Erin Richards at the Milwaukee Journal-Sentinel picks up the story, too.
Only two things can render a state ineligible for Race to the Top grants.
And only one of them is a biggie: the student-teacher data firewall issue.
This effectively means New York, California, and Wisconsin, at the very least, are ineligible for Race to the Top—or will at least have some explaining to do. They have laws on the book that essentially bar the use of student-achievement data in some teacher-evaluation decisions.
Background here and here.