Proposed Rule2026-09383
Restoring Flexibility To Support Head Start Program Access
Primary source
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Published
May 12, 2026
Issuing agencies
Health and Human Services DepartmentChildren and Families Administration
Abstract
In this notice of proposed rulemaking (NPRM), the Administration for Children and Families (ACF) proposes to remove requirements from the Head Start Program Performance Standards (Performance Standards) to restore local flexibility to Head Start programs and improve access to quality services. Specifically, this NPRM proposes to remove requirements related to wages and benefits that the Administration believes are not in line with the plain language of the Head Start Act and are costly and overly prescriptive for Head Start programs and staff. ACF estimates these proposed changes, if finalized, will result in over $2 billion in future cost savings for Head Start programs. The proposed rescissions in this NPRM, if finalized, would impact the costliest parts of the final rule published by the Office of Head Start (OHS) in 2024, Supporting the Head Start Workforce and Consistent Quality Programming.\1\ ---------------------------------------------------------------------------
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[Federal Register Volume 91, Number 91 (Tuesday, May 12, 2026)]
[Proposed Rules]
[Pages 25842-25849]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09383]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
45 CFR Part 1302
RIN 0970-AD21
Restoring Flexibility To Support Head Start Program Access
AGENCY: Office of Head Start (OHS), Administration for Children and
Families (ACF), Department of Health and Human Services (HHS).
ACTION: Notice of proposed rulemaking.
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SUMMARY: In this notice of proposed rulemaking (NPRM), the
Administration for Children and Families (ACF) proposes to remove
requirements from the Head Start Program Performance Standards
(Performance Standards) to restore local flexibility to Head Start
programs and improve access to quality services. Specifically, this
NPRM proposes to remove requirements related to wages and benefits that
the Administration believes are not in line with the plain language of
the Head Start Act and are costly and overly prescriptive for Head
Start programs and staff. ACF estimates these proposed changes, if
finalized, will result in over $2 billion in future cost savings for
Head Start programs. The proposed rescissions in this NPRM, if
finalized, would impact the costliest parts of the final rule published
by the Office of Head Start (OHS) in 2024, Supporting the Head Start
Workforce and Consistent Quality Programming.\1\
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\1\ See Supporting the Head Start Workforce and Consistent
Quality Programming, 89 FR 67720 (August 21, 2024). (<a href="https://www.federalregister.gov/d/2024-18279">https://www.federalregister.gov/d/2024-18279</a>).
DATES: Consideration will be given to comments received on or before
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June 11, 2026.
ADDRESSES: You may submit comments, identified by ACF-2026-0364 by any
of the following methods:
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Mail: Office of Head Start, Attention: Director of Policy
and Planning, 330 C Street SW, 4th Floor, Washington, DC 20201.
Instructions: All submissions received must include the agency name
and docket number (ACF-2026-0364) or Regulatory Information Number
(RIN) for this rulemaking. All comments received will be posted without
change to <a href="http://www.regulations.gov">http://www.regulations.gov</a>, including any personal
information provided. As required by the Administrative Procedure Act
at 553(b)(4), a plain language summary of the rule is available on the
Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Shawna Pinckney, Office of Head Start,
866-763-6481, <a href="/cdn-cgi/l/email-protection#e8a7a0bbb7b88784818b91a8898b8ec680809bc68f879e"><span class="__cf_email__" data-cfemail="7c33342f232c1310151f053c1d1f1a5214140f521b130a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Statutory Authority To Issue NPRM
III. Section-by-Section Discussion of Proposed Changes
Restoring Flexibility To Support the Workforce (Sec. 1302.90)
Effective Dates
Compliance With Sec 641A(a)(2) of the Act
Severability
IV. Regulatory Process Matters
Regulatory Flexibility Act
Unfunded Mandates Reform Act of 1995
Federalism Assessment Executive Order 13132
Treasury and General Government Appropriations Act of 1999
Paperwork Reduction Act of 1995
V. Regulatory Impact Analysis
I. Background
The federal Head Start program provides early education and other
comprehensive services to low-income pregnant women and children
prenatal to age 5 in center- and home-based settings across the
country. Since its inception in 1965 as part of the War on Poverty,
Head Start has been a leader in providing high-quality services that
support the development of children from low-income families, helping
them enter kindergarten more prepared to succeed in school and in life.
