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GAO reviewed the Department of Education's new rule entitled "Final Priority for Discretionary Grant Programs." GAO found that the final rule announces the Department's policy of prioritizing grants that support alignment between the Department's discretionary grant investments and the Opportunity Zones initiative. This final priority applies to the Department's discretionary grant programs. Under this priority an applicant must demonstrate one or more of the following: (1) the area in which the applicant proposes to provide services overlaps with a Qualified Opportunity Zone; (2) the applicant is located in a Qualified Opportunity Zone; or (3) the applicant has received, or will receive by a date specified by the Department, an investment, including access to real property, from a Qualified Opportunity Fund.

Enclosed is our assessment of the Department’s compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Janet Temko-Blinder, Assistant General Counsel, at (202) 512-7104.





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B-331654
December 11, 2019
The Honorable Lamar Alexander
Chairman
The Honorable Patty Murray
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate
The Honorable Bobby Scott
Chairman
The Honorable Virginia Foxx
Ranking Member
Committee on Education and Labor
House of Representatives
Subject: Department of Education:
Final Priority for Discretionary Grant Programs
Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a
major rule promulgated by the Department of Education (Department) entitled ?Final Priority
for Discretionary Grant Programs? (RIN: 1875-AA12).  We received the rule on December
2, 2019.  It was published in the Federal Register as final priority on
November 27, 2019.  84 Fed. Reg. 65300.  The effective date of the rule is
December 27, 2019.
This rule was published as a final priority.  It announces the Department?s policy
of prioritizing grants that support alignment between the Department?s discretionary grant
investments and the Opportunity Zones initiative.  This final priority applies to the
Department?s discretionary grant programs.  Under this priority an applicant must
demonstrate one or more of the following: (1) the area in which the applicant proposes to
provide services overlaps with a Qualified Opportunity Zone; (2) the applicant is located
in a Qualified Opportunity Zone; or (3) the applicant has received, or will receive by a
date specified by the Department, an investment, including access to real property, from a
Qualified Opportunity Fund.
The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a
major rule from the date of publication in the Federal Register or receipt of the
rule by Congress, whichever is later.  5 U.S.C. § 801(a)(3)(A).  The House of
Representatives received the final priority on November 22, 2019.  165 Cong. Rec.
H9219 (daily ed. Dec. 3, 2019).  The final priority was published in the Federal
Register on November 27, 2019.  84 Fed. Reg. 65300.  The Senate received the
final priority on November 27, 2019.  165 Cong. Rec. S6822 (daily ed. Dec. 3,
2019).  The final priority has a stated effective date of December 27, 2019. 
Therefore the final priority does not have the required 60-day delay in its effective
date.
Enclosed is our assessment of the Department?s compliance with the procedural steps
required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. 
If you have any questions about this report or wish to contact GAO officials responsible
for the evaluation work relating to the subject matter of the rule, please contact Janet
Temko-Blinder, Assistant General Counsel, at (202) 512-7104.
  signed
Shirley A. Jones
Managing Associate General Counsel
Enclosure
cc: Amanda Amann
Acting Assistant General Counsel
  for Regulatory Services
Department of EducationENCLOSURE
REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A
MAJOR RULE
ISSUED BY THE
Department of EDUCATION
ENTITLED
?FINAL PRIORITY FOR DISCRETIONARY GRANT PROGRAMS? (RIN: 1875-AA12)
(i) Cost-benefit analysis
The Department of Education (Department) believes that this regulatory action does not
impose significant costs on eligible entities, whose participation in discretionary grant
programs is voluntary.  The Department stated that the benefits of the priority
outweigh any associated costs because it would result in the Department?s discretionary
grant programs selecting high-quality applications to implement activities that are
designed to increase education opportunities and improve education outcomes while also
targeting investment in the nation?s most economically distressed communities.  The
Department also believes that the costs imposed on applicants by the priority would be
limited paperwork burden related to preparing an application for a discretionary grant
program that is using the priority in its competition.
(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§
603-605, 607, and 609
The Department certifies that this final priority will not have a significant economic
impact on a substantial number of small entities.
(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act
of 1995, 2 U.S.C. §§ 1532-1535
The final priority does not discuss the Act.  In its submission to us, the
Department indicated that it did not prepare a written statement under the Act.
(iv) Other relevant information or requirements under acts and executive
orders
Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
On July 29, 2019, the Department published a proposed priority.  84 Fed. Reg.
36504.  The Department received comments from 11 parties.  The Department grouped
the major issues according to subject and responded to comments, but did not address
comments that raised concerns not directly related to the proposed priority.
Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501-3520
This final priority does not discuss PRA.  In its submission to us, the Department
indicated that it did not prepare a written statement under PRA.
Statutory authorization for the rule
The Department promulgated this final priority pursuant to section 1221e?3 of title 20,
United States Code.
Executive Order No. 12,866 (Regulatory Planning and Review)
The Department determined that this final priority is economically significant under the
Order and is subject to review by the Office of Management and Budget.




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