[Federal Register Volume 86, Number 130 (Monday, July 12, 2021)]
[Rules and Regulations]
[Pages 36510-36514]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14758]


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DEPARTMENT OF EDUCATION

34 CFR Chapter II

[Docket ID ED-2021-OESE-0036]


Final Priorities and Requirement--Innovative Approaches to 
Literacy

AGENCY: Office of Elementary and Secondary Education (OESE), Department 
of Education.

ACTION: Final priorities and requirement.

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SUMMARY: The Department of Education (Department) announces four 
priorities and one requirement under the Innovative Approaches to 
Literacy (IAL) program, Assistance Listing Number 84.215G. The 
Department may use one or more of these priorities and requirement for 
competitions in fiscal year (FY) 2021 and later years.

DATES: These priorities are effective August 11, 2021.

FOR FURTHER INFORMATION CONTACT: Simon Earle, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 3E254, Washington, DC 20202-
6450. Telephone: (202) 453-7923. Email: <a href="/cdn-cgi/l/email-protection#5c0f3531333272193d2e30391c3938723b332a"><span class="__cf_email__" data-cfemail="55063c383a3b7b10342739301530317b323a23">[email protected]</span></a>.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: 
    Purpose of Program: The IAL program supports high-quality programs 
designed to develop and improve literacy skills for children and 
students from birth through 12th grade in high-need local educational 
agencies (LEAs) and schools. The Department intends to promote 
innovative literacy programs that support the development of literacy 
skills in low-income communities, including programs that: (1) Develop 
and enhance effective school library programs, which may include 
providing professional development for school librarians, books, and 
up-to-date materials to high-need schools; (2) provide early literacy 
services, including pediatric literacy programs through which, during 
well-child visits, medical providers trained in research-based methods 
of early language and literacy promotion provide developmentally 
appropriate books and recommendations to parents to encourage them to 
read aloud to their children starting in infancy; and (3) provide high-
quality books on a regular basis to children and adolescents from low-
income communities to increase reading motivation, performance, and 
frequency.
    Program Authority: 20 U.S.C. 6646.
    We published a notice of proposed priorities and requirement (NPP) 
for this program in the Federal Register on April 6, 2021 (86 FR 
17757). The priorities included in the NPP were: Proposed Priority 1--
Projects, Carried Out in Coordination with School Libraries, for Book 
Distribution, Childhood Literacy Activities, or Both; Proposed Priority 
2--Providing a Learning Environment That Is Racially, Ethnically, 
Culturally, Disability and Linguistically Responsive and Inclusive, 
Supportive, and Identity-safe; Proposed Priority 3--Supporting Students 
in Urban Areas; and Proposed Priority 4--Supporting Students from Low-
Income Families. The requirement included in the NPP set forth 
eligibility criteria. The NPP contained background information and our 
reasons for proposing the particular priorities and requirement.
    There are differences between Proposed Priority 2 and Final 
Priority 2 as discussed in the Analysis of Comments and Changes section 
elsewhere in this notice. Except for minor editorial and technical 
revisions, there are no significant changes to Priorities 1, 3, and 4 
and the requirement from the NPP.
    Public Comment: In response to our invitation in the NPP, 28 
parties submitted comments, which, in total, addressed all four of the 
proposed priorities and requirement. Two comments were not relevant to 
the proposed priorities and are not included in the discussions below. 
We group major issues according to subject.
    Generally, we do not address technical and other minor changes, or 
suggested changes the law does not authorize us to make under the 
applicable statutory authority. In addition, we do not address the two 
comments that were not directly related to the NPP.
    Analysis of Comments and Changes: An analysis of the comments and 
of any changes in the priorities and requirement since publication of 
the NPP follows.
    Comment: One commenter applauded the Department for supporting 
school library programs during the COVID-19

