prekindergarten programs;
                          ``(iv) child care programs;
                          ``(v) the educational programs that the 
                        children participating in the Head Start 
                        program involved will enter at the age of 
                        compulsory school attendance; and
                          ``(vi) reading readiness programs such as 
                        those conducted by public and school libraries;
                  ``(G) the plan of such applicant to coordinate the 
                Head Start program that the applicant proposes to carry 
                out, with public and private entities that are willing 
                to commit resources to assist the Head Start -program 
                in meeting its program needs;
                  ``(H) the plan of such applicant--
                          ``(i) to seek the involvement of parents 
                        (including grandparents and kinship caregivers, 
                        as appropriate) of children participating in 
                        the proposed Head Start program, in activities 
                        (at home and, if practicable, at the location 
                        of the Head Start program) designed to help 
                        such parents become full partners in the 
                        education of their children;
                          ``(ii) to afford such parents the opportunity 
                        to participate in the development and overall 
                        conduct of the program at the local level;
                          ``(iii) to 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. 6381 
                        et seq.), public and school libraries, and 
                        entities carrying out family support programs) 
                        to such parents--
                                  ``(I) family literacy services; and
                                  ``(II) parenting skills training;
                          ``(iv) to offer to parents of participating 
                        children, substance abuse counseling (either 
                        directly or through referral to local 
                        entities), including information on the effect 
                        of drug exposure on infants and fetal alcohol 
                        syndrome;
                          ``(v) at the option of such applicant, to 
                        offer (directly or through referral to local 
                        entities) to such parents--
                                  ``(I) training in basic child 
                                development (including cognitive 
                                development);
                                  ``(II) assistance in developing 
                                literacy and communication skills;
                                  ``(III) opportunities to share 
                                experiences with other parents 
                                (including parent mentor 
                                relationships);
                                  ``(IV) regular in-home visitation;
                                  ``(V) mental and behavioral health 
                                services; or
                                  ``(VI) any other activity designed to 
                                help such parents become full partners 
                                in the education of their children;
                          ``(vi) to provide, with respect to each 
                        participating family, a family needs assessment 
                        that includes consultation with such parents 
                        about the benefits of parent involvement and 
                        about the activities described in subparagraph 
                        (H) in which such parents may choose to become 
                        involved (taking into consideration their 
                        specific family needs, work schedules, and 
                        other responsibilities); and
                          ``(vii) to extend outreach to fathers, in 
                        appropriate cases, in order to strengthen the 
                        role of fathers in families, in the education 
                        of their young children, and in the Head Start 
                        program, by working directly with fathers and 
                        father figures through activities such as--
                                  ``(I) in appropriate cases, including 
                                fathers in home visits and providing 
                                opportunities for direct father-child 
                                interactions; and
                                  ``(II) targeting increased male 
                                participation in the conduct of the 
                                program;
                  ``(I) the ability of such applicant to carry out the 
                plans described in paragraphs (2), (4), and (5);
                  ``(J) the plan of such applicant to meet the needs of 
                limited English proficient children and their families, 
                including procedures to identify such children, plans 
                to provide trained personnel, and plans to provide 
                services to assist the children in making progress 
                toward the acquisition of the English language, while 
                making meaningful progress in attaining the knowledge, 
                skills, abilities, and development described in section 
                641A(a)(1)(B);
                  ``(K) the plan of such applicant to meet the diverse 
                cultural needs of the population served;
                  ``(L) the plan of such applicant to meet the needs of 
                children with disabilities;
                  ``(M) the plan of such applicant who chooses to 
                assist younger siblings of children who will 
                participate in the Head Start program, to obtain health 
                services from other sources;
                  ``(N) the plan of such applicant to collaborate with 
                other entities carrying out early childhood education 
                and child care programs in the community;
                  ``(O) the plan of such applicant to meet the needs of 
                homeless children, including transportation needs, and 
                children in foster care;
                  ``(P) the plan of such applicant to maintain a 
                qualified staff, including a teaching staff qualified 
                to implement research-based educational curricula 
                aligned with challenging State-developed academic 
                content standards, the Head Start Child Outcomes 
                Framework developed by the Secretary, and the State 
                early learning standards in States in which such 
                standards are developed;
                  ``(Q) the plan of such applicant to enter into 
                memoranda of understanding with local educational 
                agencies, child care providers, and other entities 
                within the service area; and
                  ``(R) other factors related to the requirements of 
                this subchapter.''.
  (d) Selection of Applicants.--Section 641(g) of the Head Start Act 
(43 U.S.C. 9836(g)) is amended to read as follows:
  ``(g) Issuance of Rules.--Not later than 180 days after the enactment 
of the School Readiness Act of 2005, the Secretary shall issue rules to 
carry out this section.''.

SEC. 8. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES AND 
                    PROGRAMS.

  (a) Quality Standards.--Section 641A(a) of the Head Start Act (42 
U.S.C. 9836a(a)) is amended--
          (1) by amending paragraph (1)(B)--
                  (A) in clause (i)--
                          (i) by inserting ``based on sound scientific 
                        evidence'' after ``standards''; and
                          (ii) by inserting ``and sustained academic 
                        gains'' after ``readiness''; and
                  (B) by amending clause (ii) to read as follows:
                  ``(ii) additional scientifically-based education 
                standards to ensure that the children participating in 
                the program, at a minimum develop and demonstrate--
                          ``(I) language knowledge and skills, 
                        including oral language and listening 
                        comprehension;
                          ``(II) prereading knowledge and skills that 
                        prepare children for early literacy in schools, 
                        including phonological awareness, print 
                        awareness and print skills, and alphabetic 
                        knowledge;
                          ``(III) premathematics knowledge and skills, 
                        including aspects of classification, seriation, 
                        number, spatial relations, and time;
                          ``(IV) cognitive abilities related to 
                        academic achievement and child development;
                          ``(V) social and emotional development 
                        related to early learning, school success, and 
                        sustained academic gains; and
                          ``(VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language while 
                        making meaningful progress in attaining the 
                        knowledge, skills, abilities, and development 
                        described in subclauses (I) through (IV);'';
          (2) in paragraph (2)--
                  (A) by amending subparagraph (B) to read as follows:
                  ``(B) take into consideration--
                          ``(i) past experience with use of the 
                        standards in effect under this subchapter on 
                        October 27, 1998;
                          ``(ii) changes over the period since October 
                        27, 1998, in the circumstances and problems 
                        typically facing children and families served 
                        by Head Start agencies;
                          ``(iii) developments concerning research 
                        based practices with respect to early childhood 
                        education and development, children with 
                        disabilities, family services, program 
                        administration, and financial management;
                          ``(iv) projected needs of an expanding Head 
                        Start program;
                          ``(v) guidelines and standards currently in 
                        effect or under consideration that promote 
                        child health services and physical development, 
                        including outdoor activity that supports 
                        children's motor development and overall health 
                        and nutrition;
                          ``(vi) changes in the population of children 
                        who are eligible to participate in Head Start 
                        programs, including the language background and 
                        family structure of such children;
                          ``(vii) scientifically based research to 
                        ensure that children participating in Head 
                        Start programs make a successful transition to 
                        schools that the children will be attending; 
                        and
                          ``(viii) the unique challenges faced by 
                        individual programs, including those that are 
                        seasonal or short term, and those that serve 
                        rural populations; and''; and
                  (B) in subparagraph (C)(ii) by striking ``the date'' 
                and all that follows through ``Act of 1998'', and 
                inserting ``October 27, 1998''; and
          (3) by adding at the end the following:
          ``(4) Evaluations and corrective actions for delegate 
        agencies.--
                  ``(A) Procedures.--The Head Start agency shall 
                establish procedures relating to its delegate agencies, 
                including--
                          ``(i) procedures for evaluating delegate 
                        agencies;
                          ``(ii) procedures for defunding delegate 
                        agencies; and
                          ``(iii) procedures for appealing a defunding 
                        decision relating to a delegate agency.
                  ``(B) Evaluations.--Each Head Start agency--
                          ``(i) shall evaluate its delegate agencies 
                        using the procedures established pursuant to 
                        this section, including subparagraph (A); and
                          ``(ii) shall inform the delegate agencies of 
                        the deficiencies identified through the 
                        evaluation that shall be corrected.
                  ``(C) Remedies to ensure corrective actions.--If the 
                Head Start agency identifies a deficiency for a 
                delegate agency through the evaluation, the Head Start 
                agency may--
                          ``(i) initiate procedures to terminate the 
                        designation of the agency unless the agency 
                        corrects the deficiency;
                          ``(ii) conduct monthly monitoring visits to 
                        such delegate agency until all deficiencies are 
                        corrected or the Head Start agency decides to 
                        defund such delegate agency; and
                          ``(iii) release funds to such delegate agency 
                        only as reimbursements until all deficiencies 
                        are corrected or the Head Start agency decides 
                        to defund such delegate agency.
                  ``(D) Rule of construction.--Nothing in this 
                paragraph shall be construed to impact or obviate the 
                responsibilities of the Secretary with respect to Head 
                Start agencies or delegate agencies receiving funding 
                under this subchapter.''.
  (b) Results-Based Performance Measures.--Section 641A(b) of the Head 
Start Act (42 U.S.C. 9836a(b)) is amended--
          (1) by amending paragraph (2) to read as follows:
          ``(2) Characteristics of measures.--The performance measures 
        developed under this subsection shall--
                  ``(A) be used to assess the impact of the various 
                services provided by Head Start programs and, to the 
                extent the Secretary finds appropriate, administrative 
                and financial management practices of such programs;
                  ``(B) be adaptable for use in self-assessment, peer 
                review, and program evaluation of individual Head Start 
                agencies and programs;
                  ``(C) be developed for other program purposes as 
                determined by the Secretary;
                  ``(D) be appropriate for the population served; and
                  ``(E) be reviewed no less than every 4 years, based 
                on advances in the science of early childhood 
                development.
        The performance measures shall include the performance 
        standards described in subparagraphs (A) and (B) of subsection 
        (a)(1).'';
          (2) by amending paragraph (3) to read as follows:
          ``(3) Use of measures.--
                  ``(A) The Secretary shall use the performance 
                measures pursuant to this subsection to identify--
                          ``(i) strengths and weaknesses in the 
                        operation of Head Start programs nationally, 
                        regionally, and locally; and
                          ``(ii) program areas that may require 
                        additional training and technical assistance 
                        resources.
                  ``(B) The Secretary shall provide a detailed 
                justification to the Congress regarding the planned 
                uses of the data collected by the National Reporting 
                System developed by the Secretary and shall demonstrate 
                its scientific validity and reliability for such 
                purposes, including its scientific validity and 
                reliability with children with limited English 
                proficiency for such purposes;
                  ``(C) The Secretary shall not use the National 
                Reporting System assessment results either as the 
                primary method for assessing program effectiveness or 
                as the primary method for making grantee funding 
                determinations.
                  ``(D) The Secretary shall develop a process to ensure 
                that the National Reporting System shall not be used to 
                exclude children from Head Start programs.''; and
          (3) by amending paragraph (4) to read as follows:
          ``(4) Educational measures.--Results based measures shall be 
        designed for the purpose of promoting the competencies of 
        children participating in Head Start programs specified in 
        subsection (a)(1)(B)(ii), with an emphasis on measuring those 
        competencies that have a strong scientifically-based 
        predictability of a child's school readiness and later 
        performance in school.''.
  (c) Monitoring of Local Agencies and Programs.--Section 641A(c) of 
the Head Start Act (42 U.S.C. 9836a(c)) is amended--
          (1) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A) by 
                inserting ``develop and utilize a risk-based assessment 
                system to'' after ``shall'';
                  (B) by amending subparagraph (C) to read as follows:
                  ``(C) Followup reviews, including unannounced reviews 
                as appropriate, of programs with 1 or more findings of 
                deficiencies not later than 6 months after the date of 
                such finding.''; and
                  (C) by amending subparagraph (D) to read as follows:
                  ``(D) Unannounced site inspections of Head Start 
                centers and other reviews, as appropriate.'';
          (2) by amending paragraph (2) to read as follows:
          ``(2) Conduct of reviews.--The Secretary shall ensure that 
        reviews described in subparagraphs (A) through (C) of paragraph 
        (1)--
                  ``(A) that incorporate a monitoring visit, may be 
                done without prior notice of the visit to the local 
                agency or program;
                  ``(B) are conducted by review teams composed of 
                individuals who are knowledgeable about the program 
                areas they are reviewing and, to the maximum extent 
                practicable, the diverse (including linguistic and 
                cultural) needs of eligible children (including 
                children with disabilities) and limited-English 
                proficient children and their families;
                  ``(C) include as part of the reviews of the programs, 
                a review and assessment of program effectiveness, 
                including strengths and areas for improvement, as 
                measured in accordance with the results-based 
                performance measures developed by the Secretary 
                pursuant to subsection (b) and with the standards 
                established pursuant to subparagraphs (A) and (B) of 
                subsection (a)(1);
                  ``(D) seek information from the communities and the 
                States involved about the performance of the programs 
                and the efforts of the Head Start agencies to 
                collaborate with other entities carrying out early 
                childhood education and child care programs in the 
                community;
                  ``(E) seek information from the communities where 
                Head Start programs exist about innovative or effective 
                collaborative efforts, barriers to collaboration, and 
                the efforts of the Head Start agencies and programs to 
                collaborate with the entities carrying out early 
                childhood education and child care programs in the 
                community;
                  ``(F) include as part of the reviews of the programs, 
                a review and assessment of whether a program is in 
                conformity with the income eligibility requirements, as 
                defined in section 645 and regulations promulgated 
                thereunder;
                  ``(G) include as part of the reviews of the programs, 
                a review and assessment of whether programs have 
                adequately addressed the population and community needs 
                (including populations of children with a limited 
                English proficiency and children of migrant and 
                seasonal farm-working families);
                  ``(H) include as part of the review the extent to 
                which the program addresses the community needs and 
                strategic plan identified in section 640(g)(2)(C); and
                  ``(I) are conducted in a manner that evaluates 
                program performance, quality, and overall operations 
                with consistency and objectivity, and based on a 
                transparent and reliable system of review.''.
  (d) Corrective Action; Termination.--Section 641A(d) of the Head 
Start Act (42 U.S.C. 9836a(d)) is amended--
          (1) in paragraph (1) by amending the matter preceding 
        subparagraph (A) to read as follows:
          ``(1) Determination.--If the Secretary determines, on the 
        basis of a review pursuant to subsection (c), that a Head Start 
        agency designated pursuant to section 641 fails to meet the 
        standards described in subsection (a) or results-based 
        performance measures developed by the Secretary under 
        subsection (b), or fails to adequately address the community 
        needs and strategic plan identified in 640(g)(2)(C), the 
        Secretary shall--'';
          (2) by amending paragraph (2) to read as follows:
          ``(2) Quality improvement plan.--
                  ``(A) Agency and program responsibilities.--In order 
                to retain a designation as a Head Start agency under 
                this subchapter, or in the case of a Head Start 
                program, in order to continue to receive funds from 
                such agency, a Head Start agency, or Head Start program 
                that is the subject of a determination described in 
                paragraph (1) (other than an agency or program required 
                to correct a deficiency immediately or during a 90-day 
                period under clause (i) or (ii) of paragraph (1)(B)) 
                shall--
                          ``(i) develop in a timely manner, a quality 
                        improvement plan 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 
                                corrected;
                                  ``(II) the actions to be taken to 
                                correct such deficiencies; and
                                  ``(III) the timetable for 
                                accomplishment of the corrective 
                                actions specified; and
                          ``(ii) eliminate each deficiency identified, 
                        not later than the date for elimination of such 
                        deficiency specified in such plan (which shall 
                        not be later than 1 year after the date the 
                        agency or program received notice of the 
                        determination and of the specific deficiency to 
                        be corrected).
                  ``(B) Secretarial responsibility.--Not later than 30 
                days after receiving from a Head Start agency a 
                proposed quality improvement plan pursuant to 
                subparagraph (A), the Secretary shall either approve 
                such proposed plan or specify the reasons why the 
                proposed plan cannot be approved.
                  ``(C) Agency responsibility for program 
                improvement.--Not later than 30 days after receiving 
                from a Head Start program, a proposed quality 
                improvement plan pursuant to subparagraph (A), the 
                sponsoring agency shall either approve such proposed 
                plan or specify the reasons why the proposed plan 
                cannot be approved.''; and
          (3) in paragraph (3) by inserting ``and programs'' after 
        ``agencies'';
          (4) by amending subsection (e) to read as follows:
  ``(e) Summaries of Monitoring Outcomes.--Not later than 120 days 
after the end of each fiscal year, the Secretary shall publish a 
summary report on the findings of reviews conducted under subsection 
(c) and on the outcomes of quality improvement plans implemented under 
subsection (d), during such fiscal year. Such information 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 addition, make the information widely available through public 
means such as distribution through public agencies, and at a minimum 
posting such information on the Internet immediately upon 
publication.''; and
          (5) by adding at the end the following:
  ``(f) Reduction of Grants and Redistribution of Funds in Cases of 
Under-Enrollment.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Actual enrollment.--The term `actual 
                enrollment' means, with respect to the program of a 
                Head Start agency, the actual number of children 
                enrolled in such program and reported by the agency (as 
                required in paragraph (2)) in a given month.
                  ``(B) Base grant.--The term `base grant' means, with 
                respect to a Head Start agency for a fiscal year, that 
                portion of the grant derived--
                          ``(i) from amounts reserved for use in 
                        accordance with section 640(a)(2)(A), for a 
                        Head Start agency administering an Indian Head 
                        Start program or migrant and seasonal Head 
                        Start program;
                          ``(ii) from amounts reserved for payments 
                        under section 640(a)(2)(B); or
                          ``(iii) from amounts available under section 
                        640(a)(2)(D) or allotted among States under 
                        section 640(a)(4).
                  ``(C) Funded enrollment.--The term `funded 
                enrollment' means, with respect to the program of a 
                Head Start agency in a fiscal year, the number of 
                children that the agency is funded to serve through a 
                grant for the program during such fiscal year, as 
                indicated in the grant agreement.
          ``(2) Enrollment reporting requirement for current fiscal 
        year.--Each entity carrying out a Head Start program shall 
        report on a monthly basis to the Secretary and the relevant 
        Head Start agency--
                  ``(A) the actual enrollment in such program; and
                  ``(B) if such actual enrollment is less than the 
                funded enrollment, any apparent reason for such 
                enrollment shortfall.
          ``(3) Secretarial review and plan.--The Secretary shall--
                  ``(A) on a semiannual basis, determine which Head 
                Start agencies are operating with an actual enrollment 
                that is less than the funded enrollment based on not 
                less than the average of 4 consecutive months of data;
                  ``(B) for each such Head Start agency operating a 
                program with an actual enrollment that is less than 95 
                percent of its funded enrollment, as determined under 
                subparagraph (A), develop, in collaboration with such 
                agency, a plan and timetable for reducing or 
                eliminating under-enrollment taking into 
                consideration--
                          ``(i) the quality and extent of the outreach, 
                        recruitment, and community needs assessment 
                        conducted by such agency;
                          ``(ii) changing demographics, mobility of 
                        populations, and the identification of new 
                        underserved low-income populations;
                          ``(iii) facilities-related issues that may 
                        impact enrollment;
                          ``(iv) the ability to provide full-day 
                        programs, where needed, through Head Start 
                        funds or through collaboration with entities 
                        carrying out other preschool or child care 
                        programs, or programs with other funding 
                        sources (where available);
                          ``(v) the availability and use by families of 
                        other preschool and child care options 
                        (including parental care) in the local 
                        catchment area; and
                          ``(vi) agency management procedures that may 
                        impact enrollment; and
                  ``(C) provide timely and ongoing technical assistance 
                to each agency described in subparagraph (B) for the 
                purpose of implementing the plan described in such 
                subparagraph.
          ``(4) Implementation.--Upon receipt of the technical 
        assistance described in paragraph (3)(C), a Head Start agency 
        shall immediately implement the plan described in paragraph 
        (3)(B).
          ``(5) Secretarial action for conversion to serve younger 
        children.--If, after implementing the plan described in 
        paragraph (3)(B), the grantee continues to operate a program at 
        less than full enrollment, the grantee may, upon approval by 
        the Secretary, be permitted to use a portion of the base grant 
        equal to the percentage difference between funded enrollment 
        and actual enrollment for the most then recent year, to serve 
        persons described in section 645A(c) if such agency currently 
        operates a grant described in section 645A and submits an 
        application containing--
                  ``(A) evidence of community need for such services;
                  ``(B) a description of how the needs of pregnant 
                women, infants, and toddlers will be addressed in 
                accordance with section 645A(b) and with regulations 
                prescribed by the Secretary pursuant to section 641A in 
                areas including--
                          ``(i) the approach to childhood development 
                        and health services; and
                          ``(ii) the approach to family and community 
                        partnerships; and approach to program design 
                        and management;
                  ``(C) assurances that the agency will participate in 
                technical assistance activities for newly funded and 
                existing grantees under section 654A; and
                  ``(D) evidence that the agency meets the eligibility 
                criteria as grantees under section 645A.
        Any grantee permitted to serve children under this paragraph 
        shall be subject to the rules, regulations, and conditions 
        under section 645A.
          ``(6) Secretarial action for continued under-enrollment.--If, 
        1 year after the date of implementation of the plan described 
        in paragraph (3)(B), the Head Start agency continues to operate 
        a program at less than full enrollment, the Secretary shall, 
        where determined appropriate, continue to provide technical 
        assistance to such agency.
          ``(7) Secretarial review and adjustment for chronic under-
        enrollment.--
                  ``(A) In general.--If, after receiving technical 
                assistance and developing and implementing a plan to 
                the extent described in paragraphs (3), (4), and (5) 
                for 6 months, a Head Start agency is still operating a 
                program with an actual enrollment that is less than 95 
                percent of its funded enrollment, the Secretary may--
                          ``(i) designate such agency as chronically 
                        under-enrolled; and
                          ``(ii) recapture, withhold, or reduce the 
                        base grant for the program by, a percentage 
                        equal to the percentage difference between 
                        funded enrollment and actual enrollment for the 
                        program for the most recent year in which the 
                        agency is determined to be under-enrolled under 
                        paragraph (2)(B).
                  ``(B) Waiver or limitation of reductions.--If the 
                Secretary, after the implementation of the plan 
                described in paragraph (3)(B), finds that--
                          ``(i) the shortfall can reasonably be 
                        expected to be temporary; or
                          ``(ii) the number of slots allotted to the 
                        agency is small enough that under-enrollment 
                        does not constitute a significant shortfall,
                the Secretary may, as appropriate, waive or reduce the 
                percentage recapturing, withholding, or reduction 
                otherwise required by subparagraph (A).
                  ``(C) Procedural requirements; effective date.--The 
                actions taken by the Secretary under this paragraph 
                with respect to a Head Start agency shall take effect 1 
                day after the date on which--
                          ``(i) the time allowed for appeal under 
                        section 646(a) expires without an appeal by the 
                        agency; or
                          ``(ii) the action is upheld in an 
                        administrative hearing under section 646.
          ``(8) Redistribution of funds.--
                  ``(A) In general.--Funds held by the Secretary as a 
                result of recapturing, withholding, or reducing a base 
                grant in accordance with paragraph (6) in a fiscal year 
                shall be redistributed in such fiscal year as follows:
                          ``(i) If such funds are attributable to the 
                        portion of a base grant derived from amounts 
                        specified in paragraph (1)(B)(i) payable, but 
                        for the operation of this paragraph, to carry 
                        out an Indian Head Start program, then such 
                        funds shall be redistributed to increase 
                        enrollment in such fiscal year in 1 or more 
                        Indian Head Start programs.
                          ``(ii) If such funds are attributable to the 
                        portion of a base grant derived from amounts 
                        specified in paragraph (1)(B)(i) payable, but 
                        for the operation of this paragraph, to carry 
                        out a migrant and seasonal Head Start program, 
                        then such funds shall be redistributed to 
                        increase enrollment in such fiscal year in 1 or 
                        more migrant and seasonal Head Start programs.
                          ``(iii) If such funds are attributable to the 
                        portion of a base grant derived from amounts 
                        specified in clause (ii) or (iii) of paragraph 
                        (1)(B) payable, but for the operation of this 
                        paragraph, to carry out a Head Start program 
                        (excluding Indian Head Start programs, and 
                        migrant and seasonal Head Start programs) in a 
                        State, then such funds shall be redistributed 
                        to increase enrollment in such fiscal year in 1 
                        or more--
                                  ``(I) other Head Start programs 
                                (excluding Indian Head Start programs 
                                and migrant and seasonal Head Start 
                                programs) that are carried out in such 
                                State; or
                                  ``(II) if the Secretary determines 
                                that children eligible under section 
                                641 are being adequately served within 
                                such State, 1 or more Early Head Start 
                                programs (excluding Indian Head Start 
                                programs and migrant and seasonal Head 
                                Start programs) or 1 or more Head Start 
                                programs for the purpose of becoming a 
                                grantee pursuant to section 645A.
                  ``(B) Adjustment to funded enrollment.--The Secretary 
                shall adjust as necessary the requirements relating to 
                funded enrollment indicated in the grant agreement of a 
                Head Start agency receiving funds redistributed under 
                this paragraph.''.

SEC. 9. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

  (a) Qualifications for Designation.--Section 642(b) of the Head Start 
Act (42 U.S.C. 9837(b)) is amended to read as follows:
  ``(b) In order to be so designated, a Head Start agency shall do all 
of the following:--
          ``(1) Establish a program with standards set forth in section 
        641A(a)(1), with particular attention to the standards set 
        forth in subparagraphs (A) and (B) of such section.
          ``(2) Demonstrate capacity to serve eligible children with 
        scientifically-based curricula and other interventions that 
        help promote the school readiness of children participating in 
        the program.
          ``(3) Establish effective procedures by which parents and 
        area residents concerned will be enabled to directly 
        participate in decisions that influence the character of 
        programs affecting their interests.
          ``(4) Establish an independent board of directors selected 
        from among eligible individuals who shall serve on the board 
        (or may designate an existing entity whose members are eligible 
        individuals, that shall be such board) for a period not to 
        exceed 5 years, except that board members who oversee a public 
        entity and who are selected by election (or members of a board 
        of a local educational agency or a local council, appointed by 
        an elected official or an official of a general purpose local 
        government), may serve for such period as may be determined by 
        the electing or appointing authority, as the case may be. An 
        individual who has a conflict of interest is ineligible to 
        serve as a member of the board. Members of the board of all 
        nonpublic entities shall include representatives of the local 
        community (including at least 1 member with significant 
        financial management or accounting experience and the chair of 
        the council described in section 642(b)(4)(B)(ii)). Additional 
        members shall be selected for their expertise in education, 
        business administration, community affairs, government, legal 
        affairs, and such other areas of expertise as may contribute to 
        effective governance of the Head Start agency. All members of 
        the board shall receive training in the management 
        responsibilities and obligations, ethics, and financial 
        literacy and management, and shall adopt practices that assure 
        active, independent and informed governance of the Head Start 
        agency, including independent oversight of the financial and 
        management practices of such agency. The board shall provide 
        direction to the executive director of the Head Start agency 
        and shall operate as an entity independent of staff employed by 
        the Head start agency, entity, or applicant and have the 
        following duties and responsibilities:
                  ``(A) To provide independent oversight to ensure that 
                the Head Start agency 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 
                established by the Secretary under section 644.
                  ``(B) To establish 2 or more standing committees to 
                facilitate governance of the Head Start agency which 
                shall include both of the following:
                          ``(i) An audit and finance committee whose 
                        primary responsibility shall be--
                                  ``(I) to approve annually the 
                                operating budget of the Head Start 
                                agency;
                                  ``(II) to review and recommend to the 
                                board the selection of independent 
                                auditors who shall report all critical 
                                accounting policies and practices to 
                                the finance and audit committee;
                                  ``(III) to review and recommend to 
                                the board the termination or extension 
                                of the existing audit firm at least 
                                once every 5 years;
                                  ``(IV) to review and advise the board 
                                of the audit management letter provided 
                                pursuant to the chapter 75 of title 31 
                                of the United States Code, and of any 
                                audit findings; and
                                  ``(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 
                                accounting practices.
                          ``(ii) A policy council, a majority of whose 
                        representatives shall be parents of children 
                        participating in a Head Start program or in an 
                        Early Head Start program, or of children who 
                        participated in a Head Start program or in an 
                        Early Head Start program in the then most 
                        recent 5-year period preceding the selection of 
                        the particular representative involved, and 
                        whose primary responsibility shall be to serve 
                        as a link between parents and the board of 
                        directors and to make and submit 
                        recommendations on the following activities to 
                        the Board:
                                  ``(I) The strategic direction of the 
                                program, including long and short-term 
                                planning goals and objectives.
                                  ``(II) Program operation policies, 
                                including standards of conduct for 
                                program staff and volunteers.
                                  ``(III) Activities to support the 
                                active involvement of parents in 
                                supporting program operations.
                                  ``(IV) classroom activities and 
                                staffing;
                                  ``(V) program responsiveness to 
                                community and parent needs; and
                                  ``(VI) other areas the committee 
                                identifies as necessary to improve 
                                program operations.
                  ``(C) To approve the selection and dismissal of the 
                Head Start director, and to review annually the human 
                resources available to ensure the effective operation 
                of the Head Start agency.
                  ``(D) To consult, on a regular basis, with the policy 
                committee and to take actions on recommendations 
                submitted by such committee.
                  ``(E) To review and approve the major operational 
                policies of the Head Start agency, including policies 
                addressing accounting, financial management, 
                procurement, record confidentiality, and personnel 
                (including specific standards governing salaries, 
                salary adjustments, travel and per diem allowances, and 
                other employee benefits).
                  ``(F) To ensure that the Head Start agency is 
                operated in compliance with applicable Federal, State, 
                and local laws (including regulations), and to monitor 
                agency implementation of any corrective action 
                necessary to comply with applicable laws (including 
                regulations);
                  ``(G) To oversee the program planning of the Head 
                Start agency, including adoption of the Head Start 
                agency philosophy and mission statement, adoption of 
                policies for determining community needs, setting long- 
                and short-range goals and objectives, establishment of 
                criteria for selecting families in Head Start programs 
                or Early Head Start programs, and to oversee and 
                approve the agency's applications to receive funds made 
                available under this subchapter; and
                  ``(H) To establish, to adopt, and to periodically 
                update written standards of conduct that establish 
                standards and formal procedures for disclosing, 
                addressing, and resolving--
                          ``(i) any conflict of interest, and any 
                        appearance of a conflict of interest, by board 
                        members, officers, employees, consultants, and 
                        agents who provide services or furnish goods to 
                        the Head Start agency;and
                          ``(ii) complaints, including investigations, 
                        when appropriate.
          ``(5) To seek the involvement of parents, area residents, and 
        local business in the design and implementation of the program.
          ``(6) To provide technical and other support needed to enable 
        parents and area residents to secure on their own behalf 
        available assistance from public and private sources.
          ``(7) To establish effective procedures to facilitate the 
        involvement of parents of participating children in activities 
        designed to help such parents become full partners in the 
        education of their children, 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 participating 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).
          ``(8) To conduct outreach to schools in which children 
        participating in Head Start programs enroll, local educational 
        agencies, the local business community, community-based 
        organizations, faith-based organizations, museums, and 
        libraries to generate support and leverage the resources of the 
        entire local community in order to improve school readiness.
          ``(9) To 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 participating children, family literacy services and 
        parenting skills training.
          ``(10) To offer to parents of participating children 
        substance abuse counseling (either directly or through referral 
        to local entities), including information on drug-exposed 
        infants and fetal alcohol syndrome.
          ``(11) At the option of such agency, to offer (directly or 
        through referral to local entities), to such parents--
                  ``(A) training in basic child development (including 
                cognitive development);
                  ``(B) assistance in developing literacy and 
                communication skills;
                  ``(C) opportunities to share experiences with other 
                parents (including parent-mentor relationships);
                  ``(D) mental and behavioral health services;
                  ``(E) regular in-home visitation; or
                  ``(F) any other activity designed to help such 
                parents become full partners in the education of their 
                children.
          ``(12) To provide, with respect to each participating family, 
        a family needs assessment that includes consultation with such 
        parents about the benefits of parent involvement and about the 
        activities described in paragraphs (5) through (8) in which 
        such parents may choose to be involved (taking into 
        consideration their specific family needs, work schedules, and 
        other responsibilities).
          ``(13) To consider providing services to assist younger 
        siblings of children participating in its Head Start program to 
        obtain health services from other sources.
          ``(14) To perform community outreach to encourage individuals 
        previously unaffiliated with Head Start programs to participate 
        in its Head Start program as volunteers.
          ``(15)(A) To inform custodial parents in single-parent 
        families that participate in programs, activities, or services 
        carried out or provided under this subchapter about the 
        availability of child support services for purposes of 
        establishing paternity and acquiring child support; and
          ``(B) refer eligible parents to the child support offices of 
        State and local governments.
          ``(16) provide parents of limited English proficient children 
        outreach and services under this subchapter, in an 
        understandable and uniform format and, to the extent 
        practicable, in a language that such parents can understand.''.
  (b) Coordination and Collaboration.--Section 642(c) of the Head Start 
Act (42 U.S.C. 9837(c)) is amended to read as follows:
  ``(c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering the 
State program carried out under the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.), and other early childhood 
education and development programs, including programs under subtitle B 
of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11431-11435), 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.), and programs under Part C and section 619 of the Individuals 
with Disabilities Education Act (20 U.S.C. 1431-1445, 1419), and the 
Child Abuse Prevention and Treatment Act (42 U.S.C. 5106a), serving the 
children and families served by the Head Start agency to carry out the 
provisions of this subchapter.''.
  (c) Other Coordination.--Section 642(d) of the Head Start Act (42 
U.S.C. 9837(d)) is amended--
          (1) by redesignating paragraphs (2) through (4) as paragraph 
        (5) through (7), respectively;
          (2) by inserting after paragraph (1) the following:
          ``(2) Coordination.--
                  ``(A) Local educational agency.--In communities where 
                both public prekindergarten programs and Head Start 
                programs operate, a Head Start agency shall collaborate 
                and coordinate activities with the local educational 
                agency or other public agency responsible for the 
                operation of the prekindergarten program and providers 
                of prekindergarten, including outreach activities to 
                identify eligible children.
                  ``(B) Elementary schools.--Head Start 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 attending--
                          ``(i) to share information about such 
                        children;
                          ``(ii) to receive advice and support from the 
                        teachers in such elementary schools 
                        participating in Early Reading First programs 
                        funded under subpart 1 of part B of title I of 
                        the Elementary and Secondary Education Act of 
                        1965 regarding scientifically based teaching 
                        strategies and options; and
                          ``(iii) to ensure a smooth transition to 
                        elementary school for such children.
                  ``(C) Other early education and child development 
                programs.--The head of each Head Start agency shall 
                coordinate activities and collaborate with the State 
                agency responsible for administering the State program 
                carried out under the Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9858 et seq.), and other 
                entities carrying out early childhood education and 
                development programs, programs under subtitle B of 
                title VII of the McKinney-Vento Homeless Assistance Act 
                (42 U.S.C. 11431-11435), 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. 6381 et 
                seq.), and programs under section 619 and part C of the 
                Individuals with Disabilities Education Act (20 U.S.C 
                1419, 1431 et seq.), serving the children and families 
                served by the Head Start agency.
                  ``(D) Other programs.--Each Head Start agency shall 
                collaborate, as appropriate, with providers of social 
                and community services available to children and 
                families participating in Head Start programs, and may 
                support such partnerships with financial agreements, 
                when applicable, for the provision of such services.
          ``(3) Collaboration.--A Head Start agency shall take steps to 
        coordinate activities with the local educational agency serving 
        the community involved and with schools in which children 
        participating in a Head Start program 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 efficiency of 
                services while increasing the program participation of 
                underserved populations of eligible children; and
                  ``(C) exchanging information on the provision of 
                noneducational services to such children.
          ``(4) Parental involvement.--In order to promote the 
        continued involvement of the parents (including grandparents 
        and kinship caregivers, as appropriate) of children that 
        participate in Head Start programs in the education of their 
        children upon transition to school, the Head Start agency 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 appropriate 
                                in decisions relating to the education 
                                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.'';
          (3) in paragraph (5), as so redesignated--
                  (A) by striking ``A'' and inserting ``Each'';
                  (B) by striking ``may'' and inserting ``shall'';
                  (C) by striking ``and'' at the end of subparagraph 
                (A); and
                  (D) by redesignating subparagraph (B) as subparagraph 
                (C); and
                  (E) by inserting after subparagraph (A) the 
                following:
          ``(B) collaborating to increase the program participation of 
        underserved populations of eligible children; and''; and
          (4) by adding at the end the following:
  ``(8) Head Start agencies shall implement a research-based early 
childhood curricula that promotes young children's school readiness in 
the areas of language and cognitive development, early reading and 
premathematics skills, socio-emotional skills, physical development, 
and approaches to learning. Such curricula shall be--
          ``(A) based on scientifically based research and have 
        standardized training procedures and published curriculum 
        materials to support implementation; and
          ``(B) comprehensive, outcomes based, and linked to ongoing 
        assessment with instructional goals and measurable objectives.
  ``(9) Head Start agencies shall use ongoing, research-based 
assessment methods that are developmentally appropriate, culturally and 
linguistically responsive, and tied to children's daily activities in 
order to support the educational instruction of children in the 
program, including language skills, prereading knowledge and 
premathematics knowledge. Assessment instruments shall be those 
designed and validated for making decisions about teaching and learning 
and aligned with the program's curricula and Section 641A(a)(1).
  ``(10) For the purpose of meeting the performance standards, Head 
Start agencies shall use high-quality research-based developmental 
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.''.
  (d) Assessment.--Section 642 of the Head Start Act (42 U.S.C. 9837) 
is amended by striking subsection (e) and inserting the following:
  ``(e) Assessment.--Each Head Start agency shall adopt, in 
consultation with experts in child development and with classroom 
teachers, an assessment to be used when hiring or evaluating any 
classroom 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 appropriate to 
implement Head Start curricula.
  ``(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.''.

SEC. 10. LOCAL AND STATE INTEGRATION OF EARLY CHILDHOOD EDUCATION.

  The Head Start Act (42 U.S.C. 9831 et. seq.) 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, State-funded 
preschool and other early childhood programs. Head Start agencies shall 
operate in a manner consistent with the goal of creating and expanding 
an efficient and effective system of early childhood and school 
readiness services in each State and community, while maintaining 
compliance with Standards under section 641A(a).
          ``(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 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 prekindergarten in the 
        service area), that shall include plans to coordinate the 
        following activities:
                  ``(A) Educational activities, curricula, and 
                instruction aligned to challenging State developed 
                educational activities, curricula, and instruction 
                aligned to challenging State developed academic content 
                standards.
                  ``(B) Public information dissemination and access to 
                programs for families contacting any of the early 
                childhood programs.
                  ``(C) Selection priorities for eligible children to 
                be served by programs.
                  ``(D) Service delivery areas.
                  ``(E) Staff training, including opportunities for 
                joint staff training on topics such as academic content 
                standards and instructional methods.
                  ``(F) Program technical assistance.
                  ``(G) Provision of additional services to meet the 
                child care 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, 
                transportation, and other program elements, and
                  ``(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 understanding under paragraph (1) 
        not later than 1 year after the effective date of this section.
          ``(3) Secretarial review.--Each memorandum of understanding 
        entered into under paragraph (1) shall be submitted to the 
        Secretary not later than 30 days after entering into such 
        memorandum.
                  ``(A) If a Head Start agency is unable to comply with 
                the requirement in (1) the Head Start agency shall 
                notify the Secretary and the chief executive officer of 
                the State not later than 30 days after determining that 
                they are unable to enter into such memorandum. The 
                Secretary, in cooperation with the State Early Learning 
                Council and the State Director of Head Start 
                Collaboration, shall evaluate the causes of failure to 
                enter into a memorandum 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 enter 
                into a memorandum of understanding under paragraph (1). 
                Then if no such memorandum of understanding is entered 
                into, the Secretary shall make 1 of the following 
                determinations:
                          ``(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; or
                          ``(ii) The Head Start agency has not engaged 
                        in reasonable efforts to successfully negotiate 
                        and enter into a memorandum 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 deficient and 
                shall be considered by the Secretary in the same manner 
                as other deficiency findings.
                  ``(C) If the Secretary concludes that the local 
                educational agency, local council, or other appropriate 
                entity is not making reasonable efforts to reach such a 
                memorandum of understanding, the Head Start agency 
                shall not be found out of compliance with paragraph 
                (1).
          ``(4) Revision of memoranda.--Each memorandum of 
        understanding shall be revised and renewed 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 coordination in 
        their service area.
  ``(b) Statewide Integration.--From the amounts reserved under section 
640(a)(2)(C)(ii), the Secretary shall award an early learning 
collaboration grant to each State for the purposes of supporting a 
State Early Learning Council responsible for advancing the development 
of a coordinated 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 the State Director of Head Start Collaboration, 
        representatives from the State preschool programs, 
        representatives of local educational agencies, the State 
        official who oversees child care programs, the State official 
        who oversees section 619 and part C of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.), the 
        State official who oversees the State educational agency, and 
        representatives from Head Start agencies located in the State, 
        including migrant and seasonal Head Start programs and Indian 
        Head Start programs. The chief executive officer of the State 
        may designate an existing entity to serve as the Early Learning 
        Council if such entity includes representatives 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 30 percent of the cost of carrying 
        out this subsection;
          ``(3) direct the Early Learning Council--
                  ``(A) to increase coordination and collaboration 
                among State preschool, Head Start programs, child care 
                programs, early childhood special education, and other 
                early childhood programs, including in the areas of 
                outcomes and standards, technical assistance, 
                coordination of services, cross-sector professional 
                development and training, community outreach, 
                communication, and better serving the needs of working 
                families through provision of full-day and full-year 
                early education services;
                  ``(B) to work with State agencies responsible for 
                education, child care, and early intervention to 
                provide leadership and assistance to local Head Start 
                programs, school districts, and State and locally 
                funded preschool and child care programs to increase 
                integration among early childhood programs through 
                adoption of local memoranda of understanding described 
                in subparagraph (A) and other means;
                  ``(C) to work with State agencies responsible for 
                education, child care, and early intervention to 
                provide leadership and assistance to develop a coherent 
                sequence of standards for children age 3 through the 
                early elementary grades to effect a smooth transition 
                to and success in the early elementary grades;
                  ``(D) to conduct periodic statewide needs assessments 
                concerning early care and education programs for 
                children from birth to school entry;
                  ``(E) to work to identify and address barriers to and 
                opportunities for integration between entities carrying 
                out Federal and State child development, child care, 
                and early childhood education programs;
                  ``(F) to develop recommendations regarding means of 
                establishing a unified data collection system for early 
                care and education programs 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 children;
                  ``(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 programs to deliver services pursuant 
                to section 648(b); and
                  ``(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 preschool programs, and 
                programs carried out under the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
                seq.).
          ``(4) Nothing in this subsection shall be construed to 
        provide the Early Learning Council with authority to alter the 
        provisions of this Act.
          ``(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 section.''.

SEC. 11. HEAD START ALIGNMENT WITH K-12 EDUCATION.

  Section 642A of the Head Start Act (42 U.S.C. 9837a) is amended--
          (1) by amending the heading to read as follows:

``SEC. 642A. HEAD START ALIGNMENT WITH K-12 EDUCATION.'';

          (2) in paragraph (2)--
                  (A) by inserting ``ongoing'' after ``establishing''; 
                and
                  (B) by inserting ``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)),'' after ``social workers,'';
          (3) by redesignating paragraphs (3) through (7) as paragraphs 
        (5) through (9), respectively; and
          (4) by inserting the following after paragraph (2):
          ``(3) developing continuity of developmentally appropriate 
        curricula between Head Start and local educational agencies to 
        ensure an effective transition and appropriate shared 
        expectations for children's learning and development as they 
        make such transition to school;
          ``(4) organizing and participating in joint training, 
        including transition-related training for school staff and Head 
        Start staff;'';
          (5) by amending paragraph (7), as so redesignated, to read as 
        follows:
          ``(7) developing and implementing a family outreach and 
        support program in cooperation with entities carrying out 
        parental involvement efforts under title I of the Elementary 
        and Secondary Education Act of 1965 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);'';
          (6) in paragraph (8), as so redesignated--
                  (A) by inserting ``and continuity in parental 
                involvement activities'' after ``developmental 
                continuity''; and
                  (B) by striking ``and'' at the end;
          (7) by amending paragraph (9), as so redesignated, to read as 
        follows:
          ``(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 agency;''; and
          (8) by adding at the end the following:
          ``(10) helping parents (including grandparents and kinship 
        caregivers, as appropriate) to understand the importance of 
        parental involvement in a child's academic success while 
        teaching them strategies 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 populations of eligible 
        children; and
          ``(12) coordinating activities and collaborating to ensure 
        that curricula used in the Head Start program is aligned with--
                  ``(A) State early learning standards with regard to 
                cognitive, social, emotional, and physical competencies 
                that children entering kindergarten are expected to 
                demonstrate; and
                  ``(B) the Head Start Child Outcomes Framework 
                developed by the Secretary.''.

SEC. 12. ADMINISTRATIVE REQUIREMENTS AND STANDARDS.

