The U.S. Department of Education (ED) on Jan. 7 approved Iowa’s request for a Returning Education to the States waiver, making it the first state in the nation to receive such approval. The waiver gives state officials greater control over how they spend federal education dollars.
Under the waiver, four federal funding streams will be combined into a single block grant lasting through September 2028. Those programs are Title II Part A for professional development, Title III Part A for English language learning, Title IV Part A for student support and Title IV Part B for community learning centers.
The consolidation covers approximately $9.5 million over four years and applies to state-level education agency funds rather than the larger sums flowing directly to Iowa’s more than 300 school districts.
The approved waiver is narrower than what Iowa initially sought. The state’s original proposal, submitted in March 2025, asked the ED to combine 10 funding sources into a single block grant covering both state agencies and school districts. The state submitted its official waiver request on Sept. 22, 2025. According to ED officials, the final plan reflects the flexibility that can be granted under existing law.
State education officials said the savings from reduced compliance costs will go toward expanding evidence-based literacy training using the state’s science of reading approach, strengthening the teacher pipeline and narrowing gaps in student achievement. Iowa also plans to fund professional development on teaching English language learners.
Officials said a majority of previous funding went toward federal compliance. The state estimates the waiver will free up nearly $8 million in staff time over four years.
The ED also approved Iowa’s application for Ed-Flex authority. That designation allows the state to grant school districts waivers from certain federal requirements without first submitting individual requests to the department.
The state received additional waivers as well, including a waiver of Title I Part A carryover limitations for fiscal year (FY) 2024 and a waiver of Title IV Part A content area spending requirements for FY 2025. Iowa also received a waiver permitting Title I Part D Subpart 1 subgrantees to exceed the 30% cap on transition activity spending for four years.
Iowa is not the only state pursuing this kind of flexibility. Oklahoma submitted a similar request in 2025, while Indiana filed a 19-page waiver application on Oct. 17, 2025, seeking to combine funding from more than 15 federal education programs into a single block grant.
In its application, Indiana said the state spends approximately $2.2 million annually in staff time on Elementary and Secondary Education Act (ESEA) compliance. Roughly 75% of that amount, about $1.7 million, goes toward compliance and reporting rather than initiatives that directly affect student achievement, according to state officials. The ED has 120 days from submission to respond to Indiana’s request.
The Iowa approval follows a July 2025 letter from the ED to state education chiefs encouraging them to request waivers under Title VIII of ESEA. That letter pointed to the 2024 National Assessment of Educational Progress (NAEP) math and reading scores as part of its rationale for encouraging state-level flexibility.
Title VIII permits states and tribes to seek relief from statutory or regulatory requirements when existing flexibilities fall short, provided they can show how the waiver will improve student outcomes.
Looking ahead, the ED said it plans to work with Iowa on streamlining reporting requirements. According to the department, that collaboration could benefit education leaders in other states by improving administrative efficiency while maintaining transparency. The ED indicated it intends to continue working with state leaders seeking similar flexibility over federal education programs.
Image by Michal Jarmoluk from Pixabay
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