I have now heard the same thing from three independent credible sources - the fix is in on the U.S. Department of Education's competitive grants, in particular Race to the Top (RTTT) and Investing in Innovation (I3). Secretary Duncan needs to head this off now, by admitting that he and his team have potential conflicts of interests with regard to their roles in grant making, recognizing that those conflicts are widely perceived by potential grantees, and explaining how grant decisions will be insulated from interference by the department's political appointees.
We do know that the Secretary benefited from a strong relationship with the new philanthropy in Chicago. We know that the Secretary is high on charter management organizations and the new teacher development programs that benefited from the new philanthropy. We know that RTTT czar Joanne Weiss was senior staff member at New Schools. We know that Assistant Deputy Secretary for Innovation and Improvement Jim Shelton was a senior program education officer at the Gates Foundation and NewSchools. We know that both managed investments in the organizations' Duncan favors.
(4) demonstrate that they have established partnerships with the private sector, which may include philanthropic organizations, and that the private sector will provide matching funds in order to help bring results to scale.
Whatever is or is not going on at the Department, the principled response is for the Secretary to address the fear head on, explain how the feared outcomes cannot take place, and then make sure he and his people keep several arms lengths removed from the process.