"To teach those ordinary people to work together to build, release, and maintain a new distribution of Linux"
Hey, that actually sounds like a fun project for a group of people looking to learn about all the components that make up a distribution. That sounds doable with a dedicated set of learners.
"To teach those ordinary people to work together to build, release, and maintain a new Kernel to replace the Linux Kernel"
Why is the kernel an issue? Also, why start with the kernel, opposed to the other parts of the OS? Is this meant to be a serious attempt to replace Linux with a usable kernel?
"The goal is a new operating system that is created, owned, and controlled by ordinary folk who have taken their Digital Freedom into their own hands. An operating system that will run our computers, phones, cars, robots, etc tomorrow. An operating system the reflects the value of ordinary Americans."
Why not help out on an exisiting operating system, like all the FOSS ones run by volunteers? This is exactly how GNU+Linux, the BSDs, ReactOS, etc came to be. This would be a great opportunity for ordinary people to provide small fixes or port programs. Bolster available software on an operating system like Genode this way! Or even revive / modernize something like Plan9. These projects would be far less ambitious, and be far easier to bring to the stage of ready for use by ordinary folk.
Or if they mean only replacing the Linux kernel and leaving the GNU part intact, why specifically only the kernel? If they want a microkernel, those exist, and if they want something non-monolithic, it seems destined to fail or be insecure, considering GNU Hurd's progress at a better Linux replacement.
I don't mean to rain on their parade, but this aims itself at teaching ordinary people to do this. It's difficult enough to get ordinary people to even use GNU+Linux when all they must do is install and merely learn to use it.