Targeting groups and getting compliance is always an issue, whether it's mandatory or not. Investing money in that community-level mobilization, going to communities in a culturally appropriate and linguistically appropriate manner and engaging them in the right way is how you get compliance, so that's where the money should be invested.
As I said earlier, I would take the $35 million and put it there and test it out with the mandatory long form before I would throw out the baby with the bathwater.