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Children's Home + Aid, a Chicago-area social service agency and Head Start provider, serves 531 children.
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Under current law, federal regulators review Head Start providers every three years.
The administration and Congressional Republicans have been at loggerheads with Head Start providers.
Sarah Greene, president of the National Head Start Association, which represents Head Start providers nationwide, criticized the Republicans for what she called "a smoke and mirrors campaign" intended to discredit Head Start providers.
On Wednesday, the National Head Start Association sued the Bush administration, saying it had violated First Amendment rights of Head Start providers.
The providers have criticized administration plans to reorganize Head Start, while the administration, frequently led by Ms. Hill, has publicized instances of improprieties by individual Head Start providers.
The bill also allows religiously affiliated Head Start providers to consider religion in hiring decisions for jobs paid for out of taxpayer money.
"What kind of review or investigation was done about this person before being appointed to such a high position?" asked Ms. Greene, whose group represents 2,500 Head Start providers.
Ms. Hill, accused by Head Start providers of mismanaging her own Head Start program in Texas, has been under investigation by the inspector general's office at the Department of Health and Human Services for several months.
Before the latest round of accusations, Head Start providers came out in force to oppose efforts to turn the program over to the states, accusing the administration and Congressional Republicans of trying to dismantle the program.
"The Head Start providers have lobbied it very well, and we are making these accommodations," said Michael N. Castle, the Delaware Republican who sponsored the legislation overhauling what he acknowledged was "a very popular program".
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