The U.S. Department of Health and Human Services recently announced a new funding opportunity—the Preschool Development Grant Birth Through Five (PDG B-5) SMART Grant, to be posted on September 17, 2026—that aims to support statewide investments in early care and education (ECE) technology and analytic data infrastructure. The SMART Grant offers states a unique opportunity to make targeted, one-year investments that strengthen data infrastructure, improve coordination across the mixed-delivery system, and generate actionable information to support better decision making.
At the Early Childhood Data Collaborative (ECDC), we’ve spent more than 15 years working alongside states to strengthen coordinated early childhood data systems. We’ve supported their development, engaged stakeholders, built data governance, and tracked state actions and lessons learned from previous federal funding opportunities through Race to the Top Early Learning Challenge and Preschool Development Grants. Data infrastructure efforts often begin with discussions about technology rather than the decisions the system is intended to support, but we’ve learned one consistent lesson throughout our work: Successful data systems are not built by technology alone. They begin with a clear vision for how data will be used to improve policies, programs, and outcomes for children and families.
As states begin preparing their SMART Grant applications, we encourage them to think strategically about how this one-year investment can create lasting value. Below are five considerations to help maximize the impact of this opportunity.
1. Identify your policy priorities before selecting tools and technology to support them.
Technology should support your state's priorities, not define them. Before selecting tools or building new systems, identify the key policy and program questions your state wants to answer. The strongest investments are those that help leaders make better decisions, improve services, and address the needs of children and families. Our STEP Forward with Data Framework includes 20 key policy questions organized across six system steps, helping leaders use data to identify barriers, measure progress, and inform strategic decisions.
2. Assess existing infrastructure and capacity.
As states plan new data systems, they should begin by assessing their current data infrastructure rather than assuming they need to build something new. Consider your state's business needs, data storage and integration priorities, existing systems, connections with external data sources, legal and privacy requirements, and future goals, including your system’s ability to support public-facing tools and reports. In some instances, strengthening and connecting existing systems through a phased approach may provide greater long-term value than creating standalone technology solutions. Investments of these one-time funds could help improve coordination, interoperability, and data quality across systems while allowing the infrastructure to evolve over time through a modular design that accommodates additional data sources and users as needed.
Designing systems with modular architecture could also allow flexibility to add new data sources and tools. For example, licensing data can automatically update child care search websites, while workforce data can connect educators with training compensation initiatives, credentials, and career advancement opportunities. By allowing systems to share information, your state can improve services for families and providers while reducing duplicate data entry and improving data quality.
State spotlight: Impact of Data-Related Efforts Funded by the North Carolina Preschool Development Grant Birth to Age 5
North Carolina leveraged PDG B-5 funding to strengthen multiple components of its existing early childhood data infrastructure rather than build new systems. Investments included enhancing the state’s Early Childhood Integrated Data System (NC ECIDS), expanding connections between programs, increasing local capacity to use data for planning, and supporting a statewide Data Advisory Council. These complementary investments strengthened North Carolina’s ability to measure progress, coordinate programs, and support evidence-based decisions.
3. Prioritize actionable analytics.
Collecting and integrating data creates a foundation to transform data into actionable insights. Consider how you will use and report data to ensure that your investment generates meaningful systems change; supports continuous improvement; informs policy decisions; and helps identify gaps in services, workforce capacity, program quality, and access. Developing interactive data dashboards, snapshots, and data visualizations are effective ways to produce actionable, timely, and transparent data for families, communities, and state and local partners—for example, annual reporting about your early childhood workforce.
4. Prioritize systems investments that improve the experience for families.
The SMART Grant presents an opportunity to make data systems work better for families. Consider investments that streamline data collection, reduce administrative burden, improve access to services, strengthen family-facing tools, and increase transparency around how data are collected, protected, and used. States can also use these investments to better understand the family experience by incorporating family surveys or other feedback mechanisms into their data systems. Consider collecting regular feedback alongside administrative data to help your state identify barriers to accessing care, assess whether services and policies are meeting families' needs, and inform ongoing improvements to programs and services.
5. Plan for sustainability from the beginning.
Although the grant supports a one-year investment, successful projects should lay the foundation for long-term improvement. Consider how governance, staffing, data standards, partnerships, and ongoing funding will sustain and expand the work after the grant period ends.
The PDG B-5 SMART Grant represents more than a technology investment—it is an opportunity to strengthen the data infrastructure that supports coordinated early childhood systems. States that align technology with strategic goals, invest in sustainable infrastructure, and focus on generating actionable information will be well positioned to maximize the value of this investment for years to come.
ECDC is available to support states as they plan strategic investments that maximize the impact of the PDG B-5 SMART Grant and build lasting data infrastructure for children and families.
Suggested citation: King, C., Richards, D., & Li, W. (2026). Five ways for states to maximize the PDG B-5 SMART Grant. Child Trends. DOI: 10.56417/7545f1438f