  Section 644 of the Head Start Act (42 U.S.C. 9839(f)(2)) is amended--
          (1) in subsection (a)--
                  (A) by inserting ``(1) Standards.--'' after ``(a)''; 
                and
                  (B) by inserting after the 3d sentence the following:
  ``(2) Annual report.--Each Head Start agency shall make available to 
the public a report published at least once in each fiscal year that 
discloses the following information from the then most recently 
concluded fiscal year, except that reporting such information shall not 
reveal personally identifiable information about an individual child:
          ``(A) The total amount of public and private funds received 
        and the amount from each source.
          ``(B) An explanation of budgetary expenditures and proposed 
        budget for the following fiscal 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 children for 
        kindergarten.
          ``(H) Any other information that describes the activities of 
        the agency.
  ``(3) Procedural conduct.--''; and
          (2) in subsection (f)(2)
                  (A) by redesignating subparagraphs (A) through (E) as 
                subparagraphs (B) through (F), respectively; and
                  (B) by inserting before subparagraph (B), as so 
                redesignated, the following:
          ``(A) a description of the consultation conducted by the Head 
        Start agency with the providers in the community demonstrating 
        capacity and capability to provide services under this 
        subchapter, and of the potential for collaboration with such 
        providers and the cost effectiveness of such collaboration as 
        opposed to the cost effectiveness of the purchase of a 
        facility;''.

SEC. 13. ELIGIBILITY.

  Section 645(a) of the Head Start Act (42 U.S.C. 9840) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (B)(i)--
                          (i) by striking ``to a reasonable extent'' 
                        and inserting ``not to exceed 10 percent of the 
                        total enrollment'';
                          (ii) by striking ``benefit from such 
                        programs'' and inserting ``benefit from such 
                        programs, including children referred by child 
                        welfare services,''; and
                          (iii) by inserting ``(a homeless child shall 
                        be deemed to meet the low-income criteria)'' 
                        before the semicolon; and
          (2) by adding at the end the following:
  ``(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 authority 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 determining the 
eligibility of a child of the individual for programs assisted under 
this subchapter.''.

SEC. 14. EARLY HEAD START PROGRAMS.

  (a) In General.--Section 645A(b) of the Head Start Act (42 U.S.C. 
9840a(b)) is amended--
          (1) by amending paragraphs (4) and (5) to read as follows:
          ``(4) provide services to parents to support their role as 
        parents (including parenting skills training and training in 
        basic child development) and to help the families move toward 
        self-sufficiency (including educational and employment services 
        as appropriate);
          ``(5) coordinate services with services (including home-based 
        services) provided by programs in the State and programs in the 
        community (including programs for infants and toddlers with 
        disabilities and programs for homeless infants and toddlers) to 
        ensure a comprehensive array of services (such as health and 
        mental health services, and family support services);'';
          (2) by amending paragraph (8) to read as follows:
          ``(8) ensure formal linkages with the agencies and entities 
        described in section 644(b) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1444(b)) and providers of 
        early intervention services for infants and toddlers with 
        disabilities under the Individuals with Disabilities Education 
        Act (20 U.S.C. 1400 et seq.) and the agency responsible for 
        administering section 106 of the Child Abuse Prevention and 
        Treatment Act (42 U.S.C. 5106a);''.
          (3) by redesignating paragraph (9) as paragraph (11);
          (4) by inserting after paragraph (8) the following:
          ``(9) develop and implement a systematic procedure for 
        transitioning children and parents from an Early Head Start 
        program into a Head Start program or another local early 
        childhood education program;
          ``(10) establish channels of communication between staff of 
        Early Head Start programs and staff of Head Start programs or 
        other local early childhood education programs, to facilitate 
        the coordination of programs; and''.
  (b) Migrant and Seasonal Programs; Community- and Faith-Based 
Organizations.--Section 645A(d) of the Head Start Act (42 U.S.C. 
9840a(d)) is amended--
          (1) by amending paragraph (1) to read as follows:
          ``(1) entities operating Head Start programs under this 
        subpart, including migrant and seasonal Head Start programs; 
        and''; and
          (2) in paragraph (2) by inserting ``, including community- 
        and faith-based organizations'' after ``entities'' the 2d place 
        it appears.
  (c) Training and Technical Assistance Account.--Section 645A(g)(2)(B) 
of the Head Start Act (42 U.S.C. 9640a(g)(2)(B)) is amended--
          (1) in clause (iii) by striking ``and'' at the end;
          (2) in clause (iv) by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following:
                          ``(v) providing professional development 
                        designed to increase program participation for 
                        underserved populations of eligible 
                        children.''.
  (d) Center-based Staff.--Section 645A of the Head Start Act (42 
U.S.C. 9840a) is amended by adding at the end the following:
  ``(h) Center-based Staff.--The Secretary shall ensure that, not later 
than September 30, 2008, all teachers providing direct services to 
children and families participating in Early Head Start programs 
located in Early Head Start centers have a minimum of a child 
development associate credential or an associate degree, and have been 
trained (or have equivalent course work) in early childhood 
development.''.

SEC. 15. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY INTRUSIVE 
                    PHYSICAL EXAMINATIONS.

  The Head Start Act (42 U.S.C. 9831 et seq.) is amended by inserting 
after section 645A the following:

``SEC. 645B. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY INTRUSIVE 
                    PHYSICAL EXAMINATIONS.

  ``(a) Definition.--The term `nonemergency intrusive physical 
examination' means, with respect to a child, a physical examination 
that--
          ``(1) is not immediately necessary to protect the health or 
        safety of such child, or the health or safety of another 
        individual; and
          ``(2) includes incision or is otherwise invasive, or includes 
        exposure of private body parts.
  ``(b) Requirement.--Before administering any health care service 
(including any nonemergency intrusive physical examination) to a child 
(or referring such child to obtain such service) in connection with 
participation in a program under this subchapter, a Head Start agency 
and an entity that receives assistance under section 645A shall obtain 
the written consent of a parent of such child.
  ``(c) Rule of Construction.--Nothing in this section shall be 
construed to prohibit a Head Start agency or an entity that receives 
assistance under section 645A from using established methods, for 
handling cases of suspected or known child abuse and neglect, that are 
in compliance with applicable Federal, State, or tribal law.''.

SEC. 16. RIGHT TO APPEAL.

  Section 646(a)(3) of the Head Start Act (42 U.S.C. 9841(a)(3)) is 
amended to read as follows:
          ``(3) if financial assistance under this subchapter is 
        terminated or reduced, an application for a noncompeting 
        continuation award is denied based on a previous failure to 
        comply with terms applicable to financial assistance previously 
        provided this subchapter, or suspension of financial assistance 
        is continued for more than 30 days, the recipient with respect 
        to whom such action is taken shall have the opportunity to 
        appeal such action in accordance with such procedures, except 
        that no funds made available under this subchapter may be used 
        to reimburse any such recipient for legal fees and other costs 
        incurred in pursuing such an appeal;''.

SEC. 17. AUDITS.

  Section 647 of the Head Start Act (42 U.S.C. 9842) is amended by 
adding at the end the following:
  ``(c)(1) Not later than 180 days after the end of each fiscal year, 
each Head Start agency, and each entity that receives assistance under 
section 645A, shall submit to the Secretary an independent financial 
audit of the Head Start program carried out with financial assistance 
provided under this subchapter. Such audit shall be carried out by a 
certified public accountant selected through a competitive process from 
among qualified certified accountants by the local oversight board 
established in accordance with section 642(b)(4) by such agency, except 
that no accountant may perform audits of such program for a period 
exceeding 5 consecutive fiscal years.
  ``(2) Not later than 60 days after receiving such audit, the 
Secretary shall provide to such agency or such entity, and to the chief 
executive officer of the State in which such program is operated, a 
notice identifying the actions such agency or such entity is required 
to take to correct all deficiencies identified in such audit.
  ``(d) Each recipient of financial assistance under this subchapter 
shall--
          ``(1) maintain, and annually submit to the Secretary, a 
        complete accounting of its administrative expenses (including a 
        detailed statement identifying the amount of financial 
        assistance provided under this subchapter used to pay expenses 
        for salaries and compensation and the amount (if any) of other 
        funds used to pay such expenses); and
          ``(2) provide such additional documentation as the Secretary 
        may require.''.

SEC. 18. TECHNICAL ASSISTANCE AND TRAINING.

  (a) Allocation of Resources.--Section 648(c) of the Head Start Act 
(42 U.S.C. 9843(c)) is amended--
          (1) in paragraph (2) by inserting ``and for activities 
        described in section 1221(b)(3) of the Elementary and Secondary 
        Education Act of 1965'' after ``disabilities'' ; and
          (2) in paragraph (5) by inserting ``, including the needs of 
        homeless children and their families'' after ``assessment'';
          (3) in paragraph (10) by striking ``and'' at the end;
          (4) in paragraph (11) by striking the period at the end and 
        inserting a semicolon; and
          (5) by adding the following at the end:
          ``(12) assist Head Start agencies and programs in increasing 
        program participation of homeless children; and
          ``(13) assist Head Start agencies and Head Start programs in 
        improving outreach to, and the quality of services available 
        to, limited English proficient children and their families, 
        particularly in communities that have experienced a large 
        percentage increase in the population of limited English 
        proficient individuals, as measured by the Bureau of the 
        Census.''.
  (b) Training in Use of Media.--Section 648(d) of the Head Start Act 
(42 U.S.C. 9843(d)) is amended by inserting ``, including community- 
and faith-based organizations'' after ``entities'' the first place such 
term appears.
  (c) Child Development and National Assessment Program.--Section 
648(e) of the Head Start Act (42 U.S.C. 9843(e)) is amended to read as 
follows:
  ``(e) The Secretary shall provide, either directly or through grants 
or other arrangements, funds from programs authorized under this 
subchapter to support an organization to administer a centralized child 
development and national assessment program leading to recognized 
credentials for personnel working in early childhood development and 
child care programs, training for personnel providing services to 
limited English proficient children (including services to promote the 
acquisition of the English language), training for personnel providing 
services to children determined to be abused or neglected, training for 
personnel providing services to children referred by or receiving child 
welfare services, training for personnel in helping children cope with 
community violence, and resource access projects for personnel working 
with disabled children.''.
  (d) Addressing Unique Needs.--Section 648 of the Head Start Act (42 
U.S.C. 9843) is amended by adding at the end the following:
  ``(f) The Secretary shall provide, either directly or through grants, 
or other arrangements, funds for training of Head Start personnel in 
addressing the unique needs of migrant and seasonal working families, 
families with a limited English proficiency, and homeless families.
  ``(g) More than 50 percent of funds expended under this section shall 
be used to provide high quality, sustained, intensive, and classroom-
focused training and technical assistance in order to have a positive 
and lasting impact on classroom instruction. Funds shall be used to 
carry out activities related to any or all of the following:
          ``(1) Education and early childhood development.
          ``(2) Child health, nutrition, and safety.
          ``(3) Family and community partnerships.
          ``(4) Other areas that impact the quality or overall 
        effectiveness of Head Start programs.
  ``(h) Funds under this subchapter used for training shall be used for 
needs identified annually by a grant applicant or delegate agency in 
their program improvement plan, except that funds shall not be used for 
long-distance travel expenses for training activities available locally 
or regionally or for training activities substantially similar to 
locally or regionally available training activities.
  ``(i)(1) The Secretary shall work in collaboration with the Head 
Start agencies that carry out migrant and seasonal Head Start programs, 
State Directors of Head Start Collaboration, the migrant and seasonal 
Head Start collatoration director, and other appropriate entities--
          ``(A) to accurately determine the number of children 
        nationwide who are eligible to participate in migrant and 
        seasonal Head Start programs each year;
          ``(B) to document how many of these children are receiving 
        Head Start services each year; and
          ``(C) to the extent practicable, to ensure that access to 
        migrant and seasonal Head Start programs for eligible children 
        is comparable to access to other Head Start programs for other 
        eligible children;
  ``(2) In carrying out paragraph (1)(A), the Secretary shall consult 
with the Secretary of Education about the Department of Education's 
systems for collecting and reporting data about, and maintaining 
records on, students from migrant and seasonal farmworker families.
  ``(3) Not later than 9 months after the effective date of this 
subsection, the Secretary shall publish in the Federal Register a 
notice of how the Secretary plans to carry out paragraph (1) and shall 
provide a period for public comment. To the extent practicable, the 
Secretary shall consider comments received before submitting a report 
to the Congress.
  ``(4) Not later than 1 year after the effective date of this 
subsection, the Secretary shall submit a report to the Committee on 
Education and the Workforce of the House of Representatives and the 
Committee on Health, Education, Labor, and Pensions of the Senate, 
detailing how the Department of Health and Human Services plans to 
carry out paragraph (1).
  ``(5) The Secretary shall submit annually a report to the Congress 
detailing the number of children of migrant and seasonal farmworkers, 
who are eligible to participate in Head Start programs and the number 
of such children who are enrolled in Head Start programs.
  ``(6) The Secretary shall take appropriate action, consistent with 
section 444 of the General Education Provisions Act, to ensure the 
protection of the confidentiality of any personally identifiable data, 
information, and records collected or maintained by the Secretary, by 
Head Start agencies that carry out migrant and seasonal Head Start 
programs, by State Directors of Head Start Collaboration, by the 
Migrant and Seasonal Farmworker Collaboration Project Director, and by 
other appropriate entities pursuant to this subsection.
  ``(7) Nothing in this subsection shall be construed to authorize the 
development of a nationwide database of personally identifiable 
information on individuals involved in studies or other collections of 
data under this subsection.
  ``(j) For purposes of this section, the term `eligible entities' 
means an institution of higher education or other entity with expertise 
in delivering training in early childhood development, family support, 
and other assistance designed to improve the delivery of Head Start 
services.''.

SEC. 19. STAFF QUALIFICATIONS AND DEVELOPMENT.

  (a) Classroom Teachers.--Section 648A(a)(2) of the Head Start Act (42 
U.S.C. 9843a(a)(2)) is amended to read as follows:
          ``(2) Degree requirements.--
                  ``(A) In general.--The Secretary shall ensure that 
                not later than September 30, 2011, at least 50 percent 
                of all Head Start teachers nationwide in center-based 
                programs have--
                          ``(i) a baccalaureate or advanced degree in 
                        early childhood education; or
                          ``(ii) a baccalaureate or advanced degree in 
                        a field related to early childhood education, 
                        with experience in teaching preschool children.
                  ``(B) Progress.--Each Head Start agency shall provide 
                to the Secretary a report indicating the number and 
                percentage of classroom instructors with child 
                development associate credentials and associate, 
                baccalaureate, or advanced degrees. The Secretary shall 
                compile all program reports and make them available to 
                the Committee on Education and the Workforce of the 
                United States House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions of 
                the United States Senate.
                  ``(C) Requirement for new head start teachers.--
                Within 3 years after the effective date of this 
                subparagraph, the Secretary shall require that all Head 
                Start teachers nationwide in center-based programs 
                hired following the effective date of this 
                subparagraph--
                          ``(i) have an associate, baccalaureate, or 
                        advanced degree in early childhood education or 
                        a related field; or
                          ``(ii) be currently enrolled in a program of 
                        study leading to an associate degree in early 
                        childhood education and agree to complete 
                        degree requirements within 3 years from the 
                        date of hire.
                  ``(D) Service requirements.--The Secretary shall 
                establish requirements to ensure that individuals who 
                receive financial assistance under this subchapter in 
                order to comply with the requirements under section 
                648A(a)(2) shall subsequently teach in a Head Start 
                center for a period of time equivalent to the period 
                for which they received assistance or repay the amount 
                of the funds.
                  ``(E) Limitation.--The Secretary shall require that 
                any Federal funds provided directly or indirectly to 
                comply with subparagraph (A) shall be used toward 
                degrees awarded by an institution of higher education, 
                as defined by sections 101 or 102 of the Higher 
                Education Act (20 U.S.C. 1001-1002).''. ''.
  (b) Classroom Teachers.--Section 648A of the Head Start Act (42 
U.S.C. 9843a) is amended by adding at the end the following:
  ``(f) Professional Development Plans.--Each Head Start agency and 
program shall create, in consultation with an employee, a professional 
development plan for all full-time employees who provide direct 
services to children.''.

SEC. 20. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

  (a) New Ideas and Approaches.--Section 649(a)(1)(B) of the Head Start 
Act (42 U.S.C. 9844(a)(1)(B)) is amended to read as follows:
                  ``(B) use the Head Start programs to develop, test, 
                and disseminate new ideas and approaches based on 
                existing scientifically based research, for addressing 
                the needs of low-income preschool children (including 
                children with disabilities and children determined to 
                be abused or neglected) and their families and 
                communities (including demonstrations of innovative 
                non-center based program models such as home-based and 
                mobile programs), and otherwise to further the purposes 
                of this subchapter.''.
  (b) Study.--Section 649(d) of the Head Start Act (42 U.S.C. 9844(d) 
is amended--
          (1) in paragraph (7) by adding ``and'' at the end;
          (2) in paragraph (8) by striking the semicolon and inserting 
        a period;
          (3) by striking paragraph (9); and
          (4) by striking the last sentence.
  (c) Expert Panel.--Section 649(g) of the Head Start Act (42 U.S.C. 
9844(g)) is amended--
          (1) in paragraph (1)(A)--
                  (A) by striking clause (i); and
                  (B) by redesignating clauses (ii) and (iii) as 
                clauses (i) and (ii), respectively; and
          (2) in paragraph (7)(C)(i) is amended to read as follows:
                          ``(i) Not later than September 30, 2007, the 
                        Secretary shall transmit to the committees 
                        specified in clause (ii) the final report.''.
  (d) NAS Study.--Section 649(h) of the Head Start Act (42 U.S.C. 
9844(h)) is amended to read as follows:
  ``(h) NAS Study.--
          ``(1) In general.--The Secretary shall use funds allocated in 
        section 640(a)(2)(C)(iii) to contract with the National Academy 
        of Sciences for the Board on Children, Youth, and Families of 
        the National Research Council to establish an independent panel 
        of experts to review and synthesize research, theory and 
        applications in the social, behavioral and biological sciences 
        and to make recommendations on early childhood pedagogy with 
        regard to each of the following:
                  ``(A) Age and developmentally appropriate Head Start 
                academic requirements and outcomes, including the 
                domains in 641A(a)(B).
                  ``(B) Differences in the type, length, mix and 
                intensity of services necessary to ensure that children 
                from challenging family and social backgrounds 
                including: low-income children, children of color, 
                children with special needs, and children with limited 
                English proficiency enter kindergarten ready to 
                succeed.
                  ``(C) Appropriate assessments of young children 
                (including systematic observation assessment in a 
                child's natural environment, and parent and provider 
                interviews) for purposes of improving instruction, 
                services, and program quality, and accommodations for 
                children with disabilities and appropriate assessments 
                for children with special needs (including needs 
                related to the acquisition of the English language).
                  ``(D) An evaluation of the current and appropriate 
                uses of the National Reporting System developed by the 
                Secretary.
          ``(2) Composition.--The panel shall consist of multiple 
        experts in each of the following areas:
                  ``(A) Child development and education, including 
                cognitive, social, emotional, physical, approaches to 
                learning, and other domains of child development and 
                learning.
                  ``(B) Professional development, including teacher 
                preparation, to individuals who teach young children in 
                programs.
                  ``(C) Assessment of young children, including 
                screening, diagnostic and classroom-based instructional 
                assessment; children with special needs, including 
                children with disabilities and limited English 
                proficient children.
          ``(3) Timing.--The National Academy of Sciences and the Board 
        shall establish the panel not later than 90 days after the date 
        of the enactment of the School Readiness Act of 2005. The panel 
        shall complete its recommendations within 18 months of its 
        convening.
          ``(4) Application of panel recommendations.--The 
        recommendations of the panel shall be used as guidelines by the 
        Secretary to develop, inform and revise, where appropriate, the 
        Head Start education performance measures and standards and the 
        assessments utilized in the Head Start program.''.
  (e) Study of Status of Limited English Proficient Children.--Section 
649 of the Head Start Act (42 U.S.C. 9844) is amended by adding at the 
end the following:
  ``(i) Limited English Proficient Children.--
          ``(1) Study.-- Not later than 1 year after the date of 
        enactment of the School Readiness Act of 2005, the Secretary 
        shall conduct a study on the status of limited English 
        proficient children and their families in Head Start programs 
        and Early Head Start programs.
          ``(2) Report.--The Secretary shall prepare and submit to 
        Congress, not later than September 2008, a report containing 
        the results of such study, including information on--
                  ``(A)(i) the demographics of limited English 
                proficient children less than 5 years of age and the 
                geographical distribution of such children; and
                  ``(ii) the number of such children receiving Head 
                Start services and the number of such children 
                receiving Early Head Start services, and the 
                geographical distribution of such children receiving 
                such services;
                  ``(B) the nature of the Head Start services and of 
                the Early Head Start services provided to limited 
                English proficient children and their families, 
                including the types, content, duration, intensity, and 
                costs of family services, language assistance, and 
                educational services;
                  ``(C) procedures in Head Start programs for assessing 
                language needs and for making the transition of limited 
                English proficient children to kindergarten, including 
                the extent to which Head Start programs meet the 
                requirements of section 642A for limited English 
                proficient children;
                  ``(D) the qualifications and training provided to 
                Head Start teachers and Early Head Start teachers who 
                serve limited English proficient children and their 
                families;
                  ``(E) the rate of progress made by limited English 
                proficient children and their families in Head Start 
                programs and in Early Head Start programs, including--
                          ``(i) the rate of progress made by limited 
                        English proficient children toward meeting the 
                        additional educational standards described in 
                        section 641A(a)(1)(B)(ii) while enrolled in 
                        Head Start programs;
                          ``(ii) the correlation between such progress 
                        and the type and quality of instruction and 
                        educational programs provided to limited 
                        English proficient children; and
                          ``(iii) the correlation between such progress 
                        and the health and family services provided by 
                        Head Start programs to limited English 
                        proficient children and their families; and
                  ``(F) the extent to which Head Start programs make 
                use of funds under section 640(a)(3) to improve the 
                quality of Head Start services provided to limited 
                English proficient children and their families.''.

SEC. 21. REPORTS.

  (a) Report.--Section 650(a) of the Head Start Act (42 U.S.C. 9845(a)) 
is amended--
          (1) by amending the first sentence to read as follows:
``At least once during every 2-year period, the Secretary shall prepare 
and submit, to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, Education, Labor 
and Pensions of the Senate, a report concerning the status of children 
(including disabled, homeless, and limited English proficient children) 
in Head Start programs, including the number of children and the 
services being provided to such children.''; and
          (2) in paragraph (8) by inserting ``, homelessness'' after 
        ``background''.
  (b) National Reporting System.--Section 650 of the Head Start Act (42 
U.S.C. 9845) is amended by adding at the end the following:
  ``(c) National Reporting System.--The Secretary shall submit annually 
to the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate, a report on the status of the National 
Reporting System developed by the Secretary. Such report shall 
include--
          ``(1) information on all contracts, grants, and expenses 
        relating to the development and implementation of the National 
        Reporting System;
          ``(2) information described in section 641A(b)(3)(B); and
          ``(3) a description of the recommendations made by the 
        Technical Working Group, including issues of the technical 
        adequacy, purpose, and administration of the System, and an 
        explanation of how the Secretary plans to address these 
        recommendations.''.

SEC. 22. LIMITATION ON RATE OF FEDERAL FUNDING FOR COMPENSATION.

  Section 653 of the Head Start Act (42 U.S.C. 9848) is amended--
          (1) by striking the heading;
          (2) by striking ``Sec. 653. The'' and inserting the 
        following:

``SEC. 653. WAGES AND COMPENSATION.

  ``(a) Comparability of Wages.--The''; and
          (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 programs 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 subchapter 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 prepackaged news story 
        intended for broadcast or distribution unless such story 
        includes a clear notification contained within the text or 
        audio of such story stating that the prepackaged news story was 
        prepared or funded by the Department of Health and Human 
        Services.''.

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 provided in subsections (b) 
and (c), this Act and the amendments made by this Act shall take effect 
on the date of the enactment of this Act.
  (b) Application of Amendments.--The amendments made by this Act shall 
not apply with respect to any fiscal year that begins before the date 
of the enactment 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 enactment 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 Secretary may only consider the 
        performance of a Head Start program in meeting the requirements 
        described 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 recent designation.

                                Purpose

    H.R. 2123, the School Readiness Act of 2005, amends the 
Head Start Act to improve the school readiness of disadvantaged 
children, and for other purposes.

                            Committee Action


                           COMMITTEE HEARINGS

    On April 5, 2005, the Full Committee on Education and the 
Workforce held a hearing on Financial Accountability in the 
Head Start Early Childhood Program. The hearing discussed the 
financial control problems that exist within the Head Start 
program. The witnesses who testified before the Full Committee 
included: Dr. Marnie S. Shaul, Director of Education Issues, 
Education, Workforce, and Income Security for the United States 
Government Accountability Office, Washington, DC; Dr. Wade F. 
Horn, Assistant Secretary, Administration for Children and 
Families, United States Department of Health and Human 
Services, Washington, DC; Ms. Pamela Henry, Head Start Parent, 
Las Vegas, Nevada, and Ms. Olivia Golden, Senior Fellow and 
Director of the Assessing the New Federalism Project at the 
Urban Institute, Washington, DC.
    On April 14, 2005 the Subcommittee on Education Reform held 
a hearing on The Best of Head Start: Learning from Model 
Programs. The hearing examined high quality Head Start grantees 
to understand what factors result in exemplary Head Start 
programs. The witnesses included Dr. Stephen W. Daeschner, 
Superintendent of Jefferson County Schools, Louisville, 
Kentucky; Mr. David Marker, Chief Financial Officer of Miami 
Valley Child Development Centers, Inc., Dayton, Ohio; Mr. Scott 
Siegfried, Program Coordinator of Miami Valley Child 
Development Centers, Inc., Dayton, Ohio; Ms. Barbara Mainster, 
Executive Director, Redlands Christian Migrant Association, 
Immokalee, Florida; and Ms. Gayle Cunningham, Executive 
Director, Jefferson County Committee for Economic Opportunity 
Child Development Services, Birmingham, Alabama.
    On April 21, 2005, the Subcommittee on Education Reform 
held a second hearing discussing Early Childhood Education: 
Improvement through Integration. Ms. Marsha Moore, 
Commissioner, Georgia Department of Early Care and Learning, 
Atlanta, Georgia; Mr. Jeffrey Alexander, Assistant Head Start 
Director of Big Five Community Services Inc., Durant, Oklahoma; 
Dr. Steven Barnett, Director, National Institute for Early 
Education Research, New Brunswick, New Jersey; Dr. Richard M. 
Clifford, Senior Scientist, Frank Porter Graham Child 
Development Institute, Chapel Hill, North Carolina, and Ms. 
Helen Blank, Director of Leadership and Public Policy at the 
National Women's Law Center, Washington, DC all testified 
before the Subcommittee.

                           LEGISLATIVE ACTION

    On Thursday, May 5, 2005, Representative Michael N. Castle, 
along with Representatives Boehner (R-OH), McKeon (R-CA), 
Wilson (R-SC), Regula (R-OH), Cunningham (R-CA), Putnam (R-FL), 
and Sullivan (R-OK), introduced H.R. 2123, the School Readiness 
Act of 2005, a bill to reauthorize the Head Start Act through 
2011.
    On Wednesday, May 11, 2005, the Subcommittee on Education 
Reform considered H.R. 2123 in a legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by voice vote. The Subcommittee 
adopted the following amendments:
    1. An amendment in the nature of a substitute offered by 
Mr. Castle, adopted by voice vote. The substitute amendment 
contained changes to H.R. 2123 including:
           Language reserving 5 percent of the amount 
        appropriated for migrant and seasonal Head Start 
        programs until such time as the Secretary can make 
        funding decisions to ensure comparable funding to other 
        eligible children;
           Language authorizing the appointment of a 
        National Migrant and Seasonal Head Start Collaboration 
        Director and the appointment of a National Indian Head 
        Start Collaboration Director;
           Language allowing agencies operating in 
        rural areas, migrant and seasonal Head Start programs, 
        and Indian Head Start programs extra time to meet the 
        staff qualification requirement for priority 
        designation if agencies and programs demonstrate 
        progress toward meeting the requirement;
           Language requiring agencies that are 
        operating a program with an actual enrollment that is 
        less than 95 percent of its funded enrollment to work 
        with the Secretary to reduce or eliminate the under-
        enrollment;
           Language allowing independent auditors of 
        Head Start agencies to provide services for up to 4 
        consecutive years;
           Language requiring each Head Start agency to 
        submit to the Secretary an independent financial audit 
        of the program not later than 180 days after the end of 
        each fiscal year; and
           Ensuring that no funds under the Act can be 
        used to pay journalists or media commentators to 
        support activities for publicity or propaganda purposes
    2. An amendment offered by Mr. Castle, adopted by voice 
vote. Mr. Castle's amendment makes technical changes to H.R. 
2123.
    3. An amendment offered by Mr. Kind and Mr. Osborne, 
adopted by voice vote. This amendment increases emphasis of 
Head Start programs on the importance of physical activity, 
nutrition, and outdoor play.
    On May 18, 2005 the Committee on Education and the 
Workforce considered H.R. 2123 in legislative session, and 
reported the bill favorably, as amended, to the House of 
Representatives. The roll call vote was 48-0. The Committee 
adopted the following amendments:
    1. An amendment in the nature of a substitute offered by 
Mr. Castle, adopted by voice vote. The substitute amendment 
contained the following technical and clarifying changes to 
H.R. 2123:
           Language reserving 3.5 percent of the total 
        annual appropriation for Indian Head Start programs 
        until such time as the Secretary can make funding 
        decisions to ensure comparable funding to other 
        eligible children;
           Language clarifying the definition of 
        ``deficiency'' to ensure that it includes a 
        ``systematic or significant failure'' of a Head Start 
        agency in an area of performance as determined by the 
        Secretary;
           Language clarifying the definition of 
        ``professional development'' to ensure that teachers 
        have access to professional development activities that 
        will improve the school readiness of Head Start 
        students;
           Language clarifying that the Policy Council 
        shall serve under the Board of Directors, make 
        recommendations to the Board, and serve as a link 
        between parents and the Board;
           Language authorizing the Secretary to waive, 
        on a case-by case basis, the staff qualification 
        requirement for a limited period of time, for agencies 
        operating in rural areas, migrant and seasonal Head 
        Start programs, and Indian Head Start programs if such 
        agencies and programs are demonstrating progress toward 
        meeting the requirement;
           Language clarifying the role of the State 
        Collaboration Director; and
           Language clarifying the limitation on the 
        use of funds for propaganda and prepackaged news 
        stories to ensure that the language is consistent with 
        current law.
    2. An En Bloc Amendment offered by Mr. Osborne, adopted by 
voice vote. This amendment does the following:
           Clarifies the role of the Policy Council and 
        the majority of parents who serve on it;
           Clarifies and improves the definition of 
        professional development;
           Ensures that children who are 3, 4, or 5 
        years old may continue to participate in migrant and 
        seasonal Head Start programs if the temporary expansion 
        of funding for such programs is adjusted to accurately 
        reflect the migrant and seasonal population;
           Requires the Policy Council chair to serve 
        on the Board of Directors;
           Requires Head Start programs nationwide to 
        meet new degree requirements for teachers by 2011;
           Requires improved integration and 
        coordination between Head Start and state pre-
        kindergarten programs;
           Clarifies funding for Palau;
           Encourages Head Start collaboration with 
        social and community services;
           Requires the Secretary to report to Congress 
        on the planned uses of data collected by the National 
        Reporting System and progress toward ensuring the 
        assessment's scientific validity and reliability;
           Establishes an effective date of 12 months 
        from the date of enactment for grantees to comply with 
        new criteria established to receive a priority 
        designation; and
           Requires the Secretary to issue regulations 
        on grantee designations within 180 days following 
        enactment
    3. An Amendment offered by Mr. Grijalva, adopted by voice 
vote. Mr. Grijalva's amendment encourages State Early Learning 
Councils to increase access to Head Start for underrepresented 
populations.
    4. An Amendment offered by Mrs. Biggert, Mr. Platts, and 
Mr. Van Hollen, adopted by voice vote. This Amendment allows 
grantees providing both Head Start and Early Head Start to have 
greater flexibility in using unfilled Head Start slots for 
younger children in order to maximize the total number of 
eligible children served within a community.
    5. An Amendment offered by Mr. Fortuno, Mr. Hinojosa, and 
Mr. Grijalva, adopted by voice vote. This Amendment does the 
following:
           Defines limited English proficiency (LEP) in 
        a way that is consistent with the No Child Left Behind 
        Act (NCLB);
           Authorizes a study to determine how well LEP 
        students are served by Head Start;
           Ensures that parents of LEP children receive 
        information in a clear and understandable format; and
           Ensures LEP students are receiving academic 
        content in addition to language proficiency 
        instruction.

                                Summary


                                PURPOSE

    The purpose of H.R. 2123, the School Readiness Act of 2005, 
is to promote school readiness by enhancing the development of 
low-income children, including development of cognitive 
abilities, through educational instruction in pre-reading 
skills, pre-mathematics skills, language, and social and 
emotional development linked to school readiness and through 
the provision to low-income children and their families of 
health, educational, nutritional, social and other services 
that are determined, based on family needs assessments, to be 
necessary.

                              DEFINITIONS

    Adds new definitions to the Head Start Act including: 
challenging State developed academic content standards, the 
term deficient, eligible entities, homeless children, limited 
English proficient, professional development, scientifically 
based research, state educational agency, and unresolved area 
of noncompliance.

                          AUTHORIZATION LEVEL

    Authorizes $6.899 billion for fiscal year 2006 and such 
sums as may be necessary for fiscal years 2007 through 2011. Of 
that amount, not more than $20 million may be used annually to 
carry out research, demonstration, and evaluation activities; 
of which not more than $7 million may be used to carry out 
studies on the impact of Head Start.

                           ALLOTMENT OF FUNDS

    H.R. 2123 amends various provisions regarding the allotment 
of Head Start funds. Specifically, the School Readiness Act of 
2005:
    Reserves 5 percent of the total annual appropriation for 
migrant and seasonal Head Start programs until such time as the 
Secretary can make funding decisions to ensure comparable 
funding to other eligible children (except that no future 
reduction in funding shall result in the termination of Head 
Start services provided to any eligible child three years of 
age or older who is participating in any such program on the 
date a reduction in funding occurs, and shall, to the extent 
possible, continue participation for children less than three 
years of age receiving services prior to such reduction in 
funding).
    Reserves 3.5 percent of the total annual appropriation for 
Indian Head Start programs until such time as the Secretary can 
make funding decisions to ensure comparable funding to other 
eligible children.
    Reserves 2 percent of the total annual appropriation for 
training and technical assistance activities to foster program 
quality and management improvements, of which: 50 percent shall 
be made available to local Head Start agencies for use in 
complying with performance standards; 20 percent shall be made 
available to support State Early Learning Councils; and 30 
percent shall be made available to the Secretary to assist 
local programs in meeting performance standards (of which not 
less than $3 million must be related to family literacy).
    Of any new funding appropriated above the previous fiscal 
year, 60 percent (after an inflationary adjustment for 
grantees) must be used for quality improvement, including 
activities to improve the compensation of classroom teachers; 
provide training to improve the qualifications of classroom 
teachers and staff; hire additional classroom teachers and 
staff; and conduct outreach to families of homeless, migrant 
and seasonal, and limited English proficient children.
    The remaining 40 percent shall be used to expand 
participation among underserved populations, including migrant 
and seasonal Head Start children, and to increase funding per 
child for programs that receive per child funding below the 
national average.

                             TRANSPORTATION

    Under current law, regulations have been established 
regarding the safety features and safe operation of vehicles 
used by Head Start agencies to transport children. H.R. 2123 
provides the Secretary with a limited waiver authority for Head 
Start agencies in transporting children if such requirements 
pertain to child restraint systems and bus monitors; the agency 
demonstrates that compliance with such requirements will result 
in a significant disruption to the Head Start or Early Head 
Start program; and is in the best interest of the child.

          MIGRANT AND SEASONAL AND INDIAN HEAD START PROGRAMS

    Authorizes the appointment of a National Migrant and 
Seasonal Head Start Collaboration Director and the appointment 
of a National Indian Head Start Collaboration Director. H.R. 
2123 also requires the Secretary to continue the administrative 
arrangement at the national level for meeting the needs of 
Indian children and children of migrant and seasonal 
farmworkers to ensure that appropriate funding is provided to 
meet such needs.

                    ENROLLMENT OF HOMELESS CHILDREN

    Requires the Secretary to prescribe policies and procedures 
to remove barriers to the enrollment and participation of 
homeless children in Head Start programs. Such procedures shall 
require Head Start agencies to implement policies and 
procedures to ensure that homeless children are identified and 
prioritized for enrollment; to allow homeless families to apply 
to, enroll in and attend Head Start programs while required 
documents, such as proof of residency, immunization and other 
medical records, birth certificates and other documents, are 
obtained within a reasonable time frame; and coordinate 
individual Head Start centers and programs with efforts to 
implement the McKinney-Vento Homeless Assistance Act.

        ELIGIBILITY FOR INITIAL DESIGNATION AS HEAD START AGENCY

    To receive an initial Head Start grant an entity must 
establish measurable objectives for improving the school 
readiness of children participating in a program and develop 
performance standards that include educational instruction in 
pre-reading, pre-mathematical, and language skills; the 
provision of health, educational, nutritional, social, and 
other services related to school readiness standards; and 
school readiness standards that are aligned with state-
developed K-12 academic content standards and the Head Start 
Child Outcomes Framework.

 PRIORITY DESIGNATION FOR SUBSEQUENT, NON-COMPETITIVE HEAD START GRANTS

    H.R. 2123 specifies that the Secretary shall award a 
``priority designation'' which will result in a subsequent, 
non-competitive grant to current Head Start agencies that: (1) 
have already received an initial designation as a Head Start 
agency; (2) meet or exceed program and financial management 
requirements; (3) meet or exceed the education standards and 
requirements in section 641A(a)(1)(B); (4) have no unresolved 
areas of noncompliance; (5) have not been deemed deficient 
since the most recent designation; (6) employ qualified staff, 
including a teaching staff of whom at least 50 percent have an 
associate, baccalaureate, or advanced degree in early childhood 
education or a related field (except that the Secretary may 
waive these requirements, on a case-by-case basis for up to 
three years, for an agency operating in a rural area, Indian 
Head Start programs, and migrant and seasonal Head programs if 
the program demonstrates progress in increasing the 
qualifications of its teaching staff and demonstrates adequate 
instructional supervision by qualified staff); (7) were not 
deemed by the Secretary as chronically under-enrolled at any 
time during the previous grant; (8) utilizecurricula based on 
scientifically based research, that are aligned with challenging state-
developed academic content standards and the Head Start Child Outcomes 
Framework developed by the Secretary; (9) demonstrate active 
partnerships with local educational agencies serving the same 
communities to facilitate smooth transitions to kindergarten; (10) 
actively implement a memorandum of understanding with any local 
educational agency, council or other provider of publicly funded pre-
kindergarten within the service area and additional partnerships with 
organizations that enhance the delivery of services to children; (11) 
demonstrate success in improving child outcomes across all domains of 
development, including measurable progress in language skills, pre-
reading knowledge, and pre-mathematics knowledge; (12) maintain 
classroom environments constructive to early learning and future school 
success; (13) demonstrate strong parental involvement and activities to 
develop parent skills to support their children's educational 
development and ability to participate effectively in decisions 
relating to the education of their children; (14) are overseen by a 
local governance board that provides direction and actively oversees 
all program activities; (15) document strong fiscal controls, including 
the employment of well-qualified fiscal staff; no reportable material 
weaknesses with applicable laws and regulations on all annual financial 
audits; meeting or exceeding annual requirements for financial support; 
and maintaining total administrative costs at or below 15 percent of 
total program costs; (16) are licensed to operate in accordance with 
all applicable state child care regulations; (17) conduct outreach 
activities to ensure that services are provided to the most at-risk 
families in the community; (18) have developed strong community 
partnerships with public and private organizations, such as businesses, 
health, and social service providers; and (19) provide opportunities 
for ongoing professional development.
    In addition, H.R. 2123 provides that any Head Start agency 
that does not receive a priority designation will be eligible 
for a subsequent Head Start grant (which would be awarded in an 
open competition).

                           QUALITY STANDARDS

    Under current law, the Secretary has established quality 
standards that include minimum levels of overall accomplishment 
for Head Start agencies. H.R. 2123 adds to the current 
education performance standards provisions to ensure that the 
children participating in the program, at a minimum, develop 
and demonstrate language knowledge and skills; pre-reading 
knowledge and skills that prepare children for early literacy 
in schools; pre-mathematics knowledge and skills; cognitive 
abilities related to academic achievement and child 
development; social and emotional development, early learning, 
and school success and sustained academic gains; and in the 
case of limited-English proficient children, progress toward 
acquisition of the English language.
    When developing quality standards, H.R. 2123 requires the 
Secretary to take into consideration guidelines and standards 
that promote child health services and physical development, 
including outdoor activity that supports children's motor 
development and overall health and nutrition.

                   RESULTS-BASED PERFORMANCE MEASURES

    Under current law, the Secretary is required to develop 
methods and procedures for measuring, annually and over longer 
periods, the quality and effectiveness of programs operated by 
Head Start agencies. The School Readiness Act of 2005 clarifies 
current law provisions with regard to use of such measures. 
Specifically, the Secretary shall: (1) use the performance 
measures to identify strengths and weaknesses in the operation 
of Head Start programs and program areas that may require 
additional training and technical assistance resources; (2) 
provide a detailed justification to the Congress regarding the 
planned uses of the data collected by the National Reporting 
System and shall demonstrate its scientific validity and 
reliability for such purposes; (3) not use the National 
Reporting System assessment results either as the primary 
method for assessing program effectiveness or as the primary 
method for making grantee funding determinations; and (4) 
develop a process to ensure that the National Reporting System 
shall not be used to exclude children from Head Start programs.

               MONITORING OF LOCAL AGENCIES AND PROGRAMS

    To determine whether Head Start agencies have met quality 
standards and results-based performance measures, the Secretary 
has developed local monitoring procedures that take into 
account program, administrative, financial management, and 
other requirements. H.R. 2123 adds a provision to current law 
to require the Secretary to develop and utilize a risk-based 
assessment system of agencies that includes unannounced site 
inspections of Head Start centers and follow-up reviews 
including a review of programs with citations that include one 
or more findings of deficiencies not later than six months 
after the date of such citation.
    H.R. 2123 also requires the Secretary to ensure that such 
reviews of Head Start agencies: (1) are conducted by review 
teams composed of individuals who are knowledgeable about the 
program areas they are reviewing and the diverse (including 
linguistic and cultural) needs of eligible children (including 
children with disabilities) and limited-English proficient 
children and their families; (2) include a review and 
assessment of program effectiveness, including strengths and 
areas for improvement, as measured in accordance with the 
results-based performance measures developed by the Secretary; 
(3) seek information from the communities and the states 
involved about the performance of the programs and the efforts 
of the Head Start agencies to collaborate with other entities 
carrying out early childhood education and child care programs 
in the community; (4) include an assessment of whether a 
program is in conformity with the income eligibility 
requirements; (5) include a review and assessment of whether 
programs have adequately addressed the population and community 
needs (including populations of children with a limited English 
proficiency and children of migrant and seasonal farm-working 
families); and (6) are conducted in a manner that evaluates 
program performance, quality, and overall operations with 
consistency and objectivity, and based on a transparent and 
reliable system of review.

                            UNDER-ENROLLMENT

    Under the School Readiness Act of 2005, each entity 
carrying out a Head Start program must report on a monthly 
basis to the Secretary and the relevant Head Start agency: (1) 
the actual enrollment in such program; and (2) if such actual 
enrollment is less than the funded enrollment, any apparent 
reason for such enrollment shortfall.
    As a result, the Secretary shall: (1) on a semiannual 
basis, determine which Head Start agencies are operating with 
an actual enrollment that is less than the funded enrollment 
based on not less than the average enrollment during 4 
consecutive months; and (2) for each such Head Start agency 
operating a program with an actual enrollment that is less than 
95 percent of its funded enrollment, provide technical 
assistance and develop a plan for reducing or eliminating 
under-enrollment.
    If the Head Start agency continues to operate a program at 
less than full enrollment after the implementation of the 
under-enrollment plan, H.R. 2123 authorizes the Secretary to 
allow the agency to use funds from the enrollment shortfall to 
serve Early Head Start children if the agency already operates 
an Early Head Start program and submits an application to the 
Secretary. This application must contain: (1) evidence of 
community need for such services; (2) a description of how the 
needs of pregnant women, infants, and toddlers will be 
addressed including the agency's approach to childhood 
development and health services; family and community 
partnerships; and program design and management; (3) assurances 
that the agency will participate in technical assistance 
activities for newly funded and existing grantees; and (4) 
evidence that the agency meets the eligibility criteria for 
Early Head Start programs.
    If the Head Start agency continues to operate a program at 
less than full enrollment for one year after the implementation 
of the under-enrollment plan, the Secretary shall continue to 
provide technical assistance to such agency. After receiving 
technical assistance and developing and implementing the under-
enrollment plan the Secretary is authorized to: (1) designate 
such agency as chronically under-enrolled; and (2) recapture, 
withhold, or reduce the base grant for the program by a 
percentage equal to the percentage difference between funded 
enrollment and actual enrollment for the program for the most 
recent year in which the agency is determined to be under-
enrolled.

