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Iowa wins first-in-nation approval to bypass federal education funding rules
Supporters say the plan cuts bureaucracy; education groups warn of reduced oversight
Maya Marchel Hoff, Gazette-Lee Des Moines Bureau
Jan. 7, 2026 4:17 pm, Updated: Jan. 8, 2026 7:27 am
The Gazette offers audio versions of articles using Instaread. Some words may be mispronounced.
DENISON — Iowa is the first state in the country to receive the green light for a federal waiver approval that will allow it to circumvent some reporting and compliance requirements and have more discretion over the spending of federal education funds.
This comes months after Iowa Gov. Kim Reynolds submitted a proposal to the U.S. Department of Education in March — one opposed by multiple education groups — seeking approval for Iowa’s “Unified Allocation Plan,” which she says puts student achievement over federal compliance.
Under the plan, Iowa will receive federal education funding through block grants, or fixed amounts of money from the federal government that can be used for a broad range of purposes, rather than through numerous department grants.
The approval was announced during a press conference after Reynolds and U.S. Education Secretary Linda McMahon toured Broadway Elementary School in Denison Wednesday morning as part of McMahon’s “Returning Education to the States” tour.
Reynolds, who has been a vocal supporter of President Donald Trump and McMahon’s efforts to dismantle the DOE and transfer its responsibilities to other federal departments, said shifting funds from “bureaucracy” will create more flexibility for Iowa schools and allow more resources and school staff hours to go directly toward students and classrooms.
“This means greater flexibility to strengthen the teacher pipeline, narrow student achievement gaps and really continue our work to expand evidence-based instruction in both math and reading,” Reynolds told reporters. “Most importantly, it means moving the dial toward the return of education to the states. We know that the U.S. Department of Education can only accomplish so much under its existing authorities.”
McMahon said the first “Returning Education to the States” waiver approval is a key step in “breaking up the education bureaucracy in Washington, D.C.” and providing state leaders more control over federal education funding.
“Iowa now has the flexibility to cut paperwork and simplify 100 percent of state activities funding streams,” McMahon told reporters. “We know that one size (fits) all, as I mentioned, mandates fail. States should lead. Washington should support their sound approaches and get out of the way. That's why the Trump administration is granting Iowa this flexibility.”
The original waiver approval would have impacted approximately $145.79 million in funds from nine Every Student Succeeds Act programs, which include funding for English language learners, rural schools and low-income students, according to the waiver.
One component of the plan will consolidate four programs, which together will provide $9.5 million in federal funding for Iowa that focus on professional development for educators, English language learners, student support and academic enrichment. This, McMahon said, will free staff time and allow around $8 million more to go toward the programs over four years. Iowa will now have discretion over how these funds are allocated among the programs.
The plan also approved program-specific waivers providing school districts flexibility for funds meant to provide support for improving academic achievement and digital literacy in schools with high numbers of students from low-income families, according to the Iowa Department of Education.
During the press conference, McMahon also announced that Iowa was approved as an “ED Flex” state, meaning it will allow the state to waive certain federal requirements for districts without having to seek individual approval from the Department of Education.
Reynolds touts school performance
Ahead of the press conference, McMahon, Reynolds and Iowa Department of Education Director McKenzie Snow toured Broadway Elementary School, popping into classrooms to talk to students completing STEM, dual language and English lessons.
Reynolds cited the school’s recent improvement as a key reason why they chose to make the announcement there.
Broadway Elementary School’s literacy rates increased by 7 percent after the school started using a new literacy curriculum. Denison Community School District was one of 28 districts awarded funding in 2025 from a $24 million Iowa Department of Education grant aimed at improving reading proficiency.
Last fall, Reynolds pointed to student test scores rebounding to pre-COVID levels across multiple subjects, including math, reading and writing, and dipping rates of chronic absenteeism as further proof that the state is ready to have more control over delegating federal funding.
Denison Community School District Superintendent Kim Buryanek said the newly approved plans will allow them to sidestep certain federal compliance requirements and be able to spend more time in classrooms.
“That whole concept of less time spent on compliance activities would allow me and my team members who complete that federal requirements, the paperwork, to actually get into classrooms more and to watch instructions, support teachers,” Buryanek told the Lee-Gazette Des Moines Bureau.
Education group warns of possible ‘harm’ to students
Iowa State Education Association President Joshua Brown said while the group supports providing flexibility to schools, waiving some federal funding compliance requirements and removing oversight will harm students with disabilities, language barriers and physical restrictions who rely on federal funding to attend public school.
"Without certain guardrails of targeted funding, we are very concerned that some student populations may be overlooked,“ Brown said in a statement. ”While we appreciate the value of efficiency and flexibility for schools to meet state needs, the details of this funding will be vital as we closely monitor how federal and state agencies work in the best interests of our most vulnerable students.“

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