Business Urgin Action on Pre k Again

Congress is considering legislation built around President Biden's Build Back Improve (BBB) plan, which Democrats are working to laissez passer through the upkeep reconciliation process. BBB includes policies and investments that, if enacted, would save families thousands of dollars in child intendance and preschool costs and build a stiff, stable early learning system that meets the needs of families, providers, and the economic system.

The proposed federal investments in child care and pre-K, underscore the commitment of Congress and the Biden administration to finding solutions to America's longstanding child care crisis by addressing widespread challenges with access, affordability, and quality in early learning, while reinforcing the benefits of a stiff mixed-delivery system that prioritizes parent choice in determining the type and setting of care that best meets a family'south needs. The proposal seeks to resolve chronic foundational flaws in America'southward child intendance marketplace caused by decades of underinvestment, which create an entirely unsustainable business model for providers that ofttimes translates into near-poverty wages for early educators.

Additionally, the proposal would build on existing state and federal preschool programs by providing funding to cover the federal share of the cost of a voluntary, free universal pre-K (UPK) programme for all children, regardless of income or other eligibility requirements, in a diverseness of settings.

Please annotation the final language is still beingness negotiated, and changes are likely. FFYF will continue to monitor negotiations and update this certificate regularly to reflect whatsoever such changes.

What does the Build Back Improve Deed proposal mean for child intendance?

The legislation creates a child care and early learning entitlement programme for children under six who accept not notwithstanding started kindergarten.

For eligible families who want to participate, this ways access to affordable, high-quality kid care in the setting that best meets their needs.
For states, this ways federal funding will be provided from FY2022-FY2024 to support supply building and a phased-in expansion of income eligibility. States who accept upwardly this funding will be required to provide child care aid to all eligible families past October 1, 2024. In FY2025 and beyond, child care assistance expenses volition be shared between the state (ten%) and federal government (ninety%).
To raise wages and sufficiently recoup the workforce, participating kid care providers would be paid based on a valid and reliable price estimation model or cost study for the payment rates of child care services in the country. Payment rates would depend on where a provider falls on the state's tiered system for measuring quality.

Which children and families will be eligible for kid intendance?

During the iii-yr phase in, eligibility would be limited to children in families with incomes at or below a specified level: 100% of country median income (SMI) in FY2022, 125% of SMI in FY2023, and 150% of SMI in FY2024. Family unit copayments would vary by income.
- SMI is the income amount that divides a population into two equal groups: half having an income in a higher place that amount and half having an income below that amount.
- Using SMI to calculate income eligibility and copayments, rather than the federal poverty line, helps to take into account the differences in cost of living from land to state.
  - For example, in the first year, a family of iv in Arizona making $82,227 a year (100% SMI) would pay no more than $one,645 a year for child care, while a family of 4 in New United mexican states making $67,949 a year (100% SMI) would pay no more than $1,359 a year.
- States who take appropriately prioritized assistance for direct child care services based on income can apply funds provided in FY 2022, 2023, or 2024 to serve children whose family unit income exceeds the current maximum SMI (up to 250% SMI), with the Secretarial assistant's approving.
After the 3-year phase in, eligibility would be expanded to include families upward to 250% SMI.
To be eligible, a child must have one parent or legal caregiver who is working or participating in another eligible action (e.g., job search, job grooming, educational program, wellness handling for a piece of work-limiting condition, or family get out).
- Exceptions to the parental activity requirement would be made for certain vulnerable children (including foster children and children experiencing homelessness) and for children with a parent over age 65.
- Once deemed eligible, a child would be considered eligible for 12 months.

How will the federal kid intendance funds exist distributed? Is there a country match?

Over the beginning 3 years, a full of $100 billion will be provided ($24 billion in FY2022, $34 billion in FY2023, and $42 billion in FY2024). The new child care and early learning entitlement program provides high-quality, affordable child care for children ages birth to v, increases wages for the early babyhood workforce, and invests in child care quality and supply (including facilities). In FY2022-FY2024, participating states would receive an allotment based on the Child Care and Development Cake Grant (CCDBG) Human activity. In that location is no required country friction match in the showtime 3 years. Of the full funding amount, specific amounts are designated for sure purposes as follows:

fifty% of funds on direct child care services for eligible children;
25% of the funds on activities to meliorate the quality and supply of kid care services;
25% of the funds on direct child care services,supply and quality building, or administration.