                     INDEPENDENT BOARD OF DIRECTORS

    To be designated as a Head Start agency, the grantee must 
establish an independent board of directors (or may designate 
an existing entity to serve as the board) for a period not to 
exceed five years (except that board members who are elected to 
oversee a public entity that administers a Head Start program 
may serve for the duration of their elected office).
    Members of the board of all nonpublic entities shall 
include representatives of the local community, including at 
least one member with significant financial management or 
accounting experience, and the policy council chair. Additional 
members shall be selected for their expertise in education, 
business administration, community affairs, government, legal 
affairs, and such other areas of expertise as may contribute to 
effective governance of the Head Start agency.
    All board members shall receive training in management 
responsibilities and obligations, ethics, and financial 
literacy and management and must adopt practices that assure 
active, independent and informed governance of the Head Start 
agency, including independent oversight of the financial and 
management practices of such agency.
    The board shall provide direction to the executive director 
of the Head Start agency and: (1) provide independent oversight 
to ensure that the Head Start agency is delivering high quality 
services to children and families in compliance with all 
applicable standards and performance measures; (2) establish 
two or more standing committees to facilitate governance of the 
Head Start agency which shall include an audit and finance 
committee and a policy council, a majority of whose 
representatives shall be parents of children participating in a 
Head Start program or in an Early Head Start program; (3) 
approve the selection and dismissal of the Head Start director 
and to review annually the human resources available to ensure 
the effective operation of the Head Start agency; (4) consult, 
on a regular basis, with the policy committee and to take 
actions on recommendations submitted by such committee; (5) 
review and approve the major operational policies of the Head 
Start agency, including policies addressing accounting, 
financial management, procurement, record confidentiality, and 
personnel (including specific standards governing salaries, 
salary adjustments, travel and per diem allowances, and other 
employee benefits); (6) ensure that the Head Start agency is 
operated in compliance with applicable federal, state, and 
local laws; (7) oversee the program planning of the Head Start 
agency; and (8) establish, adopt, and periodically update a 
written ``Standards of Conduct'' that establishes standards and 
procedures for disclosing and addressing conflicts of interest, 
and the appearance of conflicts of interest, by board members, 
officers, employees, consultants, and agents who provide 
services or furnish goods to the Head Start agency.

                           LOCAL INTEGRATION

    H.R. 2123 requires Head Start grantees to enter into a 
memorandum of understanding (MOU) with local educational 
agencies or other providers of publicly funded pre-kindergarten 
programs in their service area to better align their 
educational activities with state academic standards, improve 
the delivery of services to children, and better train all 
staff. Specifically, Head Start grantees will be required to 
coordinate the following activities with local providers of 
public pre-kindergarten: (1) educational activities, curricula, 
and instruction aligned to challenging state developed academic 
content standards; (2) public information dissemination and 
access to programs for families; (3) selection priorities for 
eligible children to be served by programs; (4) service 
delivery areas; (5) staff training, including opportunities for 
joint staff training on topics such as academic content 
standards and instructional methods; (6) program technical 
assistance; (7) provision of additional services to meet the 
child care needs of working parents; (8) planning and parent 
education for smooth transitions to kindergarten; (9) provision 
and use of facilities, transportation, and other program 
elements; and (10) other elements mutually agreed to by the 
parties to such memorandum.
    If Head Start grantees fail to enter into an MOU with 
state-funded pre-kindergarten programs operating in their 
service area, they will be deemed deficient (unless the 
Secretary determines that Head Start has not complied because 
there is no state funded pre-kindergarten in the service area 
or the agency has not complied because the local pre-
kindergarten agency is unwilling or unable) and will have to 
compete for funding against other applicants.

                         STATEWIDE INTEGRATION

    H.R. 2123 authorizes State Early Learning Councils to 
advance the development of a coordinated delivery system for 
early childhood services within a state. State Early Learning 
Councils will bring together Head Start, state pre-kindergarten 
programs, state child care programs and the schools that will 
one day serve the children enrolled in Head Start so that these 
programs can: (1) increase coordination and collaboration among 
state preschool, Head Start programs, child care programs, 
special education, and other early childhood programs in the 
state; (2) work with state agencies responsible for education, 
child care, and early intervention to provide leadership and 
assistance to local Head Start programs, school districts, and 
state and locally funded preschool and childcare programs to 
increase integration among early childhood programs; (3) 
conduct periodic statewide needs assessments concerning early 
care and education programs for children; (4) work to identify 
and address barriers to and opportunities for integration 
between entities carrying out federal and state child 
development, child care, and early childhood education 
programs; (5) address coordination of early learning programs 
with health care, welfare, family literacy and services for 
homeless children; (6) 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 programs to deliver services; and (7) develop 
a plan for increasing the participation of children 
underrepresented in state early childhood education and child 
care programs.

                HEAD START ALIGNMENT WITH K-12 EDUCATION

    Under current law, each Head Start agency is required to 
coordinate with the LEA serving the community involved and with 
schools in which children participating in a Head Start program 
will enroll. The School Readiness Act of 2005 adds provisions 
to this coordination which include: (1) developing continuity 
of developmentally appropriate curricula between Head Start and 
local educational agencies to ensure an effective transition 
for children's learning and development as they make such 
transition to school; (2) organizing and participating in joint 
training; (3) developing and implementing a family outreach and 
support program; (4) linking the services provided in such Head 
Start program with the education services, including services 
relating to language, literacy, and numeracy, provided by such 
LEA; (5) helping parents (including grandparent and kinship 
caregivers, as appropriate) to understand the importance of 
parental involvement in a child's academic success; (6) 
developing and implementing a system to increase program 
participation of underserved populations of eligible children; 
and (7) coordinating activities to ensure that curricula used 
in the Head Start program are aligned with state early learning 
standards.

                             ANNUAL REPORT

    H.R. 2123 requires that each Head Start agency make 
available to the public an annual report that discloses: (1) 
the total amount of public and private funds received and the 
amount from each source; (2) an explanation of budgetary 
expenditures and a proposed budget for the following fiscal 
year; (3) the total number of children and families served and 
percent of average monthly enrollment, including the percent of 
eligible children served; (4) the results of the most recent 
review by the Secretary and the financial audit; (5) the 
percentage of enrolled children that received medical and 
dental exams; (6) information about parent involvement 
activities; (7) the performance of the agency in preparing 
children for kindergarten; and (8) other information that 
describes the activities of the agency.

   PARENTAL CONSENT FOR NON-EMERGENCY INTRUSIVE PHYSICAL EXAMINATIONS

    Before administering any health care service (including any 
non-emergency intrusive physical examination) to a child (or 
referring such child to obtain such service) in connection with 
participation in a program, a Head Start agency must obtain the 
written consent of a parent of such child.

                                 AUDITS

    The School Readiness Act of 2005 updates current law 
provisions regarding records and audits by requiring each Head 
Start agency to submit to the Secretary an independent 
financial audit of the program not later than 180 days after 
the end of each fiscal year. The audit must be carried out by a 
certified public accountant selected through a competitive 
process from among qualified certified accountants by the local 
oversight board. H.R. 2123 also requires that each grantee 
maintain, and annually submit to the Secretary, a complete 
accounting of its administrative expenses (including a detailed 
statement identifying the amount of financial assistance used 
to pay expenses for salaries).

       TRAINING AND TECHNICAL ASSISTANCE FOR SPECIAL POPULATIONS

    H.R. 2123 updates current law training and technical 
assistance provisions to better address the unique needs of 
migrant and seasonal working families, families with a limited 
English proficiency, and homeless families.
    The Secretary is required to work in collaboration with the 
Head Start agencies that carry out migrant and seasonal Head 
Start programs, State Collaboration Directors, the Migrant and 
Seasonal Farm Worker Collaboration Project Director, and other 
appropriate entities to: accurately determine the number of 
children nationwide who are eligible to participate in migrant 
and seasonal Head Start programs each year; document how many 
of these children are receiving Head Start services each year; 
and ensure that access to migrant and seasonal Head Start 
programs for eligible children is comparable to access to other 
Head Start programs for other eligible children.

                 QUALIFICATIONS FOR CLASSROOM TEACHERS

    The School Readiness Act of 2005 requires that at least 50 
percent of all Head Start teachers nationwide have a 
baccalaureate or advanced degree in early childhood education 
or related field by September 30, 2011. H.R. 2123 also requires 
that within three years all Head Start teachers hired after the 
date of enactment of this Act must have at least an associate 
degree in early childhood education or related field; or be 
enrolled in a program of study leading to an associate degree 
in early childhood education or related field within three 
years from the date of hire.

                   NATIONAL ACADEMY OF SCIENCES STUDY

    Requires the Secretary to contract with the National 
Academy of Sciences to establish an independent panel of 
experts which shall review and synthesize research, theory and 
applications in the social, behavioral and biological sciences 
and shall make recommendations on early childhood pedagogy with 
regard to: (1) age and developmentally appropriate Head Start 
academic requirements and outcomes; (2) differences in the 
type, length, mix and intensity of services necessary to ensure 
that children from challenging family and social backgrounds 
enter kindergarten ready to succeed; (3) appropriate 
assessments of young children for purposes of improving 
instruction, services, program quality, and accommodations for 
children with disabilities and appropriate assessments for 
children with special needs (including needs related to the 
acquisition of the English language); and (4) an evaluation of 
the current and appropriate uses of the National Reporting 
System.

         STUDY OF STATUS OF LIMITED ENGLISH PROFICIENT CHILDREN

    Not later than one year after the date of enactment of the 
School Readiness Act of 2005, the Secretary is required to 
conduct a study on the status of limited English proficient 
children and their families in Head Start programs and Early 
Head Start programs including information on: (1) the 
demographics of limited English proficient children less than 
five years of age and the geographical distribution of such 
children; (2) the number of such children receiving Head Start 
services and the number of such children receiving Early Head 
Start services, and the geographical distribution of such 
children receiving such services; (3) the nature of the Head 
Start services and of the Early Head Start services provided to 
limited English proficient children and their families; (4) 
procedures in Head Start programs for assessing language needs 
and for making the transition of limited English proficient 
children to kindergarten; (5) the qualifications and training 
provided to Head Start teachers and Early Head Start teachers 
who serve limited English proficient children and their 
families; (6) the rate of progress made by limited English 
proficient children and their families in Head Start programs 
and in Early Head Start programs; and (7) the extent to which 
Head Start programs make use of funds to improve the quality of 
Head Start services provided to limited English proficient 
children and their families.

         LIMITATION ON RATE OF FEDERAL FUNDING FOR COMPENSATION

    The School Readiness Act of 2005 ensures that no federal 
funds can be used to pay all or any part of the compensation of 
an individual employed by a Head Start agency at a rate in 
excess of the Secretary of Health and Human Services.

                  LIMITATION ON CERTAIN USES OF FUNDS

    H.R. 2123 ensures that no funds under the Act can be used: 
(1) for publicity or propaganda purposes not authorized by the 
Congress; or (2) unless authorized by law, to produce any 
prepackaged news story intended for broadcast or distribution 
unless such story includes a clear notification contained 
within the text or audio of such story stating that the 
prepackaged news story was prepared or funded by the Department 
of Health and Human Services.

                            Committee Views


                                OVERVIEW

    Head Start was established in 1965 by President Lyndon B. 
Johnson as part of the War on Poverty and is one of the 
nation's most popular domestic programs. The program provides 
educational and other support services to prepare extremely 
low-income children for school. Strengthening early childhood 
education programs, including Head Start, is one of President 
George W. Bush's top domestic policy agenda items. Head Start 
is the federal government's largest effort to prepare the 
nation's most disadvantaged children for school.
    Head Start provides a range of services, including 
education, nutrition, health, and parent training, to over 
900,000 children and their families living in poverty. Federal 
Head Start funds are provided directly to local grantees, 
rather than through states. Programs are locally designed and 
administered by a network of more than 1,600 public and private 
non-profit and for-profit agencies, or grantees operating about 
2,600 programs nation-wide. Grantees are required to reserve at 
least ten percent of their slots for children with 
disabilities. In 1994, Early Head Start was established to 
serve pre-natal mothers and infants and toddlers under the age 
of three.
    The School Readiness Act of 2005, H.R. 2123, reforms Head 
Start to improve the overall school readiness of disadvantaged 
children through an increased focus on academic performance. 
Improving school preparedness and teacher quality are key 
components of H.R. 2123 since Head Start research consistently 
shows that participating children are making progress yet 
continuing to fall short of expectations by lagging behind 
their more affluent peers in some domains of achievement. 
Eliminating academic and developmental disparities early on is 
an important goal of this legislation given the requirements of 
the No Child Left Behind Act, which mandate that children read 
on grade level by the end of third grade.
    The School Readiness Act is based upon the Bush 
Administration's principles for Head Start that build upon the 
themes and conceptual framework for early childhood education 
outlined in the Good Start, Grow Smart plan introduced by the 
President in 2002. It includes provisions to strengthen program 
accountability, enhance the school readiness of participating 
children, and improve the integration of Head Start educational 
instruction with state pre-kindergarten programs. The School 
Readiness Act does not move the program's administrative 
functions from the Department of Health and Human Services to 
the Department of Education or authorize states to administer 
the Head Start program.

         ENHANCING THE SCHOOL READINESS OF HEAD START CHILDREN

    Knowledge about children's learning has expanded greatly 
during the past two decades. Research in the neurobiological 
and behavioral sciences suggests the importance of a child's 
experiences during the first years of life for healthy brain 
development. From birth through age five, children rapidly 
develop the capabilities on which subsequent development 
builds. According to child development expert Dr. T. Berry 
Brazeleton, ``A child's experiences in thefirst months and 
years of life determine whether he or she will enter school eager to 
learn or not.''
    Given all that has been learned about the development of 
young children, there is not a single definition of school 
readiness that is consistently used across this country. A 
group of researchers at the Frank Porter Graham Child 
Development Center at the University of North Carolina have 
defined school readiness as the condition of children when they 
enter school, and the capacity of schools to educate the 
children enrolled. According to the research team, ``the 
readiness puzzle can only be solved if the two pieces fit 
together'' (Bailey, 1999).
    While the resources to fund Head Start are significant, 
more work is needed to achieve the ultimate program goal of 
closing the readiness gap between Head Start children and their 
more advantaged peers when they enter kindergarten. Studies 
indicate that children who are enrolled in Head Start make some 
progress, but still are lagging behind national norms in all 
aspects of school readiness. Data from the Family and Child 
Experiences Survey (FACES) and the first year findings of the 
Head Start Impact study both suggest that Head Start 
participants show progress on some measures after completion of 
a year in Head Start, but not in others, and on balance remain 
below the national average. However, FACES data find the 
achievement gap has been closed in the areas of pre-reading and 
pre-writing by the time Head Start children complete 
kindergarten. The Committee looks forward to future reports 
from the Impact study to see if these results are replicated.
    These data indicate that Head Start children are entering 
kindergarten without the full set of knowledge and skills that 
are good predictors of later school success. The problems that 
so many of these children will experience later in their 
academic careers are beginning well before they enter school. 
Although some variation in development can be expected among 
children, the importance of all children achieving academic 
parity upon entry into kindergarten is critical since children 
who start behind have been shown to stay behind.
    According to a 2001 report published by the Brookings 
Institution, huge developmental disparities, including sizable 
racial and ethnic gaps, already exist among young children at 
the time that formal education begins (Rouse, 2005). To 
accomplish the goal of ensuring that Head Start children 
develop the cognitive competencies necessary to succeed, the 
School Readiness Act significantly enhances program emphasis on 
the academic components of school readiness, while retaining 
the commitment to providing comprehensive early learning and 
social services. It is the Committee's view that Head Start, a 
program to enhance school readiness, has historically placed an 
unbalanced emphasis on providing health and social services to 
children and their families, which has resulted in Head Start 
children not making the cognitive gains necessary to begin 
school with an equal opportunity to succeed. The Committee 
recognizes the importance of all domains of development in 
order for a child to be school ready, however Head Start is not 
making good on its promise if Head Start children are not fully 
prepared to enter school.
    There is a growing body of research and understanding of 
the early foundations of children's positive development and 
learning. Though no one curricula has been identified as 
clearly more effective than others, research does suggest that 
use of comprehensive, research-based curricula is critical to 
preparing to succeed in school and in life. H.R. 2123 does not 
mandate a federal curriculum. Children's readiness for school 
and positive overall development will be enhanced by teachers 
using a well-planned, research-based curriculum selected at the 
local level and implemented by teachers with education and 
training in child development and in the chosen curriculum.
    Research suggests that learning will be most effective if 
it builds on children's existing understanding so it is 
critical that implementation attends to the individual 
developmental level of the child. Curricula should promote 
learning of concepts as well as information and skills. 
Curricula should increase in complexity and challenge of 
activities as children develop and should take into account and 
support the different ways children learn. It should be 
challenging, engaging, developmentally appropriate, culturally 
and linguistically responsive, and inclusive of children with 
disabilities. Curricula should be results-based and linked to 
instructional goals and measurable objectives.
    A critical component of school readiness is the attainment 
of pre-reading abilities. As such, Head Start programs should 
provide children from low income families a high-quality, oral 
language and literature-rich environment. Through scientific 
research, much has been learned about the way children learn to 
read, and the strong foundation that is important before 
children are given formal reading instruction in kindergarten 
and first grade. Consistent with the Early Reading First 
initiative launched as part of the No Child Left Behind Act, 
Head Start must play a pivotal role in this effort. In addition 
to supporting the socio-emotional development of children under 
their care, Head Start programs must encourage and promote 
cognitive development activities along with professional 
development for teachers and staff based on scientific research 
in reading.
    Children who have poor beginning reading skills are less 
likely to develop better reading skills through their school 
careers. There are several generalizations about reading 
instruction that should be taken into account by Head Start 
teachers. For example, if children can correctly identify 
letters of the alphabet before they enter kindergarten, it is 
more likely that they will learn to read words in school faster 
than children who do not possess this knowledge. Experimental 
findings consistently confirm that children's knowledge of the 
alphabet is a strong predictor of their later progress in 
learning to read words accurately, quickly and automatically. 
Professional development and instructional activities should 
include an understanding of semiotic concepts, a term to 
describe the general theory of signs and symbols that represent 
written language, comprised of syntactics, semantics and 
pragmatics.
    Head Start programs, in seeking to achieve the best pre-
reading outcomes for children, are encouraged to access 
scientific, research-based screening tools in order to assist 
Head Start children by fashioning activities and instruction to 
meet their specific needs. One such screening tool is the 
National Center for Learning Disabilities' Get Ready to Read! 
pre-reading program. This allows teachers to screen four-year-
olds to determine their familiarity with pre-reading concepts 
and provide parents, early childhood teachers, and caregivers 
with research-based information about how to build young 
children's pre-reading abilities.
    The Committee urges the Secretary to encourage grantees to 
implement innovative methods that provide individualized 
instruction to children aimed at closing the school readiness 
gap. The Committee recognizes the one-to-one reading model 
developed and delivered in certain Head Start programs 
throughout the nation by Jumpstart. Jumpstart deploys 2100 
college students each school year to mentor Head Start students 
by devoting an average of 15 hours per week to their partner 
child. In addition, time is spent assisting the teacher and 
entire classroom. An independent evaluation commissioned by 
Jumpstart found that one-to-one reading instruction provided by 
Jumpstart mentors helped to narrow the language and literacy 
gap. Gains were seen in the areas of using letters and sounds, 
writing, using vocabulary, using complex patterns of speech, 
listening to and understanding speech, and awareness of sounds 
in words. The Committee encourages Head Start centers to 
partner with programs such as Jumpstart that provide 
individualized reading instruction and recognizes such mentors 
as a potentially useful way of supplementing the language and 
literacy skills of Head Start children.
    The Committee also recognizes the importance of pre-
mathematics skills for young children. Promoting pre-
mathematics and pre-science knowledge and abilities is 
important for school readiness. These competencies may be 
promoted through early science and math experiences, including 
observing with senses, predicting, inferring, defining and 
controlling variables, working in teams, and communicating 
discoveries. Examples of science and math experiences may 
include planting different seeds, with various types of growing 
medium, light, and water; building towers with various block 
sizes; employing ramps and different balls; watching ice melt 
in different environments, etc.
    The School Readiness Act updates the Head Start quality 
standards and performance measures to reflect scientific 
advances relating to the core areas of competence fundamental 
to children's school readiness. The new quality standards will 
require Head Start teachers to ensure that children enrolled in 
the program develop and demonstrate the following: language 
knowledge and skills; pre-reading knowledge and skills, 
including phonological awareness, print awareness and skills, 
and alphabetic knowledge; pre-mathematics knowledge and skills, 
such as aspects of classification, seriation, number, spatial 
relations and time; cognitive abilities related to academic 
achievement; social and emotional development related to early 
learning, school success and sustained academic gains; and for 
limited English proficient children, progress toward 
acquisition of the English language while making meaningful 
progress towards attaining the same school readiness knowledge 
and skills as other participating children. Additionally, the 
School Readiness Act eliminates the previous educational 
performance measures that were arbitrary and misaligned with 
the school readiness competencies specified under the quality 
and educational standards section.
    Finally, the School Readiness Act defines scientifically 
based research and requires Head Start grantees to demonstrate 
the capacity to serve eligible children with programs based on 
scientifically based research that promote school readiness and 
meet quality standards. Consistent with the No Child Left 
Behind Act, the Committee strongly believes that Head Start 
programs should be utilizing sound scientifically-based 
research when making program decisions. The language in H.R. 
2123 will ensure that instructional strategies have resulted 
from the application of rigorous, systematic, and objective 
procedures; employ systematic empirical methods that draw on 
observation or experiment; involve rigorous data analyses; rely 
upon measurements or observational methods that provide valid 
data across evaluators and observers and across multiple 
measurements and observations; and have been accepted by a 
peer-reviewed journal or approved by a panel of independent 
experts through a comparably rigorous, objective, and 
scientific review. These requirements will lead to improved 
program quality and better outcomes for the children 
participating in Head Start.
    While the statutory improvements of H.R. 2123 are expected 
to improve the cognitive abilities of Head Start children, the 
Committee believes that the Head Start academic performance 
measures defined in regulations by the Secretary of Health and 
Human Services also need revision. The performance standards 
provided in regulations appear to be in many cases redundant, 
burdensome, and not measurable. Additionally, the regulations 
disproportionately address health and social development 
relative to standards for cognitive development and learning. 
For this reason, H.R. 2123 requires that the results-based 
performance measures be updated no less than every four years, 
based on advances in the science of early childhood 
development.

                            TEACHER QUALITY

    According to the National Research Council report, Eager to 
Learn, all preschool programs should have a teacher with at 
least a bachelor's degree in early childhood education or a 
related field (National Research Council, 2000). Well-educated 
teachers are a key to early childhood program quality and 
outcomes for children. Research consistently demonstrates a 
link between the learning potential of children and the level 
of education and training of classroom teachers. A lack of 
professional preparation and low compensation affect a host of 
outcomes that may hamper a child's readiness to succeed in 
school.
    Since its inception, the Head Start program has been 
providing training and professional development to its workers. 
Today, a certified Child Development Associate, or CDA, is the 
minimum teacher requirement in every Head Start classroom, and 
three-quarters of all Head Start teachers have at least an 
associate's degree in child development or a related field. 
This is good progress, but the program must build upon this 
progress to advance the qualifications of educational staff. 
Improved academic achievement in Head Start cannot be 
accomplished without well-qualified Head Start teachers who are 
trained in child development, utilize research-based literacy 
techniques, and understand the importance of a language-rich, 
interactive environment for children.
    Research shows that teachers with a minimum of a bachelor's 
degree and specialized training in early childhood development 
are significantly more engaged with children, less critical, 
and less detached--characteristics related to better child 
outcomes--from students in their classrooms than teachers with 
less formal education. Research also demonstrates that higher 
teacher qualifications directly translate into better results 
for children in critical areas of development, including the 
attainment of the competencies needed to be successful in 
school. The three most renowned early childhood programs for 
low-income children--the Perry Preschool Project, Chicago Child 
Parent Centers, and Abecedarian Preschool--all were staffed by 
teachers with a minimum of a bachelor's degree and specialized 
training in early childhood education.
    The School Readiness Act requires that a greater number of 
Head Start teachers are adequately trained and educated in 
early childhood development. In 1998, Congress required 50 
percent of Head Start teachers nationwide to acquire a minimum 
of an associate degree by 2008--a goal that Head Start has 
successfully met.
    The School Readiness Act of 2005 sets a new target for 
teacher qualifications. It requires that by three years after 
enactment all newly hired Head Start teachers have at least an 
associate degree or be enrolled in a program leading to an 
associate degree within three years. Additionally, it would 
require that half of all Head Start teachers nationwide have a 
minimum of a baccalaureate degree by 2011. This revised 
requirement would help to make teacher qualifications more 
consistent with K-12 schools and many state pre-kindergarten 
programs. Twenty-seven state pre-kindergarten programs, and the 
District of Columbia, require that all preschool teachers have 
at least a bachelor's degree, yet only about 34 percent of Head 
Start teachers have more than a two-year degree. In some 
states, the difference in the teacher requirements between Head 
Start and state school readiness programs can be a barrier to 
collaboration and integration between the two programs.
    Among the requirements for priority designation, H.R. 2123 
would require grantees receiving priority designation to employ 
teachers of which at least half have an associate degree or 
higher. The Committee strongly believes all Head Start programs 
should meet this minimum standard but recognizes there can be 
logistical limitations to meeting the standard for certain 
programs that cannot access a workforce with these credentials 
for reasons outside of their control (such as regional 
isolation, provision of short-term services, and lack of an 
accessible institution of higher education that offers 
associate's degrees in the area of early childhood education or 
a related field). For this reason, the School Readiness Act 
permits rural, Migrant and Seasonal, and Indian Head Start 
programs to apply to the Secretary for a three-year waiver that 
can be renewed. In these cases, the Committee encourages the 
Secretary to grant waivers to eligible grantees who are 
demonstrating effort and improvement toward better professional 
development.
    The School Readiness Act aims to increase the 
qualifications of educational staff with expertise and skills 
in providing academic services to limited English proficient 
(LEP) children. In order to effectively monitor progress 
towards the goal of increasing the qualifications of Head Start 
teachers with skills in serving LEP children, the Committee 
recommends that the Head Start Bureau include, as part of the 
annual program information report, information on the 
educational levels of Head Start teachers disaggregated by 
race, ethnicity, and primary language.
    H.R. 2123 also requires all Head Start grantees to create a 
professional development plan for all full-time employees who 
provide direct educational services to children. The Committee 
believes that this activity will result in high quality 
professional development that directly benefits the individual 
instructor, Head Start students, and the overall program.
    Navigating the maze of student aid can be a daunting task, 
and can be especially difficult for non-traditional students 
attending school part-time. While there are multiple 
authorities within the Head Start program to provide financial 
assistance for teachers obtaining higher education, budgetary 
constraints within Head Start programs may limit scholarship 
assistance under the Act. However, financial assistance is 
available under other federal programs (such as Pell Grants and 
student loans), under state programs, and from private 
foundations and organizations, and every effort should be made 
to raise awareness of financial assistance opportunities for 
Head Start teachers. The Secretary of Education is charged with 
overseeing outreach efforts to inform students about the 
availability of student financial assistance. The Secretary of 
Health and Human Services, in cooperation with the Secretary of 
Education, is encouraged to provide information to Head Start 
grantees informing teachers how to find and access various 
state, federal, and private funds to obtain Associate's or 
Bachelor's degrees.
    It is important that Head Start teachers receive their 
post-secondary education from credible institutions of higher 
education that will provide high quality teacher preparation. 
The Committee is troubled by reports that some Head Start 
teachers may have purchased college degrees from diploma mills. 
Although no formal legal definition exists, a diploma mill is 
generally regarded as an entity that lacks accreditation from a 
state or professional accreditation organization, but that 
sells college and graduate degrees that are fraudulent or 
worthless because of lack of standards in curriculum, 
instruction and completion. The Committee is concerned that 
diploma mills have proliferated in recent years due to the rise 
in Internet education. Although many diploma mills use the 
Internet to operate illegitimate institutions of higher 
education, it is sometimes difficult to distinguish between 
phony degrees and legitimate on-line institutions that operate 
accredited distance education programs. Although the federal 
government has been successful in keeping phony institutions 
out of the federal student aid programs, it is less clear 
whether federal assistance through the Head Start Act has been 
used to attain degrees from illegitimate institutions. For this 
reason, H.R. 2123 contains language that prohibits Head Start 
funds from being used to support the attainment of higher 
education unless the institution is accredited by an 
independent agency or association recognized by the U.S. 
Department of Education. Further, the Committee does not 
condone the hiring of new teachers with degrees received from 
diploma mills, and urges the Secretary to raise grantee 
awareness of these bogus institutions.

                           MEASURING PROGRESS

    Head Start programs are currently required to measure 
children's progress in key aspects of development, including 
language development, literacy, mathematics, science, creative 
arts, social and emotional development, approaches toward 
learning, and physical health and development. Programs are 
required to evaluate each child's progress three times per year 
and use the results to help make decisions about staff 
training, mentoring and supervision; needed improvements in 
curriculum; reallocation of program resources; and plans for 
transitions of children from Head Start into elementary 
schools.
    The Committee believes that monitoring children's growth 
and development throughout the Head Start year can be very 
helpful to continuous improvement in program quality. But in 
order for these assessments to provide teachers with useful 
information that can serve as a basis for teaching decisions, 
it is important that the self-assessment methods in the areas 
of emergent literacy and mathematics be research-based, 
developmentally appropriate, and culturally and linguistically 
responsive. The Committee believes it is important that these 
assessments be tiedto children's daily activities in order to 
better support educational instruction and decisions about teaching and 
curricula.

                       NATIONAL REPORTING SYSTEM

    The Department of Health and Human Services developed and 
implemented the Head Start National Reporting System (NRS) 
assessment nearly two years ago as a means to measure 
children's progress in four basic areas: understanding spoken 
English, vocabulary, letter recognition, and early math. The 
NRS is a brief, standardized assessment administered by local 
grantees at the beginning and end of each program year to all 
four and five year old children enrolled in Head Start. It is 
the first common assessment instrument to evaluate how well 
individual Head Start programs are doing in preparing children 
for kindergarten.
    According to the Department of Health and Human Services, 
the NRS is the largest assessment of preschool children in 
history. During the first year of its administration, the NRS 
was completed by nearly 437,000 preschool children 
participating in Head Start, including 35,000 children with 
disabilities and 125,000 children with limited English 
proficiency. The assessment was developed with limited 
Congressional authority and input, and despite recognized 
merits of a common assessment tool for Head Start, the 
Committee is aware that the NRS has been the subject of great 
concern for many child development and educational assessment 
experts and early childhood educators. Concerns raised by 
experts of the Technical Work Group of the NRS, which was 
selected by the Administration, include insufficient validity 
and reliability, issues of cultural and linguistic 
inappropriateness, unnecessary assessment of every child, and 
lack of clarity about its purpose and the use of the data. The 
Committee is additionally concerned about reports that the 
Spanish version of the NRS is not comparable or parallel to the 
English assessment. For this reason, the Committee commends the 
Secretary for convening panels to review and make 
recommendations to improve the NRS and recommends that 
sufficient time is taken to ensure the scientific validity and 
reliability of the NRS before its data are used to evaluate the 
progress of children participating in individual Head Start 
programs.
    There is general agreement by early childhood experts on 
the value of assessment, and children are assessed regularly in 
nearly every preschool program across the country, including 
all Head Start classrooms. Currently, Head Start children 
participate in assessments that are locally selected and 
implemented. These local assessments may be useful to inform 
the instructional needs of individual children, but they often 
cannot be used to evaluate program effectiveness and cannot be 
used to compare rates of progress and the readiness of children 
in Head Start programs nationwide. H.R. 2123 requires no new 
testing.
    Evaluating children's progress for the purposes of 
evaluating the effectiveness of early education programs is a 
relatively new concept that needs further study. Experts 
convened by the National Research Council state that young 
children inherently have developmental limitations that can 
affect the interpretation and use of assessments. For example, 
as discussed in Eager to Learn, young children still are 
developing the ability to focus, the capacity to be purposeful 
and intentional, and the ability to self-regulate. Furthermore, 
assessment results may be influenced by the fact that a 
preschool child may not fully understand what is being required 
of them during an assessment. In this 2001 report, experts 
under the National Research Council stated:

          All assessments, and particularly assessments for 
        accountability, must be used carefully and 
        appropriately if they are to resolve, and not create, 
        educational problems. Assessment of young children 
        poses greater challenges than people generally realize 
        . . . Consequently, assessment results--in particular, 
        standardized test scores that reflect a given point in 
        time--can easily misrepresent children's learning . . . 
        . If the use of external standardized tests increases 
        in the preschool environment for reasons of public 
        policy, it is essential that they meet the highest 
        standards of reliability and validity.

    The U.S Government Accountability Office (GAO) published a 
May 2005 study on the Head Start assessment, which notes that 
some changes have been made to the test and its administration 
to address concerns voiced by child development and assessment 
experts. However, the GAO states that:

          The Bureau has yet to address other potential 
        implementation problems, such as whether all 4- and 5-
        year olds eligible to participate in the NRS are 
        assessed and whether assessors have narrowed the 
        curriculum they teach in response to the NRS . . . 
        Analysis of the NRS is currently incomplete to support 
        its use for the purposes of accountability and 
        targeting training and technical assistance.

    Therefore, this Committee intends to ensure that 
legislation to reauthorize the Head Start program includes 
directions to the Secretary regarding the development, 
implementation, and further use of the NRS. H.R. 2123 directs 
the Secretary to report to Congress all costs associated with 
the NRS and requires annual reports on its status.

                        DEVELOPMENTAL SCREENING

    Head Start currently requires a timely and systematic 
approach toward diagnostic screening of participating children 
in order to identify which children require more formal 
assessments of their developmental needs and follow-up 
services. The Head Start Program Performance Standards require 
all grantees and delegate agencies to perform or obtain 
linguistically and age appropriate screening procedures to 
identify concerns regarding a child's developmental, sensory, 
behavioral, motor, language, social, cognitive, perceptual, and 
emotional skills (CFR 1304.20(b)(1)) within 45 days of the 
child's entry into the program. However, screenings may be 
conducted only after a program files a written parental 
authorization for such services. Though the HHS Performance 
Standards provide importantguidance on characteristics of 
screening tools, no particular strategy, instrument, or technique is 
required.
    The School Readiness Act reinforces that Head Start program 
must in every circumstance obtain written parental consent 
prior to conducting any health related service, including 
developmental and mental health screenings, and physical 
examinations.
    The Committee is concerned that some programs may be using 
outdated and inadequate screening instruments even though 
several evidence-based, quick, inexpensive, and accurate tools 
already exist. Given the great importance of identifying 
developmental delays early, it is critical that grantees 
utilize high-quality research-based developmental screening 
tools. The Secretary is encouraged to help grantees that are 
not already doing so, to incorporate high-quality screening 
tools into their program.
    High-quality research-based developmental screening tools 
are those that have been demonstrated to be reliable, valid, 
and accurate (that is, both sensitive and specific, correctly 
detecting children with and without delays) for children from a 
range of racial, ethnic, linguistic and cultural backgrounds. 
In addition, high-quality developmental screening tools have 
been rigorously peer-reviewed, including publication in a 
refereed professional journal, to assure that their 
reliability, validity, sensitivity, and specificity are 
accurately reported. Finally, high-quality developmental 
screening tools have been demonstrated to work well with 
children from a wide range of racial, ethnic, linguistic and 
cultural backgrounds.

                         PROGRAM ACCOUNTABILITY

    While 85 percent of Head Start grantees provide quality 
services according to the latest monitoring report issued by 
the U.S. Department of Health and Human Services, there are 
some grantees that are not fulfilling their obligation to 
ensure that our nation's neediest children enter school with 
the knowledge they need to succeed. This is evidenced by the 
approximately 170 Head Start programs that have been terminated 
by the Department due to concerns over their quality over the 
past 10 years.
    Since January 2003, media accounts in numerous U.S. cities 
and communities alleged serious financial abuses and 
irregularities by local individuals and/or entities entrusted 
with managing local Head Start programs. Other reports 
involving financial mismanagement suggested that often Head 
Start grantees have good intentions, yet lack strong fiscal 
controls and the skills needed to effectively manage complex, 
multi-million dollar non-profit organizations. The incidents 
identified in these media reports collectively involve the use 
of tens of millions in federal Head Start funds that were 
intended to serve more than 10,000 disadvantaged U.S. children.
    These reports suggest that an unacceptable share of Head 
Start funding never reaches the disadvantaged children the 
money is intended to serve, and is instead lost to financial 
abuse, mismanagement, impropriety, or outright theft within the 
Head Start system. In each instance, abuse takes place at the 
expense of children served by the many quality Head Start 
grantees. Of equal concern, there appears to be little ability 
on the part of the federal Head Start Bureau within the 
Administration on Children and Families to independently verify 
that the abuses reported by the media in the past two years are 
in fact ``isolated incidents'' and not the symptoms of a more 
widespread accountability problem.
    In light of these reports, the Committee is concerned about 
the degree to which Head Start grantees are held accountable at 
both the federal and local levels. The Committee believes the 
current Head Start monitoring system is not adequate to ensure 
that programs are consistently delivering the level of high 
quality services necessary for children to advance in all areas 
of development. It is the Committee's view that the scheduled 
triennial review process, coupled with an automatic renewal of 
grants on an annual basis, does not provide adequate assurances 
to the Congress and the public about Head Start program 
operations. This is confirmed by a March 2005 report published 
by the Government Accountability Office that evaluated federal 
financial controls that exist in the Head Start system.
    In its report, GAO aimed to provide information on whether 
the Administration for Children and Families (ACF) could 
consistently identify financial management weaknesses and 
whether ACF ensures that grantees effectively resolve problems 
in a timely manner when they are detected. The GAO report 
concluded that, at the federal level, Head Start's financial 
control system is flawed and failing to prevent financial abuse 
and mismanagement. The report stated:

          Ultimately, enforcing all the program's 
        requirements--especially financial management 
        requirements--strengthens the federal commitment to 
        poor children and their families by effectively 
        managing scarce federal resources and making sure as 
        many eligible families as possible can participate in 
        the program.

    GAO provided a series of recommendations to hold grantees 
more fiscally accountable for federal Head Start funds. The GAO 
urged changes that could be made by HHS/ACF to improve the 
oversight of the Head Start program. These changes include: (1) 
implementing a comprehensive risk assessment of the Head Start 
Program; (2) improving the processes used to collect 
information on program risks; and (3) making greater use of 
authority to re-compete the grants that are currently awarded 
to poorly performing grantees (GAO, 2005).
    The School Readiness Act includes several new provisions to 
ensure greater public disclosure of information, including the 
authority of the Secretary to conduct unscheduled reviews of 
Head Start programs. It is the Committee's view that 
unscheduled reviews will help to ensure that all programs are 
performing at the highest levels possible at all times. While 
recognizing that, at certain times, HHS may need to make 
scheduling arrangements with grantees in advance of a triennial 
review, the Department should have the authority to visit any 
Head Start program at any time and without prior notice.
    However, in addition to being a method of accountability, 
the Committee encourages the Secretary to use the monitoring 
process as a critical program support tool. The Committee 
believes close monitoring of Head Start programs is a key 
opportunity and useful method foridentifying program strengths 
and weaknesses. Therefore, program monitoring should be used both to 
bolster program accountability and to better identify areas for program 
improvement so that resources can be effectively targeted.
    The School Readiness Act also requests an analysis of the 
income eligibility of participating children as part of the 
program reviews. While this is currently a fairly common 
practice, the Committee feels that adding specific statutory 
authority will help to better ensure that Head Start services 
are being targeted to those children who are most in need of 
them.
    To help ensure that Head Start programs are providing the 
highest quality services to students, the School Readiness Act 
also allows the U.S. Department of Health and Human Services to 
utilize the services of third parties to conduct monitoring 
activities and adds a requirement that review teams include 
members with expertise in specific content areas. Monitoring is 
an important part of the Department's responsibility for 
overseeing Head Start. In order to ensure the integrity of the 
monitoring process, the Committee believes that HHS should be 
allowed to contract out monitoring responsibilities to 
impartial third parties as needed. The use of independent 
evaluators will assure the public that the monitoring process 
will not be influenced, even unintentionally, by the personal 
relationships between grantees and the regional offices that 
grantees rely on for guidance and assistance.
    The School Readiness Act strengthens federal authority to 
initiate grantee termination proceedings at any time. The 
Committee encourages the Secretary to use his authority under 
current law and new authorities under this legislation to 
expeditiously terminate any grantee that is found to have 
recurring deficiencies. In cases where the Secretary issues a 
letter of termination, H.R. 2123 prohibits grantees from using 
federal monies to fund the appeal process. Furthermore, the 
Committee recognizes the Secretary's existing authority to 
issue immediate suspensions of funding to any agency in 
emergency situations. In such instances, funding to the grantee 
is suspended and an interim organization provides services 
until a replacement agency can be identified or the Secretary 
determines it is appropriate to resume funding to such agency.
    The Committee recognizes the rights of a grantee to appeal 
a termination decision, but is concerned that some reviews have 
been reported to last several years. The Committee notes that 
seven months or several years is too long for children to 
endure programs with demonstrated deficiencies and urges the 
Departmental Administrative Boards to move swiftly to render 
decisions on such matters.

              INCREASING COMPETITION FOR HEAD START GRANTS

    Evidence shows that competition fosters continuous program 
improvement and high expectations. The School Readiness Act 
ensures high quality programs continue to provide services in 
their communities, while providing the Secretary greater 
authority to replace grantees that are not meeting 
expectations. In the view of this Committee, programs that are 
not in compliance with federal law must not be given a free 
pass to continue receiving taxpayer funds.
    President George W. Bush has made competitive bidding for 
the provision of government services a priority of his 
Administration. This is good policy because when competition 
increases, the consumer generally benefits. Competitive bidding 
for federal monies promote basic fairness and encourages 
greater efficiencies and cost savings. With billions of dollars 
awarded each year in federal grants, the need for efficiency 
and accountability is significant.
    The Committee recognizes that the primary principles of 
government contracting and grant-making should be to purchase 
the best product, provide the best service, and fund the best 
operation at the best price for the American taxpayer. The 
federal Head Start program should not depart from these basic 
principles. Increased competition in Head Start will lead to 
cost savings and greater efficiencies, while delivering a 
better value to Americans taxpayers and better results for Head 
Start children and families.
    The Committee also recognizes the value of supporting the 
ongoing provision of Head Start services by high-performing 
grantees. Evidence shows that continuity of program services by 
high-quality grantees best serves children and families in Head 
Start. The most effective way of fighting the effects of 
poverty within a community is to provide a sustained and 
continual effort. Moreover, the existing stability within Head 
Start, in most instances, promotes better quality and more 
efficiency. It helps the organization become trusted within the 
community it is trying to serve, creating better community 
relations and better outreach to eligible children and 
families. Continuity and stability provided by high-quality 
grantees helps programs to recruit and retain better teachers 
and better plan professional development. It can have a 
significant impact on cost effective resource allocation by 
affecting a program's ability to leverage funds in their 
community and negotiate lower facilities costs and business 
loans. It also better ensures that taxpayer monies spent on 
professional development and facilities are investments that 
continue to benefit children served by Head Start. Thus, re-
competition of high quality programs could have the unintended 
effect of undermining program quality and decreasing the 
efficiency of Head Start expenditures.
    Under H.R. 2123, grantees identified by federal authorities 
as being significantly or systemically deficient or those not 
meeting one or more of 18 specific federal guidelines will be 
required to re-compete for their federal grants. Increasing the 
role of competition, in concert with other provisions contained 
in the School Readiness Act, H.R. 2123 will enhance grantee 
accountability and performance.

                          LOCAL ACCOUNTABILITY

    The School Readiness Act requires each grantee to establish 
or maintain an independent board of directors that includes 
representatives of the local community (including at least 1 
member with significant financial management or accounting 
experience and the Chair of the Policy Council). Additional 
members shall be selected for their expertise in education, 
business administration, community affairs, government, legal 
affairs, and such other areas of expertise as may contribute to 
effective governance of the Head Start agency. The Committee 
does not intend this provision to require grantees with 
existing boards to set up a secondary board of director 
structure, but rather to set forth qualifications and 
responsibilities for existing boards to meet. Certain 
exceptions are granted to the board of directors of grantees 
that are public entities and subject to state and local laws 
that contradict these requirements.
    All members of the board shall receive training in the 
management responsibilities and obligations, ethics, and 
financial literacy and management, and shall adopt practices 
that assure active, objective, and informed governance of the 
Head Start agency, including independent oversight of the 
financial and management practices of such agency. The board 
shall provide direction to the executive director of the Head 
Start agency and shall operate as an entity independent of the 
staff employed by the Head Start agency.
    To foster improved local accountability, local governing 
boards must provide strong oversight to ensure that the Head 
Start agency is delivering high quality services to children 
and families in compliance with all applicable standards and 
performance measures. To accomplish this goal, H.R. 2123 
requires the operation of two or more standing committees to 
facilitate governance of the Head Start agency, including an 
audit and finance committee and a policy council.
    The audit and finance committee should have the lead 
responsibility in ensuring the financial health of the grantee, 
and should approve the program's operating budget; review and 
recommend to the board the selection of independent auditors; 
review and recommend to the board the termination or extension 
of the existing audit firm at least once every 5 years; review 
and advise the board on audit issues and findings; and monitor 
agency actions to correct any such audit findings or other 
actions necessary to comply with applicable laws.
    The policy council, a majority of whose representatives 
must be parents of children participating in a Head Start or 
Early Head Start program serve as a link between parents and 
the board of directors and submit recommendations to the 
governing board. The policy council shall provide input to the 
governing board and may make recommendations on any aspect of 
program operations including: the strategic direction of the 
program, including long and short-term planning goals and 
objectives; program operation policies, including standards of 
conduct for program staff and volunteers; activities to support 
the active involvement of parents in supporting program 
operations; classroom activities and staffing; and program 
responsiveness to community and parent needs.
    It is the Committee's intent that all legal and fiduciary 
responsibilities shall rest with the governing board. However, 
parents of children in the program need to have a meaningful 
say in how the program is run. As such, the Committee fully 
expects the governing board to regularly consult with the 
policy council on all issues and take action on recommendations 
submitted by the policy council. It is the Committee's 
expectation that the governing board will set up an appropriate 
process for handling recommendations made by the policy council 
and that such recommendations will be handled in an open and 
timely manner. In those instances where the governing board 
disagrees with a recommendation of the policy council, the 
governing board should communicate their reasoning to the 
policy council.