Research shows that the first five years of a child's life are pivotal
for brain development, laying the foundation for all future learning,
behavior, and health.\2\ For children in poverty, this period is even
more crucial, as they often face additional stressors--such as
inadequate nutrition or limited access to educational resources--that
can hinder brain development.\3\ Research demonstrates that early
intervention,
[[Page 25843]]
including quality early education, is key to disrupting the cycle of
poverty and supporting the development of young children so they are
more prepared to succeed in school and in life. Indeed, a wealth of
evidence supports the positive outcomes for low-income children and
their families who participate in and graduate from Head Start
programs.\4\
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\2\ Institute of Medicine and National Research Council. (2000).
From Neurons to Neighborhoods: The Science of Early Childhood
Development. Washington, DC: The National Academies Press. <a href="https://doi.org/10.17226/9824">https://doi.org/10.17226/9824</a>.; Tierney A.L. & Nelson, C.A. (2009). Brain
Development and the Role of Experience in the Early Years. Zero
Three. 30(2):9-13.
\3\ Blair, C. & Raver, CC. (2016). Poverty, Stress, and Brain
Development: New Directions for Prevention and Intervention.
Academic Pediatrics, 16(3 Suppl):S30-6.; Robinson L.R., Bitsko,
R.H., & Thompson, R.A., et al. (2017). CDC Grand Rounds: Addressing
Health Disparities in Early Childhood. MMWR Morb Mortal Wkly Rep
2017; 66:769-772. DOI: <a href="http://dx.doi.org/10.15585/mmwr.mm6629a1">http://dx.doi.org/10.15585/mmwr.mm6629a1</a>.
\4\ Deming, D. (2009). Early Childhood Intervention and Life-
Cycle Skill Development: Evidence from Head Start. American Economic
Journal: Applied Economics, 1:3, 111-134.; Lipscomb, S.T., Pratt,
M.E., Schmitt, S.A., Pears, K.C., and Kim, H.K. (2013). School
readiness is children living in non-parental care: Impacts of Head
Start. Journal of Applied Developmental Psychology, 31 (1), 28-37.
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The Head Start Program Performance Standards (Performance
Standards), first published in the 1970s, are the foundation on which
Head Start programs design and deliver high-quality, comprehensive
services to children and their families. They set forth the
requirements local grant recipients must meet to support the cognitive,
social, emotional, and healthy development of children enrolled in the
program. They include requirements to provide education, health, mental
health, nutrition, and family and community engagement services, as
well as requirements for local program governance and federal
administration of the program.
The Improving Head Start for School Readiness Act of 2007 (the 2007
Reauthorization), which amended the Head Start Act (the Act), required
the Department of Health and Human Services (HHS) to ensure children
and families receive quality Head Start services. The 2007
Reauthorization also required the Secretary of HHS to revise the
Performance Standards, as needed. This authority has provided a basis
for updates and changes made to the Performance Standards since 2007.
HHS conducted a major revision of the Performance Standards through a
final rule published in 2016 to implement the statutory changes in the
2007 Reauthorization and to enhance program requirements to reflect the
latest science on child development. Subsequently, HHS published a
final rule in 2024 \5\ that added a number of specific and costly
requirements for programs related to supports for the Head Start
workforce, among other changes. This NPRM proposes necessary changes to
bring the Head Start regulations in line with the Head Start Act. It
restores flexibility to local Head Start programs and improves access
for children and families by removing the costly requirements added in
2024. These proposed changes are explained in greater detail in the
sections that follow. There were several additional changes to the
Performance Standards through the 2024 final rule. At this time, ACF is
not proposing additional rescissions or modifications of other changes
from the 2024 final rule. However, ACF invites public comment on other
changes from the 2024 final rule that ACF should consider for
rescission or modification in a future NPRM, particularly changes that
were burdensome for programs.
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\5\ See Supporting the Head Start Workforce and Consistent
Quality Programming, 89 FR 67720 (August 21, 2024). (<a href="https://www.federalregister.gov/d/2024-18279">https://www.federalregister.gov/d/2024-18279</a>).
