Indiana receives federal flexibility on education spending

The Trump administration has granted Indiana increased flexibility over its federal education grant money, marking the third state to receive such exemptions. This move allows Indiana to consolidate $50 million from five different funding streams into a single grant with fewer spending restrictions, a step the Education Department frames as "returning education to the states."

State officials anticipate the waiver will significantly reduce compliance and documentation costs, estimating savings of around $20 million. Education Secretary Linda McMahon approved the plan, appearing alongside Indiana Secretary of Education Katie Jenner and Governor Mike Braun. Jenner emphasized the expanded control, stating, "But when it comes to federal funding, our hands have always been tied. Until now."

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As states, we have significant control over education in that we set the standards, we can choose our curriculum, we can design our assessments.

While the waiver offers greater state control, certain requests were denied. Indiana's proposal to create a school choice program by redirecting funds intended for low-performing districts to higher-performing ones was rejected because it would have altered fund allocation methods, exceeding the secretary's waiver authority. However, the approved waiver does permit changes to accountability systems, specifically reducing the weight of academic indicators in school performance scores. Iowa and Louisiana previously received similar, though less extensive, exemptions.

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But when it comes to federal funding, our hands have always been tied. Until now.