                HEAD START ALIGNMENT WITH K-12 EDUCATION

    The landmark No Child Left Behind Act dramatically reformed 
the Elementary and Secondary Education Act of 1965 by 
increasing resources and demanding results from our nation's 
educational system. More specifically, the law required a 
narrowing of the achievement gap that exists between 
disadvantaged students and their more advantaged peers so that 
all children are able to read on grade level by the end of the 
third grade.
    Research shows that children who read well in the early 
grades are far more successful in later years. According to the 
National Institute for Child Health and Development, school 
readiness consists of a broad set of competencies. These 
academic and social competencies that define school readiness 
start developing long before children enter the elementary 
classroom. However, studies show that many children enter 
school without the necessary knowledge and abilities to 
succeed. States report that between 20 percent to nearly half 
of all children entering school are not prepared to succeed in 
school. Evidence further suggests that children who start 
behind tend to stay behind. For these reasons, the Committee 
recognizes the importance of coordinating preschool programs, 
including Head Start, with K-12 education goals and standards. 
It is critical that Head Start programs work closely with local 
educational agencies to coordinate curricula and facilitate a 
smooth transition from Head Start into school.
    The Language Enrichment Activities Program, or LEAP, 
developed for the Cone Head Start Center in Dallas has proven 
that the right curriculum and a strong relationship with a 
community's local elementary school can successfully strengthen 
the cognitive and communications skills of low-income children. 
Children attending the Cone Head Start Center have proven that 
children from low-income families can perform at levels 
comparable to children from a higher socioeconomic level when 
given a quality preschool experience that includes a strong 
curriculum aligned with the K-12 system.
    In an effort to ensure that all children are proficient 
readers by a young age, the No Child Left Behind Act dedicates 
significant resources to reading programs such as Early Reading 
First and Reading First. These programs establish clear and 
specific expectations for what can and should happen for all 
students by insisting that they have the necessary language, 
cognitive, and early reading skills for continued success in 
school.
    The Committee recognizes that the No Child Left Behind Act 
and Head Start share the same goal of ensuring that all of our 
nation's students are able to succeed in school. Therefore the 
School Readiness Act updates the Head Start performance 
standards in accordance with the latest scientifically based 
research regarding the knowledge children need to have in order 
to be successful in school.
    The School Readiness Act also helps to ensure a seamless 
system of education for children of all ages by requiring 
states to consult with their chief state school officer, local 
educational agencies, and local Head Start agencies when 
developing school readiness standards and general plans for the 
coordinated delivery of early care and education services at 
both the state and local level.

         IMPROVING COORDINATION, COLLABORATION, AND INTEGRATION

    The Committee believes it is critically important to ensure 
continuity between Head Start and other early childhood 
programs that exist with increasing frequency in states and 
local communities in order to ensure that all children have the 
necessary knowledge to enter schoolready to learn. This is why 
the School Readiness Act improves local and state integration of early 
childhood education by requiring Head Start agencies and local 
providers of state pre-kindergarten to enter into ongoing partnerships 
to create an efficient and effective system of early childhood and 
school readiness services in each state; and authorizing State Early 
Learning Councils to advance the development of a coordinated early 
childhood services delivery system in each state.
    H.R. 2123 requires Head Start grantees to enter into a 
memorandum of understanding (MOU) with providers, such as LEAs, 
of state pre-kindergarten programs in their service area in 
order to better align their activities. Specifically, Head 
Start grantees, LEAs, and providers of state pre-kindergarten 
programs are required to coordinate: educational activities, 
curricula, and instruction aligned to state developed K-12 
academic standards; public information dissemination and access 
to programs for families; selection priorities for eligible 
children to be served by programs; service delivery areas; 
staff training, including opportunities for joint staff 
training on topics such as academic content standards and 
instructional methods; program technical assistance; provision 
of additional services to meet the child care needs of working 
parents; planning and parent education for smooth transitions 
to kindergarten; provision and use of facilities, 
transportation, and other program elements; and other elements 
mutually agreed to by the parties to such memorandum. If Head 
Start grantees fail to effectively implement an MOU with state-
funded pre-kindergarten programs in their service area, they 
will be deemed deficient and will have to compete for funding 
against other applicants.
    The School Readiness Act also attempts to improve the 
integration of Head Start with other early education services 
by authorizing funds for establishing or expanding State Early 
Learning Councils to advance the development of a coordinated 
delivery system for early childhood services within a state. 
These State Early Learning Councils will bring together Head 
Start, state pre-kindergarten programs, state child care 
programs and the schools that will one day serve the children 
enrolled in Head Start and other preschool programs. The goals 
of the Early Learning Councils include: increasing coordination 
and collaboration among state preschool, Head Start programs, 
child care programs, early childhood special education, and 
other early childhood programs; working with state agencies 
responsible for education, child care, and early intervention 
to provide leadership and assistance to local Head Start 
programs, school districts, and state and locally funded 
preschool and childcare programs to increase integration among 
early childhood programs; conducting periodic statewide needs 
assessments concerning early care and education programs for 
children; working to identify and address barriers to and 
opportunities for integration between entities carrying out 
federal and state child development, child care, and early 
childhood education programs; addressing coordination of early 
learning programs with health care, welfare, family literacy 
and services for homeless children; and supporting 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 programs to deliver services.
    The School Readiness Act builds upon current law in the 
area of coordination between Head Start programs and other 
entities. Specifically, the language requires collaboration, as 
appropriate, with providers of social and community services. 
Furthermore, the language clarifies that Head Start programs 
may support such partnerships with financial agreements, when 
applicable, for the provision of such services. The Committee 
emphasizes that when appropriate, Head Start programs should 
make every effort to develop partnerships that expand the level 
and quality of services available to children.
    An example of such partnerships is with public libraries, 
which already are involved in Head Start programs throughout 
the nation, providing services such as taking children to the 
library for story hour; promoting the use of library cards for 
families so that children can bring books home; developing 
lending libraries and using a mobile library van, especially in 
rural areas where libraries are otherwise not available. In 
some cases, such partnerships could be expanded through 
financial agreements with libraries to provide for services 
such as: ensuring a sufficient number of appropriate books are 
available on a regular basis at the library (or library vans) 
for use by Head Start students and their caregivers; to enable 
librarians to visit Head Start classrooms and provide services 
related to literacy and; where appropriate, expanding hours of 
libraries to ensure they are open during hours in which head 
start classes are in operation. The Committee is aware that 
certain partnerships may include local arrangements that 
provide financial support to Head Start or require a local Head 
Start program to compensate a partner for services rendered.

                   TRAINING AND TECHNICAL ASSISTANCE

    This bill reserves two percent of annual Head Start 
appropriations for the purposes of training and technical 
assistance (T/TA). These funds are intended to help agencies 
make continuous improvements in the quality of their programs 
and services. Regular, ongoing training and professional 
development for all Head Start staff is essential to the 
program's continued success and the T/TA system is integral to 
this process. In addition, the science associated with 
preparing children for a lifetime of learning continues to 
evolve and inform best practices, and must be integrated into 
the Head Start classroom. The Committee encourages the 
Secretary, through T/TA specialists, to work with local 
grantees to ensure that grantees prepare annually a 
comprehensive assessment of their program needs prior to the 
development of their T/TA budget. Grantees' T/TA activities 
should reflect the key areas of improvement identified by such 
assessment and be part of a comprehensive plan to improve 
program quality.
    Under the current system, the Secretary gives approximately 
half of these funds directly to grantees for the purposes of 
locally-determined T/TA needs and uses the other half for 
meeting T/TA needs prioritized by the Secretary. H.R. 2123 
formalizes the process of sending half of these funds to local 
grantees and provides 20 percent of the 2 percent set-aside to 
states willing to provide a state match for the purposes of 
establishing or supporting an Early Learning Council. If a 
state chooses not to accept their allotted funds, it is the 
Committee's intent that the funds be used by the Secretary for 
other T/TA priorities. The Committee provides the Secretary 
with the remaining 30 percent of the set-aside to operate a 
nation-wide T/TA system and to fund additional T/TA priorities 
that would enhance program quality. The Committee believes a 
main goal of the Head Start monitoring system should be to 
identify grantee weaknesses and to use this information to 
better target T/TA resources.
    The Committee encourages the Secretary to improve the 
integration of the monitoring system with the T/TA system in 
light of evidence that insufficient coordination between 
thesetwo systems currently takes place. The recent GAO report on 
financial management weaknesses in Head Start suggests that HHS is not 
adequately using the information collected through program monitoring 
for program improvements. The Committee recognizes that Head Start 
program monitoring should be improved to ensure that programs 
accurately document the demographics of their targeted service area in 
annual community assessments, and the populations identified in such 
assessments are reflected in the programs' enrollment.
    The School Readiness Act provides for the use of training 
and technical assistance funds to improve access to and quality 
of Head Start services for LEP populations. The Committee 
believes that this is particularly important in States that 
have experienced a growth in the limited-English-proficient 
population of the States of at least 100 percent between the 
years 1990 and 2000, as measured by the census.
    The School Readiness Act also restricts the use of training 
and technical assistance funds for travel expenditures 
associated with attending conferences when similar training and 
technical assistance is not available locally. It is the 
Committee's view that occasional travel may be necessary, but 
that excessive travel to Head Start conferences or events is 
generally not an appropriate or effective use of training and 
technical assistance funds. Whenever possible, Head Start 
programs should utilize local or regionally based training 
opportunities and should restrict travel to occasions when an 
identified training need cannot be met through local or 
regional resources. All training and technical assistance 
expenditures should be consistent with the training and 
technical assistance needs identified in a grantee's annual 
plan for training and technical assistance.
    The Committee believes that better information is needed on 
how funds for training and technical assistance are spent, and 
better accountability mechanisms for their use are needed. The 
Committee urges the Department of Health and Human Services to 
require better data reporting on the use of training and 
technical assistance dollars so that Congress has access to 
more complete information when assessing the amount of funds 
needed for this purpose. Better data reporting also will help 
the Department of Health and Human Services and Congress 
identify the most effective uses of these funds so that Head 
Start instructors and administrators are gaining the knowledge 
needed to improve program management and the delivery of 
services to children and their families.

                     FUNDS FOR QUALITY IMPROVEMENT

    The School Readiness Act provides greater support for 
improving program quality by significantly increasing the 
percentage of new dollars that must be spent on quality 
improvement. Research has demonstrated that the experiences of 
young children greatly affect all aspects of their development, 
including cognitive development. The level of commitment to 
quality improvement demonstrated in the School Readiness Act is 
critical if Head Start is to succeed in improving overall 
program quality and the school readiness of participating 
children.
    In an effort to ensure that Head Start programs are of the 
highest possible quality, and to ensure that funds are 
available to assist Head Start reach new goals for teacher 
quality, the School Readiness Act requires the Secretary of 
Health and Human Services to reserve 60 percent of all new Head 
Start funds for purposes of quality improvement. Not less than 
half of that 60 percent must be used to increase teacher 
salaries and assist programs in recruiting and retaining 
quality staff. When new monies are made available, these funds 
should be used to improve the salaries of classroom teachers 
and other staff who provide direct services to children before 
any salary increases are provided to management staff.
    Funds may also be spent on other functions that have been 
determined to improve program performance, such as providing 
ongoing professional development based on the latest early 
childhood research on curriculum and teaching methods, or 
improving communication with and outreach to families and 
external partners. The remaining 40 percent of new funds is to 
be used to expand Head Start services to more eligible 
children, particularly underserved populations.

                         TRANSPORTATION WAIVER

    Head Start regulations stipulate that Head Start, Early 
Head Start, and delegate agencies shall make ``reasonable 
efforts to coordinate transportation resources to control costs 
and to improve the quality and the availability of 
transportation services.'' The Committee encourages grantees, 
to the extent practicable, to facilitate the safe transport of 
children to Head Start programs and when possible, to leverage 
appropriate transportation services available in the community. 
However, the Committee does not intend for these regulations to 
be such an undue financial burden that programs limit 
transportation services or must dedicate substantial portions 
of their budgets to meet them.
    H.R. 2123 includes a waiver of Head Start transportation 
regulations to permit Head Start grantees to continue 
coordinated transportation arrangements with local school 
systems that allow Head Start children to be transported on 
school buses to and from their local Head Start center. The 
Committee is concerned that the Head Start transportation 
regulation could lead to other key services being reduced or 
result in some Head Start programs no longer having access to 
transportation services, often at no or reduced costs, by local 
school systems. The waiver authority provided in H.R. 2123 is 
intended to prevent a ``significant disruption'' in 
transportation services that may include the suspension of 
school bus services for Head Start grantees. It is the 
Committee's expectations that Head Start agencies will make 
every practicable effort to meet the transportation regulations 
but that HHS would grant waivers in situations where doing so 
is in the best interest of the children enrolled in the 
program.

                         FACILITIES MANAGEMENT

    The Committee understands that Head Start grantees may be 
experiencing difficulties in meeting the Department's grant 
period for facility-related funding in situations where 
grantees are governed by an alternate fiscal year. In cases 
where a grantee is awarded funds after the start of its fiscal 
year, grantees have been faced with a limited time period in 
which to obligate funds. Such grantees are working under an 
inadequate time period in order to meet all review and approval 
processes required at the local or state level. Under current 
rules, a grantee must submit a formal request to carry over 
funds, which can take several months to approve. The Committee 
recommends that the Department consider the needs of some 
grantees to obligate funds over areasonable period of time that 
may exceed the current rules, and provide additional time to grantees 
in certain situations. In addition, the Committee understands that some 
portable facilities being used by Head Start grantees are well over 30 
years old and are deteriorating to the point of no longer being 
suitable and the costs to repair these aging facilities often exceeds 
the cost of replacing them. The Committee encourages the Department to 
work closely with grantees to explore innovative solutions to this 
problem recognizing current budgetary constraints.
    The Committee also urges the Department to evaluate the 
location of Head Start facilities to ensure that services are 
located in the areas of most need and are conveniently located 
to the population served by Head Start. The Committee 
recognizes that over time low-income communities may shift 
locations, particularly within urban areas, and that in some 
cases Head Start programs have not moved along with the 
population. In an effort to reduce the chronic under-enrollment 
experienced by approximately seven percent of Head Start 
programs nationwide, the Committee encourages the Department to 
use its resources efficiently by re-locating programs to areas 
with the greatest need, and/or reducing funding for programs 
that continue to operate under-capacity, as appropriate.

                         FAITH-BASED INITIATIVE

    Approximately five percent of Head Start programs are 
operated by faith-based organizations. The Committee will 
propose an amendment to the School Readiness Act to provide 
consistent requirements for a religious organization with 
respect to the employment of individuals of a particular 
religion to perform work connected with activities for which 
they receive Head Start funding. This change will incorporate 
into Head Start the current exemption in hiring by religious 
organizations contained in Title VII of the Civil Rights Act. 
Currently under federal law, religious organizations may hire 
on a religious basis, and any federal legislation governing 
federal social service funds should continue to protect the 
rights of religious organizations to hire on a religious basis 
when they take part in federal social service efforts. However, 
the current Head Start act requires faith-based organizations 
to compromise their identity to compete for federal funds.
    There is a long history of making social service 
legislation more inclusive by extending the Title VII 
exemptions in various federal programs. During the Clinton 
Administration, four separate pieces of legislation were signed 
into law that explicitly allow religious organizations 
providing social services to make employment decisions based on 
religion, including the Welfare Reform Act of 1996 and the 
Community Services Block Grant Act of 1998. The addition of 
this language to the School Readiness Act will make Head Start 
consistent with the legislation governing other major social 
service programs.
    As President George W. Bush said on April 1, 2005, ``[p]art 
of making sure you can do your job is to make sure regulations 
don't stand in the way of doing your job. Congress needs to 
make sure that faith-based groups are not forced to give up 
their right to hire people of their own faith as a price for 
competing for federal money. I'm pleased that the House voted a 
month ago [on the Workforce Investment Act reauthorization] to 
protect the civil rights of faith-based groups.'' President 
Bush has called on his Administration and Congress to remove 
these barriers, and the Committee intends to allow the full 
House the opportunity to step up to that challenge when this 
bill receives floor consideration.

                   HEAD START RESEARCH AND EVALUATION

    There is an ongoing need for high quality research about 
the effectiveness of Head Start. During the last 
reauthorization, the Congress commissioned a national study on 
the impact of Head Start services. This study is the first of 
its kind comparing the outcomes of children in Head Start with 
similar children who do not participate in this program. The 
Family and Child Experiences Survey (known as FACES) provides 
valuable information on program performance over time, yet it 
is not designed to assess the overall quality or success of 
Head Start relative to other preschool programs serving a 
similar population.
    First year findings from the Impact study were released in 
June 2005. Generally consistent with previously-released data 
from the FACES study, findings from the new research suggest 
that children participating in Head Start make small to 
moderate gains in some aspects of school readiness, but not in 
others. Preliminary findings relating to pre-reading, 
vocabulary, access to health care, and some parent skills 
showed positive gains from Head Start. However, Head Start 
children did not demonstrate significant improvement in other 
key constructs such as oral comprehension, phonological 
awareness, and pre-mathematics. Additional findings from the 
Impact study are expected by 2007, and should provide a more 
complete picture of the strengths and weaknesses of the current 
program, and identify areas in need of overall improvement. In 
particular, the Committee awaits additional information that 
might explain why children with disabilities showed no 
measurable improvement after participating in Head Start. In 
addition to current research, with input from the Head Start 
community, research needs should be continually assessed so 
that Congress can identify ways in which Head Start can be 
strengthened to best meet the needs of the children it serves.
    The Committee supports a one-time directive to the Board of 
Children, Youth, and Families of the National Research Council 
to establish an independent panel of experts to review the 
current body of early childhood research. This review is needed 
to determine age and developmentally appropriate academic 
standards and measurable benchmarks for achievement, the types 
of services (including classroom instruction) necessary to 
ensure school readiness, and appropriate methods to assess 
child progress in preparing for school. This study also is 
needed to ensure a well-informed approach to developing school 
readiness standards and will assist states in the process of 
developing and/or implementing such standards.

                            UNDER-ENROLLMENT

    The Committee believes that while small fluctuations in 
enrollment may occur, it is important that grantees meet the 
funded enrollment levels agreed upon in their annual budget 
renewals. According to the 2003 GAO report, Head Start: Better 
Data and Processes Needed to Monitor Underenrollment, the 
Administration on Children and Families (ACF) identified seven 
percent of Head Start grantees as having an unacceptable level 
of unused slots during the 2001-2002 program year. GAO reported 
that under-enrollment often resulted from a combination of 
factors, including increased parental demand for full-day 
services, difficulty in acquiringadequate facilitates, and an 
increase in parents seeking services from other early care and 
education programs. The report also concluded that the degree to which 
Head Start programs are under-enrolled is unknown because of flaws in 
ACF's procedures to collect such information, including regional 
differences in definitions of unacceptable under-enrollment. GAO 
recommended ACF develop a more systematic process for assessing program 
enrollment and the Committee understands ACF has made important 
changes.
    The Committee urges the Secretary to utilize clear and 
consistent guidelines when calculating and defining under-
enrollment and for recapturing and redistributing unused funded 
slots. To facilitate this goal, the School Readiness Act 
requires more frequent reporting by grantees on their 
enrollment levels and a clear process for defining chronic 
under-enrollment. The bill also creates a process for the 
Secretary to provide technical assistance to programs with 
under-enrollment as well as a process for reducing and 
redistributing grants in cases of chronic under-enrollment. The 
Committee does not intend this provision to create a 
disincentive for programs to serve homeless children or other 
underserved eligible children and families who are likely to be 
transitory and mobile and encourages the Secretary to design a 
process that will foster efficient use of Head Start funds 
without lessening agencies' ability to reach the hardest to 
serve.

                   IMPORTANCE OF PARENTAL INVOLVEMENT

    Because parents are a child's first teachers, parental 
involvement is a critical factor in determining a child's 
educational success. For many children, particularly low-income 
children who are eligible for Head Start, having involved 
parents who are engaged in their education is critical to their 
future success.
    This Committee recognizes the valuable role that parents, 
grandparents, and kinship caregivers play in the success of the 
Head Start program. Parents (and their children) also benefit 
from the development of leadership and communication skills and 
the attainment of self-confidence that often result from their 
participation in the Head Start program. Most importantly, Head 
Start programs help parents learn strategies to maintain 
parental involvement in their children's academic progression 
as the child transitions from Head Start to elementary school. 
These provisions are further strengthened by a new provision to 
ensure that Head Start grantees actively encourage fathers, 
grandparents, and other kinship providers to take a strong 
interest in their children's lives and education. The School 
Readiness Act ensures that limited English proficient parents 
benefit from the broad array of Head Start family services and 
parent involvement opportunities by requiring that all 
information be provided to parents in their native language, to 
the extent practicable.
    H.R. 2123 maintains the vital role of parents in ensuring 
the success of Head Start. The reforms contained in the School 
Readiness Act will preserve and enhance this essential role in 
Head Start. Under H.R. 2123, any grantee that denies parents 
their full roles and responsibilities related to program 
governance must be deemed deficient by the Secretary and 
required to compete for their next Head Start grant. 
Additionally, in order to receive a priority designation, the 
School Readiness Act requires grantees demonstrate strong 
parental involvement, the availability of activities to develop 
parent skills that support their children's educational 
development, and the ability of parents to participate in 
decisions relating to the education of their children.
    The School Readiness Act maintains policy councils as part 
of the local Head Start governance structure, which must 
involve parents who are selected for participation by parents. 
The Committee recognizes the vital role of policy councils in 
local Head Start programs and reaffirms the meaningful 
contribution of these councils to local decisions regarding 
program operations. The Committee encourages Head Start 
grantees to train personnel in the development and 
implementation of strategies to work effectively with parents 
and policy councils.

                            FAMILY LITERACY

    Efforts to improve family literacy also are an important 
component of Head Start. Family literacy activities are 
critical to ensure the cohesive delivery of services to 
families and to enhance parental involvement in their child's 
education, which is significantly challenged if parents cannot 
read. In keeping with the goal of improving school readiness 
and valuing the role of parents in their children's education, 
the Committee bill renews its support for training and 
technical assistance in the area of family literacy services. 
Since the 1998 reauthorization of Head Start, grantees have 
received exemplary service from the Head Start Family Literacy 
Project. As a result, more than 8,500 Head Start staff has 
received training in providing comprehensive family literacy 
services and nearly 50,000 children's books have been placed in 
Head Start classrooms. In addition, nearly 2,000 Head Start 
parent-mentors have received training to better prepare them to 
support their child's language and literacy development and to 
encourage other parents to do the same. The Committee commends 
the work of the Head Start Bureau and the National Center for 
Family Literacy in its conduct of the Head Start Family 
Literacy Project. Not only have program grantees found the 
project's training and technical assistance useful, but 
evaluations have proven the merit of this important work. The 
Committee encourages the Secretary to ensure the continuity of 
these important services so that Head Start children will be 
better prepared for school and Head Start parents will be 
better able to fulfill their role as their child's first and 
best teacher.

                            EARLY HEAD START

    Neuroscience suggests that the ages of birth to three is 
the most critical period for a child's brain growth. It is 
during this period that children acquire the ability to think, 
speak, learn, and reason. According to many brain researchers, 
the development between the prenatal period and the first years 
of life is more extensive than previously thought and 
susceptible to long-lasting early environmental influences 
(Moughty, 2003). Disparities in children's cognitive and social 
abilities become evident well before they enter Head Start or 
pre-kindergarten programs at age four. Early Head Start 
minimizes these disparities and helps to establish the 
foundation needed for children to enter school ready to learn. 
The ground-breaking report Starting Points: Meeting the Needs 
of Our Youngest Children cites, ``Babies raised by caring, 
attentive adults in safe, predictable environments are better 
learners than those raised with less attention in less secure 
settings'' (Carnegie Corporation of New York, 1994).
    The Committee is encouraged by the positive effects of 
Early Head Start on child development and parent self-
sufficiency, as documented in the evaluation mandated by 
Congress and completed in 2002. The strong and careful 
implementation effort from Early Head Start's inception, 
supported by a national and regional training and technical 
assistance system with expertise in infant and toddler 
development, contributed to these positive outcomes. Given the 
continued demands on the program, the dearth of trainers 
available with expertise in infant and toddler development, and 
the additional professional development requirements, a strong 
training and technical assistance effort should be sustained 
over time and Early Head Start program staff should seek 
effective professional development opportunities that focus 
specifically on the needs of infants and toddlers.
    Further, it is critical that training for Early Head Start 
programs continues to focus on the unique social and emotional 
development of infants and toddlers. Research indicates that 
early intervention programs that enhance social and emotional 
development are just as important as the components that 
enhance linguistic and cognitive competence in helping young 
children prepare for school. When the social and emotional 
development of very young children is ignored, it can have 
devastating effects on children's overall functioning, their 
ability to form and maintain relationships, their ability to 
learn, and their future success in school and life.
    Currently, 10 percent of Head Start funds are allocated 
specifically for funding the Early Head Start program. Since 
infants and toddlers have needs different than three and four 
year olds, operating Early Head Start programs requires 
different environments and staff trained with the needed 
expertise in infant and toddler development. Seven hundred 
Early Head Start programs serve over 71,000 low-income families 
with infants and toddlers.
    The Committee agrees that Early Head Start services are 
critically important. H.R. 2123 establishes the current 10 
percent set-aside as a floor and permits the Secretary of 
Health and Human Services to expand the allocation at his 
discretion. Even if the Secretary does not exercise his 
discretion, as levels of funding appropriated for Head Start 
grow over time, so will the overall amount of funds available 
for Early Head Start. The School Readiness Act, for the first 
time, directs the Department of Health and Human Services to 
give priority to Early Head Start and other underserved 
populations of Head Start-eligible children when allocating 
Head Start expansion funds.
    While waiting lists continue for Early Head Start services, 
in many communities, there are an increasing number of grantees 
that are not achieving and maintaining full Head Start 
enrollment for preschool age children. According to a December 
2003 report by the Government Accountability Office, as many as 
50 percent of all Head Start grantees could be under-enrolled. 
Under the School Readiness Act, under-enrolled Head Start 
grantees could transfer unused slots to Early Head Start 
programs that could accommodate additional infants and toddlers 
who are eligible and not being served by Early Head Start 
programs.
    The Committee adopted an amendment that would permit Early 
Head Start grantees to serve additional infants and toddlers 
with funding for preschool slots that remain unfilled in 
certain circumstances where the needs of preschoolers are 
already met in a community. In the event a preschool grantee is 
under-enrolled, the Secretary could permit services to infants 
and toddlers to fill the gap. And, in the event of recapture of 
preschool funds as a result of chronic under-enrollment of 
preschoolers, funds can be reallocated to other Head Start 
grantees or Early Head Start grantees in the state or even new 
Early Head Start services in the state before being reallocated 
to grantees in other states. Because services for infants and 
toddlers are not identical to services for preschool age 
children, the Committee expects that the number of infants and 
toddlers served would not necessarily match the number of 
preschool age children served. Head Start funds used to serve 
infants and toddlers under this amendment would not be counted 
towards the statutory set-aside for Early Head Start.
    In order to maintain the success of the Early Head Start 
program, the Committee intends that preschool Head Start 
programs only be permitted to serve infants and toddlers under 
this amendment as long as the program: (1) shows evidence of 
community need for such services; (2) meets the same 
eligibility criteria as Early Head Start programs; (3) 
addresses the needs of pregnant women, infants and toddlers in 
the same matter as Early Head Start and in accordance with 
Sections 645A(b) [Scope and Design of EHS Programs] and 641A 
[Head Start Performance Standards]; and (4) participates in the 
same technical assistance activities as newly funded Early Head 
Start grantees. The Committee intends that the technical 
assistance activities for these programs be paid from funds 
specified in Section 640(2)(C).

                          AT-RISK POPULATIONS

    While all children served by Head Start are economically 
and academically in need, there are some subgroups within the 
eligible Head Start population that are at a heightened risk, 
and often underserved. The School Readiness Act includes 
several provisions to improve access to Head Start services by 
children who may be especially at-risk, including children with 
limited English proficiency, children of migrant and seasonal 
farm workers, and Indians and Alaskan natives.
    The Head Start Act requires that 13 percent of Head Start 
funding be set aside for five priorities that include funding 
for especially at-risk or underserved populations. The 
Committee is concerned that funding for these priorities has 
been reduced as a result of funds being transferred from the 
set-aside established by Congress to other purposes. The 
Committee is aware that for several years the Secretary has 
used his authority to transfer nearly three percent of the 13 
percent set-aside back to traditional Head Start programs in 
order to supplement allotments to States. Further, the 
Committee understands that this activity has effectively 
reduced the 13 percent set-aside to approximately 10 percent. 
The Committee seeks greater transparency regarding the future 
expenditure of funds under the 13 percent set-aside and directs 
the Secretary to report annually to Congress on how these funds 
are spent.

                  LIMITED ENGLISH PROFICIENT CHILDREN

    The Committee recognizes that limited English proficient 
(LEP) children account for a large and growing share of the 
children in Head Start. In fact, 28 percent of all Head Start 
children are limited English proficient. The Committee 
recognizes that LEP children have unique needs that must be 
addressed in order to effectively prepare these children for 
the first day of school. The School Readiness Act improves Head 
Start for LEP children and theirfamilies in several key areas, 
including the academic skills necessary for school readiness, program 
training and technical assistance, parent involvement, teacher quality, 
and accountability. The School Readiness Act requires LEP children to 
make progress towards English language acquisition and other school 
readiness indicators as outlined in the education performance 
standards. The Committee intends for LEP children to receive high-
quality academic services aimed at supporting their school readiness, 
including through the use of appropriate instructional and home 
language support for second language learning.
    Additionally, H.R. 2123 requires the Secretary to study the 
status of services to LEP children and their families in Head 
Start so that such children and families have meaningful 
opportunities to participate in Head Start programs. It is the 
intent of this Committee that the study provide demographic 
information on LEP children ages birth to five, including the 
number of such children receiving Head Start services and the 
geographic distribution of such children; provide information 
on the extent to which Head Start programs set policies to 
identify and serve LEP children through linguistically 
appropriate approaches; provide information on the extent to 
which Head Start programs adopt linguistically appropriate 
language instruction educational programs, including 
information on the rate of progress made by LEP children toward 
meeting educational standards described in section 
641A(a)(1)(B)(ii) while enrolled in Head Start, and the 
correlation between such progress and the type of language 
instruction and educational program provided to LEP children; 
information on the extent to which LEP children are provided 
trained personnel (including bilingual staff to serve LEP 
children and families); provide information on the use of 
training and technical assistance and quality improvement funds 
to improve the quality of Head Start services provided to LEP 
children and their families; and, provide information on 
procedures used in Head Start for the assessment of language 
needs and the transition of LEP children to kindergarten, 
including the extent to which programs meet the requirements of 
section 642A for LEP children.

                           INDIAN HEAD START

    Over the last 40 years, the Indian Head Start program has 
played a major role in the education of Indian children and in 
the well-being of many tribal communities. Of the approximately 
575 federally recognized Tribes, 28 percent participate in Head 
Start/Early Head Start Programs, with a funded enrollment of 
23,374 children. These programs employ approximately 6,449 
individuals, of whom 3,263 are either former or current Head 
Start/Early Head Start parents. There are another 35,395 
volunteers, 22,095 of whom are parents. Under the No Child Left 
Behind Act, the federal government recognizes the role and 
responsibilities of Indian tribal governments for the education 
of Indian people. H.R. 2123 makes the education of eligible 
children under the Head Start Act consistent with other federal 
education laws.
    The Committee recognizes the significant hardships of many 
eligible children living on Indian reservations, and this 
legislation seeks to address the unique educational and 
culturally related academic needs of Native American children. 
As such, H.R. 2123 requires the inclusion of representatives of 
Indian Head Start programs in the state collaboration grant 
program and maintains a separate Indian Head Start branch. H.R. 
2123 also includes a requirement that the Secretary consult 
annually with tribal governments in each affected Head Start 
region for the purpose of better meeting the needs of American 
Indian and Alaska Native children and families, and the 
Committee understands that in many cases the Secretary has 
already made arrangements for such consultations. Finally, the 
Committee encourages the Secretary to consult with American 
Indian and Alaska Native experts in early childhood 
development, linguists, and representatives from Indian Head 
Start programs on the review and promulgation of any revised 
program standards and measures (including standards and 
measures for language acquisition and school readiness) 
developed by the Secretary.
    While the Indian Head Start program serves over 23,000 
children each year, there still exists a need to expand 
services to serve additional eligible children. The Committee 
is concerned about a lack of quantifiable data on the number of 
children eligible for Indian Head Start services. For this 
reason, the Committee has directed the Secretary to establish a 
system by which the need for services by eligible children can 
be determined accurately. Until such a system is available, the 
Committee has required that not less than 3.5 percent of the 
annual Head Start appropriation be made available for the 
Indian Head Start program. The Committee is aware that 
providing minimum funding requirements for both Migrant and 
Seasonal and Indian Head Start may require a reduction in 
future funds transferred by the Secretary to support 
traditional Head Start grants. However, funding increases for 
both the Indian and Migrant and Seasonal Head Start programs 
are critical to enable these populations to reach children 
currently on waiting lists and to establish new programs in 
areas that lack services to these populations of children.
    H.R. 2123 allows for training and technical assistance 
funds to support a regional or State system of early childhood 
education training and technical assistance. The Committee 
encourages the Secretary to include in its regional system, 
assistance for the Migrant Seasonal Head Start program and the 
American Indian/Alaska Native programs. The Committee 
encourages the Secretary to provide the training and technical 
assistance for these two programs through national awards by 
contractors with knowledge of, and experience in, working with 
the populations served by these programs.
    The Committee encourages the Secretary, in awarding 
collaboration grants to the States, to award funds for 
designation of a Migrant and Seasonal Farm Worker Collaboration 
Project Director and an Indian Head Start Collaboration Project 
Director. Such positions should be assigned the same 
responsibilities assigned to the State Directors of Head Start 
Collaboration. While it is important that the State Directors 
of Head Start Collaboration engage with the migrant and Indian 
populations in their respective States, these special Project 
Directors will ensure that the specific issues faced by 
children and families served by Migrant and Seasonal Head Start 
and Indian Head Start programs are addressed. These positions 
will also serve as a conduit for knowledge and understanding of 
these special populations served by the Head Start and Early 
Head Start programs.
    The Committee notes with some concern that there exists a 
paucity of research focusing on American Indian and Alaska 
Native Head Start programs, and therefore scant information is 
available on these programs. The Committee urges the Secretary 
to undertake a study or set of studies designed to focus on 
this population, with a focus on issues such as curriculum 
development, availability and need for services, appropriate 
research methodologies and measures for these populations, and 
best practices for teaching and educating American Indianand 
Alaska Native Head Start students. Furthermore, the Committee 
underscores the importance of providing tribes and tribal organizations 
the opportunity to contribute to and collaborate on this research, with 
tribes retaining as much local control over this process as is 
practicable.

                    MIGRANT AND SEASONAL HEAD START

    The children of migrant and seasonal workers are one of the 
most vulnerable populations of Head Start eligible children. 
Migrant and Seasonal Head Start (MSHS) was founded in 1969 as a 
direct response to the unique seasonal needs of migrant farm 
worker families--to ensure that these families and their 
children can enjoy the same advantages made available to other 
low income children through Head Start as they move across the 
country with their families to pursue seasonal work in 
agriculture.
    Migrant and Seasonal Head Start programs must address the 
unique challenges and opportunities faced by migrant farm 
worker families and their children. Because of the nature of 
farm labor, children need full day services--often from 6 a.m. 
to 6 p.m. and often 6 days a week. In many states, MSHS 
programs operate from May to October, rather than the typical 
school year schedule, and of course, many of the families and 
children are on the move for much of the year and need services 
at different times, in different states and locations. In 
addition, the primary language spoken by most farm workers is 
Spanish, and programs need to have bilingual staff available in 
order to be able to communicate.
    Currently operating in 39 states, MSHS programs strive to 
provide coordinated services to mobile families as they migrate 
from state to state. Programs work to ensure that academic and 
medical records are transferred with the families and children 
and when possible that children are placed in a MSHS Program in 
the next state before they move on. MSHS Programs partner with 
other social and health service organizations and with agencies 
throughout the country that serve children and families working 
in seasonal agriculture.
    The School Readiness Act contains several provisions that 
will assist migrant and seasonal Head Start in better serving 
eligible children. It temporarily reserves 5 percent of the 
total annual appropriation for migrant and seasonal Head Start 
programs and requires the Department of Health and Human 
Services, in conjunction with the U.S. Department of Education, 
to develop a data system that will more accurately determine 
the number of eligible migrant and seasonal children being 
served. Once such a data system is up and running it will be 
used by the Secretary to make funding decisions to ensure 
comparable funding to other eligible children. H.R. 2123 also 
allows migrant and seasonal programs to operate Early Head 
Start, clarifies that migrant and seasonal students should be 
making progress toward the acquisition of the English language, 
while making meaningful progress in attaining other academic 
skills, and makes it clear that migrant and seasonal Head Start 
programs should be included in the planning and coordination of 
state systems of training and technical assistance.
    The School Readiness Act also clarifies the unique nature 
of Migrant and Seasonal Head Start and ensures the Federal 
Programs Branch for Migrant and Seasonal Head Start is 
preserved. This is critical since the majority of children 
served by MSHS programs are migrants who reside in more than 
one state through the course of a year and therefore could not 
be served through a state formula. H.R. 2123 recognizes the 
importance of having a national migrant and seasonal head start 
collaboration director in place and given the same standing as 
state collaboration directors. It is through the services and 
resources provided by the Migrant and Seasonal Head Start 
Collaboration Director that states have knowledge and 
understanding of the MSHS programs and understand how they can 
work to ensure that farm worker families have access to 
critical resources in the state. The position provides critical 
services to the MSHS programs and facilitates the development 
of critical partnerships between service providers.
    H.R. 2123 also recognizes that the national training and 
technical assistance funds for MSHS be maintained. These funds 
enable MSHS Program Directors and staff to come together for 
trainings specifically designed to meet the unique needs and 
challenges faced in serving migrant and seasonal farm worker 
families. The mobility of families served by MSHS and the 
specific linguistic and culturally relevant needs of these 
families are among the factors that must be considered when 
designing training models.

                    ENROLLMENT OF HOMELESS CHILDREN

    Homeless children also face substantial barriers when it 
comes to gaining and maintaining access to Head Start services. 
The Department of Education's fiscal year 2000 Report to 
Congress on the Education of Homeless Children and Youth 
identified Head Start as a program presenting significant 
barriers to access for homeless children. The School Readiness 
Act attempts to address this issue by increasing efforts to 
conduct outreach to homeless families, and leveraging the 
experience of the homeless liaisons in public schools that are 
required under the McKinney-Vento Homeless Education 
Improvement Act. This coordination assists in identifying 
barriers to serving homeless children and facilitates a smooth 
transition when homeless children move from Head Start to 
elementary schools. The School Readiness Act also addresses the 
issue of required paperwork, which is one of the biggest 
barriers to enrolling homeless children in Head Start. Homeless 
families often have difficulty producing the necessary 
documents, such as birth certificates and immunization records. 
The School Readiness Act models provisions in the No Child Left 
Behind Act, that allow eligible homeless students to enroll in 
Head Start while those documents are being obtained. This will 
allow needy children to begin accessing critical Head Start 
services at the earliest possible opportunity.
    Consistent with HHS' June 1992 Memorandum ACF-IM-92-12, the 
Committee directs the Secretary to create regulations that 
prioritize homeless children for enrollment by making available 
a percentage of slots that corresponds with the percentage of 
homeless pre-school age children in the service area (as 
determined through a community needs assessment). This new 
regulation should be modeled on current HHS regulations that 
make available slots for children with special needs. The 
Secretary is directed to create other appropriate regulations 
that remove barriers and facilitate enrollment, including 
requiring that homeless families receive priority on waiting 
lists and that homelessness be expressly incorporated as a 
priority consideration in determining which children are most 
in need of Head Start services. To the extent feasible, 
homeless children should maintain their placements until the 
end of the year, even if they move out of the program's service 
area. Family transportation needs should be addressed in Head 
Start planning efforts.
    Concerns about the regular attendance of homeless children 
may discourage Head Start programs from prioritizing homeless 
children for enrollment and reserving slots for their benefit. 
Therefore, regulations should clarify that provisions designed 
to reduce under enrollment are not meant to prohibit or 
discourage Head Start grantees from prioritizing homeless 
children for enrollment or reserving slots for their benefit. 
HHS should work to insure that plans to prioritize homeless 
students do not interfere with the imperative to maximize 
overall student enrollment and attendance.
    To reduce barriers posed by enrollment documentation 
requirements, regulations should allow a 45-day grace period 
for families to produce required material (e.g. proof of age, 
proof of residency) or evidence that they are in the process of 
obtaining such documents from a relevant agency. Regulations 
should allow homeless families to produce alternative proofs of 
residency, as they may not possess items such as lease 
agreements and utility bills. To facilitate effective 
transitions, grantees should immediately request records from 
previous service providers and immediately transfer the records 
of former program participants. Such regulations are consistent 
with the McKinney-Vento Act and current Head Start regulations 
that allow children to enroll without medical records while 
grantees and parents assess children's medical needs.

                      PREVENTING ABUSE AND NEGLECT

    Through the comprehensive services provided to young 
children and their families, Head Start and Early Head Start 
programs can play an important role in preventing the abuse and 
neglect of children and in protecting children and ameliorating 
the affects of maltreatment they may have already suffered. 
Ensuring that children are ready to learn means ensuring that 
children are safe at home and receive the kind of nurturing and 
care that all children deserve.
    Research shows that abused and neglected children are more 
likely to suffer poor prospects for success in school; sexually 
abused and neglected children are at a higher risk for academic 
failure; that maltreatment appears to be an additional factor 
over and above poverty that affects the academic achievement of 
children; and a higher frequency of academic difficulties and 
school behavior problems is reported among abused children.
    The Committee recognizes that abused and neglected children 
and children at-risk of maltreatment are in need of preventive 
services and may benefit from Head Start and Early Head Start 
services. The School Readiness Act builds upon provisions 
already existing in the Head Start statute that provide for 1) 
home-based services to Head Start children and their families, 
2) staff training in working with children who experience 
violence, 3) training to parents in parenting skills and basic 
child development, and 4) collaboration with other agencies and 
organizations involved in child and family services.

                               CONCLUSION

    Head Start is an important program that aims to eliminate 
the school readiness gap between low-income children and their 
economically more advantaged peers. Recent findings from the 
Head Start Impact study suggest that after one year in Head 
Start, participating children make significant improvements in 
some domains of early learning and healthy development. 
However, additional work is needed to close the readiness gap 
so that no child starts school behind. In addition, a March 
2005 report from the independent Government Accountability 
Office (GAO) warned that the Department of Health and Human 
Services is failing to adequately identify and swiftly resolve 
financial management problems that often occur when a lack of 
strong financial controls are implemented at the local level. 
Moreover, states are increasingly focused on preparing young 
children for school success, and over 40 states now offer pre-
kindergarten programs that often compete for Head Start 
children and operate under eligibility guidelines and program 
standards that differ from Head Start. In an effort to maximize 
the number of children served, eliminate potential gaps and 
duplication in service, and prepare all children to attain a 
comparable foundation for kindergarten, more must be done to 
coordinate and integrate Head Start and state pre-kindergarten 
programs.
    To close the readiness gap, the School Readiness Act will 
strengthen Head Start's academic standards by emphasizing 
cognitive development and the results of scientifically-based 
research in topics critical to children's school readiness 
(including language, pre-reading, pre-mathematics, and English 
language acquisition). By strengthening the academic components 
of Head Start and maintaining comprehensive services, the 
legislation improves upon the good work that Head Start is 
doing in many centers across the country. The bill also will 
improve teacher quality by requiring a greater number of Head 
Start teachers to be adequately trained and educated in early 
childhood development, particularly in teaching the fundamental 
skills of language, pre-reading, and pre-mathematics.
    To address weaknesses in the Head Start financial control 
system, the School Readiness Act requires stronger safeguards 
against financial mismanagement and abuse. The legislation 
requires Head Start operators to meet a range of financial 
disclosure requirements as a condition of receiving and keeping 
their federal Head Start grants. Grantees will have to be 
overseen by a local governance board that provides direction 
and actively oversees all program activities, and will be 
required to document that they have strong fiscal controls in 
place, including the employment of well-qualified financial 
personnel. Grantees will also have to maintain administrative 
costs that do not exceed 15 percent of total program costs.
    As recommend by the Government Accountability Office, the 
School Readiness Act requires the Secretary to terminate poorly 
performing grantees or require them to compete in an open grant 
competition. Local Head Start operators identified as having 
one deficiency or more during the five-year grant cycle will be 
required to compete against other potential grantees when their 
grants come up for renewal. The U.S. Secretary of Health & 
Human Services, who oversees the Head Start program, will 
retain the right to terminate a Head Start grant at any time 
during the five-year grant cycle. Grantees that meet all 
requirements will be designated as ``priority'' grantees.