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II. Statutory Authority To Issue NPRM
ACF publishes this NPRM under the authority granted to the
Secretary of Health and Human Services by sections 641A, 645A, and 653
of the Act (42 U.S.C. 9836a, 9840a, and 9848), as amended by the
Improving Head Start for School Readiness Act of 2007 (Pub. L. 110-
134). Under these sections, the Secretary is required to establish
performance standards and other regulations for Head Start and Early
Head Start programs. Specifically, sections 641A(a)(1) and (2) of the
Act require the Secretary to ``modify, as necessary, program
performance standards by regulation applicable to Head Start agencies
and programs.'' \6\ This proposed rule meets the statutory requirements
Congress put forth in its 2007 bipartisan reauthorization of the Head
Start program and addresses Congress's mandate that called for the
Secretary to review and revise the Performance Standards. The Secretary
has determined that the modifications to the Performance Standards
contained in this proposed regulation are appropriate and needed to
effectuate the goals of the Performance Standards and the purposes of
the Act.
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\6\ See section 641A(a)(1) and (2) of the Act.
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III. Section-by-Section Discussion of Proposed Changes
Restoring Flexibilty To Support the Workforce (Sec. 1302.90)
Sections 1302.90(e) and 1302.90(f) outline specific requirements
for programs to provide wages and benefits, respectively, for the Head
Start workforce. These requirements were newly added to the Performance
Standards through the publication of a final rule in 2024, Supporting
the Head Start Workforce and Consistent Quality Programming.\7\
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\7\ See Supporting the Head Start Workforce and Consistent
Quality Programming, 89 FR 67720 (August 21, 2024). (<a href="https://www.federalregister.gov/d/2024-18279">https://www.federalregister.gov/d/2024-18279</a>).
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More specifically, the wage standards in Sec. 1302.90(e) require,
by August 1, 2031, that programs: develop or update a pay scale for all
staff; provide education staff with wages comparable to public
preschool teachers; provide all staff a salary sufficient to cover
basic costs of living; and promote wage comparability across Head Start
Preschool and Early Head Start. Additional standards in Sec.
1302.90(e) describe exemptions and a waiver under certain conditions.
The benefits standards in Sec. 1302.90(f) require, by August 1,
2028, that programs: provide full-time staff with health care coverage,
paid leave, and behavioral health services; facilitate access to health
care coverage for part-time staff; and facilitate access to child care
subsidies and student loan forgiveness for eligible staff. Additional
standards in Sec. 1302.90(f) require programs to reassess their
benefits package every five years and describe exemptions. Without this
proposed regulatory action, programs will be required to comply with
these requirements by August 2028 (for benefits) and August 2031 (for
wages).
ACF has determined that the wage and benefit requirements exceed
the Head Start Act's statutory requirements by restricting program
flexibility and imposing a federal minimum wage that would likely
exceed the Fair Labor Standards Act level.
The 2024 final rule asserted that the Head Start statute directs
the Secretary to ``assure the comparability of wages'' as justification
for imposing new wage requirements. A plain reading of the statute at
42 U.S.C. 9848(a) demonstrates that this is not the case.
First, 42 U.S.C. 9848(a) sets a cap on wages to ensure Head Start
educators are not compensated above a certain threshold. The statute
directs the Secretary to ``take such action . . . to assure'' that Head
Start personnel ``shall not receive compensation . . . in excess of . .
. the average rate of compensation paid in the area where the program
is carried out . . . or in excess of the average rate of compensation
paid to a substantial number of persons providing substantially
comparable services[.]'' The 2024 final rule redefined ``in excess of''
to mean ``not less than.'' A plain reading of the statute demonstrates
that OHS lacks the authority to impose these wage mandates on Head
Start programs.
Second, 42 U.S.C. 9848(a) sets the federal minimum wage as the
floor Head Start programs must meet or exceed. The role of the
Secretary is to ensure Head Start staff are not paid less than the
federal minimum wage, as established under the Fair Labor
[[Page 25844]]
Standards Act of 1938 (29 U.S.C. 206(a)(1)). Nowhere in the Head Start
statute does Congress provide HHS authority to selectively implement a
higher minimum wage or redefine the federal minimum wage.
