The Preschool Development Grant Birth through Five (PDG B-5) Systems-Building Grant is administered by the Office of Early Childhood Development within the U.S. Department of Health and Human Services’ Administration for Children and Families. This federal grant initiative aims to support states and territories in creating a unified early childhood education (ECE) system, particularly those that did not receive PDG B-5 Renewal Grants in 2024. The PDG B-5 program responds to the need for coherence across diverse and often fragmented early childhood policies, funding sources, and governance structures by offering targeted funding to align services from birth to age five, including integration with Head Start.
The central purpose of this grant is to enable recipients to build or enhance a coordinated, statewide ECE system that integrates Head Start programs, supports family choice, and reduces administrative inefficiencies. Applicants are expected to align ECE funding streams and governance models under one cohesive state-level entity. Core objectives include increasing program efficiency, enhancing service accessibility, streamlining data systems, supporting workforce development, and building sustainable state governance structures.
Grantees must prioritize three program goals: creating a unified statewide vision for ECE, developing a coherent ECE governance and delivery system, and maximizing family choice across ECE programs. Critical elements of the application include submission of a comprehensive statewide needs assessment and strategic plan, a set of outcome-driven strategies aligned with state priorities, and a robust evaluation framework to track project impact. Strategic plans should be based on updated or consolidated assessments and must identify gaps in services, administrative obstacles, and system-level inefficiencies.
Applicants must also demonstrate organizational capacity to manage and expend federal funds efficiently, including detailed governance structures, staffing plans, subrecipient management, and risk mitigation protocols. Cost sharing of 30% of the federal share is required, with partial waivers available to insular territories. The grant prohibits funding for construction, major renovations, and activities promoting discriminatory ideologies or gender ideology, in accordance with recent federal policy changes.
Applications must be submitted electronically via Grants.gov by 11:59 p.m. Eastern Time on December 1, 2025. Required components include a project narrative, line-item budget with justification, governor’s designation letter, indirect cost agreements, and supplementary budget information. The anticipated project period begins December 31, 2025, and runs through December 30, 2026. A merit review process will score submissions based on criteria such as alignment with PDG B-5 priorities, strategy effectiveness, organizational capacity, and sustainability. The grant may be offered annually depending on funding availability, and up to 25 awards totaling $222 million are expected.
Emphasize integration of Head Start; align with state ECE vision; clearly justify costs and capacity to obligate funds within the period; unobligated prior funds >25% may reduce awards.