                               References

    Bailey, Don. ``Pre-K at Issue,'' ED, Volume 5, Number 1. Frank 
Porter Graham Child Development Center, University of North Carolina at 
Chapel Hill. Chapel Hill, N.C. 1999.
    National Research Council. Eager to Learn. Washington, D.C. 2000.
    Moughty, Sarah. The Zero-to-Three Debate: A Cautionary Look at 
Turning Science Into Policy. Online Article. 2003. http://www.pbs.org/
wgbh/pages/frontline/shows/teenbrain/science/zero.html.
    Rouse, Cecilia, Jeanne Brooks-Gunn, and Sarah McLanahan. 
Introducing the Issue. School Readiness: Closing Racial and Ethnic 
Gaps. The Future of Children. Princeton University and the Brookings 
Institution. Volume 15, Number 1, Spring 2005.
    Starting Points: Meeting the Needs of Our Youngest Children. 
Carnegie Corporation of New York. New York. 1994.

                      Section-by-Section Analysis


Section 1. Short title

    Cites the short title as the ``School Readiness Act of 
2005.''

Section 2. Purpose

    Amends Section 636 of the Head Start Act (42 U.S.C. 9831). 
Sets forth the purpose this bill.

Section 3. Definitions

    Amends Section 637 of the Head Start Act (42 U.S.C. 9832). 
Modifies and adds to the definitions under this act, including 
a definition of ``Limited English Proficient''.

Section 4. Financial assistance for Head Start programs

    Amends Section 638 of the Head Start Act (42 U.S.C. 9833). 
Adds language to specify that the Secretary shall provide 
financial assistance to eligible agencies for a period of 5 
years.

Section 5. Authorization

    Amends Section 639 of the Head Start Act (42 U.S.C. 9834). 
Authorizes funds to carry out this act, including specific 
programs and administrative expenses.

Section 6. Allotment of funds; limitations on assistance

    Amends Section 640 of the Head Start Act (42 U.S.C. 9835). 
Designates the purposes and percentages for funding. Adds 
further requirements for salary increases for Head Start staff 
and promotes the regular attendance and stability of Head Start 
children, especially highly mobile children.

Section 7. Designation of agencies

    Amends Section 641 of the Head Start Act (42 U.S.C. 9836). 
Adds language naming faith-based organizations as eligible 
grantees. Declares that grantees must establish goals for 
enhancing the school readiness of children participating in 
that program. Adds details and further requirements for the 
plans submitted by grantees.

Section 8. Quality standards; monitoring of Head Start agencies and 
        programs

    Amends Section 641A of the Head Start Act (42 U.S.C. 
9836a). Changes the quality standards, adds specific dates of 
reference, and adds language requiring the review to assess 
grantees compliance with income eligibility requirements and to 
seek information regarding general collaboration efforts, and 
efforts to address the needs the children of limited English 
proficient and migrant and seasonal farm-working families. 
Includes language to promote child health services and physical 
development as well as language to permit programs continually 
operating at less than full enrollment to use a portion of the 
base grant to serve persons described in section 645A.

Section 9. Powers and functions of Head Start agencies

    Amends Section 642 of the Head Start Act (42 U.S.C. 9837). 
Adds language requiring the grantees to establish a program 
with standards referenced in Section 641A, demonstrate capacity 
to serve children with scientifically-based curricula, conduct 
outreach to various organizations to generate support and 
coordinate the recruitment of children, including outreach and 
services to parents of limited English proficient children.

Section 10. Local and State integration of early childhood education

    Section 10 inserts Section 642B after section 642A, and 
amends the heading to read as follows: ``Sec. 642B. Local and 
State Integration of Early Childhood Education.''. Adds 
Language to address the Local and Statewide integration of Head 
Start with local educational agencies and inserts language 
under Local Integration to include a memorandum of 
understanding between Head Start programs and local educational 
agencies. Also includes language to help increase the 
participation of children underrepresented in State early 
childhood education and childhood 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.).

Section 11. Head Start alignment with K-12 education

    Amends the heading for Section 642A of the Head Start Act 
(42 U.S.C. 9837a). Changes the heading to read as follows: 
``Sec. 642A. Head Start Alignment with K-12 Education.''. Adds 
Language to include McKinney-Vento liaisons among the school 
staff to be communicated.

Section 12. Administrative requirements and standards

    Amends section 644 of the Head Start Act (42 U.S.C. 9839 
(f)(2)). Changes language to require that each Head Start 
agency make public, an annual report at least once each fiscal 
year disclosing budgetary, enrollment, and performance 
information and any other information describing the activities 
of the agency.

Section 13. Eligibility

    Amends Section 645(a) of the Head Start Act (42 U.S.C. 
9840). Adds language regarding homeless children as meeting the 
low-income criteria to make them eligible for the Head Start 
Program.

Section 14. Early Head Start programs

    Amends Section 645A of the Head Start Act (42 U.S.C. 
9640a). Adds language to ensure a systematic procedure is in 
place to help in the transition between Early Head Start and 
Head Start. Adds language to include migrant and seasonal Head 
Start programs, community- and faith-based organizations as 
eligible service providers for Early Head Start.

Section 15. Parental consent requirement for nonemergency intrusive 
        physical examinations

    Amends Section 645A of the Head Start Act (42 U.S.C. 9831 
et seq.) to insert after section 645A the following: ``Sec. 
645B. Parental Consent Requirement for Non-Emergency Intrusive 
Physical Examinations.''. Adds language specifying the 
definition, requirements, and rules of construction regarding a 
nonemergency intrusive physical examination.

Section 16. Right to appeal

    Amends Section 646(a)(3) of the Head Start Act (42 U.S.C. 
9841(a)(3)). Changes financial assistance language in regard to 
the appeal process denying an application for a noncompeting 
continuation award based on previous failure to comply with 
terms applicable to financial assistance and specifies no funds 
be made available to reimburse any Head Start grantee for legal 
fees or costs while pursuing an appeal.

Section 17. Audits

    Amends section 647 of the Head Start Act (42 U.S.C. 9842). 
Adds language requiring each Head Start program to submit to 
the Secretary an independent financial audit of the Head Start 
program carried out by a certified public accountant who has 
been chosen througha competitive process. Specifies that no 
accountant may perform audits for more than 2 consecutive years.

Section 18. Technical assistance and training

    Amends Section 648 of the Head Start Act (42 U.S.C. 9843). 
Adds language allowing, depending on a State's financial 
contribution, a state-based system that delivers training and 
technical assistance to both Head Start Agencies (including 
migrant and seasonal Head Start programs and limited English 
proficient children and their families), and other providers of 
early childhood services in the state.

Section 19. Staff qualifications and development

    Amends Section 648A of the Head Start Act (42 U.S.C. 9843a. 
Adds language requiring Head Start teachers to do the 
following: all new hires must have at least an Associate degree 
or be enrolled in a program working towards that degree within 
three years of enactment, 50 percent nationwide to have a 
Baccalaureate degree by 2011, and those that have received 
financial assistance under Section 648A to teach in a Head 
Start Center for an amount of time equal to the time period in 
which they received financial assistance. Also requires all 
Head Start agencies to create professional development plans 
for all full-time employees who provide direct services to 
children.

Section 20. Research, demonstrations, and evaluation

    Amends Section 649 of the Head Start Act (42 U.S.C. 9844). 
Eliminates language regarding completed research, 
demonstration, and evaluations. Eliminates additional language 
regarding a study comparing the experiences of Head Start 
children to those who did not participate in a Head Start 
program. Adds language requiring the Secretary to contract with 
the National Academy of Sciences and the National Research 
Council to establish an independent panel of experts to 
research and make recommendations on early childhood pedagogy, 
derived from the research. The Secretary shall use these 
recommendations, where appropriate, in relation to Head Start 
education performance standards, measures, and assessments. 
Adds language directing the Secretary to conduct a study on the 
status of limited English proficient children and their 
families in Head Start and Early Head Start programs and report 
on the study no later than September 2008.

Section 21. Reports

    Amends Section 650 of the Head Start Act (42 U.S.C. 9845). 
Adds language requiring the Secretary to include the status of 
homeless children in his bi-annual report to the Committee on 
Education and the Workforce (House of Representatives), and to 
the Committee on Health, Education, Labor, and Pensions 
(Senate).

Section 22. Limitation on rate of Federal funding for compensation

    Amends heading of Section 653 of the Head Start Act (42 
U.S.C. 9848) to read as follows: ``Sec. 653. Wages and 
Compensation.''. Adds language clarifying that no federal funds 
shall be used to pay all or any part of the compensation of an 
individual at a rate higher than that of the Secretary of 
Health and Human Services.

Section 23. Limitation on use of funds

    Inserts section 656A after Section 656 of the Head Start 
Act (42 U.S.C. 9831) to be read as follows: ``Sec. 656A. 
Limitation on Certain Uses of Funds.''. Adds language to 
clarify that no funds may be used to pay any person from the 
media to conduct or support activities for publicity or 
propaganda and that no funds may be used to produce any 
prepackaged news stories for broadcast or distribution.

Section 24. Conforming amendment

    Amends sections of the Early Childhood Education Act by 
striking ``non-English language background'' and inserting 
``limited English proficient''.

Section 25. Effective date; application of amendments

    Sets forth the effective date of the act and states that 
amendments made by the act shall not apply to any fiscal year 
that begins before the date of the enactment of this Act.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 2123 amends and improves the Head Start Act to 
improve the school readiness of disadvantaged children. The 
bill does not prevent legislative branch employees' coverage 
under this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 2123 amends and improves the Head Start Act to 
improve the school readiness of disadvantaged children. As 
such, the bill does not contain any unfunded mandates.


  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 2123 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 3, 2005.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: As you requested, the Congressional 
Budget Office has prepared the enclosed cost estimate for H.R. 
2123, the School Readiness Act of 2005.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kathleen 
FitzGerald.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

HR. 2123--School Readiness Act of 2005

    Summary: H.R. 2123 would reauthorize the Head Start program 
through 2011. The program was authorized through 2003 by the 
Coats Human Services Reauthorization Act of 1998 (Public Law 
105-285) and has since been extended through annual 
appropriation acts.
    CBO estimates that the bill would authorize the 
appropriation of $6.9 billion in 2006 and about $35.7 billion 
over the 2006-2010 period, assuming that annual levels are 
adjusted for inflation when specific annual authorization 
levels are not provided. (Without such inflation adjustments, 
the authorizations would total about $34.5 billion over the 
2006-2010 period.) CBO estimates that appropriation of the 
authorized amounts would result in additional outlays of $32.3 
billion over the 2006-2010 period, assuming annual adjustments 
for inflation (and about $31.3 billion without adjustments for 
inflation). Enacting H.R. 2123 would not affect direct spending 
or receipts.
    H.R. 2123 contains no intergovernmental or private-sector 
mandates as defined by the Unfunded Mandates Reform Act (UMRA). 
Any costs to state, local, or tribal governments would result 
from complying with conditions for receiving federal 
assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2123 is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, training, employment, and social services).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2005      2006      2007      2008      2009      2010
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority\1\.............................     6,843     1,400         0         0         0         0
    Estimated Outlays...............................     6,810     3,735       765        96        14         0
Proposed Changes:
    Estimated Authorization Level...................         0     6,899     7,010     7,142     7,273     7,404
    Estimated Outlays...............................         0     3,932     6,755     7,013     7,211     7,342
Total Spending Under H.R. 2123:
    Estimated Authorization Level...................     6,843     8,299     7,010     7,142     7,273     7,404
    Estimated Outlays...............................     6,810     7,668     7,520     7,109     7,225     7,342
----------------------------------------------------------------------------------------------------------------
\1\ The 2005 level is the amount appropriated for the Head Start program including an advance of $1.389 billion
  for the 2004-2005 academic year. The 2006 level is the amount appropriated in an advance appropriation for the
  2005-2006 academic year.

    Basis of estimate: H.R. 2123 would revise and reauthorize 
the Head Start program through 2011. For this estimate, CBO 
assumes that the bill will be enacted near the start of fiscal 
year 2006, that the estimated amounts shown in the table will 
be appropriated for each year, and that outlays will follow 
historical spending patterns.
    The Head Start program provides comprehensive child 
development services to low-income children. Services include 
education, health, nutrition, and social services with the 
overall goal of increasing the school readiness of young 
children in low-income families.
    The bill would authorize the appropriation of $6.9 billion 
in 2006 and such sums as may be necessary in 2007 through 2011 
for the Head Start program. CBO estimates that the total 
authorizations for the 2006-2010 period would be about $35.7 
billion, assuming adjustments for inflation, with resulting 
outlays of $32.3 billion over those five years.
    Funding for this program currently is provided on a 
program-year basis through appropriations in two separate 
fiscal years: a current fiscal year appropriation and an 
advance appropriation available October 1 of the next fiscal 
year. Although the program has been funded by two separate 
appropriations since 2001, funding does not need to be 
authorized separately because all of the funds for a program 
year could be provided in one appropriation.
    Intergovernmental and private-sector impact: H.R. 2123 
contains no intergovernmental or private-sector mandates as 
defined by UMRA. The bill would authorize $6.9 million to 
support Head Start and Early Head Start program activities, 
including new standards for the education and professional 
development of teachers serving program participants. Any costs 
incurred by state, local, or tribal governments would result 
from complying with conditions for receiving federal 
assistance.
    Estimate prepared by: Federal Costs: Kathleen FitzGerald. 
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum. Impact on the Private Sector: Meena Fernandes.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House rule XIII, the 
goal of H.R. 2123 is to improve the Head Start Act to improve 
the school readiness of disadvantaged children. The Committee 
expects the Department of Health and Human Services to comply 
with H.R. 2123 and implement the changes to the law in 
accordance with the changes.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 2123. The 
Committee believes that the amendments made by this bill, which 
authorize appropriations for Head Start programs, are within 
Congress' authority under Article I, section 8, clause 1 of the 
Constitution.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2123. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                             HEAD START ACT


                   Subchapter B--Head Start Programs


                              SHORT TITLE

  Sec. 635. This subchapter may be cited as the ``Head Start 
Act''.

[SEC. 636. STATEMENT OF PURPOSE.

  [It is the purpose of this subchapter to promote school 
readiness by enhancing the social and cognitive development of 
low-income children through the provision, to low-income 
children and their families, of health, educational, 
nutritional, social, and other services that are determined, 
based on family needs assessments, to be necessary.]

SEC. 636. STATEMENT OF PURPOSE.

  It is the purpose of this subchapter to promote school 
readiness by enhancing the development of low-income children, 
including development of cognitive abilities, through 
educational instruction in prereading skills, premathematics 
skills, language, and social and emotional development linked 
to school readiness and through the provision to low-income 
children and their families of health, educational, 
nutritional, social and other services that are determined, 
based on family needs assessments, to be necessary.

                              DEFINITIONS

  Sec. 637. For purposes of this subchapter:
          (1) * * *
          (2) The term ``challenging State developed academic 
        content standards'' has the meaning given such term in 
        paragraphs (1) and (5) of section 1111(b) of the 
        Elementary and Secondary Education Act of 1965.
          (3) The term ``deficient'' means--
                  (A) systemic or significant failure of a Head 
                Start agency in an area of performance that the 
                Secretary determines involves--
                          (i) a threat to the health, safety, 
                        or civil rights of children or staff;
                          (ii) a denial to parents of the 
                        exercise of their full roles and 
                        responsibilities related to program 
                        governance;
                          (iii) a failure to perform the 
                        requirements of section 641A(a), as 
                        determined by the Secretary;
                          (iv) the misuse of funds received 
                        under this subchapter;
                          (v) loss of legal status (as 
                        determined by the Secretary) or 
                        financial viability, loss of permits, 
                        debarment from receiving Federal grants 
                        or contracts, or the improper use of 
                        Federal funds; or
                          (vi) failure to meet any other 
                        Federal or State requirement;
                  (B) failure of the board of directors of a 
                Head Start agency to fully exercise its legal 
                and fiduciary responsibilities;
                  (C) failure of a Head Start agency to meet 
                the administrative requirements of section 
                644(b); or
                  (D) failure of a Head Start agency to meet 
                the integration requirements of section 
                642B(a).
          [(2)] (4) The term ``delegate agency'' means a 
        public, private nonprofit, or for-profit organization 
        or agency to which a grantee has delegated all or part 
        of the responsibility of the grantee for operating a 
        Head Start program.
          (5) The term ``eligible entities'' means an 
        institution of higher education or other agency with 
        expertise in delivering training in early childhood 
        development, family support, and other assistance 
        designed to improve the quality of early childhood 
        education programs.
          [(3)] (6) The term ``family literacy services'' means 
        services that are of sufficient intensity in terms of 
        hours, and of sufficient duration, to make sustainable 
        changes in a family, and that integrate all of the 
        following activities:
                  (A) * * *

           *       *       *       *       *       *       *

          [(4)] (7) The term ``financial assistance'' includes 
        assistance provided by grant, agreement, or contract, 
        and payments may be made in installments and in advance 
        or by way of reimbursement with necessary adjustments 
        on account of overpayments or underpayments.
          [(5)] (8) The term ``full calendar year'' means all 
        days of the year other than Saturday, Sunday, and a 
        legal public holiday.
          [(6)] (9) The term ``full-working-day'' means not 
        less than 10 hours per day. Nothing in this paragraph 
        shall be construed to require an agency to provide 
        services to a child who has not reached the age of 
        compulsory school attendance for more than the number 
        of hours per day permitted by State law (including 
        regulation) for the provision of services to such a 
        child.
          [(7)] (10) The term ``Head Start classroom'' means a 
        group of children supervised and taught by two paid 
        staff members (a teacher and a teacher's aide or two 
        teachers) and, where possible, a volunteer.
          [(8)] (11) The term ``Head Start family day care'' 
        means Head Start services provided in a private 
        residence other than the residence of the child 
        receiving such services.
          [(9)] (12) The term ``home-based Head Start program'' 
        means a Head Start program that provides Head Start 
        services in the private residence of the child 
        receiving such services.
          (13) The term ``homeless children'' has the meaning 
        given such term in subtitle B of title VII of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11431-11435).
          [(10)] (14) The term ``Indian tribe'' means any 
        tribe, band, nation, pueblo, or other organized group 
        or community of Indians, including any Native village 
        described in section 3(c) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(c)) or established 
        pursuant to such Act (43 U.S.C. 1601 et seq.), that is 
        recognized as eligible for the special programs and 
        services provided by the United States to Indians 
        because of their status as Indians.
          (15) Limited english proficient; limited english 
        proficiency.--The terms ``limited English proficient'' 
        and ``limited English proficiency'' mean with respect 
        to an individual, that such individual--
                  (A)(i) was not born in the United States or 
                has a native language that is not English;
                  (ii)(I) is a Native American, an Alaska 
                Native, or a native resident of a territory or 
                possession of the United States; and
                  (II) comes from an environment in which a 
                language that is not English has had a 
                significant impact on such individual's level 
                of English language proficiency; or
                  (iii) is migratory, has a native language 
                that is not English, and comes from an 
                environment in which a language that is not 
                English is dominant; and
                  (B) has difficultly in speaking or 
                understanding the English language to an extent 
                that may be sufficient to deny such 
                individual--
                          (i) the ability to successfully 
                        achieve in classrooms in which the 
                        language of instruction is English; or
                          (ii) the opportunity to fully 
                        participate in society.
          [(11)] (16) The term ``local educational agency'' has 
        the meaning given such term in the Elementary and 
        Secondary Education Act of 1965.
          [(12)] (17) The term ``migrant and seasonal Head 
        Start program'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(13)] (18) The term ``mobile Head Start program'' 
        means the provision of Head Start services utilizing 
        transportable equipment set up in various community-
        based locations on a routine, weekly schedule, 
        operating in conjunction with home-based Head Start 
        programs, or as a Head Start classroom.
          [(14)] (19) The term ``poverty line'' means the 
        official poverty line (as defined by the Office of 
        Management and Budget)--
                  (A) * * *

           *       *       *       *       *       *       *

          (20) Professional development.--The term 
        ``professional development'' means high quality 
        activities that will enhance the school readiness of 
        eligible children and prevent such children from 
        encountering difficulties once they enter school by 
        improving the knowledge and skills of Head Start 
        teachers and staff, as relevant to their roles and 
        functions, including activities that--
                  (A) provide teachers with the content 
                knowledge and teaching strategies needed to 
                provide effective instruction and other school 
                readiness services in early language and 
                literacy, early mathematics, cognitive skills, 
                approaches to learning, creative arts, science, 
                physical health and development, and social and 
                emotional development linked to school 
                readiness;
                  (B) assist teachers in meeting the 
                requirements in paragraphs (1) and (2) of 
                section 648A(a), as appropriate;
                  (C) improve teachers' classroom management 
                skills, as appropriate;
                  (D) for teachers, are sustained, intensive, 
                and classroom-focused in order to have a 
                positive and lasting impact on classroom 
                instruction and teachers' performance in the 
                classroom;
                  (E) are not primarily 1-day or short-term 
                workshops or conferences, and attendance at 
                activities that are 1-day or short-term 
                workshops or conferences must be as part of the 
                professional development plan defined in 
                section 648A(f);
                  (F) assist teachers and staff in increasing 
                their knowledge and skills in program 
                administration, program quality, and the 
                provision of services and instruction, as 
                appropriate, in a manner that improves service 
                delivery to eligible children and families;
                  (G) are part of a sustained effort to improve 
                overall program quality and outcomes for 
                eligible children and families;
                  (H) advance teacher understanding of 
                effective instructional strategies that are--
                          (i) based on scientifically based 
                        research; and
                          (ii) strategies for improving school 
                        readiness or substantially increasing 
                        the knowledge and teaching skills of 
                        teachers;
                  (I) are, where applicable, aligned with and 
                directly related to--
                          (i) challenging State academic 
                        content standards, student academic 
                        achievement standards, assessments, and 
                        the Head Start Child Outcomes Framework 
                        developed by the Secretary;
                          (ii) the curricula, ongoing 
                        assessments, and other instruction and 
                        services designed to help meet the 
                        standards described in section 
                        641A(a)(1); and
                          (iii) the Head Start Child Outcomes 
                        Framework developed by the Secretary;
                  (J) are developed or selected with extensive 
                participation of administrators and teachers 
                from Head Start programs;
                  (K) are developmentally appropriate for the 
                children being served;
                  (L) are designed to give teachers of limited 
                English proficient children, and other teachers 
                and instructional staff, the knowledge and 
                skills to provide instruction and appropriate 
                language and support services to increase the 
                English language skills of such children;
                  (M) as a whole, are regularly evaluated for 
                their impact on increased teacher and staff 
                effectiveness and improved ability of teachers 
                to support learning and increase participating 
                children's school readiness, with the findings 
                of the evaluations used to improve the quality 
                of professional development;
                  (N) provide instruction in methods of 
                teaching children with special needs, as 
                appropriate;
                  (O) include instruction in ways that Head 
                Start personnel may work more effectively with 
                parents, as appropriate; and
                  (P) are designed to give teachers and staff 
                the knowledge and skills to provide instruction 
                and appropriate support services to children of 
                diverse backgrounds, as appropriate.
          [(15)] (21) The term ``scientifically based reading 
        research''--
                  (A) * * *

           *       *       *       *       *       *       *

          (22) The term ``scientifically based research''--
                  (A) means research that involves the 
                application of rigorous, systematic and 
                objective procedures to obtain reliable and 
                valid knowledge relevant to education 
                activities and programs; and
                  (B) includes research that--
                          (i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                          (ii) involves rigorous data analyses 
                        that are adequate to test the stated 
                        hypotheses and justify the general 
                        conclusions drawn;
                          (iii) relies on measurements or 
                        observational methods that provide 
                        reliable and valid data across 
                        evaluators and observers, across 
                        multiple measurements and observations, 
                        and across studies by the same or 
                        different investigators;
                          (iv) is evaluated using experimental 
                        or quasi-experimental designs in which 
                        individuals, entities, programs or 
                        activities are assigned to different 
                        conditions and with appropriate 
                        controls to evaluate the effects of the 
                        condition of interest, with a 
                        preference for random assignment 
                        experiments, or other designs to the 
                        extent that those designs contain 
                        within-condition or across-condition 
                        controls;
                          (v) ensures that experimental studies 
                        are presented in sufficient detail and 
                        clarity to allow for replication or, at 
                        a minimum, offer the opportunity to 
                        build systematically on their findings; 
                        and
                          (vi) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.
          [(16)] (23) The term ``Secretary'' means the 
        Secretary of Health and Human Services.
          [(17)] (24) The term ``State'' means a State, the 
        Commonwealth of Puerto Rico, the District of Columbia, 
        Guam, American Samoa, the Virgin Islands of the United 
        States, and the Commonwealth of the Northern Mariana 
        Islands[, but for fiscal years ending before October 1, 
        2001 (and fiscal year 2002, if the legislation 
        described in section 640(a)(2)(B)(iii) has not been 
        enacted before September 30, 2001), also means the 
        Federated States of Micronesia, the Republic of the 
        Marshall Islands, and the Republic of Palau].
          (25) The term ``State educational agency'' has the 
        meaning given such term in the Elementary and Secondary 
        Education Act of 1965.
          (26) The term ``unresolved area of noncompliance'' 
        means a failure to correct a noncompliance item within 
        90 days, or within such additional time (if any) 
        authorized by the Secretary, after receiving from the 
        Secretary notice of such noncompliance item.

              FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS

  Sec. 638. The Secretary may, upon application by an agency 
which is eligible for designation as a Head Start agency 
pursuant to section 641, provide financial assistance to such 
agency for a period of 5 years for the planning, conduct, 
administration, and evaluation of a Head Start program focused 
primarily upon the children from low-income families who have 
not reached the age of compulsory school attendance which (1) 
will provide such comprehensive health, education, parental 
involvement, nutritional, social, and other services as will 
enable the children to attain their full potential and attain 
school readiness; and (2) will provide for direct participation 
of the parents of such children in the development, conduct, 
and overall program direction at the local level.

                    [AUTHORIZATION OF APPROPRIATIONS

  [Sec. 639. (a) There are authorized to be appropriated for 
carrying out the provisions of this subchapter such sums as may 
be necessary for fiscal years 1999 through 2003.
  [(b) From the amount appropriated under subsection (a), the 
Secretary shall make available--
          [(1) for each of fiscal years 1999 through 2003 to 
        carry out activities authorized under section 642A, not 
        more than $35,000,000 but not less than the amount that 
        was made available for such activities for fiscal year 
        1998;
          [(2) not more than $5,000,000 for each of fiscal 
        years 1999 through 2003 to carry out impact studies 
        under section 649(g); and
          [(3) not more than $12,000,000 for fiscal year 1999, 
        and such sums as may be necessary for each of fiscal 
        years 2000 through 2003, to carry out other research, 
        demonstration, and evaluation activities, including 
        longitudinal studies, under section 649.]

SEC. 639. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated for 
carrying out the provisions of this subchapter $6,899,000,000 
for the fiscal year 2006 and such sums as may be necessary for 
the fiscal years 2007 through 2011.
  (b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available not more 
than $20,000,000 for fiscal year 2006, and such sums as may be 
necessary for fiscal years 2007 through 2011 to carry out such 
other research, demonstration, and evaluation activities, 
including longitudinal studies, under section 649, of which not 
more than $7,000,000 for each of the fiscal years 2006 through 
2011 to carry out impact studies under section 649(g).

             ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE

  Sec. 640. (a)(1) * * *
  (2) The Secretary shall reserve 13 percent of the amount 
appropriated for each fiscal year for use in accordance with 
the following order of priorities--
          [(A) Indian Head Start programs, services for 
        children with disabilities, and migrant and seasonal 
        Head Start programs, except that there shall be made 
        available for each fiscal year for use by Indian Head 
        Start programs and by migrant and seasonal Head Start 
        programs, on a nationwide basis, not less than the 
        amount that was obligated for use by Indian Head Start 
        programs and by migrant and seasonal Head Start 
        programs for fiscal year 1998;
          [(B) payments, subject to paragraph (7)--
                  [(i) to Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, 
                and the Virgin Islands of the United States;
                  [(ii) for fiscal years ending before October 
                1, 2001, to the Federated States of Micronesia, 
                the Republic of the Marshall Islands, and the 
                Republic of Palau; and
                  [(iii) if legislation approving renegotiated 
                Compacts of Free Association for the 
                jurisdictions described in clause (ii) has not 
                been enacted before September 30, 2001, for 
                fiscal year 2002 to those jurisdictions;
        according to their respective needs, except that such 
        amount shall not exceed one-half of 1 percent of the 
        sums appropriated for any fiscal year;
          [(C) training and technical assistance activities 
        which are sufficient to meet the needs associated with 
        program expansion and to foster program and management 
        improvement activities as described in section 648 of 
        this subchapter, in an amount for each fiscal year 
        which is not less than 2 percent of the amount 
        appropriated for such fiscal year, of which not less 
        than $3,000,000 of the amount appropriated for such 
        fiscal year shall be made available to carry out 
        activities described in section 648(c)(4);]
                  (A) Indian Head Start programs, services for 
                children with disabilities, and migrant and 
                seasonal Head Start programs, except that--
                          (i) there shall be made available for 
                        each fiscal year for use by Indian Head 
                        Start programs and by migrant and 
                        seasonal Head Start programs, on a 
                        nationwide basis, not less than the 
                        amount that was obligated for use by 
                        Indian Head Start programs and by 
                        migrant and seasonal Head Start 
                        programs for fiscal year 2005;
                          (ii) migrant and seasonal Head Start 
                        programs shall receive at least 5 
                        percent of the amount appropriated for 
                        such fiscal year until such time as the 
                        Secretary can make funding decisions to 
                        ensure access to funding for eligible 
                        children of migrant and seasonal 
                        farmworkers is comparable to access to 
                        funding for other eligible children 
                        based on the data collected and 
                        reported pursuant to section 648(j), 
                        except that no future reduction in 
                        funding shall result in the termination 
                        of Head Start services provided to any 
                        eligible child 3 years of age or older 
                        who is participating in any such 
                        program on the date a reduction in 
                        funding occurs, and shall, to the 
                        extent possible, continue participation 
                        for children less than 3 years of age 
                        receiving services prior to such 
                        reduction in funding; and
                          (iii) Indian Head Start programs 
                        shall receive at least 3.5 percent of 
                        the amount appropriated for such fiscal 
                        year until such time as the Secretary 
                        can make funding decisions to ensure 
                        access to funding for eligible Indian 
                        children is comparable to access to 
                        funding for other eligible children;
          (B) payments, subject to paragraph (7) to Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and the Virgin Islands of the United 
        States, and subject to the requirements of section 
        105(f)(1)(B)(ix) of Public Law 108-188 to Palau;
          (C) training and technical assistance activities to 
        foster program quality and management improvement as 
        described in section 648, in an amount for each fiscal 
        year which is equal to 2 percent of the amount 
        appropriated for such fiscal year, of which--
                  (i) not less than 50 percent shall be made 
                available to local Head Start agencies to make 
                program improvements identified by such 
                agencies and comply with the standards 
                described in section 641A(a)(1), of which not 
                less than 50 percent shall be used to comply 
                with the standards described in section 
                641A(a)(1)(B) and for the uses described in 
                clauses (iii), (iv), and (vii) of subsection 
                (a)(3)(B);
                  (ii) not less than 20 percent shall be made 
                available to support a State system of early 
                childhood education training and technical 
                assistance, including the State Early Learning 
                Council described in section 642B(b);
                  (iii) not less than 30 percent shall be made 
                available to the Secretary to assist local 
                programs in meeting the standards described in 
                section 641A(a)(1) and shall be allocated to 
                address program weaknesses identified by 
                monitoring activities conducted by the 
                Secretary under section 641A(c); and
                  (iv) not less than $3,000,000 of the amount 
                in clause (iii) appropriated for such fiscal 
                year shall be made available to carry out 
                activities described in section 648(d)(4);

           *       *       *       *       *       *       *

No funds reserved under this paragraph or paragraph (3) may be 
combined with funds appropriated under any other Act if the 
purpose of combining funds is to make a single discretionary 
grant or a single discretionary payment, unless such funds 
appropriated under this subchapter are separately identified in 
such grant or payment and are used for the purposes of this 
subchapter. [No Freely Associated State may receive financial 
assistance under this subchapter after fiscal year 2002.]
  (3)(A)(i) In order to provide assistance for activities 
specified in subparagraph (C) directed at the goals specified 
in subparagraph (B), the Secretary shall reserve, from the 
amount (if any) by which the funds appropriated under section 
639(a) for a fiscal year exceed the adjusted prior year 
appropriation, a share equal to the sum of--
          (I) 60 percent of such excess amount for fiscal [year 
        1999, 50 percent of such excess amount for fiscal year 
        2000, 47.5 percent of such excess amount for fiscal 
        year 2001, 35 percent of such excess amount for fiscal 
        year 2002, and 25 percent of such excess amount for 
        fiscal year 2003] years 2006 through 2011; and

           *       *       *       *       *       *       *

  (iii) After the reservation of amounts under paragraph (2) 
and the 60 percent amount referred to in subparagraph (A) of 
this paragraph, a portion of the remaining funds shall be made 
available--
          (I) to expand services to underserved populations, 
        such as children receiving services under Early Head 
        Start programs and under migrant and seasonal Head 
        Start programs; and
          (II) to increase funding to grantees with full 
        enrollment and whose aggregate amount of financial 
        assistance provides funding per child that is below the 
        national average.
  [(B) Funds reserved under this paragraph (referred to in this 
paragraph as ``quality improvement funds'') shall be used to 
accomplish any or all of the following goals:
          [(i) Ensuring that Head Start programs meet or exceed 
        performance standards pursuant to section 
        641A(a)(1)(A).
          [(ii) Ensuring that such programs have adequate 
        numbers of qualified staff, and that such staff are 
        furnished adequate training, including developing 
        skills in working with children with non-English 
        language background and children with disabilities, 
        when appropriate.
          [(iii) Ensuring that salary levels and benefits are 
        adequate to attract and retain qualified staff for such 
        programs.
          [(iv) Using salary increases to improve staff 
        qualifications, and to assist with the implementation 
        of career development programs, for the staff of Head 
        Start programs, and to encourage the staff to 
        continually improve their skills and expertise by 
        informing the staff of the availability of Federal and 
        State incentive and loan forgiveness programs for 
        professional development.
          [(v) Improving community-wide strategic planning and 
        needs assessments for such programs and collaboration 
        efforts for such programs.
          [(vi) Ensuring that the physical environments of Head 
        Start programs are conducive to providing effective 
        program services to children and families, and are 
        accessible to children with disabilities and their 
        parents.
          [(vii) Ensuring that such programs have qualified 
        staff that can promote language skills and literacy 
        growth of children and that can provide children with a 
        variety of skills that have been identified, through 
        scientifically based reading research, as predictive of 
        later reading achievement.
          [(viii) Making such other improvements in the quality 
        of such programs as the Secretary may designate.
  [(C) Quality improvement funds shall be used to carry out any 
or all of the following activities:
          [(i)(I) Not less than one-half of the amount reserved 
        under this paragraph, to improve the compensation 
        (including benefits) of classroom teachers and other 
        staff of Head Start agencies and thereby enhance 
        recruitment and retention of qualified staff, including 
        recruitment and retention pursuant to achieving the 
        requirements set forth in section 648A(a). The 
        expenditure of funds under this clause shall be subject 
        to section 653. Preferences in awarding salary 
        increases, in excess of cost-of-living allowances, with 
        such funds shall be granted to classroom teachers and 
        staff who obtain additional training or education 
        related to their responsibilities as employees of a 
        Head Start program.
          [(II) If a Head Start agency certifies to the 
        Secretary for such fiscal year that part of the funds 
        set aside under subclause (I) to improve wages cannot 
        be expended by such agency to improve wages because of 
        the operation of section 653, then such agency may 
        expend such part for any of the uses specified in this 
        subparagraph (other than wages).
          [(III) From the remainder of the amount reserved 
        under this paragraph (after the Secretary carries out 
        subclause (I)), the Secretary shall carry out any or 
        all of the activities described in clauses (ii) through 
        (vii), placing the highest priority on the activities 
        described in clause (ii).
          [(ii) To train classroom teachers and other staff to 
        meet the education performance standards described in 
        section 641A(a)(1)(B), through activities--
                  [(I) to promote children's language and 
                literacy growth, through techniques identified 
                through scientifically based reading research;
                  [(II) to promote the acquisition of the 
                English language for non-English background 
                children and families;
                  [(III) to foster children's school readiness 
                skills through activities described in section 
                648A(a)(1); and
                  [(IV) to provide training necessary to 
                improve the qualifications of the staff of the 
                Head Start agencies and to support staff 
                training, child counseling, and other services 
                necessary to address the problems of children 
                participating in Head Start programs, including 
                children from dysfunctional families, children 
                who experience chronic violence in their 
                communities, and children who experience 
                substance abuse in their families.
          [(iii) To employ additional Head Start staff, 
        including staff necessary to reduce the child-staff 
        ratio and staff necessary to coordinate a Head Start 
        program with other services available to children 
        participating in such program and to their families.
          [(iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and 
        thereby maintain or expand Head Start services.
          [(v) To supplement amounts provided under paragraph 
        (2)(C) to provide training necessary to improve the 
        qualifications of the staff of the Head Start agencies, 
        and to support staff training, child counseling, and 
        other services necessary to address the problems of 
        children participating in Head Start programs, 
        including children from dysfunctional families, 
        children who experience chronic violence in their 
        communities, and children who experience substance 
        abuse in their families.
          [(vi) Such other activities as the Secretary may 
        designate.]
  (B) Funds reserved under this paragraph (in this paragraph 
referred to as ``quality improvement funds'') shall be used to 
accomplish the following goals:
          (i) Ensuring that Head Start programs meet or exceed 
        standards pursuant to section 641A(a)(1).
          (ii) Ensuring that such programs have adequate 
        numbers of qualified staff, and that such staff is 
        furnished adequate training, including developing 
        skills to promote the development of language skills, 
        premathematic skills, and prereading in young children 
        and in working with children with limited English 
        proficiency, children referred by child welfare 
        services, and children with disabilities, when 
        appropriate.
          (iii) Developing and financing the salary scales 
        described under section 644(a)(3) and section 653, in 
        order to ensure that salary levels and benefits are 
        adequate to attract and retain qualified staff for such 
        programs.
          (iv) Using salary increases--
                  (I) to assist with the implementation of 
                quality programs and improve staff 
                qualifications;
                  (II) to ensure that staff can promote the 
                language skills and literacy growth of children 
                and can provide children with a variety of 
                skills that have been identified, through 
                scientifically based early reading research, as 
                predictive of later reading achievement; and
                  (III) to encourage the staff to continually 
                improve their skills and expertise by informing 
                the staff of the availability of Federal and 
                State incentive and loan forgiveness programs 
                for professional development.
          (v) Improving community-wide strategic planning and 
        needs assessments for such programs and collaboration 
        efforts for such programs, including collaborations to 
        increase program participation by underserved 
        populations of eligible children.
          (vi) Ensuring that the physical environments of Head 
        Start programs are conducive to providing effective 
        program services to children and families, and are 
        accessible to children with disabilities and their 
        parents.
          (vii) Ensuring that such programs have qualified 
        staff that can promote language skills and literacy 
        growth of children and that can provide children with a 
        variety of skills that have been identified, through 
        scientifically based reading research, as predictive of 
        later reading achievement.
          (viii) Providing assistance to complete postsecondary 
        course work including scholarships or other financial 
        incentives, such as differential and merit pay, to 
        enable Head Start teachers to improve competencies and 
        the resulting child outcomes.
          (ix) Upgrading the qualifications and skills of 
        educational personnel to meet the professional 
        standards established under section 648A(a)(1), 
        including certification and licensure as bilingual 
        education teachers and other educational personnel who 
        serve limited English proficient children.
          (x) Promoting the regular attendance and stability of 
        all children participating in Head Start programs, with 
        particular attention to highly mobile children, 
        including children from migrant and seasonal farm 
        worker families (if appropriate), homeless children, 
        and children in foster care.
          (xi) Making such other improvements in the quality of 
        such programs as the Secretary may designate.
  (C) Quality improvement funds shall be used to carry out the 
activities in any or all of the following clauses:
          (i)(I) Not less than one-half of the amount reserved 
        under this paragraph, to improve the compensation 
        (including benefits) of classroom teachers and other 
        staff of Head Start agencies providing instructional 
        services and thereby enhancing recruitment and 
        retention of qualified staff, including recruitment and 
        retention pursuant to achieving the requirements set 
        forth in section 648A(a). The expenditure of funds 
        under this clause shall be subject to section 653. 
        Salary increases, in excess of cost-of-living 
        allowance, provided with such funds shall be subject to 
        the specific standards governing salaries and salary 
        increases established pursuant to section 644(a).
          (II) If a Head Start agency certifies to the 
        Secretary for such fiscal year that part of the funds 
        set aside under subclause (I) to improve wages cannot 
        be expended by such agency to improve wages because of 
        the operation of section 653, then such agency may 
        expend such part for any of the uses specified in this 
        subparagraph (other than wages).
          (III) From the remainder of the amount reserved under 
        this paragraph (after the Secretary carries out 
        subclause (I)), the Secretary may carry out the 
        activities described in clauses (ii) through (vii).
          (ii) To train classroom teachers and other staff to 
        meet the education standards described in section 
        641A(a)(1)(B), through activities--
                  (I) to promote children's language and 
                prereading growth, through techniques 
                identified through scientifically based reading 
                research;
                  (II) to promote the acquisition of the 
                English language for limited English proficient 
                children and families, while ensuring that 
                children are making meaningful progress in 
                attaining the knowledge, skills, abilities, and 
                development described in section 641A(a)(1)(B);
                  (III) to foster children's school readiness 
                through activities described in section 
                648A(a)(1); and
                  (IV) to provide education and training 
                necessary to improve the qualifications of Head 
                Start staff, particularly assistance to enable 
                more instructors to be fully competent and to 
                meet the degree requirements under section 
                648A(a)(2)(A), and to support staff training, 
                child counseling, and other services necessary 
                to address the challenges of children 
                participating in Head Start programs, including 
                children from immigrant, refugee, and asylee 
                families, children from families in crisis, 
                children who experience chronic violence in 
                their communities, children who experience 
                substance abuse in their families, and children 
                with emotional and behavioral problems.
          (iii) To employ additional Head Start staff, 
        including staff necessary to reduce the child-staff 
        ratio, lead instructors who meet the qualifications of 
        section 648A(a) and staff necessary to coordinate a 
        Head Start program with other services available to 
        children participating in such program and to their 
        families.
          (iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and 
        thereby maintain or expand Head Start services.
          (v) To supplement amounts provided under paragraph 
        (2)(C) to provide training necessary to improve the 
        qualifications of the staff of the Head Start agencies, 
        and to support staff training, child counseling, and 
        other services necessary to address the problems of 
        children participating in Head Start programs, 
        including children from dysfunctional families, 
        children who experience chronic violence in their 
        communities, and children who experience substance 
        abuse in their families.
          (vi) To conduct outreach to homeless families in an 
        effort to increase the program participation of 
        homeless children.
          (vii) To conduct outreach to migrant and seasonal 
        farm-working families and families with children with a 
        limited English proficiency.
          (viii) Such other activities as the Secretary may 
        designate.

