The Trump administration has approved Iowa’s plan to gain more flexibility in how it spends certain federal education funds, a step expected to encourage other states to pursue similar waivers.
Education Secretary Linda McMahon signed off on Iowa’s proposal Wednesday at an event in the state. McMahon is inviting states to request flexibility, and Iowa was the first to apply for an exemption from certain spending rules after that invitation, according to the Associated Press.
McMahon said the flexibility will free up time and money that states otherwise devote to ensuring compliance with federal rules. With fewer strings attached, she said, states can pool federal dollars toward priorities they choose, including literacy or teacher training.
“We are eliminating that sort of, not bottleneck, but that additional compliance for the states, and that’s just going to be incredibly helpful to the state,” McMahon said.
The waiver primarily applies to education money used by the state’s education agency rather than the larger sums that flow to Iowa’s more than 300 public school districts. Under the arrangement, federal money from four programs—teacher training, English learners, after-school programs and academic enrichment—will be pooled into a single pot with fewer spending limits. The plan is expected to merge about $9.5 million during the waiver period, which runs through September 2028, and state officials will decide how much goes toward each purpose.
Iowa also said the plan will save about $8 million in staff time that previously went to making sure spending complied with regulations. As part of the waiver, Iowa will still be required to show it is meeting the “spirit” of the federal laws behind each funding source.
Known as block grants, that funding model is a longtime goal of conservatives who say federal money comes with too many strings attached. Opponents have said the approach could allow states to redirect funds away from students who most need federal aid, including low-income students and English learners, and toward Republican priorities.
EdTrust, which advocates for educational equity, criticized the waiver after it was approved. Allison Socol, EdTrust’s vice president, said the plan will “divert federal funding away from students with the greatest needs,” including English learners and those who benefit from after-school programs.
The approved waiver is also narrower than what Iowa had initially requested earlier. In March, Iowa proposed combining 10 funding sources into a single block grant for both the state’s education agency and its school districts, and the early proposal sought flexibility for programs that included Title I, which sends more than $100 million to Iowa schools with large shares of low-income students.
Education Department officials said Iowa’s new plan reflects flexibility that can be granted under existing law. McMahon has also asked Congress to pass a budget that would combine much of the nation’s federal education funding into a single block grant.
Iowa Gov. Kim Reynolds said she recognizes the Education Department can offer only so much leeway under current law. “We stand ready to support you in advocating to Congress for greater flexibilities,” Reynolds said.
In her formal approval, McMahon described Iowa’s plan as “a first-in-the-nation proposal to return education to the States by providing common-sense flexibility, within the letter of and while maintaining the spirit of Federal law.”
Indiana and Kansas have also applied to be exempted from certain parts of federal education law, and leaders in other states have expressed interest, the Associated Press reported. The waivers were described as part of the Republican administration’s broader effort to dismantle the Education Department, with McMahon also halving the agency’s staff and using federal procedures to move work to other departments.