[[Page 36511]]

pandemic, particularly when libraries have been closed. The commenter 
remarked that library collections urgently need updating on a regular 
basis to provide resources for our changing cultural needs. The 
commenter believed professional development for librarians will help 
ensure that students have the necessary literacy skills and tools to 
make accurate independent virtual learning choices. Another commenter, 
in acknowledging the Department's recognition of the importance of 
coordinating with school libraries to carry out grant activities, 
encouraged the Department also to promote access to diverse literary 
material. The commenter believed that every student deserves a school 
library that incorporates diversity.
    Discussion: The Department agrees with the commenter that many 
school libraries need updated collections, including ensuring that 
available materials reflect the diversity of students, and that 
professional development for school librarians can be a key lever in 
increasing student literacy. For that reason, we are modifying Priority 
2 to clarify that, as under Priority 1, an applicant implementing a 
program under the priority must coordinate with school libraries.
    Changes: We have clarified in Priority 2 that an applicant must 
coordinate with school libraries.
    Comment: Five commenters provided remarks regarding Proposed 
Priority 1, Projects, Carried Out in Coordination with School 
Libraries, for Book Distribution, Childhood Literacy Activities, or 
Both. Four of the commenters offered support, recognizing the 
importance of school libraries, childhood literacy, and book 
distribution. One commenter remarked that IAL funding is best used by 
providing tangible items, such as eReaders, to LEAs serving children 
from low-income households. A commenter, who also supported the 
proposed priority, encouraged the Department to promote diversity of 
literary materials and evaluate proposed projects' success in ensuring 
diversity.
    Discussion: We appreciate the commenters' support for Proposed 
Priority 1. We think applicants for IAL funding are best positioned, in 
coordination with school libraries, to determine the needs of their 
students and acquire appropriate materials in response to those needs, 
which may include books and literacy-focused technology. We also agree 
that it is important to evaluate projects' success in ensuring 
diversity and students benefit from access to diverse literary 
materials. Priority 2 highlights the Department's commitment to diverse 
learning environments.
    Changes: None.
    Comment: Eight commenters provided remarks for Proposed Priority 2, 
Providing a Learning Environment That Is Racially, Ethnically, 
Culturally, Disability and Linguistically Responsive and Inclusive, 
Supportive, and Identity-safe, and each offered their support for 
learning environments that are inclusive, supportive, and identity-
safe. Commenters stated that identity-safe learning environments will 
be beneficial for students from diverse backgrounds, low-income 
households, and urban areas. A commenter also urged the Department to 
prioritize funding for projects that create inclusive environments via 
ethnic course studies tailored to each unique student population.
    Discussion: We agree that learning environments should be 
responsive, inclusive, supportive, and identity-safe, as reflected in 
Priority 2. With regard to prioritizing funding for projects that focus 
on ethnic studies or creating ethnic studies courses, we think Proposed 
Priority 2 provides the flexibility and autonomy for applicants to be 
innovative in creating responsive and inclusive learning environments, 
including through changes in curricula, library collections, and 
professional development.
    Changes: None.
    Comment: Sixteen commenters provided remarks regarding Proposed 
Priority 3, Supporting Students in Urban Areas. Three commenters 
supported the proposed priority, noting that many urban schools are 
under-resourced; they expressed the need for certified librarians in 
urban schools and agreed that NCES locale codes are appropriate 
indicators of urbanicity. Eleven commenters asserted that studies show 
students in rural areas face greater educational challenges than those 
in urban areas, citing data indicating that rural students are impacted 
more adversely in the areas of childhood poverty, internet access, 
college enrollment, and mental health care.
    One commenter stated that NCES locale codes are not the most 
appropriate indicator of urbanicity, for three reasons: First, school 
enrollment often does not match the surrounding population; second, 
relying on NCES locale codes fails to achieve the goals of this 
proposed priority and the average wealth of families in particular 
schools should be a factor; and third, an area generally is not defined 
by its population and population density. The commenter contended that 
the level of infrastructure, presence of public transit, and types of 
jobs may better define a geographical area for the purpose of the 
priority.
    Another commenter suggested the use of NCES locale codes restricts 
IAL funding to LEAs with an urban locale code of 11, 12, or 13. The 
commenter contended the use of the locale codes results in an under-
inclusive policy that limits funding to urban areas even though 70 
percent of the United States population lives in suburban and rural 
areas. The commenter suggested the Department focus on identifying LEAs 
with the lowest literacy and math achievement levels, which may not be 
in urban settings.
    Discussion: We appreciate the three commenters' support for 
Proposed Priority 3 and agree that students in rural areas face 
educational challenges. To that end, the Explanatory Statement for 
Division H of the Consolidated Appropriations Act, 2021 (Pub. L. 116-
260) (2021 Appropriations Explanatory Statement) directs the Department 
to ensure that grants are distributed among eligible entities that will 
serve geographically diverse areas, including both rural areas and 
underserved communities in urban school districts, in which students 
from low-income families make up at least 50 percent of enrollment. 
Because the Department previously established a priority to serve rural 
communities, this new priority is intended to complement--not replace--
the rural priority so the program can prioritize both rural and urban 
areas, as directed by the 2021 Appropriations Explanatory Statement 
from Congress.
    We appreciate the commenter's suggestions regarding additional 
indicators to be used in addition to NCES locale codes when identifying 
urban areas and agree that population is not the only characteristic 
associated with urbanicity. However, the use of locale codes is a long-
accepted practice in distinguishing among applicants and ensuring 
geographic diversity in competitive grant programs, and we decline to 
augment locale codes as suggested by the commenter.
    We disagree with the commenter who asserted that the use of NCES 
locale codes restricts funding to LEAs assigned an urban locale code. 
As mentioned above, the 2021 Appropriations Explanatory Statement 
directs the Department to ensure that grants are distributed among 
eligible entities that will serve geographically diverse areas, 
including rural areas and underserved communities in urban school 
districts, in which students from low-income families make up at least 
50 percent of

