Iowa has become the first state to receive approval from the U.S. Department of Education for a Returning Education to the States Waiver, giving state officials increased flexibility over federal education funding. The waiver allows Iowa’s education agency to combine four federal funding streams into one, with the aim of focusing more resources on student achievement and reducing administrative costs.
According to the Department, this change is expected to free up nearly $8 million over four years that would otherwise be spent on compliance. The funds will instead support literacy training, teacher recruitment, and efforts to close achievement gaps.
The Department also approved Iowa’s application for Ed-Flex authority. This measure enables state officials to grant local districts waivers from certain federal requirements without having to submit individual requests for each case.
Efforts are underway between the Department and Iowa officials to streamline reporting processes and reduce duplication, which could lead to improved efficiency for education administrators across the country while maintaining transparency.
U.S. Secretary of Education Linda McMahon stated, “Granting Iowa’s waiver illustrates the Trump Administration’s commitment to returning education to the states by empowering state leaders, who know their students far better than bureaucrats in Washington, D.C., to have more discretion over federal education dollars. Under President Trump’s leadership, we will continue to identify avenues to reduce burdensome requirements and maximize flexibility for state leaders to invest in their students. Congratulations to the students and families of Iowa whose innovative Governor and Education Chief are fighting for the best interests and needs of their state.”
Iowa Governor Kim Reynolds commented on the development: “This announcement marks an important step toward returning education to the states and putting students first. As the first state in the nation to submit a Unified Allocation Plan, and to receive these waivers, Iowa now has greater flexibility to focus federal resources on what drives student success, and we’re well positioned to do so. I look forward to continuing to improve student outcomes, reduce red tape for schools, support teachers, and ensure federal education dollars are focused toward state and local priorities where they make the greatest difference.”
Under Title VIII of the Elementary and Secondary Education Act (ESEA), states can request waivers from statutory or regulatory requirements if existing flexibilities are insufficient. These requests must demonstrate how waivers will improve student outcomes.
In July 2025, the Department invited agencies nationwide—through a Dear Colleague Letter—to seek such waivers aimed at boosting academic achievement by allowing more flexible use of federal funds.
Iowa submitted its Unified Allocation Plan in March 2025 and followed with an official waiver request in September 2025. The approved waivers include consolidation of certain federal funds through fiscal year 2028 (over $9 million), exceptions from specific spending limitations under Titles I and IV for designated fiscal years—with future authority granted through Ed-Flex—and expanded use of Title I funds for transition activities.
The Department indicated it plans continued collaboration with Iowa as well as other states interested in expanding control over educational programs.