Third, with the 2024 final rule, HHS reinterpreted the Head Start
statute to require agencies to implement salary scales. The statute
does not, however, allow the Secretary to impose wage scales on
employers and instead says that HHS ``shall encourage Head Start
agencies to provide compensation according to salary scale.'' Again,
the proposed rule redefines plain language in statute to impose a
preferred policy objective that ACF believes is better left for
Congress, this time unilaterally deciding that ``encourage'' means
``require,'' demanding Head Start programs ``implement a salary scale,
salary schedule, wage ladder, or other similar pay structure.'' ACF's
belief is that Congress intentionally did not prescribe strict wage
scales in statute, ensuring that programs have needed flexibility to
serve children, which HHS flagrantly ignored in its 2024 final rule.
As outlined above, ACF has determined that the requirements in the
2024 final rule are beyond statutory authority, in addition to being
overly prescriptive and costly. A core principle of the Head Start
model is local flexibility for individual programs to design services
that are responsive to the individual needs of the communities in which
they operate. Many Head Start programs across the country continue to
face staffing shortages; \8\ however, ACF believes a plain reading of
the statute requires the federal government to offer programs more
discretion and flexibility to determine how to best address staff
recruitment and retention challenges based on their state and local
contexts. Since the publication of the final rule in 2024, ACF is aware
that external groups representing Head Start programs have expressed
similar concerns regarding needed flexibility for programs, as well as
concerns about the wage and benefit requirements going into effect
without additional appropriations from Congress to support their
implementation.\9\
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\8\ National Head Start Association (2025). An Update on Head
Start's Ongoing Workforce Challenges. National Head Start
Association. Retrieved from: <a href="https://nhsa.org/wpcontent/uploads/2025/01/OngoingWorkforceChallengesJan2025.pdf">https://nhsa.org/wpcontent/uploads/2025/01/OngoingWorkforceChallengesJan2025.pdf</a>.
\9\ National Head Start Association (2024). Supporting the Head
Start Workforce and Consistent Quality Programming: NHSA's Summary
of the Final Rule. Retrieved from: Final Rule Summary. (<a href="https://nhsa.org/wp-content/uploads/2024/08/FinalRuleSummary.pdf">https://nhsa.org/wp-content/uploads/2024/08/FinalRuleSummary.pdf</a>).
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In the 2024 final rule,\10\ ACF estimated the costs of these
requirements to be approximately $1.2 billion for the wage standards
and $877 million for the benefits standards, by the time of full
implementation in 2031. In the absence of additional Congressional
appropriations to support these requirements, ACF estimates in this
NPRM that full implementation of these standards by 2031 would require
programs to cut approximately 106,000 Head Start slots (see the
Regulatory Impact Analysis \11\ for additional details). Hundreds of
thousands of families--including working parents--rely on Head Start as
a safe, high quality early care and education (ECE) option for their
children. The Head Start program's two-generation approach with
comprehensive services supporting all domains of development ensures
children are ready for entry into formal schooling and helps move
families out of poverty. It is critically important that programs
maintain services for as many Head Start children and families that are
eligible as possible.
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\10\ See Supporting the Head Start Workforce and Consistent
Quality Programming, 89 FR 67720 (August 21, 2024).
\11\ See section V. Regulatory Impact Analysis of this NPRM.
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For these reasons, in this NPRM, ACF proposes to remove from the
Performance Standards all the wages and benefits requirements in Sec.
1302.90(e) and (f). The proposed rescission of the wage and benefit
requirements will align with a plain reading of the statute, restore
needed flexibility and autonomy to local programs, and reduce
unnecessary regulatory burden, so that local programs may determine the
best path forward for their communities. ACF estimates that these
proposed changes will yield approximately $2.1 billion in future annual
cost savings for programs (see the Regulatory Impact Analysis for
further details).
It is in the best interest of Head Start programs, children, and
families for these proposed changes to become effective, in order to
ensure Head Start services can continue for as many children and
families as possible.
ACF believes that the benefits of these proposed rescissions will
be significant for Head Start programs as well as the children and
families they serve. Overall, these proposed rescissions are supported
by the plain language of the Head Start Act and, if finalized, will
give programs greater flexibility to determine how best to achieve
their goals and administer a high-quality Head Start program while
maximizing enrollment for children and families.
Effective Dates
The current Performance Standards remain in effect until this NPRM
becomes final. We propose for all changes in this NPRM to become
effective 60 days after it is published as a final rule in the Federal
Register.
