The Secretary amends the Department's regulations on direct grant programs to expand the basis for selecting applications for new grants to include a recipient's previous performance under any Department grant program as well as its failure to submit a final performance report or submission of a report of unacceptable quality. The Secretary has decided not to amend the regulations to change the date by which applications are considered received by the Department of Education. These amendments to the final regulations are part of the Department's continuing effort to improve the discretionary grantmaking process.