With a recognition that there are challenges associated with adopting

With a recognition that there are challenges associated with adopting new curriculum and securing additional funding, local school boards handling teacher requests typically encourage creative solutions that utilize existing resources.

(A) With a recognition that there are challenges associated with adopting new curriculum and securing additional funding

(B) Because adopting new curriculum and securing additional funding have challenges they recognize

Meaning error. The local school boards did something not because adopting new curriculum and securing additional funding have challenges but because of the recognition of the fact that adopting new curriculum and securing additional funding have challenges.

(C) Because of a recognition that adopting new curriculum and securing additional funding having challenges

"that" should be followed by a clause but the verb is missing for the subject "adopting new curriculum and securing additional funding" INCORRECT

(D) Recognizing the challenges associated with adopting new curriculum and securing additional funding

verb+ing modifier correctly modifies local school boards.

(E) Since adopting new curriculum and securing additional funding have challenges associated with them and they recognize it

antecedent for pronoun "them" is ambiguous. It could be either "local boards" or "adopting new curriculum and securing additional funding" INCORRECT

Hence option D