When a state educational agency (SEA) or local educational agency (LEA) discloses PII from education records to a CWA or tribal organization under the exception in FERPA, may the recipient of the data use it to evaluate their own programs?

No. The PII from education records disclosed to the CWA or tribal organization under the exception in FERPA must only be used for the purpose of addressing the education needs of children in foster care placement.  Thus, the PII from education records disclosed under the exception to FERPA may not be used for any other purpose, including to audit or evaluate a federal- or state-supported education program.