Fact Sheet: Build Back Better Act - Child Care and UPK

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Sec. 23003. Universal Preschool.

Subsection (a): Definitions.

• Provides or imputes statutory definitions for terms within this section
• Specifies that eligible providers include local educational agencies; Head Start agencies; licensed center-based and family child care providers; community-based networks of licensed family child care providers; or a consortium of these entities

Subsection (b): Universal Preschool.

• Appropriates to HHS $18B FY 2022 and funds as may be necessary for FY 2025 – 2027, to remain available for 1 additional fiscal year
• Appropriates to HHS for FY 2022:
  • $2.5B for payments to Indian Tribes and Tribal organizations in FY 2022, to remain available until September 30, 2027
  • $1B for payments to territories in FY 2022, to remain available until September 30, 2027
  • $300M for payment to eligible local entities that serve children in families who are engaged in migrant or seasonal agricultural labor in FY 2022, to remain available until September 30, 2027
  • $165M, to remain available until September 30, 2027, for carrying out administration, monitoring, technical assistance, and research activities in FY 2022
  • $200M, to remain available until September 30, 2027, for carrying out administration, monitoring, technical assistance, and research activities in FY 2023
  • $200M, to remain available until September 30, 2027, for carrying out administration, monitoring, technical assistance, and research activities in FY 2024
  • $208M, to remain available until September 30, 2027, for carrying out administration, monitoring, technical assistance, and research activities in FY 2025
  • $212M, to remain available until September 30, 2027, for carrying out administration, monitoring, technical assistance, and research activities in FY 2026
  • $216M, to remain available until September 30, 2027, for carrying out administration, monitoring, technical assistance, and research activities in FY 2027
  • $2.5B, to remain available until September 30, 2027, to improve compensation to Head Start staff in each of FY 2022 – 2027
  • $1.9B, to remain available until September 30, 2027, for grant to localities in each of FY 2023 – 2027
  • $1.9B, to remain available until September 30, 2017, for awards to Head Start agencies in each of FY 2023 – 2027

Subsection (c): Payments for State Universal Preschool Services.

• Directs the Secretary of HHS to provide payment to states with approved plans through two separate funding streams: preschool services and state activities
• PRESCHOOL SERVICES. Payments will be distributed along the following pay schedule:
  • FY 2022 – 2024: transition payments via a formula determined by the Secretary of HHS in collaboration with the Secretary of Education that considers the proportion of children below age 6 with family income at or below 200% FPL, compared to such children nationally and existing federal Head Start preschool investments in the state; allows the HHS Secretary to reallocate these funds from states without approved plans to states with approved plans
  • FY 2025: 95.44% of state expenditures for preschool services
  • FY 2026: 79.534% of state expenditures for preschool services
  • FY 2027: 63.627% of state expenditures for preschool services
• STATE ACTIVITIES. Directs payment for 53.022% of specified state activity expenditures, which may not exceed 10% of the state’s FY expenditures for preschool services. Eligible state activity includes:
  • State administration of the preschool services program
  • Supporting a continuous quality improvement system through research, training, etc.
  • Providing outreach and enrollment support for families of eligible children
  • Supporting data systems building
  • Supporting staff of eligible providers to pursue credentials and degrees
  • Supporting inclusive services for children with disabilities
  • Providing age-appropriate transportation services for children, including services for those experiencing homelessness or in foster care
  • Conducting or updating the statewide needs assessment
• Permits advance payments to be made based on expenditure estimates submitted by states. Such payments may be subsequently adjusted to account for any overpayment or underpayment from the previous year
• Directs state governments to designate a state lead agency to administer the universal preschool services program
• Requires states to submit a plan for achieving universal, high-quality, free, inclusive, and mixed-delivery preschool services, meeting certain criteria required by HHS regulations for quality, workforce and accessibility requirements to remain in effect for 3 years, including the following highlights:
  • Certification of evidence-based preschool standards in place and that such standards will be coordinated across the state
  • Assurance that funded preschool programs will offer programming of at least 1,020 annual hours and expedited enrollment and prioritization for homeless and foster children, families with migrant workers, children with disabilities, and dual language learners
  • Assurance to provide salaries that are equivalent to those of elementary school staff with similar credentials and experience, and at a minimum provide a living wage
  • Assurance that lead teachers have a degree in early childhood education or a related field by no later than 6 years following enactment, with exceptions for workers who have been employed for 3 of the last 5 years
  • Description of how the state will:
    • Coordinate services and funding to support a mixed delivery preschool system, facilitating participation of Head Start and other eligible providers
    • Ensure preschool services to not disrupt the stability of infant and toddler care through the state
    • Ensure consultation with the State Advisory Council on Early Childhood Education and Care established under the Head Start Act in developing the state’s plan and distributing preschool slots
    • Partner with agencies to fully utilize Head Start
    • Equitably distribute new preschool slots among child care providers, Head Start agencies, and schools
  • Certification that states will not reduce total preschool slots