           *       *       *       *       *       *       *

  (4) Subject to section 639(b), the Secretary shall allot the 
remaining amounts appropriated in each fiscal year among the 
States, in accordance with latest satisfactory data so that--
          (A) each State receives an amount which is equal to 
        the amount the State received for fiscal year [1998] 
        2005; and

           *       *       *       *       *       *       *

  (5)[(A) From amounts reserved and allotted pursuant to 
paragraph (4), the Secretary shall reserve such sums as may be 
necessary to award the collaboration grants described in 
subparagraphs (B) and (D).
  [(B) From the reserved sums, the Secretary may award a 
collaboration grant to each State to facilitate collaboration 
regarding activities carried out in the State under this 
subchapter, and other activities carried out in, and by, the 
State that are designed to benefit low-income children and 
families and to encourage Head Start agencies to collaborate 
with entities involved in State and local planning processes 
(including the State lead agency administering the financial 
assistance received under the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.) and the entities 
providing resource and referral services in the State) in order 
to better meet the needs of low-income children and families.
  [(C) A State that receives a grant under subparagraph (B) 
shall--
          [(i) appoint an individual to serve as a State 
        liaison between--
                  [(I) the appropriate regional office of the 
                Administration for Children and Families and 
                agencies and individuals carrying out Head 
                Start programs in the State; and
                  [(II) agencies (including local educational 
                agencies) and entities carrying out programs 
                serving low-income children and families;
          [(ii) involve the State Head Start Association in the 
        selection of the individual, and involve the 
        association in determinations relating to the ongoing 
        direction of the collaboration;
          [(iii) ensure that the individual holds a position 
        with sufficient authority and access to ensure that the 
        collaboration described in subparagraph (B) is 
        effective and involves a range of State agencies;
          [(iv) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start 
        services with health care, welfare, child care, 
        education, and community service activities, family 
        literacy services, activities relating to children with 
        disabilities (including coordination of services with 
        those State officials who are responsible for 
        administering part C and section 619 of the Individuals 
        with Disabilities Education Act (20 U.S.C. 1431-1444, 
        1419)), and services for homeless children;
          [(v) include representatives of the State Head Start 
        Association and local Head Start agencies in unified 
        planning regarding early care and education services at 
        both the State and local levels, including 
        collaborative efforts to plan for the provision of 
        full-working-day, full calendar year early care and 
        education services for children; and
          [(vi) encourage local Head Start agencies to appoint 
        a State level representative to represent Head Start 
        agencies within the State in conducting collaborative 
        efforts described in subparagraphs (B) and (D), and in 
        clause (v).]
  (A) From amounts reserved and allotted pursuant to paragraph 
(4), the Secretary shall award the collaboration grants 
described in subparagraphs (B) and (D).
  (B) From the reserved sums in paragraph (4), the Secretary 
shall award a collaboration grant to any State that submits a 
written request. Such grant shall be equal to the amount the 
State received under this paragraph for such activity for 
fiscal year 2005. Such grant shall be used by the State to 
facilitate collaboration regarding activities carried out in 
the State under this subchapter, and other activities carried 
out in and by the State that are designed to benefit low-income 
children and families and to encourage Head Start agencies to 
collaborate with entities involved in State and local planning 
processes (including the State lead agency administering the 
financial assistance under the Child Care and Development Block 
Grant Act of 1990 and the entities that provide child care 
resource and referral services in the State) in order to better 
meet the needs of low-income children and their families.
  (C) In order to improve results for children, a State that 
receives a grant under subparagraph (B) shall appoint an 
individual to serve as the State Director of Head Start 
Collaboration to be a liaison between the appropriate regional 
office of the Administration for Children and Families and 
agencies carrying out Head Start programs in the State. The 
State shall--
          (i) ensure that such Director holds a position with 
        sufficient authority and access to ensure that the 
        collaboration described in subparagraph (B) is 
        effective and involves a range of State agencies and 
        local entities, including--
                  (I) the State educational agency;
                  (II) the State Department of Health and Human 
                Services;
                  (III) the State agency that oversees child 
                care;
                  (IV) the State agency that assists children 
                with developmental disabilities;
                  (V) the State Head Start Association;
                  (VI) the State network of child care resource 
                and referral agencies;
                  (VII) local educational agencies;
                  (VIII) community-based and faith-based 
                organizations;
                  (IX) representatives of migrant and seasonal 
                Head Start programs located in the State;
                  (X)representatives of Indian Head Start 
                programs located in the State;
                  (XI) State and local providers of early 
                childhood education and child care, including 
                providers with experience serving children with 
                limited English proficiency; and
                  (XII) other entities carrying out programs 
                serving low-income children and families in the 
                State;
          (ii) involve the entities described in clause (i) to 
        develop a strategic plan for the coordinated outreach 
        to identify eligible children and to implement 
        strategies based on a needs assessment, which shall 
        include an assessment of the availability of high 
        quality prekindergarten services for low-income 
        children in the State. Such assessment shall be 
        completed not later than 1 year after the date of 
        enactment of the School Readiness Act of 2005 and be 
        updated on an annual basis and shall be made available 
        to the general public within the State;
          (iii) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start 
        services with health care, welfare, child care, child 
        protective services, education, and community service 
        activities, family literacy services, activities 
        relating to children with disabilities (including 
        coordination of services with those State officials who 
        are responsible for administering part C and section 
        619 of the Individuals with Disabilities Education Act 
        (20 U.S.C. 1419, 1431 et seq.)), and services for 
        homeless children (including coordination of services 
        with the Office of Coordinator for Education of 
        Homeless Children and Youth designated under section 
        722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Assistance Act of 2001 (42 U.S.C. 11432(g)(1)(J)(ii));
          (iv) require the State Director of Head Start 
        Collaboration to--
                  (I) serve on the Early Learning Council 
                pursuant to section 642B(b);
                  (II) consult with the Early Learning Council, 
                chief State school officer, local educational 
                agencies, representatives of local Head Start 
                agencies and providers of early childhood 
                education and care in unified planning 
                regarding early care and education services at 
                both the State and local levels, including 
                collaborative efforts to develop school 
                readiness standards;
                  (III) consult with the chief State school 
                officer, local educational agencies, State 
                child care administrators, State human services 
                administrators, representatives of local child 
                care resource and referral agencies, local 
                early childhood councils, providers of early 
                childhood education and care, and other 
                relevant State and local agencies, and 
                representatives of the State Head Start 
                Association to plan for the provision of full-
                working-day, full-calendar-year early care and 
                education services for eligible children with 
                working parents who have a demonstrated need;
                  (IV) consult with the chief State school 
                officer, local educational agencies and Head 
                Start agencies to improve alignment between 
                Head Start programs and State-funded 
                prekindergarten activities to meet shared goals 
                of school readiness; and
                  (V) establish improved linkages between Head 
                Start agencies and other children and family 
                agencies, including agencies that provide 
                health, mental health or family services or 
                other child and family support services.
  (D) Following the award of collaboration grants described in 
subparagraph (B), the Secretary shall provide, from the 
reserved sums, supplemental funding for collaboration grants--
          (i) to States that (in consultation with their State 
        Head Start Associations and providers of services 
        supporting early childhood education and child care) 
        develop statewide, regional, or local unified plans for 
        early childhood education and child care that include 
        the participation of Head Start agencies; and

           *       *       *       *       *       *       *

  (6)[(A) From amounts reserved and allotted pursuant to 
paragraphs (2) and (4), the Secretary shall use, for grants for 
programs described in section 645A(a), a portion of the 
combined total of such amounts equal to 7.5 percent for fiscal 
year 1999, 8 percent for fiscal year 2000, 9 percent for fiscal 
year 2001, 10 percent for fiscal year 2002, and 10 percent for 
fiscal year 2003, of the amount appropriated pursuant to 
section 639(a), except as provided in subparagraph (B).]
  (A) From amounts reserved and allotted pursuant to paragraphs 
(2) and (4), the Secretary shall use, for grants for programs 
described in section 645A(a) of this subchapter, a portion of 
the combined total of such amounts equal to at least 10 percent 
for each of the fiscal years 2006 through 2011, of the amount 
appropriated pursuant to section 639(a), except as provided in 
subparagraph (B).

           *       *       *       *       *       *       *

  (f) The Secretary shall establish procedures to enable Head 
Start agencies to develop locally designed or specialized 
service delivery models to address local community needs, 
including models that leverage the existing capacity and 
capabilities of the delivery system of early childhood 
education and child care.
  (g)(1) * * *
  (2) [For the purpose of expanding Head Start programs, in] In 
allocating funds to an applicant within a State, from amounts 
allotted to a State pursuant to subsection (a)(4), the 
Secretary shall take into consideration--
          (A) * * *

           *       *       *       *       *       *       *

          [(C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and public 
        agencies serving children and families (including 
        organizations serving families in whose homes English 
        is not the language customarily spoken), and 
        organizations and public entities serving children with 
        disabilities;]
          (C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and Federal, 
        State, and local public agencies serving children and 
        families (including organizations and agencies 
        providing family support services and protective 
        services to children and families and organizations 
        serving families in whose homes English is not the 
        language customarily spoken), and individuals, 
        organizations, and public entities serving children 
        with disabilities and homeless children including the 
        local educational agency liaison designated under 
        section 722(g)(1)(J)(ii) of the McKinney-Veto Homeless 
        Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii));
          (D) the extent to which the family and community 
        needs assessment of the applicant reflects a need to 
        provide full-working-day or full calendar year services 
        and the extent to which, and manner in which, the 
        applicant demonstrates the ability to collaborate and 
        participate with [other local] the State and local 
        community providers of child care or preschool services 
        to provide full-working-day full calendar year 
        services;
          (E) the numbers of eligible children in each 
        community who would like to participate but are not 
        participating in a Head Start program or any other 
        early childhood program;

           *       *       *       *       *       *       *

          (G) the extent to which the applicant proposes to 
        foster partnerships with other service providers in a 
        manner that will leverage the existing delivery systems 
        of such services and enhance the resource capacity of 
        the applicant; [and]
          (H) the extent to which the applicant, in providing 
        services, [plans to coordinate] successfully 
        coordinated its activities with the local educational 
        agency serving the community involved, including the 
        local educational agency liaison designated under 
        section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)),and with 
        schools in which children participating in a Head Start 
        program operated by such agency will enroll following 
        such program, regarding such services and the education 
        services provided by such local educational agency[.]; 
        and
          (I) the amount of funds used by such agency to pay 
        administrative expenses and the amount of available 
        funds received by such agency under this section to 
        serve each enrolled child.

           *       *       *       *       *       *       *

  [(i) The]
  (i) Transportation Safety.--
          (1) Regulations.--The Secretary shall issue 
        regulations establishing requirements for the safety 
        features, and the safe operation, of vehicles used by 
        Head Start agencies to transport children participating 
        in Head Start programs.
          (2) Waiver authority.--
                  (A) In general.--The Secretary may waive for 
                a period of up to one year the requirements of 
                regulations promulgated under paragraph (1) for 
                one or more vehicles used by the agency or its 
                designee in transporting children enrolled in a 
                Head Start program or an Early Head Start 
                program if--
                          (i) such requirements pertain to 
                        child restraint systems and bus 
                        monitors;
                          (ii) the agency demonstrates that 
                        compliance with such requirements will 
                        result in a significant disruption to 
                        the Head Start program or the Early 
                        Head Start program; and
                          (iii) is in the best interest of the 
                        child.
                  (B) Renewal.--The Secretary may renew a 
                waiver under subparagraph (A).

           *       *       *       *       *       *       *

  (l)(1) * * *

           *       *       *       *       *       *       *

  [(3) In carrying out this subchapter, the Secretary shall 
continue the administrative arrangement responsible for meeting 
the needs of children of migrant and seasonal farmworkers and 
Indian children and shall ensure that appropriate funding is 
provided to meet such needs.]
  (3) In carrying out this subchapter, the Secretary shall 
continue the administrative arrangement at the national level 
for meeting the needs of Indian children and children of 
migrant and seasonal farmworkers and shall ensure that 
appropriate funding is provided to meet such needs, including 
training and technical assistance and the appointment of a 
national migrant and seasonal Head Start collaboration director 
and a national Indian Head Start collaboration director.
  (4)(A) For the purposes of paragraph (3), the Secretary shall 
conduct an annual consultation in each affected Head Start 
region, with tribal governments operating Head Start programs 
and Early Head Start programs.
  (B) The consultations shall be for the purpose of better 
meeting the needs of American Indian and Alaska Native children 
and families pertinent to subsections (a), (b), and (c) of 
section 641, taking into consideration funding allocations, 
distribution formulas, and other issues affecting the delivery 
of Head Start services within tribal communities.
  (C) The Secretary shall publish a notification of the 
consultations in the Federal Register prior to conducting the 
consultations.
  (D) A detailed report of each consultation shall be prepared 
and made available, on a timely basis, to all tribal 
governments receiving funds under this subchapter.
  (m) Enrollment of Homeless Children.--The Secretary shall by 
regulation prescribe policies and procedures to remove barriers 
to the enrollment and participation of homeless children in 
Head Start programs. Such regulations shall require Head Start 
agencies--
          (1) to implement policies and procedures to ensure 
        that homeless children are identified and prioritized 
        for enrollment;
          (2) to allow homeless families to apply to, enroll in 
        and attend Head Start programs while required 
        documents, such as proof of residency, immunization and 
        other medical records, birth certificates and other 
        documents, are obtained within a reasonable time frame; 
        and
          (3) coordinate individual Head Start centers and 
        programs with efforts to implement subtitle B of title 
        VII of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11431-11435).
  (n) Rule of Construction.--Nothing in this subchapter shall 
be construed to require a State to establish a program of early 
education for children in the State, to require any child to 
participate in a program of early education, to attend school, 
or to participate in any initial screening prior to 
participation in such program, except as provided under section 
612(a)(3), (consistent with section 614(a)(1)(C)), of the 
Individuals with Disabilities Education Act.
  (o) Materials.--All curricula and instructional materials 
funded under this subchapter shall be scientifically based and 
age appropriate. Parents shall have the ability to inspect, 
upon request, any curricula or instructional materials.

                   DESIGNATION OF HEAD START AGENCIES

  Sec. 641. [(a) The Secretary is authorized to designate as a 
Head Start agency any local public or private nonprofit or for-
profit agency, within a community, which (1) has the power and 
authority to carry out the purposes of this subchapter and 
perform the functions set forth in section 642 within a 
community; and (2) is determined by the Secretary (in 
consultation with the chief executive officer of the State 
involved, if such State expends non-Federal funds to carry out 
Head Start programs) to be capable of planning, conducting, 
administering, and evaluating, either directly or by other 
arrangements, a Head Start program.]
  (a) Authority To Designate.--
          (1) In general.--The Secretary is authorized to 
        designate as a Head Start agency any local public or 
        private nonprofit or for-profit agency within a State, 
        including a community-based or faith-based organization 
        that--
                  (A) has power and authority to carry out the 
                purpose of this subchapter and perform the 
                functions set forth in section 642 within a 
                State; and
                  (B) is determined to be capable of planning, 
                conducting, administering, and evaluating, 
                either directly or by other arrangements, a 
                Head Start program.
          (2) Designation requirements.--To be designated as a 
        Head Start agency and to receive financial assistance 
        under this subparagraph, an entity described in sub 
        paragraph (1) shall--
                  (A) establish measurable objectives for--
                          (i) the school readiness of children 
                        participating in the program under this 
                        subchapter;
                          (ii) meeting the performance 
                        standards described in section 641A;
                          (iii) educational instruction in 
                        prereading, premathematics, and 
                        language skills; and
                          (iv) the provision of health, 
                        educational, nutritional, social and 
                        other services related to school 
                        readiness; and
                  (B) align curricula to challenging State 
                developed academic content standards and the 
                Head Start Child Outcomes Framework developed 
                by the Secretary.
          (3) Eligibility for subsequent financial 
        assistance.--In order to receive financial assistance 
        under this subchapter subsequent to the initial 
        financial assistance provided following the effective 
        date of this subsection, an entity described in 
        paragraph (1) shall demonstrate that the entity has met 
        the measurable objectives described in paragraph (2);
          (4) Measuring Progress.--Progress in meeting such 
        measurable objectives shall not be measured primarily 
        or solely by the results of assessments.

           *       *       *       *       *       *       *

  [(c)(1) In the administration of the provisions of this 
section (subject to paragraph (2)), the Secretary shall, in 
consultation with the chief executive officer of the State 
involved if such State expends non-Federal funds to carry out 
Head Start programs, give priority in the designation of Head 
Start agencies to any local public or private nonprofit or for-
profit agency which is receiving funds under any Head Start 
program on the date of the enactment of this Act unless the 
Secretary determines that the agency involved fails to meet 
program and financial management requirements, performance 
standards described in section 641A(a)(1), results-based 
performance measures developed by the Secretary under section 
641A(b), or other requirements established by the Secretary.
  [(2) If there is no agency of the type referred to in 
paragraph (1) because of any change in the assistance furnished 
to programs for economically disadvantaged persons, the 
Secretary shall, in consultation with the chief executive 
officer of the State if such State expends non-Federal funds to 
carry out Head Start programs, give priority in the designation 
of Head Start agencies to any successor agency that is 
operating a Head Start program in substantially the same manner 
as the predecessor agency that did receive funds in the fiscal 
year preceding the fiscal year for which the determination is 
made.
  [(3) Notwithstanding any other provision of this subsection, 
the Secretary shall not give such priority to any agency with 
respect to which financial assistance has been terminated, or 
an application for refunding has been denied, under this 
subchapter by the Secretary after affording such agency 
reasonable notice and opportunity for a full and fair hearing 
in accordance with section 646(a)(3).
  [(d) If no entity in a community is entitled to the priority 
specified in subsection (c), then the Secretary may designate a 
Head Start agency from among qualified applicants in such 
community. In selecting from among qualified applicants for 
designation as a Head Start agency, the Secretary shall give 
priority to any qualified agency that functioned as a Head 
Start delegate agency in the community and carried out a Head 
Start program that the Secretary determines met or exceeded 
such performance standards and such results-based performance 
measures. In selecting from among qualified applicants for 
designation as a Head Start agency, the Secretary shall 
consider the effectiveness of each such applicant to provide 
Head Start services, based on--
          [(1) any past performance of such applicant in 
        providing services comparable to Head Start services, 
        including how effectively such applicant provided such 
        comparable services;
          [(2) the plan of such applicant to provide 
        comprehensive health, nutritional, educational, social, 
        and other services needed to aid participating children 
        in attaining their full potential;
          [(3) the plan of such applicant to coordinate the 
        Head Start program it proposes to carry out, with other 
        preschool programs, including Even Start programs under 
        part B of chapter 1 of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2741 et 
        seq.) and programs under part C and section 619 of the 
        Individuals with Disabilities Education Act (20 U.S.C. 
        1431-1444, 1419), and with the educational programs 
        such children will enter at the age of compulsory 
        school attendance;
          [(4) the plan of such applicant--
                  [(A) to seek the involvement of parents of 
                participating children in activities (at home 
                and in the center involved where practicable) 
                designed to help such parents become full 
                partners in the education of their children;
                  [(B) to afford such parents the opportunity 
                to participate in the development, conduct, and 
                overall performance of the program at the local 
                level;
                  [(C) to offer (directly or through referral 
                to local entities, such as entities carrying 
                out Even Start programs under part B of chapter 
                1 of title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 2741 et seq.), 
                public and school libraries, and family support 
                programs) to such parents--
                          [(i) family literacy services; and
                          [(ii) parenting skills training;
                  [(D) to offer to parents of participating 
                children substance abuse counseling (either 
                directly or through referral to local 
                entities), including information on drug-
                exposed infants and fetal alcohol syndrome;
                  [(E) at the option of such applicant, to 
                offer (directly or through referral to local 
                entities) to such parents--
                          [(i) training in basic child 
                        development;
                          [(ii) assistance in developing 
                        communication skills;
                          [(iii) opportunities for parents to 
                        share experiences with other parents; 
                        or
                          [(iv) any other activity designed to 
                        help such parents become full partners 
                        in the education of their children; and
                  [(F) to provide, with respect to each 
                participating family, a family needs assessment 
                that includes consultation with such parents 
                about the benefits of parent involvement and 
                about the activities described in subparagraphs 
                (C) (D), and (E) in which such parents may 
                choose to become involved (taking into 
                consideration their specific family needs, work 
                schedules, and other responsibilities);
          [(5) the ability of such applicant to carry out the 
        plans described in paragraphs (2), (3), and (4);
          [(6) other factors related to the requirements of 
        this subchapter;
          [(7) the plan of such applicant to meet the needs of 
        non-English background children and their families, 
        including needs related to the acquisition of the 
        English language;
          [(8) the plan of such applicant to meet the needs of 
        children with disabilities;
          [(9) the plan of such applicant who chooses to assist 
        younger siblings of children who will participate in 
        the proposed Head Start program to obtain health 
        services from other sources; and
          [(10) the plan of such applicant to collaborate with 
        other entities carrying out early childhood education 
        and child care programs in the community.]
  (c) Consultation.--In the administration of this section, the 
Secretary shall, in consultation with the chief executive 
officer of the State involved, give priority in the designation 
of Head Start agencies to Head Start agencies that--
          (1) are receiving assistance under this subchapter on 
        the effective date of this subsection;
          (2) meet or exceed program and financial management 
        requirements, standards described in section 641A(a);
          (3) meet or exceed the education standards and 
        requirements described in section 641A(a)(1)(B);
          (4) have no unresolved area of noncompliance;
          (5) have not been deemed deficient since the then 
        most recent designation;
          (6) employ qualified staff (including in center-based 
        programs, a teaching staff of whom at least 50 percent 
        have an associate, baccalaureate, or advanced degree in 
        early child education or a related field), except that 
        the Secretary may waive the application of this 
        paragraph, for a period not to exceed 3 years, for Head 
        Start programs operating in rural areas, for migrant 
        and seasonal Head Start programs, and for Indian Head 
        Start programs, on a case-by-case basis, if the program 
        demonstrates progress in increasing the qualifications 
        of teaching staff and demonstrates adequate 
        instructional supervision by qualified staff;
          (7) were not deemed by the Secretary as chronically 
        under-enrolled since the then most recent designation;
          (8) utilize curricula based on scientifically based 
        research, that are aligned with challenging State 
        developed academic content standards and the Head Start 
        Child Outcomes Framework developed by the Secretary;
          (9) demonstrate active partnerships with local 
        educational agencies serving the same communities to 
        facilitate smooth transitions to kindergarten;
          (10) actively implement a memorandum of understanding 
        described in section 642B(a) and additional 
        collaborative partnerships with organizations that 
        enhance the delivery of services to children;
          (11) demonstrate success in improving child outcomes 
        across all domains of development, including measurable 
        progress in language skills, prereading knowledge, and 
        premathematics knowledge;
          (12) maintain classroom environments constructive to 
        early learning and future school success;
          (13) demonstrate strong parental involvement and 
        activities to develop parent skills to support their 
        children's educational development and ability to 
        participate effectively in decisions relating to the 
        education of their children;
          (14) are overseen by a board described in section 
        642(b) that provides direction and actively oversees 
        all program activities;
          (15) document strong fiscal controls, including--
                  (A) the employment of well-qualified fiscal 
                staff with a history of successful management 
                of a public or private organization;
                  (B) having no reportable material weaknesses 
                with applicable laws and regulations on all 
                annual financial audits performed since the 
                most recent designation;
                  (C) meeting or exceeding annual requirements 
                for financial support under section 640(b); and
                  (D) maintaining total administrative costs at 
                or below 15 percent of total program costs;
          (16) are licensed to operate in accordance with all 
        applicable State child care regulations;
          (17) conduct outreach activities to ensure that 
        services are provided to the most at-risk families in 
        the community;
          (18) have developed strong community partnerships 
        with public and private organizations, such as 
        businesses, health, and social service providers; and
          (19) provide opportunities for ongoing professional 
        development.
  (d) Designation When No Entity Has Priority.--
          (1) In general.--If no entity in a community is 
        entitled to the priority specified in subsection (c), 
        the Secretary shall, after conducting an open 
        competition, designate for a 5-year period a Head Start 
        agency from among qualified applicants in such 
        community.
          (2) Considerations in designation.--In selecting from 
        among qualified applicants for designation as a Head 
        Start agency, the Secretary shall consider the 
        effectiveness of each such applicant to provide Head 
        Start services, based on--
                  (A) any past performance of such applicant in 
                providing services comparable to Head Start 
                services, including how effectively such 
                applicant provided such comparable services;
                  (B) the plan of such applicant to provide 
                comprehensive health (including mental and 
                behavioral health), educational, nutritional, 
                social, and other services needed to prepare 
                children to succeed in school;
                  (C) the capacity of such applicant to serve 
                eligible children with curriculum and teaching 
                practices based on scientifically based 
                research that promote the school readiness of 
                children participating in the program;
                  (D) the plan of such applicant to meet 
                standards set forth in section 641A(a)(1), with 
                particular attention to the standards set forth 
                in subparagraphs (A) and (B) of such section;
                  (E) the proposed budget and plan of such 
                applicant to maintain strong fiscal controls 
                and cost effective fiscal management;
                  (F) the plan of such applicant to coordinate 
                the Head Start program the applicant proposes 
                to carry out with other educational programs 
                for young children, including--
                          (i) the Early Reading First and Even 
                        Start programs under subparts 2 and 3 
                        of part B of title I of the Elementary 
                        and Secondary Education Act of 1965 (20 
                        U.S.C. 6371 et seq., 6381 et seq.);
                          (ii) programs under section 619 and 
                        part C of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 
                        1419, 1431 et seq.);
                          (iii) State prekindergarten programs;
                          (iv) child care programs;
                          (v) the educational programs that the 
                        children participating in the Head 
                        Start program involved will enter at 
                        the age of compulsory school 
                        attendance; and
                          (vi) reading readiness programs such 
                        as those conducted by public and school 
                        libraries;
                  (G) the plan of such applicant to coordinate 
                the Head Start program that the applicant 
                proposes to carry out, with public and private 
                entities that are willing to commit resources 
                to assist the Head Start -program in meeting 
                its program needs;
                  (H) the plan of such applicant--
                          (i) to seek the involvement of 
                        parents (including grandparents and 
                        kinship caregivers, as appropriate) of 
                        children participating in the proposed 
                        Head Start program, in activities (at 
                        home and, if practicable, at the 
                        location of the Head Start program) 
                        designed to help such parents become 
                        full partners in the education of their 
                        children;
                          (ii) to afford such parents the 
                        opportunity to participate in the 
                        development and overall conduct of the 
                        program at the local level;
                          (iii) to 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. 6381 
                        et seq.), public and school libraries, 
                        and entities carrying out family 
                        support programs) to such parents--
                                  (I) family literacy services; 
                                and
                                  (II) parenting skills 
                                training;
                          (iv) to offer to parents of 
                        participating children, substance abuse 
                        counseling (either directly or through 
                        referral to local entities), including 
                        information on the effect of drug 
                        exposure on infants and fetal alcohol 
                        syndrome;
                          (v) at the option of such applicant, 
                        to offer (directly or through referral 
                        to local entities) to such parents--
                                  (I) training in basic child 
                                development (including 
                                cognitive development);
                                  (II) assistance in developing 
                                literacy and communication 
                                skills;
                                  (III) opportunities to share 
                                experiences with other parents 
                                (including parent mentor 
                                relationships);
                                  (IV) regular in-home 
                                visitation;
                                  (V) mental and behavioral 
                                health services; or
                                  (VI) any other activity 
                                designed to help such parents 
                                become full partners in the 
                                education of their children;
                          (vi) to provide, with respect to each 
                        participating family, a family needs 
                        assessment that includes consultation 
                        with such parents about the benefits of 
                        parent involvement and about the 
                        activities described in subparagraph 
                        (H) in which such parents may choose to 
                        become involved (taking into 
                        consideration their specific family 
                        needs, work schedules, and other 
                        responsibilities); and
                          (vii) to extend outreach to fathers, 
                        in appropriate cases, in order to 
                        strengthen the role of fathers in 
                        families, in the education of their 
                        young children, and in the Head Start 
                        program, by working directly with 
                        fathers and father figures through 
                        activities such as--
                                  (I) in appropriate cases, 
                                including fathers in home 
                                visits and providing 
                                opportunities for direct 
                                father-child interactions; and
                                  (II) targeting increased male 
                                participation in the conduct of 
                                the program;
                  (I) the ability of such applicant to carry 
                out the plans described in paragraphs (2), (4), 
                and (5);
                  (J) the plan of such applicant to meet the 
                needs of limited English proficient children 
                and their families, including procedures to 
                identify such children, plans to provide 
                trained personnel, and plans to provide 
                services to assist the children in making 
                progress toward the acquisition of the English 
                language, while making meaningful progress in 
                attaining the knowledge, skills, abilities, and 
                development described in section 641A(a)(1)(B);
                  (K) the plan of such applicant to meet the 
                diverse cultural needs of the population 
                served;
                  (L) the plan of such applicant to meet the 
                needs of children with disabilities;
                  (M) the plan of such applicant who chooses to 
                assist younger siblings of children who will 
                participate in the Head Start program, to 
                obtain health services from other sources;
                  (N) the plan of such applicant to collaborate 
                with other entities carrying out early 
                childhood education and child care programs in 
                the community;
                  (O) the plan of such applicant to meet the 
                needs of homeless children, including 
                transportation needs, and children in foster 
                care;
                  (P) the plan of such applicant to maintain a 
                qualified staff, including a teaching staff 
                qualified to implement research-based 
                educational curricula aligned with challenging 
                State-developed academic content standards, the 
                Head Start Child Outcomes Framework developed 
                by the Secretary, and the State early learning 
                standards in States in which such standards are 
                developed;
                  (Q) the plan of such applicant to enter into 
                memoranda of understanding with local 
                educational agencies, child care providers, and 
                other entities within the service area; and
                  (R) other factors related to the requirements 
                of this subchapter.

           *       *       *       *       *       *       *

  [(g) If the Secretary determines that a nonprofit agency and 
a for-profit agency have submitted applications for designation 
of equivalent quality under subsection (d), the Secretary may 
give priority to the nonprofit agency. In selecting from among 
qualified applicants for designation as a Head Start agency 
under subsection (d), the Secretary shall give priority to 
applicants that have demonstrated capacity in providing 
comprehensive early childhood services to children and their 
families.]
  (g) Issuance of Rules.--Not later than 180 days after the 
enactment of the School Readiness Act of 2005, the Secretary 
shall issue rules to carry out this section.

SEC. 641A. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES AND 
                    PROGRAMS.

  (a) Quality Standards.--
          (1) Establishment of standards.--The Secretary shall 
        establish by regulation standards, including minimum 
        levels of overall accomplishment, applicable to Head 
        Start agencies, programs, and projects under this 
        subchapter, including--
                  (A) * * *
                  (B)(i) education performance standards based 
                on sound scientific evidence to ensure the 
                school readiness and sustained academic gains 
                of children participating in a Head Start 
                program, on completion of the Head Start 
                program and prior to entering school; and
                  [(ii) additional education performance 
                standards to ensure that the children 
                participating in the program, at a minimum--
                          [(I) develop phonemic, print, and 
                        numeracy awareness;
                          [(II) understand and use language to 
                        communicate for various purposes;
                          [(III) understand and use 
                        increasingly complex and varied 
                        vocabulary;
                          [(IV) develop and demonstrate an 
                        appreciation of books; and
                          [(V) in the case of non-English 
                        background children, progress toward 
                        acquisition of the English language.]
                  (ii) additional scientifically-based 
                education standards to ensure that the children 
                participating in the program, at a minimum 
                develop and demonstrate--
                          (I) language knowledge and skills, 
                        including oral language and listening 
                        comprehension;
                          (II) prereading knowledge and skills 
                        that prepare children for early 
                        literacy in schools, including 
                        phonological awareness, print awareness 
                        and print skills, and alphabetic 
                        knowledge;
                          (III) premathematics knowledge and 
                        skills, including aspects of 
                        classification, seriation, number, 
                        spatial relations, and time;
                          (IV) cognitive abilities related to 
                        academic achievement and child 
                        development;
                          (V) social and emotional development 
                        related to early learning, school 
                        success, and sustained academic gains; 
                        and
                          (VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language 
                        while making meaningful progress in 
                        attaining the knowledge, skills, 
                        abilities, and development described in 
                        subclauses (I) through (IV);
          (2) Considerations in developing standards.--In 
        developing the regulations required under paragraph 
        (1), the Secretary shall--
                  (A) consult with experts in the fields of 
                child development, early childhood education, 
                child health care, family services (including 
                linguistically and culturally appropriate 
                services to [non-English language background] 
                limited English proficient children and their 
                families), administration, and financial 
                management, and with persons with experience in 
                the operation of Head Start programs;
                  [(B) take into consideration--
                          [(i) past experience with use of the 
                        standards in effect under this 
                        subchapter on the date of enactment of 
                        this section;
                          [(ii) changes over the period since 
                        the date of enactment of this Act in 
                        the circumstances and problems 
                        typically facing children and families 
                        served by Head Start agencies;
                          [(iii) developments concerning best 
                        practices with respect to early 
                        childhood education and development, 
                        children with disabilities, family 
                        services, program administration, and 
                        financial management;
                          [(iv) projected needs of an expanding 
                        Head Start program;
                          [(v) guidelines and standards 
                        currently in effect or under 
                        consideration that promote child health 
                        services, and projected needs of 
                        expanding Head Start programs;
                          [(vi) changes in the population of 
                        children who are eligible to 
                        participate in Head Start programs, 
                        including the language background and 
                        family structure of such children; and
                          [(vii) the need for, and state-of-
                        the-art developments relating to, local 
                        policies and activities designed to 
                        ensure that children participating in 
                        Head Start programs make a successful 
                        transition to public schools; and]
                  (B) take into consideration--
                          (i) past experience with use of the 
                        standards in effect under this 
                        subchapter on October 27, 1998;
                          (ii) changes over the period since 
                        October 27, 1998, in the circumstances 
                        and problems typically facing children 
                        and families served by Head Start 
                        agencies;
                          (iii) developments concerning 
                        research based practices with respect 
                        to early childhood education and 
                        development, children with 
                        disabilities, family services, program 
                        administration, and financial 
                        management;
                          (iv) projected needs of an expanding 
                        Head Start program;
                          (v) guidelines and standards 
                        currently in effect or under 
                        consideration that promote child health 
                        services and physical development, 
                        including outdoor activity that 
                        supports children's motor development 
                        and overall health and nutrition;
                          (vi) changes in the population of 
                        children who are eligible to 
                        participate in Head Start programs, 
                        including the language background and 
                        family structure of such children;
                          (vii) scientifically based research 
                        to ensure that children participating 
                        in Head Start programs make a 
                        successful transition to schools that 
                        the children will be attending; and
                          (viii) the unique challenges faced by 
                        individual programs, including those 
                        that are seasonal or short term, and 
                        those that serve rural populations; and
                  (C)(i) * * *
                  (ii) ensure that any such revisions in the 
                performance standards will not result in the 
                elimination of or any reduction in the scope or 
                types of health, education, parental 
                involvement, nutritional, social, or other 
                services required to be provided under such 
                standards as in effect on [the date of 
                enactment of the Coats Human Services 
                Reauthorization Act of 1998] October 27, 1998.

           *       *       *       *       *       *       *

          (4) Evaluations and corrective actions for delegate 
        agencies.--
                  (A) Procedures.--The Head Start agency shall 
                establish procedures relating to its delegate 
                agencies, including--
                          (i) procedures for evaluating 
                        delegate agencies;
                          (ii) procedures for defunding 
                        delegate agencies; and
                          (iii) procedures for appealing a 
                        defunding decision relating to a 
                        delegate agency.
                  (B) Evaluations.--Each Head Start agency--
                          (i) shall evaluate its delegate 
                        agencies using the procedures 
                        established pursuant to this section, 
                        including subparagraph (A); and
                          (ii) shall inform the delegate 
                        agencies of the deficiencies identified 
                        through the evaluation that shall be 
                        corrected.
                  (C) Remedies to ensure corrective actions.--
                If the Head Start agency identifies a 
                deficiency for a delegate agency through the 
                evaluation, the Head Start agency may--
                          (i) initiate procedures to terminate 
                        the designation of the agency unless 
                        the agency corrects the deficiency;
                          (ii) conduct monthly monitoring 
                        visits to such delegate agency until 
                        all deficiencies are corrected or the 
                        Head Start agency decides to defund 
                        such delegate agency; and
                          (iii) release funds to such delegate 
                        agency only as reimbursements until all 
                        deficiencies are corrected or the Head 
                        Start agency decides to defund such 
                        delegate agency.
                  (D) Rule of construction.--Nothing in this 
                paragraph shall be construed to impact or 
                obviate the responsibilities of the Secretary 
                with respect to Head Start agencies or delegate 
                agencies receiving funding under this 
                subchapter.
  (b) Results-Based Performance Measures.--
          (1) * * *
          [(2) Characteristics of measures.--The performance 
        measures developed under this subsection shall--
                  [(A) be used to assess the impact of the 
                various services provided by Head Start 
                programs and, to the extent the Secretary finds 
                appropriate, administrative and financial 
                management practices of such programs;
                  [(B) be adaptable for use in self-assessment, 
                peer review, and program evaluation of 
                individual Head Start agencies and programs, 
                not later than July 1, 1999; and
                  [(C) be developed for other program purposes 
                as determined by the Secretary.
        The performance measures shall include the performance 
        standards described in subsection (a)(1)(B)(ii).
          [(3) Use of measures.--The Secretary shall use the 
        performance measures developed pursuant to this 
        subsection--
                  [(A) to identify strengths and weaknesses in 
                the operation of Head Start programs 
                nationally, regionally, and locally; and
                  [(B) to identify problem areas that may 
                require additional training and technical 
                assistance resources.
          [(4) Educational performance measures.--Such results-
        based performance measures shall include educational 
        performance measures that ensure that children 
        participating in Head Start programs--
                  [(A) know that letters of the alphabet are a 
                special category of visual graphics that can be 
                individually named;
                  [(B) recognize a word as a unit of print;
                  [(C) identify at least 10 letters of the 
                alphabet; and
                  [(D) associate sounds with written words.]
          (2) Characteristics of measures.--The performance 
        measures developed under this subsection shall--
                  (A) be used to assess the impact of the 
                various services provided by Head Start 
                programs and, to the extent the Secretary finds 
                appropriate, administrative and financial 
                management practices of such programs;
                  (B) be adaptable for use in self-assessment, 
                peer review, and program evaluation of 
                individual Head Start agencies and programs;
                  (C) be developed for other program purposes 
                as determined by the Secretary;
                  (D) be appropriate for the population served; 
                and
                  (E) be reviewed no less than every 4 years, 
                based on advances in the science of early 
                childhood development.
        The performance measures shall include the performance 
        standards described in subparagraphs (A) and (B) of 
        subsection (a)(1).
          (3) Use of measures.--
                  (A) The Secretary shall use the performance 
                measures pursuant to this subsection to 
                identify--
                          (i) strengths and weaknesses in the 
                        operation of Head Start programs 
                        nationally, regionally, and locally; 
                        and
                          (ii) program areas that may require 
                        additional training and technical 
                        assistance resources.
                  (B) The Secretary shall provide a detailed 
                justification to the Congress regarding the 
                planned uses of the data collected by the 
                National Reporting System developed by the 
                Secretary and shall demonstrate its scientific 
                validity and reliability for such purposes, 
                including its scientific validity and 
                reliability with children with limited English 
                proficiency for such purposes;
                  (C) The Secretary shall not use the National 
                Reporting System assessment results either as 
                the primary method for assessing program 
                effectiveness or as the primary method for 
                making grantee funding determinations.
                  (D) The Secretary shall develop a process to 
                ensure that the National Reporting System shall 
                not be used to exclude children from Head Start 
                programs.
          (4) Educational measures.--Results based measures 
        shall be designed for the purpose of promoting the 
        competencies of children participating in Head Start 
        programs specified in subsection (a)(1)(B)(ii), with an 
        emphasis on measuring those competencies that have a 
        strong scientifically-based predictability of a child's 
        school readiness and later performance in school.