Compliance With Sec. 641A(a)(2) of the Act
In developing proposed modifications to the Performance Standards,
ACF considered feedback from the field on the 2024 final rule,
including from Office of Head Start (OHS) staff, from external
organizations that represent Head Start programs, and from Head Start
grant recipients. OHS regional staff directly support Head Start grants
and program operations as their primary job responsibility, and
regional staff regularly share feedback and implementation challenges
from grant recipients. ACF also received feedback related to ongoing
concerns from external organizations about the implications of the
wages and benefits requirements on access to Head Start services.\12\
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\12\ National Head Start Association (2024). Supporting the Head
Start Workforce and Consistent Quality Programming: NHSA's Summary
of the Final Rule. Retrieved from: Final Rule Summary. (<a href="https://nhsa.org/wp-content/uploads/2024/08/FinalRuleSummary.pdf">https://nhsa.org/wp-content/uploads/2024/08/FinalRuleSummary.pdf</a>).
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ACF requests feedback on the proposals in this NPRM from experts in
the fields of child development, early childhood education, child
health care, family services, administration, and financial management,
and from persons with experience in the operation of Head Start
programs. ACF also specifically requests feedback from Indian Tribes.
This feedback, submitted through the public comment process on the
NPRM, is an integral part of the development of the final rule.
Severability
HHS intends that, once the proposed rule becomes final, the changes
arising from this rule to remove the provisions in Sec. 1302.90(e) are
severable from the removal of the provisions in Sec. 1302.90(f). To
the extent that any portion of either of these changes are declared
invalid by a court, HHS intends that the remaining change remain in
effect.
IV. Regulatory Process Matters
ACF has examined the impacts of the proposed rule under Executive
Order 12866, Executive Order 13563, Executive Order 13132, the
Regulatory
[[Page 25845]]
Flexibility Act (5 U.S.C. 601-612), and the Unfunded Mandates Reform
Act of 1995 (Pub. L. 104-4). Executive Orders 12866 and 13563 direct us
to assess all benefits, costs, and transfers of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits.
Section 3(f) of Executive Order 12866 defines a ``significant
regulatory action'' as an action that is likely to result in a rule:
(1) Having an annual effect on the economy of $100 million or more, or
adversely affecting in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or Tribal governments or
communities; (2) creating a serious inconsistency or otherwise
interfering with an action taken or planned by another agency; (3)
materially altering the budgetary impacts of entitlements, grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; or (4) raising novel legal or policy issues arising out of
legal mandates, the President's priorities, or the principles set forth
in Executive Order 12866. This proposed rule, if finalized, would be a
significant rule and the Regulatory Impact Analysis (RIA) for this
proposed rule identifies economic impacts that exceed the threshold for
significance under Section 3(f)(1) of Executive Order 12866. This
proposed rule, if finalized as proposed, is expected to be a
deregulatory action under Executive Order 14192.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), see 5 U.S.C. 605(b), as
amended by the Small Business Regulatory Enforcement Fairness Act,
requires federal agencies to determine, to the extent feasible, a
rule's impact on small entities, explore regulatory options for
reducing any significant impact on a substantial number of such
entities, and explain their regulatory approach. The term ``small
entities,'' as defined in the RFA, comprises small businesses, not-for-
profit organizations that are independently owned and operated and are
not dominant in their fields, and governmental jurisdictions with
populations of less than 50,000. Under this definition, some Head Start
grant recipients may be small entities. A rule is considered to have a
significant impact on a substantial number of small entities if it has
at least a three percent impact on revenue on at least five percent of
small entities. However, the Secretary certifies, under 5 U.S.C.
605(b), as enacted by the Regulatory Flexibility Act (Pub. L. 96-354),
that this proposed rule, if finalized, will not have a significant
impact on a substantial number of small entities.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, section
202(a)) requires us to prepare a written statement, which includes
estimates of anticipated impacts, before publishing ``any rule that
includes any Federal mandate that may result in the expenditure by
State, local, and Tribal governments, in the aggregate, or by the
private sector, of $100,000,000 or more (adjusted annually for
inflation) in any one year.'' The current threshold after adjustment
for inflation is $193 million, using the most current (2025) Implicit
Price Deflator for the Gross Domestic Product. This proposed rule, if
finalized, would not result in unfunded mandates that meet or exceed
this amount. Head Start grant recipients receive over $12 billion
annually in federal funding to implement the requirements of the
program, including policy changes as a result of this proposed rule.
