Hot Topic: PDG B-5 Grants, December 2025

UPDATE 11/25/25

The deadline for applications for new PDG B-5 supply grants is swiftly approaching. A few notes:

Last week, Start Early, BUILD, EducationCounsel, and the Alliance for Early Success hosted a webinar for state administrators working on application for the PDG B-5 grants. The slide deck is available with helpful tips and resources. 

These grants must be awarded by the end of this calendar year.  For this to happen, applications are due December 1, 2025 at 11:59PM. This is a tight turnaround over a major holiday, so a few tips (as stated on Slide 5 of the deck linked above):

1: JUST DO IT. Most states that apply for PDG get funding; write something.

2: REDUCE, REUSE, RECYCLE. ACF has provided a lot of language and guidance about their priorities that you can use – as well as the plans and work you’ve done over years and decades.

3: MAKE LEMONADE. There are words to avoid, but there is still important work to do.

**For more information and free application assistance, please contact consulting@startearly.org

DETAILS: WHAT TO KNOW ABOUT PDG B-5 GRANTS

The Preschool Development Grant Birth through Five (PDG B–5) program is a competitive federal grant that supports states in strengthening their early childhood systems. The program is designed to build on existing federal, state, and local early care and learning investments. PDG B-5 program helps address these challenges by offering a unique source of funding that enables states to strengthen, align, and expand their early learning systems.

Overall Funding

Although the White House proposed eliminating PDG B–5 in the FY26 budget, the program remained level-funded at $315 million under the current continuing resolution (CR).

Funding Distributed in September

Approximately $87 million in PDG funds was released in September to 11 grantees completing their three-year Renewal Grants, originally awarded in October 2024. This leaves an estimated $220 million in FY25 funding still to be awarded.

What’s New

A new funding opportunity for PDG B-5 Systems Building Grants was announced November 18th, 2025. States have until December 1 to submit applications. According to the Administration for Children and Families (ACF), roughly 25 grants are expected to be awarded, ranging from $500,000 to $15,000,000.

A Note on These Grants

These Supply Building Grants represent a new category of award, distinct from previous one-year Planning Grants and three-year Renewal Grants. The notice explains that this funding will be targeted to:

• Maximize parent choice and knowledge of the early care and education (ECE) mixed-delivery system
  Support sharing of best practices among ECE providers to improve collaboration and efficiency
• Improve the overall quality of ECE programs

Take Action

Congress is currently making decisions about future funding for PDG B-5. Contact your Members and urge them to provide increased stability for families, children, and programs by passing the Senate FY26 Labor-H appropriations bill that prioritizes funding for child care and early learning programs for a full year.

Learn More: 

• PDG B-5 Capsule Collection – A curated selection of resources for advocates, staffers, Members of Congress and reporters.
• PDG B-5 overview – A short one-pager showing what it is, what it does, and why it’s important.
• Appropriations FY2026 – see the proposed levels with our Key Early Learning Programs Chart
• The National PDG Map – This map highlights PDG B-5 funding for each state and how states have used it to help child care and early learning programs work more effectively. 
• Through the Years: Preschool Development Grants Birth Through Five – This handy chart shows the PDG funding received by each state since the program began in 2018. 
• QUOTES: Governors show support for Federal Preschool Development Grant B-5 Funding – Republican and Democratic governors across the nation have expressed support for PDG B-5 funding and the impact it can have on child care programs. 
• November 2025 – White House: Official Press Release on Systems Building Grant Announcement