Subgrants and contracts for local preschool programs

(a) Subgrants and contracts (1) In general A State that receives a payment under section 303(b) for a fiscal year shall use amounts provided through the payment to pay the costs of subgrants to, or contracts with, eligible providers to operate universal, high-quality, free, and inclusive preschool programs (which State-funded programs may be referred to in this section as local preschool programs) through the State preschool program in accordance with subsection (c). A State shall reduce or increase the amounts provided under such subgrants or contracts if needed to adjust for any overpayment or underpayment described in section 303(b)(4). (2) Amount A State shall award a subgrant or contract under this section in a sufficient amount to enable the eligible provider to operate a local preschool program that meets the requirements of section 303(e)(2), which amount shall reflect variations in the cost of preschool services by geographic area, type of provider, and age of child, and the additional costs associated with providing inclusive preschool services for children with disabilities. (3) Duration The State shall award a subgrant or contract under this section for a period of not less than 3 years, unless the subgrant or contract is terminated or suspended, or the subgrant period is reduced, for cause. (b) Enhanced payments for comprehensive services In awarding subgrants or contracts under this subsection and in addition to meeting the requirements of subsection (a)(2), the State shall award subgrants or contracts with enhanced payments to eligible providers that offer local preschool programs funded under this section to a high percentage of low-income children to support comprehensive services. (c) Establishing and expanding universal preschool programs (1) Establishing and expanding universal preschool programs in high-need communities In awarding subgrants or contracts under this section, the State shall first prioritize establishing and expanding universal local preschool programs within and across high-need communities by awarding subgrants or contracts to eligible providers operating within and across, or with capacity to operate within and across, such high-need communities. The State shall— (A) use a research-based methodology approved by the Secretary to identify such high-need communities, as determined by— (i) the rate of poverty in the community; (ii) rates of access to high-quality preschool within the community; and (iii) other indicators of community need as required by the Secretary; and (B) distribute funding for preschool services under this section within such a high-need community so that a majority of children in the community are offered such preschool services before the State establishes and expands preschool services in communities with lower levels of need. (2) Use of funds Subgrants or contracts awarded under paragraph (1) shall be used to enroll and serve children in such a local preschool program involved, including by paying the costs— (A) of personnel (including classroom and administrative personnel), including compensation (including benefits); (B) associated with implementing the State’s preschool standards, providing curriculum supports, and meeting early learning and development standards; (C) of professional development, teacher supports, and training; (D) of implementing and meeting developmentally appropriate health and safety standards (including licensure, where applicable), teacher to child ratios, and group size maximums; (E) of materials, equipment, and supplies; and (F) of rent or a mortgage, utilities, building security, indoor and outdoor maintenance, and insurance. (d) Establishing and expanding universal preschool programs in additional communities Once a State that receives a payment under section 303(b) meets the requirements of subsection (c) with respect to establishing and expanding local preschool programs within and across high-need communities, the State shall use funds from such payment to enroll and serve children in local preschool programs, as described in such subsection, in additional communities in accordance with the metrics described in subsection (c)(1)(A). Such funds shall be used for the activities described in subparagraphs (A) through (F) of subsection (c)(2).