Afterwards the initial 3 years, in FY2025-FY2027, states receive reimbursement from the federal government for:

Child care help. Child intendance assistance covers the grants, contracts, and certificates needed to cover the total cost of providing loftier-quality child care, reflecting a capped family contribution. States comprehend 10% of these costs, and the federal regime covers xc% of these costs.
Quality and supply activities. While some costs of high-quality kid care will at present be covered under directly assist, states must spend between 5-10% of their total program expenses on quality and supply activities. The federal government will cover these costs using the federal medical help percentage (FMAP) rate.
Administration expenses. The federal authorities and states volition each pay fifty%.

Carve up from match requirements, in all years states would have to come across a maintenance-of-effort (MOE) requirement based on an average of country spending on child care in the preceding three financial years. This spending tin be counted in meeting land match requirements, even so.

With so many families living in child care deserts, how will the nib ensure an adequate supply of child intendance?

Over the start 3 years, 25% of the funding states receive is dedicated to activities that improve the quality and supply of child care services and 25% to directly child care services, supply and quality edifice, or administration. In FY2025-2027, states must reserve betwixt 5 and 10% of total funds for activities that increase the quality and supply of eligible child intendance providers.

These activities include startup and supply expansion grants for kid intendance providers, with priority given to those providing or seeking to provide child care in underserved communities and for underserved populations. Funds could be used to support startup and expansion costs and to assist in meeting health and safety requirements, achieving licensure, and coming together requirements in the state'due south tiered system for measuring quality. Further, transitional and full land plans must specify how funds will be used to increase the supply of child care and demonstrate how the country volition prioritize expanding admission to intendance for underserved populations and in underserved areas.

Tin can organized religion-based providers participate

The bill specifies that child intendance certificates may exist used for sectarian child care services if freely chosen by the parent. The beak also specifies that kid care certificates shall be considered "indirect federal financial assistance" to the provider. As outlined in federal regulations, organized religion-based organizations are eligible on the same basis as whatever other organization to participate in any HHS awarding bureau plan or service for which they are otherwise eligible. For example, organized religion-based programs currently participate in CCDBG, which serves children from depression-income families or who come across other eligibility requirements. Recipients of "indirect federal financial assist" are not subject to requirements of "directly federal financial assistance" that asserts explicitly religious activities be carve up, in time or location.

What must states do to implement the new child intendance program if they opt in?

Inside three years of receiving funds, states must:

Raise payment rates to meet the cost of care, including, at a minimum, providing a living wage and establishing wages equivalent to elementary educators with equivalent credentials;
Create a tiered organization to measure out the quality of child intendance providers and help providers to reach college quality standards (highest tier standards would be at least equivalent to Head Get-go Plan Performance Standards (HSPPS)); and
Demonstrate that they take consulted or volition consult with organizations representing kid care directors, teachers, or other staff; early babyhood instruction and development experts; and families to implement licensing standards and a pathway to licensure available to and appropriate for providers in a variety of settings.

States' plans must besides:

Prohibit kid care providers from charging families more than than the required copay;
Assure assistance to children for not less than 12 months; and
Demonstrate that they will prioritize increasing access to and the quality and supply of child care for underserved populations, including at a minimum, low-income children, children in underserved areas, infants and toddlers, children with disabilities and infants and toddlers with disabilities, children who are dual language learners, and children experiencing homelessness, children in foster or kinship care, children who receive care during nontraditional hours, and vulnerable children as divers past the atomic number 82 agency.

What are the Caput Start Program Functioning Standards (HSPPS)?

HSPPS ascertain standards and minimum requirements for all Head Start services. These standards:

Apply to both Head Start and Early on Head Start programs;
Serve as the foundation for Caput Start'southward mission to deliver comprehensive, high-quality individualized services supporting the school readiness of children from depression-income families;
Reverberate all-time practices and the latest research on early childhood evolution and brain science; and
Requite grantees flexibility in achieving positive child and family outcomes and encourage the apply of information to track progress and achieve goals in all program areas.

