This chapter reports on the comprehensive reform of an early childhood teacher education program aiming to substantively address the improvement of educational circumstances of culturally and linguistically diverse children. This project engages sociocultural theory, research, and praxis and expands a funds of knowledge perspective. This reform calls for new contexts for action, new forms of family and community engagement, and new circulation of literacies across households, neighborhoods, and U.S. schools. Overarching design goals for the program are focused on challenging the following: (a) narrow conceptions of language literacy and stories; (b) bounded or contained views of learning contexts; (c) hegemonic cultural and linguistic norms, matters regarding U.S. language and educational policies and power; (d) issues of voice and silencing; (e) quantitative and static views of “resources”; and (f) the limited attention to the agency, identities, and strategic actions of diverse students and their families as they traverse home, community, and institutional contexts.