‘States should lead:’ McMahon grants Iowa first-of-its-kind education funding waiver

1:12FILE – Education Secretary Linda McMahon engages with reporters in the James Brady Press Briefing Room at the White House, Thursday, Nov. 20, 2025, in Washington. (AP Photo/Alex Brandon, File)Alex Brandon/AP

U.S. Secretary of Education Linda McMahon has awarded Iowa a groundbreaking waiver to utilize millions of unrestricted federal funds for education, a step that brings the Trump administration closer to its objective of devolving education authority and decision-making to the states.

"States should take the lead — Washington should support their effective approaches and step aside," McMahon stated on Wednesday. "We are optimistic that by collaborating with congressional leaders to return education responsibilities to the states, we can partner with them [Iowa] to broaden these opportunities for state and local leaders to manage their education systems."

The waiver, exceeding $9 million, will enable the Hawkeye State to save millions in "compliance costs" over four years as the funds are directed straight into classrooms, McMahon mentioned in a post on X.

FILE – Education Secretary Linda McMahon speaks with reporters in the James Brady Press Briefing Room at the White House, Thursday, Nov. 20, 2025, in Washington. (AP Photo/Alex Brandon, File)Alex Brandon/AP

"Iowa now possesses the flexibility to reduce paperwork and streamline all state funding streams. It can invest in effective strategies to cultivate a top-tier teacher pipeline, bridge achievement gaps, and create postsecondary opportunities to equip students for successful careers," McMahon remarked.

With this waiver, several federal mandates will be lifted, affording the state greater autonomy in utilizing the assistance. Before the formal waiver request, the state provided a Unified Allocation Plan illustrating how it intended to allocate its funds to enhance academic results for Iowa’s education programs. The plan encompasses support for effective educator development, English language acquisition, among other areas, as per state education authorities.

The approval of the waiver strengthens McMahon’s initiative to diminish the federal government’s involvement in education across the nation. However, education is predominantly a local concern in the U.S. On average, state and local education agencies contribute approximately 90% of public school funding nationwide.

The agency is also collaborating with around six other states regarding their waiver applications, an Education Department representative confirmed to ABC News.

Title VIII of the Elementary and Secondary Education Act of 1965 permits states and tribes to submit requests to waive any statutory or regulatory requirement aimed at "reducing administrative burdens" and aligning programs with the needs of their students, according to a statement from the Department of Education.

In addition to Iowa’s $9 million in flexible federal funds, the Education Department has approved the state’s request for "Ed-Flex authority," which allows the state to provide individual school districts with waivers from specific federal requirements without needing to submit separate waiver requests, according to the department’s release.

McMahon made the announcement during her "Returning Education to the States Tour."

Throughout her first year as the nation’s chief education official, McMahon has made approximately two dozen stops in states across the country to identify effective educational practices at the local level and collaborate with local leaders to implement those practices nationwide, as she stated.

Wednesday’s announcement empowers state leaders to allocate federal funds toward initiatives that most effectively enhance the educational attainment of Iowa students, according to the department’s statement. For the announcement, McMahon was accompanied by Iowa Governor Kim Reynolds, Education Director McKenzie Snow, and about a dozen students at Broadway Elementary School in Denison.

Reynolds praised Iowa’s educational frameworks, which include instruction on the science of reading and the application of evidence-based math and reading methods. She emphasized that the actions taken on Wednesday signify "moving the dial" towards returning education to the states.

"The more bureaucratic obstacles we eliminate at the federal level, the more Iowa can enhance education quality," she added.

"I look forward to continuing to enhance student outcomes, lessen bureaucratic barriers for schools, support educators, and ensure that federal education funds are directed toward state and local priorities where they have the most significant impact," Reynolds stated in a declaration.

Sourse: abcnews.go.com

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