Federalism Assessment Executive Order 13132
Executive Order 13132 requires federal agencies to consult with
State and local government officials if they develop regulatory
policies with federalism implications. Federalism is rooted in the
belief that issues that are not national in scope or significance are
most appropriately addressed by the level of government close to the
people. This proposed rule, if finalized, does not have substantial
direct impact on the states, on the relationship between the federal
government and the states, or on the distribution of power and
responsibilities among the various levels of government. Therefore, in
accordance with section 6 of Executive Order 13132, it is determined
that this action does not have sufficient federalism implications to
warrant the preparation of a federalism summary impact statement.
Treasury and General Government Appropriations Act of 1999
Section 654 of the Treasury and General Government Appropriations
Act of 1999 requires federal agencies to determine whether a policy or
regulation may negatively affect family well-being. If the agency
determines a policy or regulation negatively affects family well-being,
then the agency must prepare an impact assessment addressing seven
criteria specified in the law. ACF believes it is not necessary to
prepare a family policymaking assessment (see Public Law 105-277)
because the action it takes in this proposed rule does not have any
impact on the autonomy or integrity of the family as an institution.
Paperwork Reduction Act of 1995
The Paperwork Reduction Act (PRA) of 1995, 44 U.S.C. 3501 et seq.,
minimizes government-imposed burden on the public. In keeping with the
notion that government information is a valuable asset, it also is
intended to improve the practical utility, quality, and clarity of
information collected, maintained, and disclosed.
The PRA requires that agencies obtain OMB approval, which includes
issuing an OMB number and expiration date, before requesting most types
of information from the public. Regulations at 5 CFR part 1320
implemented the provisions of the PRA and Sec. 1320.3 defines a
``collection of information,'' ``information,'' and ``burden.'' PRA
defines ``information'' as any statement or estimate of fact or
opinion, regardless of form or format, whether numerical, graphic, or
narrative form, and whether oral or maintained on paper, electronic, or
other media (5 CFR 1320.3(h)). This includes requests for information
to be sent to the Government, such as forms, written reports and
surveys, recordkeeping requirements, and third-party or public
disclosures (5 CFR 1320.3(c)). ``Burden'' means the total time, effort,
or financial resources expended by persons to collect, maintain, or
disclose information.
In the 2024 final rule, ACF estimated a paperwork burden of 5 hours
per respondent \13\ to track wages for Head Start staff and school
district staff. This paperwork burden would be removed as a result of
this proposed rule, if finalized. This change would impact the existing
information collection approved under OMB control number 0970-0148. The
proposed removal of the wage and benefit requirements would reduce the
overall estimated burden on respondents to adhere to the information
collection and recordkeeping requirements subject to the PRA.
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\13\ See section VII. Regulatory Process Matters of Supporting
the Head Start Workforce and Consistent Quality Programming, 89 FR
67720 (August 21, 2024).
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The following table outlines the recordkeeping requirement that
would be removed.
[[Page 25846]]
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Average burden
Recordkeeping standard Annual number hours per Annual burden
of respondents response hours
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Tracking wages for Head Start staff and staff in local school 2,900 5 14,500
districts...................................................
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V. Regulatory Impact Analysis
A. Need for Regulatory Action
The Performance Standards, established and updated as needed
through regulation, are the foundation on which Head Start programs
design and deliver high-quality, comprehensive services to children and
families. The Performance Standards set forth the requirements that
local grant recipients must meet to support the cognitive, social,
emotional, and healthy development of children enrolled in the program.
In August 2024, ACF published in the Federal Register a final rule that
revised and updated the Performance Standards.
