All4Ed Flash: Navigating Federal Education Funds: State Flexibility vs. Federal Guardrails

Hello and welcome to the All4Ed Flash, where we are cutting through the noise to bring you latest in education policy news. I’m Enrique Chaurand.

Two states, Iowa and Oklahoma, have announced plans to apply for waivers so that they may block grant many essential programs in an attempt to gain more control over Title I and other critical federal funds.

Meanwhile, the U.S. Department of Education appears eager to find ways to give states more funding flexibility and expand educational choices for students. However, many advocates are skeptical and concerned about these ideas, questioning whether such efforts are even permissible under federal law.

It’s important to note that approximately 90% of funding and most policy decisions in our K-12 education system originate from state and local governments. The 2015 reauthorization of the Elementary and Secondary Education Act (ESEA)—more commonly known as the Every Student Succeeds Act, or ESSA—reinforced this by granting states greater flexibility while maintaining essential federal guardrails like statewide assessments and accountability.

In addition, the 2024 Supreme Court decision in Loper Bright Enterprises v. Raimondo has further limited the regulatory purview of federal agencies, potentially shifting even more power to state and local authorities in education policymaking.

A key power that remains with the Secretary of Education, however, is her authority to grant ESEA waivers, as outlined in Title VIII of ESSA.

Over the past 25 years, administrations from both parties have utilized waivers to provide states with flexibility to innovate and address unique or unforeseen educational challenges, like the COVID pandemic.

However, it’s crucial that these waivers are approved judiciously, adhering to the law’s stipulations to ensure they serve the best interests of students and maintain transparency for parents and the public about student progress.

Furthermore, there are ten provisions—which we’ve dubbed “the un-waive-ables”—that the Secretary has no authority to waive. Some of these provisions appear to be the very requirements Iowa and Oklahoma would like to bypass.

For instance, Governor Kim Reynolds of Iowa has announced a plan to consolidate multiple formula funds—including those for high-poverty schools, English learners, and after-school programs—into a single block grant. Oklahoma’s Superintendent of Public Instruction, Ryan Walters, has also submitted a waiver request to the U.S. Department of Education seeking to distribute all federal Every Student Succeeds Act (ESSA) funds through a consolidated block grant—but goes even further by indicating that federal funds could support Oklahoma private and religious schools under their plan.

By law, federal funding in ESSA can only flow to public schools. According to a national poll conducted by All4Ed on the eve of the 2024 Presidential Election, a strong majority of voters (68% to 24%) prefer increasing federal funding for public schools over increasing funding for vouchers, including majorities of Republicans and Trump voters.

Most experts, including All4Ed’s Director of Policy Development, Anne Hyslop, question the legality of Iowa’s and Oklahoma’s proposals without Congressional approval. She emphasized that under federal law, the Secretary of Education does not have the authority to waive requirements related to the distribution and allocation of formula funding for grants that support students from low-income communities and English learners.

“Even based on the little information that they have provided, I think it’s safe to say this well exceeds the secretary’s authority and what she is able to waive,” Hyslop said.

Further, All4Ed, along with advocates for parents, students from low-income backgrounds, students of color, and others, also argue that such broad flexibility could lead to less accountability and divert funds away from the students who need them most and, in Oklahoma’s case, public education as a whole.

Students in high-poverty schools, rural schools, and English learners—who’ve too often been denied resources, access, and opportunities—stand to lose the most if these illegal block grant waivers are approved.

At All4Ed, we are committed to keeping you informed about these developments and providing resources to help navigate the evolving educational landscape. Understanding the balance between federal guidelines and state flexibility is essential to ensure that all students receive a high-quality education tailored to their needs.

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