Update on PDG B-5 Grants – December 2025

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

Learn More: 

• PDG B-5 overview
• Key Early Learning Programs Chart
• White House: Official Press Release on Systems Building Grant Announcement
• PDG B-5 Capsule Collection