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Education Department Approves Iowa Waiver to Pool Federal Education Funds

The first-in-the-nation approval advances President Trump’s push to shift control over federal dollars to states, with Indiana and Kansas pursuing similar flexibility.

Overview

  • Iowa can merge money from four federal programs for teacher training, English learners, after-school programs, and academic enrichment into a single fund through September 2028, totaling about $9.5 million.
  • State leaders estimate the change will cut compliance costs roughly in half and redirect nearly $8 million from paperwork to classrooms.
  • The waiver primarily affects state-level funds rather than larger district allocations, and it leaves Title I untouched after an earlier, broader Iowa proposal was pared back.
  • Education Secretary Linda McMahon framed the move as part of the administration’s effort to reduce federal oversight, and she has asked Congress to create a national block grant that would eliminate the four consolidated programs.
  • Indiana and Kansas have also applied for similar waivers, while critics in Congress warn the approach could divert aid away from low-income students and English learners.