[[Page 36512]]

enrollment. Moreover, the use of urban or rural priorities would not 
preclude applications from, or awards to, eligible applicants proposing 
to serve non-urban and non-rural areas.
    Changes: None.
    Comment: Fourteen commenters offered remarks regarding Proposed 
Priority 4, Supporting Students from Low-Income Families. Of the three 
commenters expressing support for the proposed priority, one 
recommended that eligibility for participation in Part A of Title I of 
the Elementary and Secondary Education Act of 1965, as amended (ESEA), 
be used as a secondary tool to demonstrate that the proposed project 
would serve students from low-income households.
    Ten commenters suggested this proposed priority signals the 
Department's intent to no longer prioritize rural LEAs and high-need 
communities. Another commenter recommended that the Department reserve 
a substantial portion of available funds under this program for LEAs 
serving 50 percent or more of students from families with an income 
below the poverty line regardless of whether they apply for an IAL 
grant.
    Discussion: The purpose of the IAL program is to develop and 
improve literacy skills for students in high-need LEAs and schools. 
Priority 4 addresses supporting students from low-income families and 
does not in any way prioritize students in urban communities over 
students in rural communities.
    The Department does not agree that Title I eligibility would be an 
appropriate measure of poverty for the IAL program because the poverty 
thresholds applicable to Title I are not consistent with the statutory 
requirements of the IAL program. More specifically, only an LEA in 
which 20 percent or more of the students served by the LEA are from 
families with an income below the poverty line (as defined in section 
8101(41) of the ESEA) is eligible for an IAL award; the LEA poverty 
thresholds for receiving Title I funds range from just 2 percent for 
Basic Grants to a maximum of 15 percent for Concentration Grants.
    Additionally, as stated previously, the 2021 Appropriations 
Explanatory Statement directs the Department to ensure that grants are 
distributed among eligible entities that will serve geographically 
diverse areas, including rural areas and underserved communities in 
urban school districts, in which students from low-income families make 
up at least 50 percent of enrollment. Finally, the statute requires 
that IAL awards be made through a competitive process rather than by 
formula to all eligible entities.
    Changes: None.
    Comment: Two commenters supported the proposed requirement. One of 
these commenters noted that the use of the Small Area Income and 
Poverty Estimates (SAIPE) data may provide better opportunities for 
economically challenged urban LEAs to increase school library 
capabilities. The other commenter stated the proposed requirement 
reflects the intent of the IAL program and its language reflects the 
definitions in 20 U.S.C. 6646.
    Discussion: We agree the proposed requirement is essential for 
supporting school libraries and literacy, particularly for LEAs in 
which 20 percent or more of students served are from families with an 
income below the poverty line (as defined in section 8101(41) of the 
ESEA).
    Changes: None.
    Final Priorities:
    Priority 1--Projects, Carried Out in Coordination With School 
Libraries, for Book Distribution, Childhood Literacy Activities, or 
Both.
    Projects that propose to coordinate with school libraries to carry 
out grant activities, such as book distributions, childhood literacy 
activities, or both, for the proposed project.