Most notably, OHS added a series of new requirements in the 2024
final rule related to staff wages and benefits in an attempt to support
and stabilize the Head Start workforce. However, these requirements
were too prescriptive for all communities that Head Start programs
serve according to feedback received from stakeholders. Therefore, this
NPRM proposes to remove these wage and benefit requirements from the
Performance Standards. Once finalized, these changes will restore more
local flexibility to grant recipients and provide them the ability to
determine the compensation packages that best meet the unique needs of
their workforce. Furthermore, without additional appropriations from
Congress, approximately 106,000 funded Head Start slots would need to
be cut in order for programs to meet these requirements by the
specified deadline. While it is clear that competitive wages and
benefits are important for attracting and retaining a qualified Head
Start workforce, establishing one-size-fits-all wage and benefit
requirements at the expense of reducing access to high-quality program
services may not be most beneficial, especially at a time when access
to child care is already lacking.\14\ Furthermore, both underenrollment
and classroom teacher turnover across Head Start programs nationally
have decreased since the 2024 final rule. More specifically,
underenrollment was approximately 8 percent nationally in 2025, as
compared to 13 percent nationally in the 2024 final rule. Similarly,
classroom teacher turnover decreased from 19 percent in the 2024 final
rule to 17 percent by 2025. As a result, ACF believes rescinding the
staff wage and benefit requirements is the best option to restore local
flexibility to Head Start service providers, improve access to Head
Start program services, and eliminate unnecessary regulatory burden.
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\14\ Friedman-Krauss, A.H., Barnett, W.S., Hodges, K.S., Garver,
K.A., Duer, J., Weisenfeld, G., & Siegel, J. (2025). The State of
Preschool 2024: State Preschool Yearbook. New Brunswick, NJ:
National Institute for Early Education Research.
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B. Transfer Analysis
The Performance Standards as revised through a final rule \15\
published in August 2024 include new requirements for Head Start
programs to provide competitive wages and benefits for staff to address
staff recruitment and retention challenges. Specifically, the 2024
final rule established four interrelated requirements related to staff
wages--programs must establish a pay scale for all staff; demonstrate
progress to pay parity with public preschool teachers for Head Start
education staff; increase the minimum pay for all staff; and
demonstrate wage comparability between preschool and infant and toddler
education staff. The 2024 final rule also established requirements for
staff benefits, including requirements for programs to provide staff
with access to health insurance; paid leave; behavioral health
benefits; and connections to child care subsidies and public service
loan forgiveness. Without additional regulatory action, programs will
be required to comply with these requirements by August 2028 (for
benefits) and August 2031 (for wages). For the purposes of this
analysis, we adopt the assumptions contained in the Regulatory Impact
Analysis (RIA) of the 2024 final rule as the baseline scenario. This
NPRM proposes to remove the wage and benefit requirements from the
Performance Standards due to their excessive fiscal impacts and
prescriptiveness. Thus, we report the economic impact of this NPRM as
the reversal of the benefits, costs, and transfers of the 2024 final
rule.
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\15\ See Supporting the Head Start Workforce and Consistent
Quality Programming, 89 FR 67720 (August 21, 2024).
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With the wage and benefit requirements rescinded, programs will no
longer have to implement them by the compliance dates described above.
This ultimately results in averting the anticipated expenditures needed
to implement the wage and benefit requirements for Head Start staff;
or, alternatively, averting the loss of services to children under the
requirements of the 2024 final rule. The 2024 final rule RIA estimated
that the four wage requirements would cost approximately $1.2 billion
in nominal dollars when fully implemented in 2031. The RIA estimated
that the staff benefit requirements would cost approximately $877
million in nominal dollars in 2031. ACF combines these figures to
estimate the total transfers associated with removing these wage and
benefit requirements--resulting in the reduction of $2.1 billion in
expenditures.
In order to estimate the number of Head Start slots that will be
saved by removing these staff wage and benefit requirements, ACF
determined the proportion of FY 2024 funded enrollment that are Head
Start Preschool slots (73.7 percent), and Early Head Start slots (26.3
percent), respectively. Next, ACF applied this proportion to the total
monetary cost associated with this rule in FY 2024 dollars ($1.7
billion) and divided the cost that would be borne by the average cost
per slot for Head Start Preschool in FY 2024 ($15,187) and the cost
that will be borne in Early Head Start by the average cost per slot for
Early Head Start in FY 2024 ($20,460). ACF uses cost per child because
it is the best indicator for the number of slots programs would be able
to retain if the staff wages and benefits requirements are removed from
the Performance Standards through in this NPRM.
These calculations result in $1.3 billion in transfers attributed
to Head Start Preschool slots and $452 million in transfers attributed
to Early Head Start slots (in FY 2024 dollars). When divided by average
cost per slot, this results in approximately 84,000 Head Start
Preschool slots and 22,000 Early Head Start slots saved. Collectively,
the net transfers associated with this proposed rule, if finalized,
reflect a retention of approximately 106,000 Head Start slots (number
of children served) nationally. In other words, by removing the wage
and benefit requirements from the Performance Standards, and in the
absence of additional appropriation increases for
[[Page 25847]]
Head Start, programs will save as many as 106,000 slots that would
otherwise have been cut in order to implement these wage and benefit
requirements in the future.