           *       *       *       *       *       *       *

  (c) Monitoring of Local Agencies and Programs.--
          (1) In general.--In order to determine whether Head 
        Start agencies meet standards established under this 
        subchapter and results-based performance measures 
        developed by the Secretary under subsection (b) with 
        respect to program, administrative, financial 
        management, and other requirements, the Secretary shall 
        develop and utilize a risk-based assessment system to 
        conduct the following reviews of designated Head Start 
        agencies, and of the Head Start programs operated by 
        such agencies:
                  (A) * * *

           *       *       *       *       *       *       *

                  [(C) Followup reviews including prompt return 
                visits to agencies and programs that fail to 
                meet the standards.
                  [(D) Other reviews as appropriate.
          [(2) Conduct of reviews.--The Secretary shall ensure 
        that reviews described in subparagraphs (A) through (C) 
        of paragraph (1)--
                  [(A) are performed, to the maximum extent 
                practicable, by employees of the Department of 
                Health and Human Services who are knowledgeable 
                about Head Start programs;
                  [(B) are supervised by such an employee at 
                the site of such Head Start agency;
                  [(C) are conducted by review teams that shall 
                include individuals who are knowledgeable about 
                Head Start programs and, to the maximum extent 
                practicable, the diverse (including linguistic 
                and cultural) needs of eligible children 
                (including children with disabilities) and 
                their families;
                  [(D) include as part of the reviews of the 
                programs, a review and assessment of program 
                effectiveness, as measured in accordance with 
                the results-based performance measures 
                developed by the Secretary pursuant to 
                subsection (b) and with the performance 
                standards established pursuant to subparagraphs 
                (A) and (B) of subsection (a)(1); and
                  [(E) seek information from the communities 
                and the States involved about the performance 
                of the programs and the efforts of the Head 
                Start agencies to collaborate with other 
                entities carrying out early childhood education 
                and child care programs in the community.]
                  (C) Followup reviews, including unannounced 
                reviews as appropriate, of programs with 1 or 
                more findings of deficiencies not later than 6 
                months after the date of such finding.
                  (D) Unannounced site inspections of Head 
                Start centers and other reviews, as 
                appropriate.
          (2) Conduct of reviews.--The Secretary shall ensure 
        that reviews described in subparagraphs (A) through (C) 
        of paragraph (1)--
                  (A) that incorporate a monitoring visit, may 
                be done without prior notice of the visit to 
                the local agency or program;
                  (B) are conducted by review teams composed of 
                individuals who are knowledgeable about the 
                program areas they are reviewing and, to the 
                maximum extent practicable, the diverse 
                (including linguistic and cultural) needs of 
                eligible children (including children with 
                disabilities) and limited-English proficient 
                children and their families;
                  (C) include as part of the reviews of the 
                programs, a review and assessment of program 
                effectiveness, including strengths and areas 
                for improvement, as measured in accordance with 
                the results-based performance measures 
                developed by the Secretary pursuant to 
                subsection (b) and with the standards 
                established pursuant to subparagraphs (A) and 
                (B) of subsection (a)(1);
                  (D) seek information from the communities and 
                the States involved about the performance of 
                the programs and the efforts of the Head Start 
                agencies to collaborate with other entities 
                carrying out early childhood education and 
                child care programs in the community;
                  (E) seek information from the communities 
                where Head Start programs exist about 
                innovative or effective collaborative efforts, 
                barriers to collaboration, and the efforts of 
                the Head Start agencies and programs to 
                collaborate with the entities carrying out 
                early childhood education and child care 
                programs in the community;
                  (F) include as part of the reviews of the 
                programs, a review and assessment of whether a 
                program is in conformity with the income 
                eligibility requirements, as defined in section 
                645 and regulations promulgated thereunder;
                  (G) include as part of the reviews of the 
                programs, a review and assessment of whether 
                programs have adequately addressed the 
                population and community needs (including 
                populations of children with a limited English 
                proficiency and children of migrant and 
                seasonal farm-working families);
                  (H) include as part of the review the extent 
                to which the program addresses the community 
                needs and strategic plan identified in section 
                640(g)(2)(C); and
                  (I) are conducted in a manner that evaluates 
                program performance, quality, and overall 
                operations with consistency and objectivity, 
                and based on a transparent and reliable system 
                of review.
  (d) Corrective Action; Termination.--
          [(1) Determination.--If the Secretary determines, on 
        the basis of a review pursuant to subsection (c), that 
        a Head Start agency designated pursuant to section 641 
        fails to meet the standards described in subsection (a) 
        or results-based performance measures developed by the 
        Secretary under subsection (b), the Secretary shall--]
          (1) Determination.--If the Secretary determines, on 
        the basis of a review pursuant to subsection (c), that 
        a Head Start agency designated pursuant to section 641 
        fails to meet the standards described in subsection (a) 
        or results-based performance measures developed by the 
        Secretary under subsection (b), or fails to adequately 
        address the community needs and strategic plan 
        identified in 640(g)(2)(C), the Secretary shall--
                  (A) * * *

           *       *       *       *       *       *       *

          [(2) Quality improvement plan.--
                  [(A) Agency responsibilities.--In order to 
                retain a designation as a Head Start agency 
                under this subchapter, a Head Start agency that 
                is the subject of a determination described in 
                paragraph (1) (other than an agency required to 
                correct a deficiency immediately or during a 
                90-day period under clause (i) or (ii) of 
                paragraph (1)(B)) shall--
                          [(i) develop in a timely manner, 
                        obtain the approval of the Secretary 
                        regarding, and implement a quality 
                        improvement plan that specifies--
                                  [(I) the deficiencies to be 
                                corrected;
                                  [(II) the actions to be taken 
                                to correct such deficiencies; 
                                and
                                  [(III) the timetable for 
                                accomplishment of the 
                                corrective actions specified; 
                                and
                          [(ii) eliminate each deficiency 
                        identified, not later than the date for 
                        elimination of such deficiency 
                        specified in such plan (which shall not 
                        be later than 1 year after the date the 
                        agency received notice of the 
                        determination and of the specific 
                        deficiency to be corrected).
                  [(B) Secretarial responsibility.--Not later 
                than 30 days after receiving from a Head Start 
                agency a proposed quality improvement plan 
                pursuant to subparagraph (A), the Secretary 
                shall either approve such proposed plan or 
                specify the reasons why the proposed plan 
                cannot be approved.]
          (2) Quality improvement plan.--
                  (A) Agency and program responsibilities.--In 
                order to retain a designation as a Head Start 
                agency under this subchapter, or in the case of 
                a Head Start program, in order to continue to 
                receive funds from such agency, a Head Start 
                agency, or Head Start program that is the 
                subject of a determination described in 
                paragraph (1) (other than an agency or program 
                required to correct a deficiency immediately or 
                during a 90-day period under clause (i) or (ii) 
                of paragraph (1)(B)) shall--
                          (i) develop in a timely manner, a 
                        quality improvement plan 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 
                                corrected;
                                  (II) the actions to be taken 
                                to correct such deficiencies; 
                                and
                                  (III) the timetable for 
                                accomplishment of the 
                                corrective actions specified; 
                                and
                          (ii) eliminate each deficiency 
                        identified, not later than the date for 
                        elimination of such deficiency 
                        specified in such plan (which shall not 
                        be later than 1 year after the date the 
                        agency or program received notice of 
                        the determination and of the specific 
                        deficiency to be corrected).
                  (B) Secretarial responsibility.--Not later 
                than 30 days after receiving from a Head Start 
                agency a proposed quality improvement plan 
                pursuant to subparagraph (A), the Secretary 
                shall either approve such proposed plan or 
                specify the reasons why the proposed plan 
                cannot be approved.
                  (C) Agency responsibility for program 
                improvement.--Not later than 30 days after 
                receiving from a Head Start program, a proposed 
                quality improvement plan pursuant to 
                subparagraph (A), the sponsoring agency shall 
                either approve such proposed plan or specify 
                the reasons why the proposed plan cannot be 
                approved.
          (3) 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 appropriate given 
        available funding and other statutory responsibilities.
  [(e) Summaries of Monitoring Outcomes.--Not later than 120 
days after the end of each fiscal year, the Secretary shall 
publish a summary report on the findings of reviews conducted 
under subsection (c) and on the outcomes of quality improvement 
plans implemented under subsection (d), during such fiscal 
year. Such report shall be widely disseminated and available 
for public review in both written and electronic formats.]
  (e) Summaries of Monitoring Outcomes.--Not later than 120 
days after the end of each fiscal year, the Secretary shall 
publish a summary report on the findings of reviews conducted 
under subsection (c) and on the outcomes of quality improvement 
plans implemented under subsection (d), during such fiscal 
year. Such information 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 addition, make the information widely 
available through public means such as distribution through 
public agencies, and at a minimum posting such information on 
the Internet immediately upon publication.
  (f) Reduction of Grants and Redistribution of Funds in Cases 
of Under-Enrollment.--
          (1) Definitions.--In this subsection:
                  (A) Actual enrollment.--The term ``actual 
                enrollment'' means, with respect to the program 
                of a Head Start agency, the actual number of 
                children enrolled in such program and reported 
                by the agency (as required in paragraph (2)) in 
                a given month.
                  (B) Base grant.--The term ``base grant'' 
                means, with respect to a Head Start agency for 
                a fiscal year, that portion of the grant 
                derived--
                          (i) from amounts reserved for use in 
                        accordance with section 640(a)(2)(A), 
                        for a Head Start agency administering 
                        an Indian Head Start program or migrant 
                        and seasonal Head Start program;
                          (ii) from amounts reserved for 
                        payments under section 640(a)(2)(B); or
                          (iii) from amounts available under 
                        section 640(a)(2)(D) or allotted among 
                        States under section 640(a)(4).
                  (C) Funded enrollment.--The term ``funded 
                enrollment'' means, with respect to the program 
                of a Head Start agency in a fiscal year, the 
                number of children that the agency is funded to 
                serve through a grant for the program during 
                such fiscal year, as indicated in the grant 
                agreement.
          (2) Enrollment reporting requirement for current 
        fiscal year.--Each entity carrying out a Head Start 
        program shall report on a monthly basis to the 
        Secretary and the relevant Head Start agency--
                  (A) the actual enrollment in such program; 
                and
                  (B) if such actual enrollment is less than 
                the funded enrollment, any apparent reason for 
                such enrollment shortfall.
          (3) Secretarial review and plan.--The Secretary 
        shall--
                  (A) on a semiannual basis, determine which 
                Head Start agencies are operating with an 
                actual enrollment that is less than the funded 
                enrollment based on not less than the average 
                of 4 consecutive months of data;
                  (B) for each such Head Start agency operating 
                a program with an actual enrollment that is 
                less than 95 percent of its funded enrollment, 
                as determined under subparagraph (A), develop, 
                in collaboration with such agency, a plan and 
                timetable for reducing or eliminating under-
                enrollment taking into consideration--
                          (i) the quality and extent of the 
                        outreach, recruitment, and community 
                        needs assessment conducted by such 
                        agency;
                          (ii) changing demographics, mobility 
                        of populations, and the identification 
                        of new underserved low-income 
                        populations;
                          (iii) facilities-related issues that 
                        may impact enrollment;
                          (iv) the ability to provide full-day 
                        programs, where needed, through Head 
                        Start funds or through collaboration 
                        with entities carrying out other 
                        preschool or child care programs, or 
                        programs with other funding sources 
                        (where available);
                          (v) the availability and use by 
                        families of other preschool and child 
                        care options (including parental care) 
                        in the local catchment area; and
                          (vi) agency management procedures 
                        that may impact enrollment; and
                  (C) provide timely and ongoing technical 
                assistance to each agency described in 
                subparagraph (B) for the purpose of 
                implementing the plan described in such 
                subparagraph.
          (4) Implementation.--Upon receipt of the technical 
        assistance described in paragraph (3)(C), a Head Start 
        agency shall immediately implement the plan described 
        in paragraph (3)(B).
          (5) Secretarial action for conversion to serve 
        younger children.--If, after implementing the plan 
        described in paragraph (3)(B), the grantee continues to 
        operate a program at less than full enrollment, the 
        grantee may, upon approval by the Secretary, be 
        permitted to use a portion of the base grant equal to 
        the percentage difference between funded enrollment and 
        actual enrollment for the most then recent year, to 
        serve persons described in section 645A(c) if such 
        agency currently operates a grant described in section 
        645A and submits an application containing--
                  (A) evidence of community need for such 
                services;
                  (B) a description of how the needs of 
                pregnant women, infants, and toddlers will be 
                addressed in accordance with section 645A(b) 
                and with regulations prescribed by the 
                Secretary pursuant to section 641A in areas 
                including--
                          (i) the approach to childhood 
                        development and health services; and
                          (ii) the approach to family and 
                        community partnerships; and approach to 
                        program design and management;
                  (C) assurances that the agency will 
                participate in technical assistance activities 
                for newly funded and existing grantees under 
                section 654A; and
                  (D) evidence that the agency meets the 
                eligibility criteria as grantees under section 
                645A.
        Any grantee permitted to serve children under this 
        paragraph shall be subject to the rules, regulations, 
        and conditions under section 645A.
          (6) Secretarial action for continued under-
        enrollment.--If, 1 year after the date of 
        implementation of the plan described in paragraph 
        (3)(B), the Head Start agency continues to operate a 
        program at less than full enrollment, the Secretary 
        shall, where determined appropriate, continue to 
        provide technical assistance to such agency.
          (7) Secretarial review and adjustment for chronic 
        under-enrollment.--
                  (A) In general.--If, after receiving 
                technical assistance and developing and 
                implementing a plan to the extent described in 
                paragraphs (3), (4), and (5) for 6 months, a 
                Head Start agency is still operating a program 
                with an actual enrollment that is less than 95 
                percent of its funded enrollment, the Secretary 
                may--
                          (i) designate such agency as 
                        chronically under-enrolled; and
                          (ii) recapture, withhold, or reduce 
                        the base grant for the program by, a 
                        percentage equal to the percentage 
                        difference between funded enrollment 
                        and actual enrollment for the program 
                        for the most recent year in which the 
                        agency is determined to be under-
                        enrolled under paragraph (2)(B).
                  (B) Waiver or limitation of reductions.--If 
                the Secretary, after the implementation of the 
                plan described in paragraph (3)(B), finds 
                that--
                          (i) the shortfall can reasonably be 
                        expected to be temporary; or
                          (ii) the number of slots allotted to 
                        the agency is small enough that under-
                        enrollment does not constitute a 
                        significant shortfall,
                the Secretary may, as appropriate, waive or 
                reduce the percentage recapturing, withholding, 
                or reduction otherwise required by subparagraph 
                (A).
                  (C) Procedural requirements; effective 
                date.--The actions taken by the Secretary under 
                this paragraph with respect to a Head Start 
                agency shall take effect 1 day after the date 
                on which--
                          (i) the time allowed for appeal under 
                        section 646(a) expires without an 
                        appeal by the agency; or
                          (ii) the action is upheld in an 
                        administrative hearing under section 
                        646.
          (8) Redistribution of funds.--
                  (A) In general.--Funds held by the Secretary 
                as a result of recapturing, withholding, or 
                reducing a base grant in accordance with 
                paragraph (6) in a fiscal year shall be 
                redistributed in such fiscal year as follows:
                          (i) If such funds are attributable to 
                        the portion of a base grant derived 
                        from amounts specified in paragraph 
                        (1)(B)(i) payable, but for the 
                        operation of this paragraph, to carry 
                        out an Indian Head Start program, then 
                        such funds shall be redistributed to 
                        increase enrollment in such fiscal year 
                        in 1 or more Indian Head Start 
                        programs.
                          (ii) If such funds are attributable 
                        to the portion of a base grant derived 
                        from amounts specified in paragraph 
                        (1)(B)(i) payable, but for the 
                        operation of this paragraph, to carry 
                        out a migrant and seasonal Head Start 
                        program, then such funds shall be 
                        redistributed to increase enrollment in 
                        such fiscal year in 1 or more migrant 
                        and seasonal Head Start programs.
                          (iii) If such funds are attributable 
                        to the portion of a base grant derived 
                        from amounts specified in clause (ii) 
                        or (iii) of paragraph (1)(B) payable, 
                        but for the operation of this 
                        paragraph, to carry out a Head Start 
                        program (excluding Indian Head Start 
                        programs, and migrant and seasonal Head 
                        Start programs) in a State, then such 
                        funds shall be redistributed to 
                        increase enrollment in such fiscal year 
                        in 1 or more--
                                  (I) other Head Start programs 
                                (excluding Indian Head Start 
                                programs and migrant and 
                                seasonal Head Start programs) 
                                that are carried out in such 
                                State; or
                                  (II) if the Secretary 
                                determines that children 
                                eligible under section 641 are 
                                being adequately served within 
                                such State, 1 or more Early 
                                Head Start programs (excluding 
                                Indian Head Start programs and 
                                migrant and seasonal Head Start 
                                programs) or 1 or more Head 
                                Start programs for the purpose 
                                of becoming a grantee pursuant 
                                to section 645A.
                  (B) Adjustment to funded enrollment.--The 
                Secretary shall adjust as necessary the 
                requirements relating to funded enrollment 
                indicated in the grant agreement of a Head 
                Start agency receiving funds redistributed 
                under this paragraph.

              POWERS AND FUNCTIONS OF HEAD START AGENCIES

  Sec. 642. (a) * * *
  [(b) In order to be so designated, a Head Start agency shall 
also--
          [(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) provide for their regular participation in the 
        implementation of such programs;
          [(3) provide technical and other support needed to 
        enable parents and area residents to secure on their 
        own behalf available assistance from public and private 
        sources;
          [(4) seek the involvement of parents of participating 
        children in activities designed to help such parents 
        become full partners in the education of their 
        children, and to afford such parents the opportunity to 
        participate in the development, conduct, and overall 
        performance of the program at the local level;
          [(5) offer (directly or through referral to local 
        entities, such as entities carrying out Even Start 
        programs under part B of chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 2741 et seq.)), to parents of participating 
        children, family literacy services and parenting skills 
        training;
          [(6) offer to parents of participating children 
        substance abuse counseling (either directly or through 
        referral to local entities), including information on 
        drug-exposed infants and fetal alcohol syndrome;
          [(7) at the option of such agency, offer (directly or 
        through referral to local entities), to such parents--
                  [(A) training in basic child development;
                  [(B) assistance in developing communication 
                skills;
                  [(C) opportunities to share experiences with 
                other parents;
                  [(D) regular in-home visitation; or
                  [(E) any other activity designed to help such 
                parents become full partners in the education 
                of their children;
          [(8) provide, with respect to each participating 
        family, a family needs assessment that includes 
        consultation with such parents about the benefits of 
        parent involvement and about the activities described 
        in paragraphs (4) through (7) in which such parents may 
        choose to be involved (taking into consideration their 
        specific family needs, work schedules, and other 
        responsibilities);
          [(9) consider providing services to assist younger 
        siblings of children participating in its Head Start 
        program to obtain health services from other sources;
          [(10) perform community outreach to encourage 
        individuals previously unaffiliated with Head Start 
        programs to participate in its Head Start program as 
        volunteers; and
          [(11)(A) inform custodial parents in single-parent 
        families that participate in programs, activities, or 
        services carried out or provided under this subchapter 
        about the availability of child support services for 
        purposes of establishing paternity and acquiring child 
        support; and
          [(B) refer eligible parents to the child support 
        offices of State and local governments.
  [(c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering 
the State program carried out under the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and other early childhood education and development programs, 
including Even Start programs under part B of chapter 1 of 
title I of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 2741 et seq.) and programs under part C and section 
619 of the Individuals with Disabilities Education Act (20 
U.S.C 1431-1444, 1419), serving the children and families 
served by the Head Start agency to carry out the provisions of 
this subchapter.]
  (b) In order to be so designated, a Head Start agency shall 
do all of the following:--
          (1) Establish a program with standards set forth in 
        section 641A(a)(1), with particular attention to the 
        standards set forth in subparagraphs (A) and (B) of 
        such section.
          (2) Demonstrate capacity to serve eligible children 
        with scientifically-based curricula and other 
        interventions that help promote the school readiness of 
        children participating in the program.
          (3) Establish effective procedures by which parents 
        and area residents concerned will be enabled to 
        directly participate in decisions that influence the 
        character of programs affecting their interests.
          (4) Establish an independent board of directors 
        selected from among eligible individuals who shall 
        serve on the board (or may designate an existing entity 
        whose members are eligible individuals, that shall be 
        such board) for a period not to exceed 5 years, except 
        that board members who oversee a public entity and who 
        are selected by election (or members of a board of a 
        local educational agency or a local council, appointed 
        by an elected official or an official of a general 
        purpose local government), may serve for such period as 
        may be determined by the electing or appointing 
        authority, as the case may be. An individual who has a 
        conflict of interest is ineligible to serve as a member 
        of the board. Members of the board of all nonpublic 
        entities shall include representatives of the local 
        community (including at least 1 member with significant 
        financial management or accounting experience and the 
        chair of the council described in section 
        642(b)(4)(B)(ii)). Additional members shall be selected 
        for their expertise in education, business 
        administration, community affairs, government, legal 
        affairs, and such other areas of expertise as may 
        contribute to effective governance of the Head Start 
        agency. All members of the board shall receive training 
        in the management responsibilities and obligations, 
        ethics, and financial literacy and management, and 
        shall adopt practices that assure active, independent 
        and informed governance of the Head Start agency, 
        including independent oversight of the financial and 
        management practices of such agency. The board shall 
        provide direction to the executive director of the Head 
        Start agency and shall operate as an entity independent 
        of staff employed by the Head start agency, entity, or 
        applicant and have the following duties and 
        responsibilities:
                  (A) To provide independent oversight to 
                ensure that the Head Start agency 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 
                established by the Secretary under section 644.
                  (B) To establish 2 or more standing 
                committees to facilitate governance of the Head 
                Start agency which shall include both of the 
                following:
                          (i) An audit and finance committee 
                        whose primary responsibility shall be--
                                  (I) to approve annually the 
                                operating budget of the Head 
                                Start agency;
                                  (II) to review and recommend 
                                to the board the selection of 
                                independent auditors who shall 
                                report all critical accounting 
                                policies and practices to the 
                                finance and audit committee;
                                  (III) to review and recommend 
                                to the board the termination or 
                                extension of the existing audit 
                                firm at least once every 5 
                                years;
                                  (IV) to review and advise the 
                                board of the audit management 
                                letter provided pursuant to the 
                                chapter 75 of title 31 of the 
                                United States Code, and of any 
                                audit findings; and
                                  (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 
                                accounting practices.
                          (ii) A policy council, a majority of 
                        whose representatives shall be parents 
                        of children participating in a Head 
                        Start program or in an Early Head Start 
                        program, or of children who 
                        participated in a Head Start program or 
                        in an Early Head Start program in the 
                        then most recent 5-year period 
                        preceding the selection of the 
                        particular representative involved, and 
                        whose primary responsibility shall be 
                        to serve as a link between parents and 
                        the board of directors and to make and 
                        submit recommendations on the following 
                        activities to the Board:
                                  (I) The strategic direction 
                                of the program, including long 
                                and short-term planning goals 
                                and objectives.
                                  (II) Program operation 
                                policies, including standards 
                                of conduct for program staff 
                                and volunteers.
                                  (III) Activities to support 
                                the active involvement of 
                                parents in supporting program 
                                operations.
                                  (IV) classroom activities and 
                                staffing;
                                  (V) program responsiveness to 
                                community and parent needs; and
                                  (VI) other areas the 
                                committee identifies as 
                                necessary to improve program 
                                operations.
                  (C) To approve the selection and dismissal of 
                the Head Start director, and to review annually 
                the human resources available to ensure the 
                effective operation of the Head Start agency.
                  (D) To consult, on a regular basis, with the 
                policy committee and to take actions on 
                recommendations submitted by such committee.
                  (E) To review and approve the major 
                operational policies of the Head Start agency, 
                including policies addressing accounting, 
                financial management, procurement, record 
                confidentiality, and personnel (including 
                specific standards governing salaries, salary 
                adjustments, travel and per diem allowances, 
                and other employee benefits).
                  (F) To ensure that the Head Start agency is 
                operated in compliance with applicable Federal, 
                State, and local laws (including regulations), 
                and to monitor agency implementation of any 
                corrective action necessary to comply with 
                applicable laws (including regulations);
                  (G) To oversee the program planning of the 
                Head Start agency, including adoption of the 
                Head Start agency philosophy and mission 
                statement, adoption of policies for determining 
                community needs, setting long- and short-range 
                goals and objectives, establishment of criteria 
                for selecting families in Head Start programs 
                or Early Head Start programs, and to oversee 
                and approve the agency's applications to 
                receive funds made available under this 
                subchapter; and
                  (H) To establish, to adopt, and to 
                periodically update written standards of 
                conduct that establish standards and formal 
                procedures for disclosing, addressing, and 
                resolving--
                          (i) any conflict of interest, and any 
                        appearance of a conflict of interest, 
                        by board members, officers, employees, 
                        consultants, and agents who provide 
                        services or furnish goods to the Head 
                        Start agency; and
                          (ii) complaints, including 
                        investigations, when appropriate.
          (5) To seek the involvement of parents, area 
        residents, and local business in the design and 
        implementation of the program.
          (6) To provide technical and other support needed to 
        enable parents and area residents to secure on their 
        own behalf available assistance from public and private 
        sources.
          (7) To establish effective procedures to facilitate 
        the involvement of parents of participating children in 
        activities designed to help such parents become full 
        partners in the education of their children, 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 participating 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).
          (8) To conduct outreach to schools in which children 
        participating in Head Start programs enroll, local 
        educational agencies, the local business community, 
        community-based organizations, faith-based 
        organizations, museums, and libraries to generate 
        support and leverage the resources of the entire local 
        community in order to improve school readiness.
          (9) To 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 participating 
        children, family literacy services and parenting skills 
        training.
          (10) To offer to parents of participating children 
        substance abuse counseling (either directly or through 
        referral to local entities), including information on 
        drug-exposed infants and fetal alcohol syndrome.
          (11) At the option of such agency, to offer (directly 
        or through referral to local entities), to such 
        parents--
                  (A) training in basic child development 
                (including cognitive development);
                  (B) assistance in developing literacy and 
                communication skills;
                  (C) opportunities to share experiences with 
                other parents (including parent-mentor 
                relationships);
                  (D) mental and behavioral health services;
                  (E) regular in-home visitation; or
                  (F) any other activity designed to help such 
                parents become full partners in the education 
                of their children.
          (12) To provide, with respect to each participating 
        family, a family needs assessment that includes 
        consultation with such parents about the benefits of 
        parent involvement and about the activities described 
        in paragraphs (5) through (8) in which such parents may 
        choose to be involved (taking into consideration their 
        specific family needs, work schedules, and other 
        responsibilities).
          (13) To consider providing services to assist younger 
        siblings of children participating in its Head Start 
        program to obtain health services from other sources.
          (14) To perform community outreach to encourage 
        individuals previously unaffiliated with Head Start 
        programs to participate in its Head Start program as 
        volunteers.
          (15)(A) To inform custodial parents in single-parent 
        families that participate in programs, activities, or 
        services carried out or provided under this subchapter 
        about the availability of child support services for 
        purposes of establishing paternity and acquiring child 
        support; and
          (B) refer eligible parents to the child support 
        offices of State and local governments.
          (16) provide parents of limited English proficient 
        children outreach and services under this subchapter, 
        in an understandable and uniform format and, to the 
        extent practicable, in a language that such parents can 
        understand.
  (c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering 
the State program carried out under the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and other early childhood education and development programs, 
including programs under subtitle B of title VII of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431-11435), 
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.), and programs under Part C and section 619 of the 
Individuals with Disabilities Education Act (20 U.S.C. 1431-
1445, 1419), and the Child Abuse Prevention and Treatment Act 
(42 U.S.C. 5106a), serving the children and families served by 
the Head Start agency to carry out the provisions of this 
subchapter.
  (d)(1) * * *
          (2) Coordination.--
                  (A) Local educational agency.--In communities 
                where both public prekindergarten programs and 
                Head Start programs operate, a Head Start 
                agency shall collaborate and coordinate 
                activities with the local educational agency or 
                other public agency responsible for the 
                operation of the prekindergarten program and 
                providers of prekindergarten, including 
                outreach activities to identify eligible 
                children.
                  (B) Elementary schools.--Head Start 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 attending--
                          (i) to share information about such 
                        children;
                          (ii) to receive advice and support 
                        from the teachers in such elementary 
                        schools participating in Early Reading 
                        First programs funded under subpart 1 
                        of part B of title I of the Elementary 
                        and Secondary Education Act of 1965 
                        regarding scientifically based teaching 
                        strategies and options; and
                          (iii) to ensure a smooth transition 
                        to elementary school for such children.
                  (C) Other early education and child 
                development programs.--The head of each Head 
                Start agency shall coordinate activities and 
                collaborate with the State agency responsible 
                for administering the State program carried out 
                under the Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9858 et seq.), and 
                other entities carrying out early childhood 
                education and development programs, programs 
                under subtitle B of title VII of the McKinney-
                Vento Homeless Assistance Act (42 U.S.C. 11431-
                11435), 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. 6381 
                et seq.), and programs under section 619 and 
                part C of the Individuals with Disabilities 
                Education Act (20 U.S.C 1419, 1431 et seq.), 
                serving the children and families served by the 
                Head Start agency.
                  (D) Other programs.--Each Head Start agency 
                shall collaborate, as appropriate, with 
                providers of social and community services 
                available to children and families 
                participating in Head Start programs, and may 
                support such partnerships with financial 
                agreements, when applicable, for the provision 
                of such services.
          (3) Collaboration.--A Head Start agency shall take 
        steps to coordinate activities with the local 
        educational agency serving the community involved and 
        with schools in which children participating in a Head 
        Start program 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 efficiency 
                of services while increasing the program 
                participation of underserved populations of 
                eligible children; and
                  (C) exchanging information on the provision 
                of noneducational services to such children.
          (4) Parental involvement.--In order to promote the 
        continued involvement of the parents (including 
        grandparents and kinship caregivers, as appropriate) of 
        children that participate in Head Start programs in the 
        education of their children upon transition to school, 
        the Head Start agency 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 
                                appropriate in decisions 
                                relating to the education 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.
  [(2) A] (5) Each Head Start agency [may] shall take steps to 
coordinate with the local educational agency serving the 
community involved and with schools in which children 
participating in a Head Start program operated by such agency 
will enroll following such program, including--
          (A) collaborating on the shared use of transportation 
        and facilities; [and]
          (B) collaborating to increase the program 
        participation of underserved populations of eligible 
        children; and
          [(B)] (C) exchanging information on the provision of 
        noneducational services to such children.
  [(3)] (6) In order to promote the continued involvement of 
the parents of children that participate in Head Start programs 
in the education of their children upon transition to school, 
the Head Start agency shall--
          (A) * * *

           *       *       *       *       *       *       *

  [(4)] (7) The Secretary, in cooperation with the Secretary of 
Education, shall--
          (A) * * *

           *       *       *       *       *       *       *

  (8) Head Start agencies shall implement a research-based 
early childhood curricula that promotes young children's school 
readiness in the areas of language and cognitive development, 
early reading and premathematics skills, socio-emotional 
skills, physical development, and approaches to learning. Such 
curricula shall be--
          (A) based on scientifically based research and have 
        standardized training procedures and published 
        curriculum materials to support implementation; and
          (B) comprehensive, outcomes based, and linked to 
        ongoing assessment with instructional goals and 
        measurable objectives.
  (9) Head Start agencies shall use ongoing, research-based 
assessment methods that are developmentally appropriate, 
culturally and linguistically responsive, and tied to 
children's daily activities in order to support the educational 
instruction of children in the program, including language 
skills, prereading knowledge and premathematics knowledge. 
Assessment instruments shall be those designed and validated 
for making decisions about teaching and learning and aligned 
with the program's curricula and Section 641A(a)(1).
  (10) For the purpose of meeting the performance standards, 
Head Start agencies shall use high-quality research-based 
developmental 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.
  [(e) Head Start agencies shall adopt, in consultation with 
experts in child development and with classroom teachers, an 
assessment to be used when hiring or evaluating any classroom 
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).]
  (e) Assessment.--Each Head Start agency shall adopt, in 
consultation with experts in child development and with 
classroom teachers, an assessment to be used when hiring or 
evaluating any classroom 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 appropriate to implement Head 
Start curricula.
  (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.

[SEC. 642A. HEAD START TRANSITION.]

SEC. 642A. HEAD START ALIGNMENT WITH K-12 EDUCATION.

  Each Head Start agency shall take steps to coordinate with 
the local educational agency serving the community involved and 
with schools in which children participating in a Head Start 
program operated by such agency will enroll following such 
program, including--
          (1) * * *
          (2) establishing ongoing channels of communication 
        between Head Start staff and their counterparts in the 
        schools (including teachers, social workers, 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 coordination of programs;
          (3) developing continuity of developmentally 
        appropriate curricula between Head Start and local 
        educational agencies to ensure an effective transition 
        and appropriate shared expectations for children's 
        learning and development as they make such transition 
        to school;
          (4) organizing and participating in joint training, 
        including transition-related training for school staff 
        and Head Start staff;
          [(3)] (5) conducting meetings involving parents, 
        kindergarten or elementary school teachers, and Head 
        Start program teachers to discuss the educational, 
        developmental, and other needs of individual children;
          [(4)] (6) organizing and participating in joint 
        transition-related training of school staff and Head 
        Start staff;
          [(5) developing and implementing a family outreach 
        and support program in cooperation with entities 
        carrying out parental involvement efforts under title I 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6301 et seq.);]
          (7) developing and implementing a family outreach and 
        support program in cooperation with entities carrying 
        out parental involvement efforts under title I of the 
        Elementary and Secondary Education Act of 1965 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);
          [(6)] (8) assisting families, administrators, and 
        teachers in enhancing educational and developmental 
        continuity and continuity in parental involvement 
        activities between Head Start services and elementary 
        school classes; [and]
          [(7) linking the services provided in such Head Start 
        program with the education services provided by such 
        local educational agency.]
          (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 agency;
          (10) helping parents (including grandparents and 
        kinship caregivers, as appropriate) to understand the 
        importance of parental involvement in a child's 
        academic success while teaching them strategies 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 populations of 
        eligible children; and
          (12) coordinating activities and collaborating to 
        ensure that curricula used in the Head Start program is 
        aligned with--
                  (A) State early learning standards with 
                regard to cognitive, social, emotional, and 
                physical competencies that children entering 
                kindergarten are expected to demonstrate; and
                  (B) the Head Start Child Outcomes Framework 
                developed by the Secretary.

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, State-funded preschool and other early childhood 
programs. Head Start agencies shall operate in a manner 
consistent with the goal of creating and expanding an efficient 
and effective system of early childhood and school readiness 
services in each State and community, while maintaining 
compliance with Standards under section 641A(a).
          (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 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 prekindergarten 
        in the service area), that shall include plans to 
        coordinate the following activities:
                  (A) Educational activities, curricula, and 
                instruction aligned to challenging State 
                developed educational activities, curricula, 
                and instruction aligned to challenging State 
                developed academic content standards.
                  (B) Public information dissemination and 
                access to programs for families contacting any 
                of the early childhood programs.
                  (C) Selection priorities for eligible 
                children to be served by programs.
                  (D) Service delivery areas.
                  (E) Staff training, including opportunities 
                for joint staff training on topics such as 
                academic content standards and instructional 
                methods.
                  (F) Program technical assistance.
                  (G) Provision of additional services to meet 
                the child care 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, 
                transportation, and other program elements, and
                  (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 understanding under 
        paragraph (1) not later than 1 year after the effective 
        date of this section.
          (3) Secretarial review.--Each memorandum of 
        understanding entered into under paragraph (1) shall be 
        submitted to the Secretary not later than 30 days after 
        entering into such memorandum.
                  (A) If a Head Start agency is unable to 
                comply with the requirement in (1) the Head 
                Start agency shall notify the Secretary and the 
                chief executive officer of the State not later 
                than 30 days after determining that they are 
                unable to enter into such memorandum. The 
                Secretary, in cooperation with the State Early 
                Learning Council and the State Director of Head 
                Start Collaboration, shall evaluate the causes 
                of failure to enter into a memorandum 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 enter into a memorandum of understanding 
                under paragraph (1). Then if no such memorandum 
                of understanding is entered into, the Secretary 
                shall make 1 of the following determinations:
                          (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; or
                          (ii) The Head Start agency has not 
                        engaged in reasonable efforts to 
                        successfully negotiate and enter into a 
                        memorandum 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 deficient and shall be 
                considered by the Secretary in the same manner 
                as other deficiency findings.
                  (C) If the Secretary concludes that the local 
                educational agency, local council, or other 
                appropriate entity is not making reasonable 
                efforts to reach such a memorandum of 
                understanding, the Head Start agency shall not 
                be found out of compliance with paragraph (1).
          (4) Revision of memoranda.--Each memorandum of 
        understanding shall be revised and renewed 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 coordination in their service 
        area.
  (b) Statewide Integration.--From the amounts reserved under 
section 640(a)(2)(C)(ii), the Secretary shall award an early 
learning collaboration grant to each State for the purposes of 
supporting a State Early Learning Council responsible for 
advancing the development of a coordinated 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 the State Director of Head Start 
        Collaboration, representatives from the State preschool 
        programs, representatives of local educational 
        agencies, the State official who oversees child care 
        programs, the State official who oversees section 619 
        and part C of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1419, 1431 et seq.), the State 
        official who oversees the State educational agency, and 
        representatives from Head Start agencies located in the 
        State, including migrant and seasonal Head Start 
        programs and Indian Head Start programs. The chief 
        executive officer of the State may designate an 
        existing entity to serve as the Early Learning Council 
        if such entity includes representatives 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 30 percent of 
        the cost of carrying out this subsection;
          (3) direct the Early Learning Council--
                  (A) to increase coordination and 
                collaboration among State preschool, Head Start 
                programs, child care programs, early childhood 
                special education, and other early childhood 
                programs, including in the areas of outcomes 
                and standards, technical assistance, 
                coordination of services, cross-sector 
                professional development and training, 
                community outreach, communication, and better 
                serving the needs of working families through 
                provision of full-day and full-year early 
                education services;
                  (B) to work with State agencies responsible 
                for education, child care, and early 
                intervention to provide leadership and 
                assistance to local Head Start programs, school 
                districts, and State and locally funded 
                preschool and child care programs to increase 
                integration among early childhood programs 
                through adoption of local memoranda of 
                understanding described in subparagraph (A) and 
                other means;
                  (C) to work with State agencies responsible 
                for education, child care, and early 
                intervention to provide leadership and 
                assistance to develop a coherent sequence of 
                standards for children age 3 through the early 
                elementary grades to effect a smooth transition 
                to and success in the early elementary grades;
                  (D) to conduct periodic statewide needs 
                assessments concerning early care and education 
                programs for children from birth to school 
                entry;
                  (E) to work to identify and address barriers 
                to and opportunities for integration between 
                entities carrying out Federal and State child 
                development, child care, and early childhood 
                education programs;
                  (F) to develop recommendations regarding 
                means of establishing a unified data collection 
                system for early care and education programs 
                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 children;
                  (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 
                programs to deliver services pursuant to 
                section 648(b); and
                  (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 preschool 
                programs, and programs carried out under the 
                Child Care and Development Block Grant Act of 
                1990 (42 U.S.C. 9858 et seq.).
          (4) Nothing in this subsection shall be construed to 
        provide the Early Learning Council with authority to 
        alter the provisions of this Act.
          (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 section.

           *       *       *       *       *       *       *


               ADMINISTRATIVE REQUIREMENTS AND STANDARDS

  Sec. 644. (a)(1) Standards.--Each Head Start agency shall 
observe standards of organization, management, and 
administration which will assure, so far as reasonably 
possible, that all program activities are conducted in a manner 
consistent with the purposes of this subchapter and the 
objective of providing 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 policy. Each agency shall also provide 
for reasonable public access to information, including public 
hearings at the request of appropriate community groups and 
reasonable public access to books and records of the agency or 
other agencies engaged in program activities 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 discloses the following information from 
the then most recently concluded fiscal year, except that 
reporting such information shall not reveal personally 
identifiable information about an individual child:
          (A) The total amount of public and private funds 
        received and the amount from each source.
          (B) An explanation of budgetary expenditures and 
        proposed budget for the following fiscal 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 children for 
        kindergarten.
          (H) Any other information that describes the 
        activities of the agency.
  (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 (1) establish 
specific standards governing salaries, salary increases, travel 
and per diem allowances, and other employee benefits; (2) 
assure that only persons capable of discharging their duties 
with competence and integrity are employed and that employees 
are promoted or advanced under impartial procedures calculated 
to improve agency performance and effectiveness; (3) guard 
against personal or financial conflicts of interest; (4) define 
employee duties in an appropriate 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.

           *       *       *       *       *       *       *

  (f)(1) * * *
  (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 
submitted by such agency and contains--
          (A) a description of the consultation conducted by 
        the Head Start agency with the providers in the 
        community demonstrating capacity and capability to 
        provide services under this subchapter, and of the 
        potential for collaboration with such providers and the 
        cost effectiveness of such collaboration as opposed to 
        the cost effectiveness of the purchase of a facility;
          [(A)] (B) a description of the site of the facility 
        proposed to be purchased or that was previously 
        purchased;
          [(B)] (C) the plans and specifications of such 
        facility;
          [(C)] (D) information demonstrating that--
                  (i) * * *

           *       *       *       *       *       *       *

          [(D)] (E) in the case of a request regarding a 
        previously purchased facility, information 
        demonstrating that the facility will be used 
        principally as a Head Start center, or a direct support 
        facility for a Head Start program; and
          [(E)] (F) such other information and assurances as 
        the Secretary may require.

           *       *       *       *       *       *       *


                  PARTICIPATION IN HEAD START PROGRAMS

  Sec. 645. (a)(1) The Secretary shall by regulation prescribe 
eligibility for the participation of persons in Head Start 
programs assisted under this subchapter. Except as provided in 
paragraph (2), such criteria may provide--
          (A) * * *
          (B) pursuant to such regulations as the Secretary 
        shall prescribe, that--
                  (i) programs assisted under this subchapter 
                may include, [to a reasonable extent] not to 
                exceed 10 percent of the total enrollment, 
                participation of children in the area served 
                who would [benefit from such programs] benefit 
                from such programs, 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-income 
                criteria); and

           *       *       *       *       *       *       *

  (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 authority 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 determining the eligibility of a child of the 
individual for programs assisted under this subchapter.

           *       *       *       *       *       *       *


SEC. 645A. EARLY HEAD START PROGRAMS FOR FAMILIES WITH INFANTS AND 
                    TODDLERS.

  (a) * * *
  (b) Scope and Design of Programs.--In carrying out a program 
described in subsection (a), an entity receiving assistance 
under this section shall--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) provide services to parents to support their 
        role as parents and to help the families move toward 
        self-sufficiency (including educational and employment 
        services as appropriate);
          [(5) coordinate services with services provided by 
        programs in the State and programs in the community 
        (including programs for infants and toddlers with 
        disabilities) to ensure a comprehensive array of 
        services (such as health and mental health services);]
          (4) provide services to parents to support their role 
        as parents (including parenting skills training and 
        training in basic child development) and to help the 
        families move toward self-sufficiency (including 
        educational and employment services as appropriate);
          (5) coordinate services with services (including 
        home-based services) provided by programs in the State 
        and programs in the community (including programs for 
        infants and toddlers with disabilities and programs for 
        homeless infants and toddlers) to ensure a 
        comprehensive array of services (such as health and 
        mental health services, and family support services);

           *       *       *       *       *       *       *

          [(8) ensure formal linkages with the agencies and 
        entities described in section 644(b) of the Individuals 
        with Disabilities Education Act (20 U.S.C. 1444(b)) and 
        providers of early intervention services for infants 
        and toddlers with disabilities under the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.); and]
          (8) ensure formal linkages with the agencies and 
        entities described in section 644(b) of the Individuals 
        with Disabilities Education Act (20 U.S.C. 1444(b)) and 
        providers of early intervention services for infants 
        and toddlers with disabilities under the Individuals 
        with Disabilities Education Act (20 U.S.C. 1400 et 
        seq.) and the agency responsible for administering 
        section 106 of the Child Abuse Prevention and Treatment 
        Act (42 U.S.C. 5106a);
          (9) develop and implement a systematic procedure for 
        transitioning children and parents from an Early Head 
        Start program into a Head Start program or another 
        local early childhood education program;
          (10) establish channels of communication between 
        staff of Early Head Start programs and staff of Head 
        Start programs or other local early childhood education 
        programs, to facilitate the coordination of programs; 
        and
          [(9)] (11) meet such other requirements concerning 
        design and operation of the program described in 
        subsection (a) as the Secretary may establish.

           *       *       *       *       *       *       *

  (d) Eligible Service Providers.--To be eligible to receive 
assistance under this section, an entity shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
Entities that may apply to carry out activities under this 
section include--
          [(1) entities operating Head Start programs under 
        this subchapter; and]
          (1) entities operating Head Start programs under this 
        subpart, including migrant and seasonal Head Start 
        programs; and
          (2) other public entities, and nonprofit or for-
        profit private entities, including community- and 
        faith-based organizations, capable of providing child 
        and family services that meet the standards for 
        participation in programs under this subchapter and 
        meet such other appropriate requirements relating to 
        the activities under this section as the Secretary may 
        establish.

           *       *       *       *       *       *       *

  (g) Monitoring, Training, Technical Assistance, and 
Evaluation.--
          (1) * * *
          (2) Training and technical assistance account.--
                  (A) * * *
                  (B) Activities.--Funds in the account may be 
                used by the Secretary for purposes including--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) providing ongoing training and 
                        technical assistance for existing 
                        recipients (as of the date of such 
                        training or assistance) of grants under 
                        subsection (a) and support and program 
                        planning and implementation assistance 
                        for new recipients of such grants; 
                        [and]
                          (iv) providing professional 
                        development and personnel enhancement 
                        activities, including the provision of 
                        funds to recipients of grants under 
                        subsection (a) for the recruitment and 
                        retention of qualified staff with an 
                        appropriate level of education and 
                        experience[.]; and
                          (v) providing professional 
                        development designed to increase 
                        program participation for underserved 
                        populations of eligible children.
  (h) Center-based Staff.--The Secretary shall ensure that, not 
later than September 30, 2008, all teachers providing direct 
services to children and families participating in Early Head 
Start programs located in Early Head Start centers have a 
minimum of a child development associate credential or an 
associate degree, and have been trained (or have equivalent 
course work) in early childhood development.

SEC. 645B. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY INTRUSIVE 
                    PHYSICAL EXAMINATIONS.

  (a) Definition.--The term ``nonemergency intrusive physical 
examination'' means, with respect to a child, a physical 
examination that--
          (1) is not immediately necessary to protect the 
        health or safety of such child, or the health or safety 
        of another individual; and
          (2) includes incision or is otherwise invasive, or 
        includes exposure of private body parts.
  (b) Requirement.--Before administering any health care 
service (including any nonemergency intrusive physical 
examination) to a child (or referring such child to obtain such 
service) in connection with participation in a program under 
this subchapter, a Head Start agency and an entity that 
receives assistance under section 645A shall obtain the written 
consent of a parent of such child.
  (c) Rule of Construction.--Nothing in this section shall be 
construed to prohibit a Head Start agency or an entity that 
receives assistance under section 645A from using established 
methods, for handling cases of suspected or known child abuse 
and neglect, that are in compliance with applicable Federal, 
State, or tribal law.

                      APPEALS, NOTICE, AND HEARING

  Sec. 646. (a) The Secretary shall prescribe procedures to 
assure that--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) financial assistance under this subchapter shall 
        not be terminated or reduced, an application for 
        refunding shall not be denied, and a suspension of 
        financial assistance shall not be continued for longer 
        than 30 days, unless the recipient has been afforded 
        reasonable notice and opportunity for a full and fair 
        hearing; and]
          (3) if financial assistance under this subchapter is 
        terminated or reduced, an application for a 
        noncompeting continuation award is denied based on a 
        previous failure to comply with terms applicable to 
        financial assistance previously provided this 
        subchapter, or suspension of financial assistance is 
        continued for more than 30 days, the recipient with 
        respect to whom such action is taken shall have the 
        opportunity to appeal such action in accordance with 
        such procedures, except that no funds made available 
        under this subchapter may be used to reimburse any such 
        recipient for legal fees and other costs incurred in 
        pursuing such an appeal;

           *       *       *       *       *       *       *


                           RECORDS AND AUDITS

  Sec. 647. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Not later than 180 days after the end of each fiscal 
year, each Head Start agency, and each entity that receives 
assistance under section 645A, shall submit to the Secretary an 
independent financial audit of the Head Start program carried 
out with financial assistance provided under this subchapter. 
Such audit shall be carried out by a certified public 
accountant selected through a competitive process from among 
qualified certified accountants by the local oversight board 
established in accordance with section 642(b)(4) by such 
agency, except that no accountant may perform audits of such 
program for a period exceeding 5 consecutive fiscal years.
  (2) Not later than 60 days after receiving such audit, the 
Secretary shall provide to such agency or such entity, and to 
the chief executive officer of the State in which such program 
is operated, a notice identifying the actions such agency or 
such entity is required to take to correct all deficiencies 
identified in such audit.
  (d) Each recipient of financial assistance under this 
subchapter shall--
          (1) maintain, and annually submit to the Secretary, a 
        complete accounting of its administrative expenses 
        (including a detailed statement identifying the amount 
        of financial assistance provided under this subchapter 
        used to pay expenses for salaries and compensation and 
        the amount (if any) of other funds used to pay such 
        expenses); and
          (2) provide such additional documentation as the 
        Secretary may require.

