(a) General rule.--A Head Start provider that received a grant in the prior fiscal year shall be eligible to receive a grant in an amount equal to the grant received in the immediately preceding fiscal year, less any start-up costs. If by March 1 the Head Start provider did not enroll at least 90% of the number of children it was approved to serve for that year, then the grant shall be reduced proportionally based on the number of children enrolled as of March 1.

(b) Priority for remaining funding.--For the remaining funds, the department shall give priority in funding to Head Start providers applying for grants to serve additional eligible children.