Transfers Summary
Table 1 summarizes the quantified transfers with this proposed rule
and the present value and annualized values corresponding to a 3% and
7% discount rate, with all monetary estimates reported in millions of
constant 2024 dollars. Table 2 reports the same impacts in nominal
dollars.
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[GRAPHIC] [TIFF OMITTED] TP12MY26.001
C. Non-Quantified Impacts of Certain Elements for the Proposed Rule
In addition to the transfers quantified in this RIA, removing staff
wage and benefit requirements will restore local flexibility for
individual programs to design services that are responsive to the
individual needs of the communities in which they operate. Many
programs continue to face staffing shortages that impact their ability
to serve as many children as possible; \16\ however, the changes in
this proposed rule, if finalized, provide programs more discretion to
determine how to best
[[Page 25848]]
address staff recruitment and retention challenges based on their local
contexts. The rescission of the wage and benefit requirements as
proposed in this NPRM will restore needed flexibility and autonomy to
local programs so they may determine the best path forward for their
program. By proposing to remove several costly requirements related to
staff wages and benefits, these changes, if finalized, will alleviate
unnecessary regulatory burden placed on Head Start programs.
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\16\ National Head Start Association (2025). An Update on Head
Start's Ongoing Workforce Challenges. National Head Start
Association. Retrieved from: <a href="https://nhsa.org/wp-content/uploads/2025/08/OngoingWorkforceChallengesJan2025.pdf">https://nhsa.org/wp-content/uploads/2025/08/OngoingWorkforceChallengesJan2025.pdf</a>.
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D. Alternatives to the Proposed Rule
ACF considered and assessed several policy alternatives to the
proposed rule. In the analysis below, we model a full rescission of the
2024 final rule, which included the following policies with quantified
economic impacts: staff wages, staff benefits, staff breaks, family
service worker family assignments, mental health supports, and
preventing and addressing lead exposure, as well as associated
administrative costs. Our modeling approach of separately estimating
and reporting the costs associated with each of these policies enabled
ACF to assess additional policy alternatives, such as rescinding
subsets of policies included with the 2024 final rule. As noted in our
main analysis, ACF is proposing to rescind a particular subset of those
policies, rather than a full rescission. All other policies beyond
these from the 2024 final rule were not associated with quantified
effects. Table 3 and Table 4 summarize the total expenditures needed to
implement the 2024 final rule that would represent reductions in
expenditures if the 2024 final rule were rescinded, reporting yearly
estimates, and present value and annualized values corresponding to a
3% and 7% discount rate (updated from a 2% discount rate applied in the
2024 final rule RIA) for each of the policies. Collectively, the net
reduction in expenditures associated with a full rescission of the 2024
final rule reflects a retention of approximately 96,000 Head Start
Preschool slots and 25,000 Early Head Start slots nationally. In other
words, by rescinding the 2024 final rule, Head Start programs would
retain approximately 121,000 slots that would otherwise have been cut
in order to implement these policies. This represents an additional
15,000 slots saved beyond the 106,000 retained by rescinding the staff
wage and benefit policies. The tables below, as well as the additional
analyses documented in this RIA, enabled ACF to appropriately consider
a range of feasible policy alternatives.
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[[Page 25849]]
[GRAPHIC] [TIFF OMITTED] TP12MY26.003
List of Subjects in 45 CFR Part 1302
Early education, Grant programs, Head Start, Workforce, Wages,
Benefits.
For reasons stated in the preamble, ACF proposes to amend 45 CFR
part 1302 as follows.
PART 1302--PROGRAM OPERATIONS
0
1. The authority for part 1302 continues to read as follows:
Authority: 42 U.S.C. 9801 et seq.
Sec. 1302.90 Personnel policies. [Amended]
0
2. Amend Sec. 1302.90 by removing paragraph (e) and paragraph (f).
Robert F. Kennedy, Jr.,
Secretary, Department of Health and Human Services.
[FR Doc. 2026-09383 Filed 5-11-26; 8:45 am]
BILLING CODE 4184-40-P
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