                   TECHNICAL ASSISTANCE AND TRAINING

  Sec. 648. (a) * * *

           *       *       *       *       *       *       *

  (c) In allocating resources for technical assistance and 
training under this section, the Secretary shall--
          (1) * * *
          (2) supplement amounts provided under section 
        640(a)(3)(C)(ii) in order to address the training and 
        career development needs of classroom staff (including 
        instruction for providing services to children with 
        disabilities and for activities described in section 
        1221(b)(3) of the Elementary and Secondary Education 
        Act of 1965) and nonclassroom staff, including home 
        visitors and other staff working directly with 
        families, including training relating to increasing 
        parent involvement and services designed to increase 
        family literacy and improve parenting skills;

           *       *       *       *       *       *       *

          (5) assist Head Start agencies and programs in 
        conducting and participating in communitywide strategic 
        planning and needs assessment, including the needs of 
        homeless children and their families;

           *       *       *       *       *       *       *

          (10) assist Head Start agencies in developing 
        innovative program models, including mobile and home-
        based programs; [and]
          (11) provide support for Head Start agencies 
        (including policy councils and policy committees, as 
        defined in regulation) that meet the standards 
        described in section 641A(a) but that have, as 
        documented by the Secretary through reviews conducted 
        pursuant to section 641A(c), significant programmatic, 
        quality, and fiscal issues to address[.];
          (12) assist Head Start agencies and programs in 
        increasing program participation of homeless children; 
        and
          (13) assist Head Start agencies and Head Start 
        programs in improving outreach to, and the quality of 
        services available to, limited English proficient 
        children and their families, particularly in 
        communities that have experienced a large percentage 
        increase in the population of limited English 
        proficient individuals, as measured by the Bureau of 
        the Census.
  (d) The Secretary may provide, either directly or through 
grants to public or private nonprofit entities, including 
community- and faith-based organizations, training for Head 
Start personnel in the use of the performing and visual arts 
and interactive programs using electronic media to enhance the 
learning experience of Head Start children. Special 
consideration shall be given to entities that have demonstrated 
effectiveness in educational programming for preschool children 
that includes components for parental involvement, care 
provider training, and developmentally appropriate related 
activities.
  [(e) The Secretary shall provide, either directly or through 
grants or other arrangements, funds from programs authorized 
under this subchapter to support an organization to administer 
a centralized child development and national assessment program 
leading to recognized credentials for personnel working in 
early childhood development and child care programs, training 
for personnel providing services to non-English language 
background children (including services to promote the 
acquisition of the English language), training for personnel in 
helping children cope with community violence, and resource 
access projects for personnel working with disabled children.]
  (e) The Secretary shall provide, either directly or through 
grants or other arrangements, funds from programs authorized 
under this subchapter to support an organization to administer 
a centralized child development and national assessment program 
leading to recognized credentials for personnel working in 
early childhood development and child care programs, training 
for personnel providing services to limited English proficient 
children (including services to promote the acquisition of the 
English language), training for personnel providing services to 
children determined to be abused or neglected, training for 
personnel providing services to children referred by or 
receiving child welfare services, training for personnel in 
helping children cope with community violence, and resource 
access projects for personnel working with disabled children.
  (f) The Secretary shall provide, either directly or through 
grants, or other arrangements, funds for training of Head Start 
personnel in addressing the unique needs of migrant and 
seasonal working families, families with a limited English 
proficiency, and homeless families.
  (g) More than 50 percent of funds expended under this section 
shall be used to provide high quality, sustained, intensive, 
and classroom-focused training and technical assistance in 
order to have a positive and lasting impact on classroom 
instruction. Funds shall be used to carry out activities 
related to any or all of the following:
          (1) Education and early childhood development.
          (2) Child health, nutrition, and safety.
          (3) Family and community partnerships.
          (4) Other areas that impact the quality or overall 
        effectiveness of Head Start programs.
  (h) Funds under this subchapter used for training shall be 
used for needs identified annually by a grant applicant or 
delegate agency in their program improvement plan, except that 
funds shall not be used for long-distance travel expenses for 
training activities available locally or regionally or for 
training activities substantially similar to locally or 
regionally available training activities.
  (i)(1) The Secretary shall work in collaboration with the 
Head Start agencies that carry out migrant and seasonal Head 
Start programs, State Directors of Head Start Collaboration, 
the migrant and seasonal Head Start collatoration director, and 
other appropriate entities--
          (A) to accurately determine the number of children 
        nationwide who are eligible to participate in migrant 
        and seasonal Head Start programs each year;
          (B) to document how many of these children are 
        receiving Head Start services each year; and
          (C) to the extent practicable, to ensure that access 
        to migrant and seasonal Head Start programs for 
        eligible children is comparable to access to other Head 
        Start programs for other eligible children;
  (2) In carrying out paragraph (1)(A), the Secretary shall 
consult with the Secretary of Education about the Department of 
Education's systems for collecting and reporting data about, 
and maintaining records on, students from migrant and seasonal 
farmworker families.
  (3) Not later than 9 months after the effective date of this 
subsection, the Secretary shall publish in the Federal Register 
a notice of how the Secretary plans to carry out paragraph (1) 
and shall provide a period for public comment. To the extent 
practicable, the Secretary shall consider comments received 
before submitting a report to the Congress.
  (4) Not later than 1 year after the effective date of this 
subsection, the Secretary shall submit a report to the 
Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, 
and Pensions of the Senate, detailing how the Department of 
Health and Human Services plans to carry out paragraph (1).
  (5) The Secretary shall submit annually a report to the 
Congress detailing the number of children of migrant and 
seasonal farmworkers, who are eligible to participate in Head 
Start programs and the number of such children who are enrolled 
in Head Start programs.
  (6) The Secretary shall take appropriate action, consistent 
with section 444 of the General Education Provisions Act, to 
ensure the protection of the confidentiality of any personally 
identifiable data, information, and records collected or 
maintained by the Secretary, by Head Start agencies that carry 
out migrant and seasonal Head Start programs, by State 
Directors of Head Start Collaboration, by the Migrant and 
Seasonal Farmworker Collaboration Project Director, and by 
other appropriate entities pursuant to this subsection.
  (7) Nothing in this subsection shall be construed to 
authorize the development of a nationwide database of 
personally identifiable information on individuals involved in 
studies or other collections of data under this subsection.
  (j) For purposes of this section, the term ``eligible 
entities'' means an institution of higher education or other 
entity with expertise in delivering training in early childhood 
development, family support, and other assistance designed to 
improve the delivery of Head Start services.

SEC. 648A. STAFF QUALIFICATIONS AND DEVELOPMENT.

  (a) Classroom Teachers.--
          (1) * * *
          [(2) Degree requirements.--
                  [(A) In general.--The Secretary shall ensure 
                that not later than September 30, 2003, at 
                least 50 percent of all Head Start teachers 
                nationwide in center-based programs have--
                          [(i) an associate, baccalaureate, or 
                        advanced degree in early childhood 
                        education; or
                          [(ii) an associate, baccalaureate, or 
                        advanced degree in a field related to 
                        early childhood education, with 
                        experience in teaching preschool 
                        children.
                  [(B) Progress.--The Secretary shall require 
                Head Start agencies to demonstrate continuing 
                progress each year to reach the result 
                described in subparagraph (A).]
          (2) Degree requirements.--
                  (A) In general.--The Secretary shall ensure 
                that not later than September 30, 2011, at 
                least 50 percent of all Head Start teachers 
                nationwide in center-based programs have--
                          (i) a baccalaureate or advanced 
                        degree in early childhood education; or
                          (ii) a baccalaureate or advanced 
                        degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children.
                  (B) Progress.--Each Head Start agency shall 
                provide to the Secretary a report indicating 
                the number and percentage of classroom 
                instructors with child development associate 
                credentials and associate, baccalaureate, or 
                advanced degrees. The Secretary shall compile 
                all program reports and make them available to 
                the Committee on Education and the Workforce of 
                the United States House of Representatives and 
                the Committee on Health, Education, Labor, and 
                Pensions of the United States Senate.
                  (C) Requirement for new head start 
                teachers.--Within 3 years after the effective 
                date of this subparagraph, the Secretary shall 
                require that all Head Start teachers nationwide 
                in center-based programs hired following the 
                effective date of this subparagraph--
                          (i) have an associate, baccalaureate, 
                        or advanced degree in early childhood 
                        education or a related field; or
                          (ii) be currently enrolled in a 
                        program of study leading to an 
                        associate degree in early childhood 
                        education and agree to complete degree 
                        requirements within 3 years from the 
                        date of hire.
                  (D) Service requirements.--The Secretary 
                shall establish requirements to ensure that 
                individuals who receive financial assistance 
                under this subchapter in order to comply with 
                the requirements under section 648A(a)(2) shall 
                subsequently teach in a Head Start center for a 
                period of time equivalent to the period for 
                which they received assistance or repay the 
                amount of the funds.
                  (E) Limitation.--The Secretary shall require 
                that any Federal funds provided directly or 
                indirectly to comply with subparagraph (A) 
                shall be used toward degrees awarded by an 
                institution of higher education, as defined by 
                sections 101 or 102 of the Higher Education Act 
                (20 U.S.C. 1001-1002).

           *       *       *       *       *       *       *

  (f) Professional Development Plans.--Each Head Start agency 
and program shall create, in consultation with an employee, a 
professional development plan for all full-time employees who 
provide direct services to children.

SEC. 649. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

  (a) In General.--
          (1) Requirement; general purposes.--The Secretary 
        shall carry out a continuing program of research, 
        demonstration, and evaluation activities, in order to--
                  (A) * * *
                  [(B) use the Head Start programs to develop, 
                test, and disseminate new ideas and approaches 
                for addressing the needs of low-income 
                preschool children (including children with 
                disabilities) and their families and 
                communities (including demonstrations of 
                innovative noncenter-based program models such 
                as home-based and mobile programs), and 
                otherwise to further the purposes of this 
                subchapter.]
                  (B) use the Head Start programs to develop, 
                test, and disseminate new ideas and approaches 
                based on existing scientifically based 
                research, for addressing the needs of low-
                income preschool children (including children 
                with disabilities and children determined to be 
                abused or neglected) and their families and 
                communities (including demonstrations of 
                innovative non-center based program models such 
                as home-based and mobile programs), and 
                otherwise to further the purposes of this 
                subchapter.

           *       *       *       *       *       *       *

  (d) Specific Objectives.--The research, demonstration, and 
evaluation activities under this subchapter shall include 
components designed to--
          (1) * * *

           *       *       *       *       *       *       *

          (7) provide for disseminating and promoting the use 
        of the findings from such research, demonstration, and 
        evaluation activities; and
          (8) promote exploration of areas in which knowledge 
        is insufficient, and that will otherwise contribute to 
        fulfilling the purposes of this subchapter[;].
          [(9) study the experiences of small, medium, and 
        large States with Head Start programs in order to 
        permit comparisons of children participating in the 
        programs with eligible children who did not participate 
        in the programs, which study--
                  [(A) may include the use of a data set that 
                existed prior to the initiation of the study; 
                and
                  [(B) shall compare the educational 
                achievement, social adaptation, and health 
                status of the participating children and the 
                eligible nonparticipating children; and
The Secretary shall ensure that an appropriate entity carries 
out a study described in paragraph (9), and prepares and 
submits to the appropriate committees of Congress a report 
containing the results of the study, not later than September 
30, 2002.]

           *       *       *       *       *       *       *

  (g) National Head Start Impact Research.--
          (1) Expert panel.--
                  (A) In general.--The Secretary shall appoint 
                an independent panel consisting of experts in 
                program evaluation and research, education, and 
                early childhood programs--
                          [(i) to review, and make 
                        recommendations on, the design and plan 
                        for the research (whether conducted as 
                        a single assessment or as a series of 
                        assessments) described in paragraph 
                        (2), within 1 year after the date of 
                        enactment of the Coats Human Services 
                        Reauthorization Act of 1998;]
                          [(ii)] (i) to maintain and advise the 
                        Secretary regarding the progress of the 
                        research; and
                          [(iii)] (ii) to comment, if the panel 
                        so desires, on the interim and final 
                        research reports submitted under 
                        paragraph (7).

           *       *       *       *       *       *       *

          (7) Reports.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Transmittal of reports to congress.--
                          [(i) In general.--The Secretary shall 
                        transmit, to the committees described 
                        in clause (ii), the first interim 
                        report by September 30, 1999, the 
                        second interim report by September 30, 
                        2001, and the final report by September 
                        30, 2003.]
                          (i) Not later than September 30, 
                        2007, the Secretary shall transmit to 
                        the committees specified in clause (ii) 
                        the final report.

           *       *       *       *       *       *       *

  [(h) Quality Improvement Study.--
          [(1) Study.--The Secretary shall conduct a study 
        regarding the use and effects of use of the quality 
        improvement funds made available under section 
        640(a)(3) since fiscal year 1991.
          [(2) Report.--The Secretary shall prepare and submit 
        to Congress not later than September 2000 a report 
        containing the results of the study, including 
        information on--
                  [(A) the types of activities funded with the 
                quality improvement funds;
                  [(B) the extent to which the use of the 
                quality improvement funds has accomplished the 
                goals of section 640(a)(3)(B);
                  [(C) the effect of use of the quality 
                improvement funds on teacher training, 
                salaries, benefits, recruitment, and retention; 
                and
                  [(D) the effect of use of the quality 
                improvement funds on the development of 
                children receiving services under this 
                subchapter.]
  (h) NAS Study.--
          (1) In general.--The Secretary shall use funds 
        allocated in section 640(a)(2)(C)(iii) to contract with 
        the National Academy of Sciences for the Board on 
        Children, Youth, and Families of the National Research 
        Council to establish an independent panel of experts to 
        review and synthesize research, theory and applications 
        in the social, behavioral and biological sciences and 
        to make recommendations on early childhood pedagogy 
        with regard to each of the following:
                  (A) Age and developmentally appropriate Head 
                Start academic requirements and outcomes, 
                including the domains in 641A(a)(B).
                  (B) Differences in the type, length, mix and 
                intensity of services necessary to ensure that 
                children from challenging family and social 
                backgrounds including: low-income children, 
                children of color, children with special needs, 
                and children with limited English proficiency 
                enter kindergarten ready to succeed.
                  (C) Appropriate assessments of young children 
                (including systematic observation assessment in 
                a child's natural environment, and parent and 
                provider interviews) for purposes of improving 
                instruction, services, and program quality, and 
                accommodations for children with disabilities 
                and appropriate assessments for children with 
                special needs (including needs related to the 
                acquisition of the English language).
                  (D) An evaluation of the current and 
                appropriate uses of the National Reporting 
                System developed by the Secretary.
          (2) Composition.--The panel shall consist of multiple 
        experts in each of the following areas:
                  (A) Child development and education, 
                including cognitive, social, emotional, 
                physical, approaches to learning, and other 
                domains of child development and learning.
                  (B) Professional development, including 
                teacher preparation, to individuals who teach 
                young children in programs.
                  (C) Assessment of young children, including 
                screening, diagnostic and classroom-based 
                instructional assessment; children with special 
                needs, including children with disabilities and 
                limited English proficient children.
          (3) Timing.--The National Academy of Sciences and the 
        Board shall establish the panel not later than 90 days 
        after the date of the enactment of the School Readiness 
        Act of 2005. The panel shall complete its 
        recommendations within 18 months of its convening.
          (4) Application of panel recommendations.--The 
        recommendations of the panel shall be used as 
        guidelines by the Secretary to develop, inform and 
        revise, where appropriate, the Head Start education 
        performance measures and standards and the assessments 
        utilized in the Head Start program.
  (i) Limited English Proficient Children.--
          (1) Study.-- Not later than 1 year after the date of 
        enactment of the School Readiness Act of 2005, the 
        Secretary shall conduct a study on the status of 
        limited English proficient children and their families 
        in Head Start programs and Early Head Start programs.
          (2) Report.--The Secretary shall prepare and submit 
        to Congress, not later than September 2008, a report 
        containing the results of such study, including 
        information on--
                  (A)(i) the demographics of limited English 
                proficient children less than 5 years of age 
                and the geographical distribution of such 
                children; and
                  (ii) the number of such children receiving 
                Head Start services and the number of such 
                children receiving Early Head Start services, 
                and the geographical distribution of such 
                children receiving such services;
                  (B) the nature of the Head Start services and 
                of the Early Head Start services provided to 
                limited English proficient children and their 
                families, including the types, content, 
                duration, intensity, and costs of family 
                services, language assistance, and educational 
                services;
                  (C) procedures in Head Start programs for 
                assessing language needs and for making the 
                transition of limited English proficient 
                children to kindergarten, including the extent 
                to which Head Start programs meet the 
                requirements of section 642A for limited 
                English proficient children;
                  (D) the qualifications and training provided 
                to Head Start teachers and Early Head Start 
                teachers who serve limited English proficient 
                children and their families;
                  (E) the rate of progress made by limited 
                English proficient children and their families 
                in Head Start programs and in Early Head Start 
                programs, including--
                          (i) the rate of progress made by 
                        limited English proficient children 
                        toward meeting the additional 
                        educational standards described in 
                        section 641A(a)(1)(B)(ii) while 
                        enrolled in Head Start programs;
                          (ii) the correlation between such 
                        progress and the type and quality of 
                        instruction and educational programs 
                        provided to limited English proficient 
                        children; and
                          (iii) the correlation between such 
                        progress and the health and family 
                        services provided by Head Start 
                        programs to limited English proficient 
                        children and their families; and
                  (F) the extent to which Head Start programs 
                make use of funds under section 640(a)(3) to 
                improve the quality of Head Start services 
                provided to limited English proficient children 
                and their families.

SEC. 650. REPORTS.

  (a) Status of Children.--[At least once during every 2-year 
period, the Secretary shall prepare and submit, to the 
Committee on Education and the Workforce of the House of 
Representatives and the Committee on Labor and Human Resources 
of the Senate, a report concerning the status of children 
(including disabled and non-English language background 
children) in Head Start programs, including the number of 
children and the services being provided to such children.] At 
least once during every 2-year period, the Secretary shall 
prepare and submit, to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on 
Health, Education, Labor and Pensions of the Senate, a report 
concerning the status of children (including disabled, 
homeless, and limited English proficient children) in Head 
Start programs, including the number of children and the 
services being provided to such children. Such report shall 
include--
          (1) * * *

           *       *       *       *       *       *       *

          (8) information concerning children participating in 
        programs that receive Head Start funding, including 
        information on family income, racial and ethnic 
        background, homelessness, disability, and receipt of 
        benefits under part A of title IV of the Social 
        Security Act;

           *       *       *       *       *       *       *

  (c) National Reporting System.--The Secretary shall submit 
annually to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate, a report on the 
status of the National Reporting System developed by the 
Secretary. Such report shall include--
          (1) information on all contracts, grants, and 
        expenses relating to the development and implementation 
        of the National Reporting System;
          (2) information described in section 641A(b)(3)(B); 
        and
          (3) a description of the recommendations made by the 
        Technical Working Group, including issues of the 
        technical adequacy, purpose, and administration of the 
        System, and an explanation of how the Secretary plans 
        to address these recommendations.

           *       *       *       *       *       *       *


                        [COMPARABILITY OF WAGES

  [Sec. 653. The]

SEC. 653. WAGES AND COMPENSATION.

  (a) Comparability of Wages.--The Secretary shall take such 
action as may be necessary to assure that persons employed in 
carrying out programs financed under this subchapter shall not 
receive compensation at a rate which is (1) in excess of the 
average rate of compensation paid in the area where the program 
is carried out to a substantial number of the persons providing 
substantially comparable services, or in excess of the average 
rate of compensation paid to a substantial number of the 
persons providing substantially comparable services in the area 
of the person's immediately preceding employment, whichever is 
higher; or (2) less than the minimum wage rate prescribed in 
section 6(a)(1) of the Fair Labor Standards Act of 1938. The 
Secretary shall encourage Head Start agencies to provide 
compensation according to salary scales that are based on 
training and experience.
  (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 programs 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. 656A. LIMITATION ON CERTAIN USES OF FUNDS.

  No funds made available to carry out this subchapter 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 
        prepackaged news story intended for broadcast or 
        distribution unless such story includes a clear 
        notification contained within the text or audio of such 
        story stating that the prepackaged news story was 
        prepared or funded by the Department of Health and 
        Human Services.

           *       *       *       *       *       *       *


                      ADDITIONAL DEMOCRATIC VIEWS

    Head Start is the premiere early education program in this 
country. Started in 1965 under President Johnson, it is a 
highly successful, research-based, comprehensive child 
development and early education program for low-income 
children, ages birth to five years old, and their families. It 
has played a very important role in improving the lives of over 
20 million children and their families in its long history. Its 
goal is to help disadvantaged children be better prepared to 
succeed in school and in life by addressing the needs of the 
whole child and providing comprehensive services such as health 
and nutrition in addition to education--the approach child 
development experts believe is the most effective. Moreover, 
parental involvement has always been a cornerstone in Head 
Start because the experts believe parents are children's most 
important and influential teachers; and, to have long-term 
success, the program should consider the family as well as the 
child. These important principles remain central to the program 
today.
    Poverty is one of the strongest predictors of lower school 
success: an ``achievement'' gap between low income children and 
their more affluent peers begins before kindergarten and 
continues through elementary and secondary education. After 
nearly a decade of decline in national child poverty, the rate 
of child poverty began to rise in 2002. Today, more than 12 
million children in America live in poverty, including 
approximately 20% of children under age 6. Poverty rates are 
substantially higher for ethnic and racial minorities. A large 
income gap exists between White, African American and Hispanic 
families: in 2002, the median income for White families with 
children under 18 was twice as high as that of African American 
and Hispanic families. In 2003, 38.5% of African American, 32.1 
% of Hispanic, and 16.5% of White children under age 6 lived in 
poverty. In addition, more than 8 million children and 
teenagers do not have health insurance. Research finds that 
experiencing poverty as a child leads to more health and mental 
problems throughout one's life, less academic success, and less 
stable employment as an adult. Head Start must be one part of a 
multi-faceted approach to reducing the impact of poverty and 
eliminating the achievement gap. As we re-examine and 
reauthorize Head Start, we must also recognize the basic 
inequities in this country and do much more to eliminate 
poverty.
    Head Start is one of the most evaluated federal programs, 
and research concludes that Head Start works. Research finds 
that children who attend Head Start enter school better 
prepared than low-income children who do not attend the 
program, and that children who attend Head Start make 
significant gains relative to national norms in vocabulary, 
early writing, letter recognition and social behavior. Head 
Start students show IQ gains, are less likely to need special 
education services, repeat a grade, or commit crimes in 
adolescence and are more likely to graduate from high school.
    The most recent and highest quality research also shows 
that Head Start helps children make gains in cognitive 
development and narrows the achievement gap. In June 2005, HHS 
released a report on the first year findings from the Impact 
Study--a congressionally mandated study that required the 
Department of Health and Human Services to determine the impact 
of Head Start on the children and families it serves. This 
longitudinal, randomized control group design study will follow 
children through the end of first grade and evaluate the effect 
of Head Start over this period. The findings from the first 
year--which tracks 3 and 4-year olds, half of whom are in Head 
Start and the remainder in other settings, including parental 
care, child care and pre-kindergarten were very encouraging. 
Head Start was found to have a positive impact on children's 
pre-reading skills, pre-writing skills, vocabulary and parent-
reported literacy skills. The study also found that after less 
than one school year, Head Start narrowed the achievement gap 
by 45% in the area of pre-reading and by 28% in pre-writing. 
The study also found Head Start had the effect of changing 
parenting practices, including increasing the frequency parents 
read to their child and improving some discipline strategies. 
In addition, Head Start decreased hyperactivity in 3-year olds. 
Significant effects were not found in the areas of oral 
comprehension and phonological awareness and early math and 
many areas of socio-emotional development--suggesting key areas 
for program improvement.
    Research from the high-quality longitudinal FACES study 
also found that children who attend Head Start make great 
strides in closing the achievement gap. FACES found that 
children made modest but significant gains in areas of 
cognitive development during the Head Start year and made even 
greater gains over the kindergarten year so that by the end of 
kindergarten, the Head Start graduates were ``essentially at 
national norms in early reading and writing, and about one 
third of a standard deviation below national norms in 
vocabulary, general knowledge and early math.'' These findings 
suggest that not only do children in Head Start learn key 
skills in the program, but it also prepares children to better 
benefit from teaching when they get to elementary school.
    We are encouraged to see that research concludes Head Start 
is doing what we expect and demand that it should do--better 
prepare children to succeed in school. But it also indicates 
that we must build on the program's success so that we can 
provide these children with an even better head start. Dr. Ed 
Zigler, the distinguished expert in child development from Yale 
University and the ``father of Head Start'', frequently 
comments that ``the moment Head Start stands pat, it is dead.'' 
We fully agree and support H.R. 2123 because it completely 
abandons the misguided and destructive block grant proposal the 
Majority pushed, and we adamantly opposed, in 2003, and it 
contains many Democratic priorities that will move the program 
forward and improve services for children and their families. 
H.R. 2123 improves academic content and requirements by 
integrating new science on early child development and 
evidence-based practices into the program; promotes better 
coordination at the local level between Head Start and 
prekindergarten, which should help to better meet the needs of 
working parents and increase the quality of both state pre-k 
and Head Start; requires the Secretary to more efficiently use 
discretionary funding in order to increase the funding to 
Migrant and Seasonal and Indian Head Start programs without 
decreasing the funding to regional Head Start; strengthens 
accountability by integrating GAO's recommendation to use a 
risk-based assessment strategy for monitoring fiscal management 
of the program and by increasing on-site monitoring; provides 
incentives for states to develop strategies for more 
effectiveand efficient delivery of early education services and to find 
ways to improve service to underserved populations; improves program 
quality by requiring the Secretary to better integrate the Training/
Technical Assistance (``T/TA'') and monitoring systems, a process that 
seems oddly lacking; and corrects current inconsistencies in existing 
statute to allow the Secretary to more quickly replace inadequate 
programs that are often funded for one or more years after the 
Secretary moves to terminate funding.
    We were pleased that many Democratic priorities were 
integrated into the bill through bipartisan negotiations, but 
we also urge the Secretary to approach two areas in the bill 
with restraint. H.R. 2123 adds extensive language clarifying 
the Secretary's existing authority to re-compete poorly 
performing programs. Though we agree with current statute and 
GAO's recommendations that focusing recompetition on the most 
poorly performing programs will improve the overall quality of 
Head Start, we believe it is critical the Secretary not 
interpret the provisions in this bill in an overly broad 
manner. Placing good Head Start programs under the uncertainty 
of recompetition will undermine program quality and service 
delivery. A sense of stability and continuity within Head Start 
is the most effective and cost efficient way to deliver Head 
Start services and best meet the needs of children and 
families. Therefore, we strongly urge the Secretary to use 
recompetition as intended in this bill--only for the most 
poorly performing programs. Furthermore, we encourage the 
Secretary to improve the targeting and implementation of T/TA 
to minimize the programs that need to be recompeted so that 
effectiveness and efficiency are maximized. Finally, we remind 
the Secretary that research repeatedly demonstrates that 
parental well-being and parental involvement in their 
children's education are some of the strongest predictors of 
positive child development and school success. Therefore, we 
strongly recommend the Secretary ensure parent involvement and 
parent empowerment remain central tenets of the Head Start 
program. Furthermore, we urge the Secretary to require the 
meaningful and active participation of the parent Policy 
Council in program governance.
    Finally, we believe there are some important components to 
program quality that are not adequately addressed in H.R. 2123, 
such as program expansion and teacher quality. These concerns 
are addressed below, as well as our concerns about the 
Majority's stated intent to add language to this bill that 
would allow religious discrimination.

                           Program Expansion

    There are two main ways to narrow the achievement gap 
between low income children and their more affluent peers--one 
is to increase program effectiveness, the other is to increase 
program enrollment. They are equally necessary and we need to 
do everything we can to ensure that every eligible child 
receives Head Start services, as well as to substantially 
expand Early Head Start. If we truly believe that no child 
should be left behind, funding Head Start and other high 
quality early education programs must be one of our top 
domestic priorities.
    Unfortunately, we are headed in the wrong direction. Head 
Start currently serves less than one-half of eligible 
preschoolers, Early Head Start serves approximately 3% of its 
eligible population, and Migrant and Seasonal Head Start serves 
approximately 19% of its eligible children. After the first 
three fiscal years under the Bush Administration and 
Congressional Republican budget priorities, the percent of 
eligible children served by Head Start decreased. Funding for 
Head Start under the Republican budgets has not even been 
sufficient to keep up with inflation costs, resulting in a 
decrease in the number of children served in each of the last 
two years as well as reported cuts in the types and quality of 
services delivered. H.R. 2123 and the recent bill voted out of 
the Appropriations Committee signal continuation of this bad 
precedent--they provide insufficient funds to cover inflation, 
meaning that teachers will not get adequate raises and programs 
will again be forced to either reduce the number of children 
they serve or reduce the quality of services they provide. The 
necessary resources are available if the Republicans in charge 
chose to make this the priority it should be. Democrats offered 
an amendment to substantially increase the authorization level 
for Head Start and expand Early Head Start. Unfortunately, 
Republicans defeated this amendment with all Republicans voting 
against increasing funding for the program and all Democrats 
voting for program expansion.

                            Teacher Quality

    The Democratic Members of this Committee strongly support 
improving teacher quality in Head Start because it is critical 
to increasing overall program quality and helping more children 
reach kindergarten better prepared to succeed. As such, we 
support the requirement in H.R. 2123 that half of Head Start 
teachers nationwide have at least a B.A. in child development 
or a related field by 2011, and also the requirement that all 
new teachers have at least an associate's degree, or be emolled 
in a program to achieve an associate degree, beginning three 
years after enactment of the bill. These goals and requirements 
are consistent with research findings that teacher education is 
related to better outcomes in children's cognitive, social and 
emotional development. Setting a high bar for teachers is one 
of the best ways to continue to improve Head Start.
    However, this bill provides no funding to support the 
implementation of its important teacher quality provisions. On 
average, Head Start teachers with B.A.'s make just $25,000 
annually, while kindergarten teachers with similar training 
make over $41,000. In order to attract and retain highly 
qualified teachers, Head Start must improve teacher salaries 
and access to early education scholarships. The Trust for Early 
Education has estimated that the cost of compensating half of 
all Head Start lead teachers, at a rate comparable to what they 
could earn teaching in public school kindergarten, will cost an 
additional $2 billion dollars over 5 years. Yet this bill does 
not even provide funding for appropriate cost of living raises 
for existing teachers. Improving teacher quality is very 
important, but without providing the means to support the 
provision, the initiative is severely undercut. Democrats 
offered amendments in Committee to address this substantial 
failing in the bill but were defeated with all Republicans 
voting against and all Democrats voting for funds for teacher 
quality.

                        Religious Discrimination

    Section 654(a) of the Head Start Act, titled 
``Nondiscrimination Provisions'', states:

          The Secretary shall not provide financial assistance 
        for any program, project, or activity under this 
        subchapter unless the grant or contract with respect 
        thereto specifically provides that no person with 
        responsibilities in the operation thereof will 
        discriminate with respect to any such program, project, 
        or activity because of race, creed, color, national 
        origin, sex, political affiliation, or beliefs.

    Since 1972, the Head Start statute has included the above 
provision to protect the rights of those who participate in the 
Head Start program--children, parents, teachers, employees and 
volunteers--to be free from discrimination in any form. As a 
critical component of America's civil rights platform, Head 
Start has endeavored to provide all children in need with the 
opportunities of education and an environment to assist in 
their healthy development that would enable them to arrive at 
school ready to succeed. Committee Democrats recognize that 
Section 654(a) of the Head Start Act is key to this effort and 
actively fought to protect its integrity during consideration 
of Head Start in the 108th Congress.
    H.R. 2123 as reported from the full committee maintains 
Section 654(a), ensuring that the civil rights of students, 
parents and teachers are protected in federally-funded Head 
Start programs. We applaud the bipartisan nature of the bill 
that has resulted in this outcome. Unfortunately, the Chairman 
of the Full Committee, in preparation for consideration of H.R. 
2123, publicly stated his intention to offer an amendment on 
the floor of the House that will give faith-based organizations 
providing Head Start services the right to discriminate with 
federal funds against employees who are of different faiths. 
The proposed Boehner Amendment severely disrupts the 
bipartisanship that has surrounded H.R. 2123 and deserves 
defeat.
    The Majority claims that the proposed Amendment will make 
Head Start consistent with Title VII of the Civil Rights Act of 
1964. We disagree with this claim. By maintaining current law 
in Section 654(a) of the Head Start Act, the Committee affirms 
a civil right standard that has coexisted with Title VII since 
1972. Section 654(a) allows, that with regard to funding of 
faith-based organizations, government funds, collected from all 
taxpayers, should not be used to support discrimination. 
Section 654(a) does not, and the Head Start program never has--
as asserted by the Majority--prohibited faith-based 
organizations from receiving Head Start funds.
    The Head Start program is a model for demonstrating that a 
prohibition on religious employment discrimination with federal 
funds is fully compatible with federal assistance to faith-
based charities. Faith-based organizations can and do fully 
participate in federally funded programs without discriminating 
in hiring with those same federal funds. Faith-based charities 
have taken good advantage of these federally funded programs to 
advance their charitable work in a manner which the President 
finds worthy of expansion--and, in fact, we have heard no 
suggestion that the faith-based charities involved with Head 
Start or numerous other social service programs have seen their 
own faith communities erode. The Committee has never received 
any testimony from faith-based organizations stating that the 
Boehner Amendment is needed for their continued or expanded 
participation in running federally-funded programs.
    We strongly support and appreciate the valued role faith-
based organizations have played in operating Head Start 
programs and the right of religious institutions to preserve 
the integrity of their own religious character when it comes to 
religious activities. Consistent with Title VII of the Civil 
Rights Act of 1964 and prevailing federal court decisions, 
faith-based organizations may discriminate in employment on the 
basis of religion with private funds but are precluded from 
doing so when the position under consideration is funded with 
taxpayer dollars.
    We disagree that it is healthy for American society or that 
it is in conformance with basic American principles of fairness 
and equal treatment under the law, for the federal government 
to provide funds for secular purposes to any organization, 
which would then use these funds in a discriminatory fashion on 
religious grounds. In fact, in a poll conducted in 2001 by the 
Pew Research Center and the Pew Forum on Religion and Public 
Life on President Bush's faith-based initiative, 78% of those 
polled shared our concerns about proposals to use federal funds 
to deny someone a job based on their religious views and 
practices. And, we agree with the American people--a Head Start 
teacher should not be fired because he or she is the ``wrong'' 
religion. The Boehner Amendment, however, goes against public 
opinion and core American principles and would allow this form 
of federally funded discrimination.
    We are greatly concerned that the provision to remove civil 
rights protections for employees could have a negative impact 
on the children and families who participate in these programs. 
Tens of thousands of at-risk 3- and 4-year old children 
currently in Head Start, could lose their teachers--who often 
are the most important adults to whom they have bonded, other 
than their parents--not because those teachers are doing a bad 
job, but because of their religion.
    Committee Democrats understand that Head Start is a unique 
program that enables parents to climb the economic ladder by 
moving from Head Start volunteer to teacher status, an aspect 
of the Head Start program that benefits families. As a result 
of the Boehner Amendment, countless parents could be blocked 
from climbing the ladder out of poverty that has already taken 
thousands of parents from being a parent volunteer to being a 
trained and paid Head Start staff--simply because the parents 
do not share the federally-funded employer's religious beliefs.
    While the Committee did not consider this Amendment during 
its consideration of H.R. 2123, Representatives Miller, 
Woolsey, Scott and Grijalva spoke out in opposition to such a 
proposal during full Committee deliberation. They were joined 
by numerous faith-based organizations that recognize the 
importance of maintaining civil rights protections in Head 
Start. The American Jewish Committee wrote that,

          If so amended, H.R. 2123 would compromise an 
        extremely successful program that provides essential 
        services to nearly one million at-risk children 
        nationwide. While many of the religious organizations 
        that deliver the program would, no doubt, continue to 
        hire employees for Head Start programs without regard 
        to religion, H.R. 2123 could jeopardize the jobs of 
        many thousands of current and potential teachers, 
        staff, and parent volunteers for belonging to the 
        ``wrong'' religion, as well as jeopardize children for 
        whom a stable and trusting relationship between teacher 
        and child is so important.
          For these reasons, we strongly urge you to oppose any 
        attempts to roll back the vital civil rights 
        protections of H.R. 2123, the School Readiness Act.--
        (Emphasis added).

    African American Ministers in Action, an organization of 
leaders and pastors of predominantly African American 
congregations, commented,

          We agree that religious organizations participating 
        in the Head Start program make an invaluable 
        contribution to the education of thousands of students 
        in minority communities in particular, but do not agree 
        that discriminating against persons based upon their 
        religion is necessary or desirable in order to provide 
        these much needed services.

    The Coalition Against Religious Discrimination, an 
organization comprised of religious, civil rights, labor, and 
education organizations noted in their May 18, 2005 letter to 
Members of the Committee that ``allowing discrimination based 
on religion would significantly impede the important goals of 
Head Start, sending a damaging message to Head Start 
students....''. The National Head Start Association, whose 
members include Head Start agencies, regional and state 
associations, non-profit and for-profit organizations, has also 
stated its opposition to the proposed Amendment.
    The Chairman's stated intention that he will seek to amend 
the Head Start Act with language allowing faith-based 
organizations to discriminate in employment based on religion 
is not welcomed. If the Amendment is passed, it will jettison 
the strong bipartisan support that H.R. 2123 currently enjoys. 
The proposed Boehner Amendment is misguided in its application, 
reflects poor political judgment and would have a longstanding 
discriminatory impact on Head Start children, parents and 
teachers. We will oppose all efforts to eliminate these civil 
rights protections in current law.
    Some of the many groups that oppose the proposed Boehner 
Amendment include: African American Ministers in Action; 
American Jewish Committee; Anti-Defamation League; Baptist 
Joint Committee for Religious Liberty; Central Conference of 
American Rabbis; Disciples Justice Action Network (Disciples of 
Christ); Disciples Advocacy Washington Network; Christian 
Justice Action; United Church of Christ; Protestant Justice 
Action; Equal Partners in Faith; Hadassah, the Women's Zionist 
Organization of America; Jewish Council for Public Affairs; 
National Council of Jewish Women; Presbyterian Church (USA), 
Washington Office; Texas Faith Network; The General Board of 
Church and Society of The United Methodist Church; The 
Interfaith Alliance/Foundation; Union for Refonn Judaism; 
Unitarian Universalist Association of Congregations; United 
Church of Christ Justice & Witness Ministries; American 
Association of University Women; American Civil Liberties 
Union; American Federation of State; County and Municipal 
Employees (AFSCME), AFL-CIO; American Humanist Association; 
Americans for Religious Liberty; Americans United for 
Separation of Church and State; Human Rights Campaign; 
Leadership Conference on Civil Rights; National Association of 
Social Workers; National Education Association; National Head 
Start Association; National Organization for Women; OMB Watch; 
People For the American Way; Service Employees International 
Union (SEIU), AFL-CIO, CLC; Texas Freedom Network; The Secular 
Coalition for America; United Auto Workers, AFL-CIO.

                               Amendments

    Though H.R. 2123 makes important progress in some areas of 
the Head Start program, Democrats believe other important 
priorities were not included. Democratic Members offered the 
following amendments during Committee consideration of the bill 
to try and address these concerns:
    Mr. Davis offered an amendment to provide funding for 
improving teacher professional development and compensation. As 
noted previously, improving teacher quality should be one of 
our top priorities during reauthorization. However, though this 
bill increases teacher requirements, it provides no additional 
funding to implement these requirements and thus undermines 
this critical quality provision. This amendment was defeated 
with all Republicans voting against improving teacher 
compensation and all Democrats voting for these increases.
    Mr. Grijalva offered two amendments. In one amendment, 
which was accepted by Committee on a voice vote, language was 
added to the underlying bill that would require the Early 
Learning Council to develop ways to identify children who are 
underrepresented in early childhood education programs, examine 
barriers to their participation, and plan for ways in which 
enhanced coordination among early childhood education services 
can increase access for all children. Data from the National 
Center for Education Statistics finds that Hispanic children 
are less likely than White or African American children to 
arrive at kindergarten having attended a center-based early 
childhood education program. We believe states should take into 
account the needs of children who currently underutilize 
services and ensure that the additional resources that are 
leveraged in states via improved coordination are used to 
improve access for children who are not benefiting from the 
current structure. Mr. Grijalva offered a second amendment that 
would have provided grants for bringing bilingual teachers to 
rural areas. This amendment was withdrawn with plans to further 
address the issue during consideration of the Higher Education 
Act.
    Mr. Kind offered an amendment to suspend the National 
Reporting System pending the results of the study requested of 
the National Academy of Sciences in the bill. The 
Administration is completing its second full year of 
implementing a countrywide testing system for Head Start 
children that has cost $25 million dollars so far, despite 
strong concerns voiced by early child education experts who 
believe the system is heavilyflawed and inappropriate. This 
amendment would suspend the NRS, pending a study by experts convened by 
the National Academy of Sciences, and would require the Secretary to 
use the resulting report as a guideline for developing an appropriate 
method of using assessments to improve child outcomes and program 
quality. The amendment was offered and withdrawn with an agreement by 
the Chairman to continue to examine the Issue.
    Mr. Kucinich offered an amendment that would change the way 
the poverty line is calculated for Head Start eligibility, by 
tying it to growth in wages rather than growth in prices. This 
amendment addresses some of the major flaws in the formula for 
calculating the poverty threshold, and if passed, would make 
more children eligible for Head Start.
    Ms. McCollum offered an amendment to require faith-based 
organizations applying for Head Start grants to obtain a 
501(c)(3) separate and distinct from that which they may 
already have obtained as a pervasively sectarian organization. 
With this amendment, the religious entity (i.e., church, 
mosque, or synagogue), separate from the Head Start grantee, 
would have legal protections and retain a right to privacy if 
the Head Start grantee acted inappropriately as a federally-
funded grantee. The McCollum Amendment would have ensured that 
federal dollars would therefore be separate and distinct from 
private dollars that support religious activities. The 
amendment was defeated 18-29.
    Ms. McCollum and Mr. Van Hollen offered an amendment to 
provide grantees with funding to meet the Head Start 
transportation safety regulations. Congress previously passed a 
mandate regarding the safety requirements of bus transportation 
for Head Start children, but no money was provided to help 
programs implement the provision. The Secretary has granted 
waivers to some programs, but the Committee is concerned that 
they have not developed an adequate long-term solution for 
ensuring the safe transportation of children. We have heard 
first hand reports of Head Start grantees scaling back or 
eliminating transportation services because the high cost of 
meeting the regulations was untenable. Other programs that are 
meeting the regulations are having to use 20% or more of their 
budget toward transportation costs. Such high costs mean a 
decrease in other program services. For example, one agency 
reported offsetting transportation costs by taking funds from 
their family support program, resulting in an increased the 
caseload for family advocates from the recommended 35 to 100. 
We believe most programs are doing everything they can to meet 
these regulations but in many cases we are requiring programs 
to make unacceptable choices, whether it be limiting 
transportation services, reducing the number of children 
served, or cutting other services, in order to offset costs. 
Moreover, although waivers are currently permitted, and would 
continue to be allowed under HR 2123, we have heard reports 
that the Administration is providing inconsistent, and at 
times, conflicting guidance regarding the granting of waivers. 
This amendment helps programs retain their enrollment levels, 
keeps them from decreasing their services, and ensures the 
safety of children by providing funding for Head Start programs 
to meet the federal requirement regarding safety modifications 
of buses used for transportation. The amendment was withdrawn 
with an agreement by the Chairman to continue discussing 
avenues to address the problem.
    Mr. Tierney offered an amendment providing grants of up to 
$10,000 in loan forgiveness for Head Start teachers. As 
previously noted, attracting and retaining high quality 
teaching staff should be one of our top priorities for Head 
Start, but H.R. 2123 provides no funding to meet this goal. 
This amendment would have substantially helped implement the 
new teacher requirements under H.R. 2123 by providing a proven 
method of attracting and retaining qualified teachers. This 
amendment was defeated by voice vote but the Chairman agreed to 
try and address the issue during consideration of the Higher 
Education Act, expected later this year.
    Ms. Woolsey and Mr. Van Hollen offered an amendment to 
provide full funding for preschoolers in Head Start and double 
the percentage of infants and toddlers receiving Early Head 
Start over the next 6 years. Currently, only about half of 
eligible preschool children receive Head Start and only 3% of 
infants and toddlers receive Early Head Start because of 
inadequate funding. The authorization level in this bill does 
nothing to improve this situation, as it does not even cover 
the cost of inflation. This important amendment was defeated on 
a party-line vote with all Republicans voting against 
authorizing funds to serve more eligible children.

                               References

    Abbott-Shim, M., Lambert, R., & McCarty, F. (2003). A Comparison of 
School Readiness Outcomes for Children Randomly Assigned to a Head 
Start Program and the Program's Wait List. Journal of Education for 
Students Placed At Risk, 8(2), 191-214.
    Broaddus, Matthew & Arloc Sherman (May 2005). Poverty, Income, and 
Health Insurance Coverage Tables, Center on Budget and Policy 
Priorities.
    Currie, J., & Thomas, D. (1995). Does Head Start Make a Difference? 
The American Economic Review, Vol. 85(3),341-364.
    Duncan, G.J. & Brooks-Gunn, J., Eds. (1997). Consequences of 
Growing Up Poor. Russell Sage Foundation.
    McLanahan, S, Haskins, R., Paxson, C., Rouse, C., & Sawhill, I. 
(Eds.), (2005). School Readiness: Closing Racial and Ethnic Gaps. The 
Future of Children, Volume 15(1). Princeton University and Brookings 
Institution Press.
    U.S. Department of Education, National Center for Education 
Statistics, (2001). National Household Education Surveys, Program, 
Parent Interviews. Washington, D.C.
    U.S. Department of Health and Human Services (2005). Trends in the 
Well-Being of America's Children & Youth: 2003. Washington, D.C.
    U.S. Department of Health and Human Services, Administration for 
Children and Families (May 2005). Head Start Impact Study: First Year 
Findings. Washington, D.C.
    U.S. Department of Health and Human Services, Administration for 
Children and Families (2005). Promoting Positive Development in Young 
Children: Designing Strategies That Work, Summary of Conference 
Proceedings. Head Start's 7th National Research Conference, June 28-
July 1, 2004. Washington, D.C.
    U.S. Department of Health & Human Services, Administration for 
Children & Families (2001). Head Start FACES: Longitudinal Findings on 
Program Performance, Third Progress Report. Washington, D.C.

                                   George Miller.
                                   Chris Van Hollen.
                                   Robert Andrews.
                                   John F. Tierney.
                                   Danny K. Davis.
                                   Rush Holt.
                                   Bobby Scott.
                                   Major R. Owens.
                                   Timothy H. Bishop.
                                   Carolyn McCarthy.
                                   Lynn Woolsey.
                                   Ron Kind.
                                   Donald M. Payne.
                                   Paul M. Grijalva.
                                   Betty McCollum.
                                   Ruben Hinojosa.
                                   David Wu.
                                   Dale E. Kildee.
                                   Tim Ryan.
                                   Dennis J. Kucinich.