Is child care for schoolhouse-aged children included in this proposal?

No. The program is intended for children from birth through historic period v who are not still in kindergarten. Families with No. The program is intended for children from birth through historic period five who are non all the same in kindergarten. Families with school-aged children may see expanded options available through CCDBG, as that plan will shift focus from early on learning once the new entitlement is in place.

What happens to the current CCDBG funding?

States volition continue receiving CCDBG funding.
- For states who opt in to the child care proposal, spending on intendance for children nether six would be express to ten% of CCDBG, including, for case, relative and family unit, friend, and neighbor providers who are non part of the licensed system, thus increasing to 90% the amount being used to assist with out-of-school time intendance for children ages half dozen-xiii. (Currently, 34% of CCDBG subsidies help pay for school-aged care.)
- For states that cull non to opt in to the child care proposal, they volition continue to receive CCDBG funding equally they do today with no changes.
CCDBG remains otherwise unchanged and available for those system-supporting purposes in current police.

How will the BBB expand access to Pre-K in states that opt in?

The Build Back Better Act would create a loftier-quality, free, inclusive, and mixed-delivery preschool programme bachelor to all 3- and iv-year-erstwhile children on a voluntary basis.

44 states and the Commune of Columbia fund pre-K programs, however, in the 2019-twenty school year, these programs enrolled simply 34% of 4-yr-olds and half dozen% of iii-twelvemonth-olds.
States have struggled to fund pre-K programs, particularly when faced with failing land revenue, and already rely on federal funding to serve preschool-aged children, specially children from low-income families and children with disabilities or developmental delays.
The proposal would build on existing state and federal preschool programs by providing funding to embrace the federal share of the cost of a universal pre-1000 (UPK) plan for all children, regardless of income or other eligibility requirements. Additionally, states must ensure the preschool program does non disrupt the stability of infant and toddler care throughout the state.

How would UPK exist funded?

The proposal includes $4 billion in FY2022, $half-dozen billion in FY2023, $8 billion in FY2024, and such sums equally may be necessary in FY2025-FY2027 to provide the federal share of the toll of universal, high-quality, costless, inclusive, and mixed delivery preschool services.
To increment the quality and supply of kid intendance services, in FY2022-FY2024, at that place would be no country match required for spending on the costs of preschool services.
Starting in FY2025, states (including the Commune of Columbia) must contribute a ten% match, in cash or in kind. The required country match would increment to 25% in FY2026 and to forty% in FY2027.
Spending on state activities (administration of the preschool programme, supporting continuous quality comeback, outreach and enrollment support, data systems building, supporting staff degree and credential attainment, ensuring access to children with disabilities, transportation, and updating needs assessment) must be matched at 50% in each year (FY2025-FY2027). The maximum friction match for state activities would be capped at 5% of expenditures for preschool services.
Federal funds must supplement, not supersede, other federal, land, and local funds for early babyhood care and education programs. Thus a state must maintain its investment in whatsoever existing publicly-funded preschool programs or land-funded Caput Get-go programs. If a land reduces per child spending, the Department of Health and Human Services (HHS) (in collaboration with the Department of Pedagogy (ED)) may correspondingly reduce federal funds.

Is the UPK proposal a school-based system?

No. The legislation requires states to support a mixed-delivery system. This includes equitable distribution of preschool seats and resources among settings including Head Start, schools, and child intendance (including family child care).
Eligible preschool providers include Head Start agencies or delegate agencies funded nether the Head Get-go Act; local educational agencies (acting lonely or with an educational service bureau) that are licensed by the country or meet comparable health and safety standards; licensed child care providers (including center-based providers, family unit kid intendance providers, and networks of family child care providers); or a consortium of such entities.

What are other requirements of the UPK program?

