This Race to the Top - Early Learning Challenge (RTT-ELC) annual performance report for the year 2016 describes Oregon's accomplishments, lessons learned, challenges, and strategies Oregon will implement to address those challenges. In 2016, Oregon continued on its trajectory to creating a dynamic early learning system capable of anticipating and addressing the myriad and diverse needs of its children and families. Efforts are guided by the state's 40-40-20 goals: by 2025, 40% of adult Oregonians will earn a bachelor's degree or higher; 40% will earn an associate's degree; and 20% will earn a high school diploma or equivalent. Oregon's early learning system aims to support children to learn and thrive by focusing on three statutory goals: ensure that (1) children arrive at kindergarten ready to succeed; (2), families are healthy, stable and attached; and (3) the early learning system is coordinated, aligned and family-centered. Through funding that reinforces essential infrastructure, the Race to the Top- Early Learning Challenge grant (RTT-ELC) has been integral to Oregon's efforts to meet the goals outlined above by cultivating quality early learning environments, where cross-systems coordination occur, staff are well trained, culturally-responsive practices are the norm, and parents are engaged.