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States and charter operators have just a month to scramble for grants under a vastly revamped federal program in which, for the first time, they鈥檒l have to justify the need for new charter schools.

The U.S. Department of Education on Wednesday posted two notices for grants under the Charter Schools Program 鈥� one for and another for those charter schools. The announcements reflect new rules meant to create more racially diverse schools and increase transparency when for-profit companies are involved in running them. The deadline is Aug. 5, giving states far less than the four months they鈥檝e had to apply in previous years.

The regulations represent a compromise between the Biden administration, which wanted to limit competition between a growing charter sector and traditional schools, and advocates who argued that such schools play an important role in meeting students鈥� needs after the pandemic.

Karega Rausch, president and CEO of the National Association of Charter School Authorizers, described the new rules as 鈥渨orkable,鈥� but said he remains concerned about a requirement that new charters be racially and socioeconomically diverse 鈥� or explain why they鈥檙e not. The rule says operators must note how their charter school won鈥檛 鈥渉amper, delay or negatively affect any desegregation efforts in the local community.鈥�

The provision 鈥減laces additional unnecessary and unwarranted burdens on schools proposing to serve large proportions of lower-income students and students of color,鈥� Rausch said. 鈥淎nd there is no clarity on what constitutes a valid desegregation effort and how applicants will know if any effort exists.鈥�

In March, the department posted a draft of the rule for the $440 million program, which provides start-up and expansion funding for charters. It sparked immediate backlash from the charter school community, with advocates arguing that it would squash growth, especially among smaller, independent operators unaffiliated with charter management organizations. Three Democrats in the Senate and a bipartisan group of mayors later joined opposition to the new rule, and charter supporters outside the U.S. Department of Education and the White House May 11, telling the Biden administration to 鈥渂ack off.鈥� Department officials say the rule is meant to increase accountability, prevent charters from closing because of insufficient demand and promote integrated schools.

鈥淲e are at our strongest as a nation when we embrace the rich diversity across our country,鈥� Anna Hinton, director of the program at the department, wrote in a Friday about the final version. 鈥淔ederal resources should not be used to increase racial or socioeconomic segregation and isolation.鈥�

Work from the Century Foundation contributed to the department鈥檚 revision. In 2019, the progressive think tank ways the program could increase diversity. While many urban charter schools predominantly serve Black or Hispanic students, others in suburban communities mostly white students, data shows.

Stefan Lallinger, a senior fellow at the organization, said not all charters 鈥渢ake proactive steps鈥� to attract a diverse student body. 

鈥淚n some instances, particularly in what are known as 鈥榳hite flight academies,鈥� some charter schools actually exacerbate segregation in a given region,鈥� he said, adding that while the new rules won鈥檛 prevent 鈥渉ypersegregated鈥� schools, they 鈥渞epresent real progress, and signal a growing recognition among education leaders that they should be part of the solution.鈥� 

In her blog post, Hinton said the department recognizes that some charters exist in racially isolated communities and that such schools won鈥檛 be 鈥渁t a competitive disadvantage for funding.鈥�

Carol Burris, executive director of the Network for Public Education, which is critical of charter schools, was the most outspoken in support of changes to the program.

鈥淯nscrupulous individuals who used the program for their enrichment will find it more difficult to do so,鈥� she wrote Monday in , highlighting requirements that charters disclose any contracts with for-profit entities and hold public hearings on proposed schools or expansions.

But in a win for the charter sector, officials won鈥檛 force charters to collaborate with district schools in order to receive funding 鈥� a requirement included in the original draft 鈥� but they still want to encourage partnerships. And they clarified that applicants can demonstrate demand for their programs in multiple ways, including waitlists. 

鈥淭he fact that they have taken some of our comments seriously indicates the power of advocacy,鈥� said Nina Rees, CEO of the National Alliance for Public Charter Schools. But she added that if the added documentation required and the small window to apply 鈥渄ampens interest鈥� in seeking the funds, that would be 鈥渧ictory for our opponents.鈥�

Yomika Bennett, executive director of the New York Charter Schools Association, was among those who rallied in Washington in May. 

鈥淎s far as I’m concerned, we’re not fully heard until the broken education system is fixed,鈥� she said. 鈥淪chool systems in cities across [New York state] and across the country are allowed to fail to educate students year after year, generation after generation. Officials, union bosses and critics attack charters, school choice and fight to keep students trapped in failing district schools.鈥�

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