AN ACT CREATING THE UNIVERSAL PRESCHOOL ENDOWMENT.

HB 6867 creates the Universal Preschool Endowment, a dedicated fund to expand access to preschool for children aged 3-5. It is directly funded by transferring up to $300 million from the state’s unappropriated surplus into the endowment for the 2025 fiscal year, with an additional $30 million allowed for 2026. The endowment’s funds - held separately from state money - must be invested prudently and spent solely to build preschool capacity through competitive grants, prioritizing local needs and children not yet eligible for kindergarten. Annual spending is limited to 10% of the endowment’s balance (except for the initial $30 million), ensuring long-term sustainability while directing all resources toward making preschool universally available.