- Iowa is the first state approved for the Trump administrations Returning Education to the States waiver, gaining more flexibility over certain federal education dollars starting Jan. 7, 2026.
- The waiver consolidates four ESEA programs (Titles II-A, III-A, IV-A, and IV-B) into a roughly $9.5 million state-level block grant through Sept. 2028, aiming to shift about $8 million from compliance to classrooms.
- Iowas broader request to fold in 10 streams including Title I and more district-level funds was denied, making this a limited pilot rather than a sweeping overhaul.
- Supporters say it streamlines administration and funds literacy/teacher and English-learner supports, while critics warn reduced federal oversight could weaken accountability for high-need students.
Read More
The approval of Iowa’s waiver represents a meaningful shift in federal education policy under the Trump administration, emphasizing state control and deregulation. While legally permissible under current statutes (specifically the ESEA), the implementation of this waiver is cautious—covering only four specific funding streams and excluding major funding sources like Title I and district-level allocations. This suggests federal and state policymakers are testing the waters before adopting broader reforms.
Strategically, Iowa gains immediacy in redirecting resources: an estimated $8 million over four years that had been absorbed by compliance work will instead finance teacher training, literacy initiatives (notably Iowa’s “science of reading”), and support for English learners. The streamlined reporting and grant management also promise operational efficiencies at both state and local levels. However, the small dollar amount involved (about $9.5 million) relative to larger state education budgets underscores that this is a pilot rather than a systemic change.
Politically, the waiver advances conservative education priorities: returning authority to states, simplifying federal bureaucracy, and reducing Washington’s regulatory role. Yet, the political risk is nontrivial. Education equity organizations warn that decreased federal oversight can lead to the diversion of funds away from necessary supports for vulnerable groups such as students from low-income backgrounds or who are English learners. The tension between flexibility and accountability will likely become a flashpoint, especially in future requests for broader block-grant authority.
Looking ahead, several open questions arise: Will Iowa meet its academic and equity benchmarks over the waiver period? Will Congress agree to broader block grant consolidation, including major programs like Title I? How will rural districts and marginalized communities be affected under looser federal compliance? The experiences of Indiana, Kansas, or other states seeking similar waivers will serve as early indicators of how successful and sustainable this model might be at scale.
Supporting Notes
- Iowa submitted a waiver under the Returning Education to the States initiative and was approved on January 7, 2026—first state to apply and receive the waiver under Secretary Linda McMahon.
- The waiver consolidates four ESEA funding streams (Title II Part A, Title III Part A, Title IV Parts A & B) into a state-level block grant totaling about $9.5 million over four years.
- The state estimates that under the previous regulatory framework, about $8 million of that $9.5 million would have been used for compliance and administrative tasks, not direct educational services.
- Iowa’s original proposal sought to consolidate 10 funding streams, including Title I (approximately $100+ million annually) and school district allocations, but the approved waiver is significantly narrower.
- Iowa gains Ed-Flex authority, enabling local districts to receive waivers from certain federal requirements without submitting individual requests, starting in future fiscal years.
- Supporters argue the new model will allow enhanced investment in evidence-based literacy training (including ‘science of reading’), teacher pipeline development, instructional materials, and targeted support for English learners.
- Critics, including education equity groups, caution the reduced federal oversight could undermine protections for students most dependent on federal supports, including low-income and English learner populations.
- The waiver runs through September 2028.