FR 2021-00907

The document from the Department of Education announces the invitation of applications for the Promise Neighborhoods (PN) Program for the fiscal year 2021. This initiative aims to cultivate academic and developmental growth among children residing in the most challenged neighborhoods across the United States. By providing a continuum of high-quality services, the program intends to bolster school readiness, graduation rates, and subsequent success in higher education and careers.

General Summary

The Promise Neighborhoods Program is designed to support communities with high concentrations of poverty and distress. It seeks collaborative efforts from institutions like higher education entities, Indian Tribes, or nonprofit organizations working together with local education agencies and community partners. To apply, entities must submit detailed plans and establish formal partnerships as outlined in a memorandum of understanding.

The proposal outlines several priorities, such as focusing on rural, non-rural, tribal communities, and additional competitive preferences including addressing opioid abuse prevention and operations in designated Opportunity Zones. The program emphasizes strong partnerships and proven strategies to support academic achievements and community betterment.

Significant Issues and Concerns

Length and Complexity:
One immediate concern is the document's complexity and verbosity. Its extensive requirements may make it challenging for potential applicants to quickly grasp key points and obligations. This could discourage smaller organizations or those with less administrative expertise from applying.

Matching Funds Requirement:
The stipulation for applicants to secure matching funds—100% for certain areas and 50% for others—could be burdensome, particularly for organizations without significant external funding sources. While there is a provision for exceptions in 'exceptional circumstances,' it lacks clarity, which might foster perceptions of unfairness.

Technical Language:
The document employs specialized grant terminology such as "segment analysis" and "logic model," assuming applicants have a background in technical grant preparation. This might not be accessible to all potential organizations, particularly newer or grassroots entities.

Administrative and Licensing Burdens:
The open licensing obligations and the need for comprehensive documentation and compliance with various regulations may represent significant hurdles, particularly for smaller organizations lacking the infrastructure or resources to manage these processes efficiently.

Impact on the Public

Broad Impact:
For the public, this program signifies a focused governmental effort to uplift children and families in distressed neighborhoods, aiming for long-term community and educational improvements. By targeting areas with high poverty levels and other indicators of distress, the program promises widespread societal benefits.

Positive Impacts for Specific Stakeholders:
Entities with experience in grant applications and management, such as established nonprofits and educational institutions, may find the program's funding an invaluable resource to expand their community services. Communities in high-need areas could benefit tremendously from the developed services, seeing improvements in educational outcomes and overall quality of life.

Negative Impacts for Certain Stakeholders:
Conversely, smaller entities or those with fewer resources might find the entry barriers—like the requirement for substantial matching funds or complex documentation—prohibitive. These requirements could deter potentially impactful but financially constrained parties from participating.

Conclusion

The 2021 Promise Neighborhoods Program represents an opportunity for transformative community impact through partnerships focused on educational and developmental gains. However, the complexities of application requirements and funding conditions necessitate a level of preparedness and capability that might not be uniformly accessible to all potential applicants, potentially limiting the program's reach to organizations capable of managing the associated administrative burdens.

The document in question pertains to the issuance of a notice inviting applications for the Promise Neighborhoods (PN) Program by the U.S. Department of Education for the fiscal year 2021. Financial allocations and requirements are an integral part of this notice, particularly in terms of grant awards and matching fund mandates.

Financial Allocations and Grants

The total estimated available funds for this program are $36,993,970. Each awarded grant is anticipated to range from $4,000,000 to $6,000,000, with the estimated average size of the awards being $5,000,000. However, any single award is capped at a maximum of $6,000,000 for a budget period of 12 months. This financial allocation is significant and aims to support comprehensive projects that address academic and developmental outcomes in distressed communities.

The document indicates that the discretionary grant could result in 5 to 7 awards, contingent on the availability of funds and the quality of applications. These financial references are crucial as they provide a scope of the financial commitment the federal government is willing to make through these grants, underscoring the program's reach and intended impact.

Matching Fund Requirements

Applicants are required to secure matching funds or in-kind donations to qualify for these grants. For those applying under Absolute Priority 1—Non-rural and Non-Tribal Communities, a match equal to at least 100% of the grant award is required. Conversely, applicants under Absolute Priority 2—Rural Applicants, or Absolute Priority 3—Tribal Communities, must secure matching funds or donations equal to at least 50% of their grant award.

This matching fund requirement highlights an issue where smaller or less-funded organizations might face difficulties, as they could struggle to amass such substantial independent funding. This potential barrier might dissuade these organizations from applying, even if they serve communities in dire need of assistance.

Reporting and Compliance

Financial reporting is addressed in the requirement for organizations to report certain integrity information semiannually if the total value of their active federal grants and contracts exceeds $10,000,000. An additional reference to the $250,000 threshold for the simplified acquisition is noted, indicating the level of financial scrutiny required. Organizations exceeding this threshold are subject to a process to assess their integrity, business ethics, and performance under federal awards.

These requirements underscore the need for robust financial management and compliance systems within applicants' organizations, which may further strain the resources of smaller entities.

Open Licensing and Financial Administration

The requirement for open licensing could introduce a financial and logistic burden to organizations, as they need to have systems in place to manage and disseminate public deliverables created with grant funds. This requirement is another layer of financial accountability and transparency that applicants need to plan for in their financial and administrative strategies.

In summary, while the financial allocations of the PN Program are substantial and indicative of a strong federal commitment to addressing educational and developmental needs in distressed communities, the financial and administrative obligations imposed on applicants could present significant hurdles, particularly for smaller organizations. These stipulations necessitate careful planning, robust financial backing, and comprehensive administrative processes to meet all the requirements specified in the notice.