Cities Riled by Bush Plan to Weigh School Progress

Under a proposal by President Bush, a portion of federal community-development money would be distributed to cities and towns based in part on how well their local schools had performed under the No Child Left Behind Act’s standards.

Most of the $3.71 billion that would make up the new “Strengthening America’s Communities” initiative, which is part of the president’s proposed fiscal 2006 budget, would be distributed according to a formula, the Department of Commerce says. Communities would be able to receive the money based on such criteria as poverty rate and unemployment level.

But a portion of the money—5 percent to 10 percent, in early discussions—would be set aside for a proposed Economic Development Challenge Fund. To compete for that money, localities would have to show that they were “development ready” communities with such advantages as business-friendly regulations, reductions in violent crime, and adequate yearly progress in local schools under the No...