    Priority 2--Projects, Carried Out in Coordination With School 
Libraries, That Provide a Learning Environment That Is Racially, 
Ethnically, Culturally, Disability Status and Linguistically Responsive 
and Inclusive, Supportive, and Identity-Safe.
    Projects coordinated with school libraries and designed to be 
responsive to racial, ethnic, cultural, disability, and linguistic 
differences in a manner that creates inclusive, supportive, and 
identity-safe learning environments.
    In its application, the applicant must--
    (a) Describe the types of racially, ethnically, culturally, 
disability status, and linguistically responsive program design 
elements that the applicant proposes to include in its project;
    (b) Explain how its program design will create inclusive, 
supportive, and identity-safe environments; and
    (c) Describe how its project will be carried out in coordination 
with school libraries.
    Priority 3--Supporting Students in Urban Areas.
    Projects that are designed to serve one or more urban LEAs. In its 
application, an applicant must demonstrate one of the following:
    (a) The applicant is an eligible LEA or consortium of eligible LEAs 
with a locale code of 11, 12, or 13.
    (b) The applicant is a national nonprofit that proposes to serve 
schools within eligible LEAs all of which have a locale code of 11, 12, 
or 13.
    Note: Applicants are encouraged to retrieve locale codes from the 
National Center for Education Statistics (NCES) School District search 
tool (https://nces.ed.gov/ccd/districtsearch/), searching by LEA.
    Priority 4--Supporting Students From Low-Income Families.
    Projects that serve LEAs serving students from low-income families. 
In its application, an applicant must demonstrate, based on Small Area 
Income and Poverty Estimates (SAIPE) data from the U.S. Census Bureau 
or, for an LEA for which SAIPE data are not available, the same State-
derived equivalent of SAIPE data that the State uses to make 
allocations under part A of title I of the Elementary and Secondary 
Education Act of 1965, as amended (ESEA), one of the following:
    (a) At least 25 percent of the students enrolled in each of the 
LEAs to be served by the proposed project are from families with an 
income below the poverty line.
    (b) At least 30 percent of the students enrolled in each of the 
LEAs to be served by the proposed project are from families with an 
income below the poverty line.
    (c) At least 35 percent of the students enrolled in each of the 
LEAs to be served by the proposed project are from families with an 
income below the poverty line.
    (d) At least 40 percent of the students enrolled in each of the 
LEAs to be served by the proposed project are from families with an 
income below the poverty line.
    (e) At least 45 percent of the students enrolled in each of the 
LEAs to be served by the proposed project are from families with an 
income below the poverty line.
    (f) At least 50 percent of the students enrolled in each of the 
LEAs to be served by the proposed project are from families with an 
income below the poverty line.
    Types of Priorities:
    When inviting applications for a competition using one or more 
priorities, we designate the type of each priority as absolute, 
competitive preference, or invitational through a notice in the Federal 
Register. The effect of each type of priority follows:
    Absolute priority: Under an absolute priority, we consider only 
applications that meet the priority (34 CFR 75.105(c)(3)).
    Competitive preference priority: Under a competitive preference 
priority,

