Learning Agenda Playbook

Returning Education to the States Waivers, Explained

Seven states have received federal waivers for more control over education funding and accountability. Here’s what they allow and what comes with them.

CCasearoo Sep 24, 2026 5 min read

Since January 2026, the U.S. Department of Education has approved “Returning Education to the States” waivers for seven states, giving them more control over how certain federal education funds are used. The flexibility is real, and so is what comes with it: states have to show how they used it and what it achieved.

Waiver approvals are ongoing. This article covers approvals announced through September 24, 2026.

What is a Returning Education to the States waiver?

The waivers rely on the Education Department’s authority under section 8401 of the Elementary and Secondary Education Act, which allows states to request relief from certain statutory or regulatory requirements. In announcing Indiana’s approval, the Department said it grants these requests when states show the waivers will improve student outcomes.

At the center of each waiver is consolidation. Several federal education programs set aside funds for state-level activities, each with its own rules. The waivers let states combine some of those state activities funds and direct them toward their own priorities. According to an Afterschool Alliance analysis, local programs shouldn’t see smaller grant awards as a result, and each state must report to the Department every year on how it uses the waiver and meets students’ needs.

The seven states so far

Iowa (January 2026). Iowa was first. As Chalkbeat reported, its waiver consolidates several federal funding streams at the state level, gives districts more room to carry federal money over from year to year, and adds flexibility for funds used for enrichment, technology and school safety. The estimated savings in compliance costs was about $8 million over four years. State officials said the public should see results in test scores, graduation rates and absenteeism, and Iowa still has to tell the federal government how it spent the money and how much time and money it saved.

Louisiana (May 20, 2026). Louisiana was second. Its waiver consolidates state activities funds and frees more than $18 million through fiscal year 2029. The Afterschool Alliance lists the programs involved as Title II, Part A; Title III, Part A; Title IV, Part A; and Title IV, Part B. Louisiana must continue to account for administrative and state activities funds separately.

Indiana (June 16, 2026). Indiana’s waiver consolidates about $50 million over four years, lets up to 15 percent of its districts pilot combining their Title II-A and Title IV-A funds, and aligns state and federal high school accountability with an emphasis on college and career readiness. The Department estimated about $20 million in reduced compliance costs over four years. Education Week reported that Indiana must update the federal government on how participating districts use consolidated funds and on academic progress.

Vermont (June 24, 2026). Vermont’s waiver consolidates more than $4 million through 2029 from Title II, Part A; Title IV, Part A; and Title IV, Part B. Vermont Secretary of Education Zoie Saunders said the state plans to target the funds toward evidence-based practices in literacy, math, attendance and student engagement.

Arkansas (July 7, 2026). Arkansas’s waiver consolidates four federal funding streams, expands Alternative Fund Use Authority to more rural districts, simplifies accountability for advanced students who finish high school coursework early, and counts students in alternative learning environments with their home schools. The Afterschool Alliance puts the consolidated amount at about $8.8 million over four years. Arkansas was also one of the eight states that piloted the Learning Agenda Playbook.

South Dakota (July 24, 2026). South Dakota became the sixth state. Its waiver consolidates more than $19 million through 2029, which the state can align with its own improvement priorities and strategic plan. The Department approved South Dakota’s Ed-Flex application at the same time.

Mississippi (September 24, 2026). Mississippi became the seventh state. Its waiver consolidates $14 million in federal funds through 2029, which the state can align with its own improvement priorities and strategic plan. The Department said the flexibility will support statewide work such as literacy improvement and technical assistance to districts, and that across the seven states $123 million in federal funds will now be consolidated.

What critics are watching

Supporters say the waivers cut compliance costs and let states put money where their priorities are. Critics worry about oversight, and about the students specific funding streams were designed to protect.

Oversight capacity. Anne Hyslop of All4Ed questioned whether the Education Department has the capacity for meaningful oversight, according to Chalkbeat’s coverage of Iowa.
English learners. Nicholas Munyan-Penney of EdTrust raised concerns about consolidating funds intended for English learners, also in Iowa’s case.
Accountability. EdTrust warned that Indiana’s accountability changes could let the state present an overly positive picture of how students are doing, Education Week reported.
Safeguards. In Arkansas, Bill Kopsky of the Arkansas Public Policy Panel described the approach as a “trust-based system” without strong safeguards, the Northwest Arkansas Democrat-Gazette reported.

Why flexibility raises the bar for evidence

When money is tied to a specific program, the main question is compliance: was it spent the way the law allows? When states consolidate funds around their own priorities, the question becomes whether the investment worked. Every waiver state reports to the Department each year, and state leaders have publicly connected their waivers to outcomes like literacy, attendance and graduation rates.

Answering that question is what the Education Department’s Learning Agenda Playbook is designed to help states do: choose a priority, identify what they don’t know, and gather evidence before deciding what to expand, change or stop.

What it means for districts

Most of the consolidation happens at the state level, with Indiana’s district pilot as a notable exception. But districts are where state priorities are carried out, and where much of the evidence lives. If a state points flexible funds at student support, school safety or attendance, it will need information from districts to show what changed.

Districts that keep consistent, dated records of incidents, cases and the supports that followed will be able to answer those questions quickly. We outline how to prepare in Is Your District Ready for Your State’s Learning Agenda?, and how states can see patterns across districts without seeing individual students in State Visibility Into District Incident and Case Data.

Key takeaways

Seven states — Iowa, Louisiana, Indiana, Vermont, Arkansas, South Dakota and Mississippi — received Returning Education to the States waivers between January and September 2026.
The waivers mainly let states consolidate state-level activities funds from several federal programs and align them with state priorities.
States still report to the Education Department each year on how they use the waiver and meet students’ needs.
Critics have raised concerns about federal oversight capacity and protections for specific groups of students.
More flexibility shifts the question from compliance to results, and results depend on evidence from districts.

Sources

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What is a Returning Education to the States waiver?

The seven states so far

What critics are watching

Why flexibility raises the bar for evidence

What it means for districts

Key takeaways

Sources

See it running on your own process

Keep reading

The Learning Agenda Playbook, Explained

Is Your District Ready for Your State’s Learning Agenda?

State Visibility Into District Incident and Case Data