The federal funding opportunity to renew state Preschool Development Grant Birth-5 (PDG B-5) planning grants signaled growing recognition of the continued need for system building efforts in early care and education (ECE). Current and proposed activities of PDG B-5 Grantees demonstrate momentum to improve the quality and capacity of systems and increase access of early childhood programs to young children and families. To support the goals and objectives identified in the state’s initial planning grant and its cross-sector strategic plans, PDG B-5 renewal applicants acknowledged the need for realizing efficiencies within the current system, including generating additional resources to support an expanded system. The authors reviewed applications from the initial 23 awardees of PDG B-5 renewal grants to synthesize the B-5 system funding strategies, including how multiple funding streams interact and flow to providers, children, and families. This brief highlights how these strategies support the overall goals of the PDG B-5 grant, provides specific state funding examples, and shares insights from state leaders on the COVID-19 pandemic’s impact on the second year of federal PDG B-5 funding. (author abstract)