Programs must be universally available, high-quality, free, and inclusive.
- Within eighteen months of receiving funds, states must have in place state preschool educational activity standards, which, at a minimum, are as rigorous every bit the school readiness department of HSPPS, include standards for class sizes and ratios, and use Head Outset duration standards (at least one,020 annual hours). Programs must see these requirements within ane year of receiving funding.
- States must also have policies for expedited enrollment for sure populations, and prioritize localities serving loftier-need communities.
Subgrants or contracts with preschool providers volition be for at least three years.
State plans must provide assurances that it will provide salaries and ready salary schedules for preschool staff that are equivalent to salaries of simple school staff with like credentials and experience and, at a minimum, provide a living wage for all staff of such providers.

Who would administer the new Child Care and UPK Programs?

Funds for both programs would be appropriated to the U.Due south. Department of Health and Human Services (HHS).
The UPK program would be administered past HHS in collaboration with the U.Southward. Department of Education (ED).
At the state level, the child care program would be administered by a pb bureau (state bureau or joint interagency office), designated past the governor, pursuant to a plan canonical by the Secretary of HHS.
Similarly, the UPK plan would be administered past a land pb agency (a state agency or joint interagency role), designated by the governor, pursuant to a plan approved by the Secretarial assistant of HHS.

Is Caput Outset included in the UPK proposal?

Yeah. The UPK proposal specifies Head Showtime agencies are eligible providers, and states must describe how they will partner with Head Kickoff agencies to ensure the full utilization of Head Showtime programs. Additionally, from amounts appropriated for UPK, the proposal designates $two.5 billion annually for FY2022-FY2027 to improve compensation for Head Start staff.

In states that opt out of funding, Head Showtime agencies may use for both the child care and UPK grants to localities, and both proposals include funding for Head Start expansion grants (explained further below).

What volition happen if a country "opts out" of either the child intendance or UPK programme?

Mostly, things will remain unchanged every bit it pertains to child care subsidies and preschool at the country level. States would go along to receive mandatory and discretionary CCDBG funds.
The proposal includes optional grants to localities in these states, including cities, counties, and Caput Start grantees, with priority given to entities serving a high per centum of individuals from underserved populations. Funding for these grants is as follows:
- $four.75 billion in FY2022 (available until September xxx, 2027) for Local Birth to Five Early on Learning Grants.
- $ix.five billion in FY2022 (available until September 30, 2027) for UPK grants.
The proposal also includes funding for grants to a Head Starting time agency in a state that has not received payments under either program to comport out the purposes of the Head Kickoff Act. Funding for these grants is as follows:
- $14.25 billion in FY2022 (available until September thirty, 2027) under the kid care program.
- $9.5 billion in FY2022 (available until September 30, 2027) under the UPK program.
The Secretary may reallot funds appropriated for FY2022-2024 from nonparticipating states and funds from participating states that are unobligated on October i, 2024 to a participating state without unobligated funds or to an eligible locality or Head Start agency. The Secretarial assistant tin can also recoup any unused localities grants funding for Head Start expansion grants in nonparticipating states.

Are current providers included in the proposals for kid care and UPK? What if they are not currently licensed?

Yes, current providers are included. Under the child care proposal:

Providers who have been eligible under CCDBG volition exist deemed "eligible providers" for iii.5 years after their home state receives funding. Also, state plans must describe the timeline information technology will use to ensure sufficient time for these providers to comply with licensing standards.
Current providers who have non been participating in CCDBG but who are licensed, participate in the land'due south tiered system for measuring quality inside iv years of their country receiving funding, and come across a state'due south CCDBG provider requirements would also be eligible.
Inside 2.5 years of receiving funds, states must create a pathway to advisable licensure for providers who are not currently licensed.

Under the UPK proposal:

States must provide assurances they will require educational qualifications for teachers including, at a minimum, requiring lead teachers to have a baccalaureate degree in early childhood education or a related field inside half-dozen years of enactment.
The degree requirement would not apply to individuals employed by an eligible child care provider or early instruction program for three of the last five years with necessary content knowledge and instruction skills as determined by the state.

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Source: https://www.ffyf.org/faq-on-the-child-care-and-preschool-provisions-in-the-build-back-better-act/