[[Page 36513]]

we give competitive preference to an application by (1) awarding 
additional points, depending on the extent to which the application 
meets the priority (34 CFR 75.105(c)(2)(i)); or (2) selecting an 
application that meets the priority over an application of comparable 
merit that does not meet the priority (34 CFR 75.105(c)(2)(ii)).
    Invitational priority: Under an invitational priority, we are 
particularly interested in applications that meet the priority. 
However, we do not give an application that meets the priority a 
preference over other applications (34 CFR 75.105(c)(1)).
    Final Requirement:
    Requirement:
    The Department establishes the following requirement for this 
program. We may apply this requirement in any year in which this 
program is in effect.
    Eligible Applicants: To be considered for an award under this 
competition, an applicant must be one or more of the following:
    (1) An LEA in which 20 percent or more of the students served by 
the LEA are from families with an income below the poverty line (as 
defined in section 8101(41) of the ESEA).
    (2) A consortium of such LEAs described in paragraph (1) above.
    (3) The Bureau of Indian Education.
    (4) An eligible national nonprofit organization (as defined in 
section 2226(b)(2) of the ESEA) that serves children and students 
within the attendance boundaries of one or more eligible LEAs.
    Note: Under the definition of ``poverty line'' in section 8101(41) 
of the ESEA, the determination of the percentage of students served by 
an LEA from families with an income below the poverty line is based on 
the U.S. Census Bureau's SAIPE data.
    An entity that meets the definition of an LEA in section 8101(30) 
of the ESEA and that serves multiple LEAs, such as a county office of 
education, an education service agency, or regional service education 
agency, must provide the most recent SAIPE data for each of the 
individual LEAs it serves. To determine whether the entity meets the 
poverty threshold, the Department will derive the entity's poverty rate 
by aggregating the number of students from families below the poverty 
line (as provided in SAIPE data) in each of the LEAs the entity serves 
and dividing it by the total number of students (as provided in SAIPE 
data) in all of the LEAs the entity serves.
    An LEA for which SAIPE data are not available, such as a non-
geographic charter school, must provide a determination by the State 
educational agency (SEA) that 20 percent or more of the students aged 
5-17 in the LEA are from families with incomes below the poverty line 
based on the same State-derived poverty data the SEA used to determine 
the LEA's allocation under part A of title I of the ESEA.
    This document does not preclude us from proposing additional 
priorities, requirements, definitions, or selection criteria, subject 
to meeting applicable rulemaking requirements.
    Note: This document does not solicit applications. In any year in 
which we choose to use one or more of these priorities or the 
requirement, we invite applications through a notice in the Federal 
Register.

