Last year was a time of transition with the release of updated Head Start Program Performance Standards, new funding available through Early Head Start – Child Care Partnership (EHS-CCP) and Early Head Start Expansion grants, and competition for DRS grants in many states throughout the country. All this while programs juggle enrollment, staffing, and evolving community needs.

As 2025 beings, and in light of the updated Performance Standards, we reflect on some of the factors that may help programs to estimate the number of children income-eligible for enrollment in Head Start/Early Head Start and to identify those most in need.

1. Updated poverty guidelines to determine income-eligibility are coming soon. In mid-January, the S. Department of Health and Human Services (HHS) Poverty Guidelines for 2025 will be released. The current guidelines remain in effect until the new guidelines are published. The U.S. Federal Poverty Guidelines impact eligibility for Head Start and other federally-funded programs. Did you know that you can receive updates altering you to when updates are published and other news about the guidelines? If interested, consider subscribing to the NIH Listserv.

2. New data sets from the U.S. Census Bureau can help programs to estimate the number of income-eligible children in their service area. Last month, the U.S. Census Bureau released the 2019-2023 American Community Survey (ACS) 5-year estimates. This gives programs access to the most extensive and reliable data on local poverty rates and the number of individuals living in poverty. Using the most recent Census data, you can obtain estimates on the number of children birth to age 5 living below the federal poverty guidelines. You can also use Census data to assess the number of young children living in households that receive public assistance – which is another eligibility category.

3. Housing Cost Adjustment Calculator helps to determine income-eligibility for families that may be over federal poverty guidelines. The updated Performance Standards allow programs to adjust families’ gross income to allow for high housing costs. If a family spends more than 30% of their total income on housing costs, the amount that is over 30% of income may be deducted. To assist programs in determining eligibility, the Office of Head Start shared a Housing Cost Adjustment Calculator. The calculator takes into account rent, mortgage, homeowners/renters insurance, interest, property or renter’s taxes and utilities (including electricity, gas, sewer, water, and trash collection).

4. Other data provides valuable context for understanding which families may be eligible for services. When programs conduct their community assessment, many gather data on the number of children living in poverty. Some programs also gather data about families living on the brink of poverty, which is an important distinction now that  some families who would not typically qualify for services will now be eligible under the new housing cost provision. We encourage you to look at data such as ALICE and other information about families living on the brink of poverty (over income). It’s also important to understand local housing costs and how much of a burden they place on families in your service area. This is an important piece of your community assessment to show understanding of the population of families that may be eligible under the housing cost provision.

5. Keep in mind that up-to-date policies and procedures will help to set clear expectations. If your program is making changes to how it determines eligibility (e.g., housing cost provision), conducts its community assessment, or to other program practices, it is essential to also update the corresponding policies and procedures. Policies and procedures are foundational and should result in consistent implementation that can be monitored across the program.

We understand there are many changes to the Performance Standards and programs are at various stages of readiness for implementation and monitoring. Foundations for Families offers offer a variety of consulting services to assist programs. If you are interested to learn more or have questions, please be in touch.

Thank you.

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