DES MOINES, IOWA (January 7, 2026) — US Department of Education (ED) approved Iowa’s Returning Education to the States Waiver, empowering state education officials to have more discretion over their federal education dollars. Iowa is the first state to apply for and receive such a waiver, which will allow state leaders to focus federal dollars on work that best improves the achievement of Iowa students.
Iowa’s waiver permits the state education agency to combine four federal funding streams into one. Iowa leaders seek to focus more federal resources on improving student achievement rather than federal compliance. This waiver’s flexibility will reduce compliance costs, allowing nearly $8 million to be redirected from bureaucratic red tape to the classroom over four years. State education leaders will use the redirected funds and the greater flexibility they afford to expand support for evidence-based literacy training, strengthening their teacher pipeline, and narrowing achievement gaps.
ED has also approved Iowa’s application for Ed-Flex authority which allows them to grant districts waivers from certain federal requirements without first having to submit individual waiver requests to the Department.
ED will also work with Iowa on how best to streamline burdensome, duplicative programmatic and fiscal reporting. This work with Iowa will benefit education leaders across the nation by improving administrative efficiency, while ensuring needed transparency.
“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 DC, to have more discretion over federal education dollars,” said US Secretary of Education Linda McMahon.
“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.”
“This announcement marks an important step toward returning education to the states and putting students first,” Iowa Governor Kim Reynolds said.
“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.”
BACKGROUND:
When the existing statutory flexibilities for States, districts, and schools are insufficient, Title VIII of the Elementary and Secondary Education Act of 1965 as amended (ESEA), allows states and tribes to submit requests to the Secretary to waive any statutory or regulatory requirement. These waiver requests are subject to certain restrictions in law and must justify how the waiver will improve student outcomes.
ED sent a Dear Colleague Letter in July to state education leaders inviting state education agencies, local educational agencies, schools, and Tribal leaders to improve student academic achievement and maximize the impact of Federal funds by requesting waivers that empower them with the flexibility to better serve students.
The Iowa Department of Education first submitted a Unified Allocation Plan on March 7, 2025 and sent an official waiver request on September 22, 2025 seeking to reduce administrative burden and more effectively align programs with the needs of Iowa students. ED approved the following requests:
- Iowa will receive a waiver to consolidate federal state activities funds through FY 2028, more than $9 million in federal funds. Iowa already consolidates its federal administrative funds.
- Iowa will continue to account for the administrative and state activities funds separately.
- Iowa will receive a waiver of the Title I, Part A carryover limitation for FY 2024 and a waiver of the Title IV, Part A content area spending limitations for FY 2025. In future fiscal years, Iowa will not need this waiver because they can grant it unilaterally through their new Ed-Flex authority.
- Iowa will receive a waiver to permit its Title I, Part D, Subpart 1 subgrantees to spend more than thirty percent of funds on transition activities for four years. In future fiscal years, Iowa will not need this waiver because they can grant it unilaterally through their new Ed-Flex authority.
ED looks forward to working with Iowa and other state leaders to further expand state discretion over education programs.