Executive Orders 12866 and 13563

Regulatory Impact Analysis

    Under Executive Order 12866, the Office of Management and Budget 
(OMB) must determine whether this regulatory action is ``significant'' 
and, therefore, subject to the requirements of the Executive order and 
subject to review by OMB. Section 3(f) of Executive Order 12866 defines 
a ``significant regulatory action'' as an action likely to result in a 
rule that may--
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, or 
Tribal governments or communities in a material way (also referred to 
as an ``economically significant'' rule);
    (2) Create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impacts of entitlement grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles stated in the 
Executive order.
    This final regulatory action is not a significant regulatory action 
subject to review by OMB under section 3(f) of Executive Order 12866.
    We have also reviewed this final regulatory action under Executive 
Order 13563, which supplements and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866. To the extent permitted by law, Executive Order 
13563 requires that an agency--
    (1) Propose or adopt regulations only upon a reasoned determination 
that their benefits justify their costs (recognizing that some benefits 
and costs are difficult to quantify);
    (2) Tailor its regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives and taking into 
account--among other things and to the extent practicable--the costs of 
cumulative regulations;
    (3) In choosing among alternative regulatory approaches, select 
those approaches that maximize net benefits (including potential 
economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity);
    (4) To the extent feasible, specify performance objectives, rather 
than the behavior or manner of compliance a regulated entity must 
adopt; and
    (5) Identify and assess available alternatives to direct 
regulation, including economic incentives--such as user fees or 
marketable permits--to encourage the desired behavior, or provide 
information that enables the public to make choices.
    Executive Order 13563 also requires an agency ``to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible.'' The Office of 
Information and Regulatory Affairs of OMB has emphasized that these 
techniques may include ``identifying changing future compliance costs 
that might result from technological innovation or anticipated 
behavioral changes.''
    We are issuing these final priorities and this final requirement 
only on a reasoned determination that their benefits justify their 
costs. In choosing among alternative regulatory approaches, we selected 
those approaches that maximize net benefits. Based on the analysis that 
follows, the Department believes that this regulatory action is 
consistent with the principles in Executive Order 13563.
    We also have determined that this regulatory action does not unduly 
interfere with State, local, and Tribal governments in the exercise of 
their governmental functions.
    In accordance with both Executive orders, the Department has 
assessed the potential costs and benefits, both quantitative and 
qualitative, of this regulatory action. The potential costs are those 
resulting from statutory requirements and those we have determined as 
necessary for administering the Department's programs and activities.

Potential Costs and Benefits

    The Department believes that this regulatory action will not impose 
significant costs on eligible entities,

[[Page 36514]]

whose participation in our programs is voluntary, and costs can 
generally be covered with grant funds. As a result, the final 
priorities and requirement will not impose any particular burden except 
when an entity voluntarily elects to apply for a grant. The benefits of 
the priorities and requirement will outweigh any associated costs 
because they will help ensure that the Department's discretionary grant 
programs select high-quality applicants to implement activities that 
are designed to address innovative approaches to literacy. In addition, 
these priorities and requirement are specifically targeted to 
prioritize applicants from underserved areas and reduce application 
burden on such applicants.

Regulatory Flexibility Act Certification

    The Secretary certifies that this regulatory action will not have a 
significant economic impact on a substantial number of small entities. 
The U.S. Small Business Administration Size Standards define 
proprietary institutions as small businesses if they are independently 
owned and operated, are not dominant in their field of operation, and 
have total annual revenue below $7,000,000. Nonprofit institutions are 
defined as small entities if they are independently owned and operated 
and not dominant in their field of operation. Public institutions are 
defined as small organizations if they are operated by a government 
overseeing a population below 50,000.
    Of the impacts we estimate accruing to grantees or eligible 
entities, all are voluntary and related mostly to an increase in the 
number of applications prepared and submitted annually for competitive 
grant competitions. Therefore, we do not believe that the final 
priorities and requirement will significantly impact small entities 
beyond the potential for increasing the likelihood of their applying 
for, and receiving, competitive grants from the Department.

Paperwork Reduction Act

    The final priorities and requirement contain information collection 
requirements that are approved by OMB under OMB control number 1894-
0006.
    Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79. One of the 
objectives of the Executive order is to foster an intergovernmental 
partnership and a strengthened federalism. The Executive order relies 
on processes developed by State and local governments for coordination 
and review of proposed Federal financial assistance.
    This document provides early notification of our specific plans and 
actions for this program.
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc, or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of the Department published in 
the Federal Register, in text or Adobe Portable Document Format (PDF). 
To use PDF you must have Adobe Acrobat Reader, which is available free 
at the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

Ian Rosenblum,
Deputy Assistant Secretary for Policy and Programs Delegated the 
Authority to Perform the Functions and Duties of the Assistant 
Secretary, Office of Elementary and Secondary Education.
[FR Doc. 2021-14758 Filed 7-9-21; 8:45 am]
BILLING CODE 4000-01-P


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