Over the Past 10 Years, Head Start Administrative Spending Remained Relatively Steady and Always Below the 15 Percent Statutory Ceiling

This brief describes the share of spending on administrative expenses in Head Start. Key findings include:

• The Head Start Act sets a ceiling of 15 percent for development and administrative costs.
• The Head Start Act gives the HHS Secretary the flexibility to determine that administrative expenses are excessive below the 15 percent ceiling.
• Administrative expenses do not include program costs, which are those directly related to the provision of program component or direct service functions. Indirect costs comprise a large share of administrative expenses.
• In Fiscal Year 2025 (FY25), nearly one third of all grants (31.4 percent) operate at or below 10 percent administrative costs. Administrative spending as a share of total costs did not vary substantially by grant size.
• Across Head Start programs, the share of overall spending on administrative expenses remained relatively stable from FY16 to FY25, ranging from 10.9 percent to 11.2 percent.
• The 15 percent ceiling for Head Start sits at the high end of administrative limits used across related programs. Other federal human services and early childhood programs generally set a 5 percent or 10 percent administrative expense limit.
• Every dollar spent on general administrative expenses is a dollar unavailable for core program functions like classroom instruction or comprehensive services for children and families.

*This content is in the process of Section 508 review. If you need immediate assistance accessing this content, please submit a request to Amanda Benton, Amanda.Benton@hhs.gov. Content will be updated pending the outcome of the Section 508 review.