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Superintendent says federal waivers, staffing shifts and AI are changing how education funds and rules may flow to districts

Hudson School District Board of Education · January 13, 2026
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Summary

Superintendent Nick briefed the board on an AASA meeting with Department of Education officials, warning of staff turnover at ED, a push toward state waivers (EdFlex), potential block grants, and an emerging federal AI task force; Hudson's low dependence on federal dollars reduces but does not eliminate risk.

Superintendent Nick reported back from a recent American Association of School Administrators (AASA) meeting in Washington, D.C., highlighting federal-level changes that could affect how education dollars and rules reach local districts.

Nick said federal formula funding streams such as Title I, II, III, IV and IDEA remain in place for now, but he warned the Department of Education is undergoing substantial staffing changes and a broader push toward state-level waivers and flexibility. He described a recently issued waiver to Iowa that consolidates multiple ESSA program activities and allows states to set their own outcomes for those funds; he said about a dozen other states are pursuing similar EdFlex waivers.

"The big thing…is increased state flexibility through waivers," Nick said, adding that waivers can transfer the ‘‘strings’’ of federal programs to the state level and that the ultimate effect will depend on how states and DPI implement them. He urged the district to stay engaged because changes in grant administration or block-granting could alter funding flows.

Nick also described early conversations about an AI-focused federal task force and said the Department of Education appears to be exploring how to clarify guidance on AI in schools. He noted the tension in public debates between limiting screen time and teaching students to use AI tools. On local planning for AI, Nick said Hudson is piloting administrative access to paid AI tools for staff and is drafting parameters to avoid placing identifiable student data into models.

Board members asked whether waivers would mean state legislative action or administrative action; Nick clarified that the state Department of Public Instruction (DPI) must request federal waivers and then states set their own terms. He also noted Hudson's relative resilience because the district receives a small share of its budget from federal funding—about 1–1.5 percent—so sudden federal swings would be less disruptive here than in higher-need districts.

Board members asked for continued updates and a local conversation about AI guardrails for curriculum and classroom use. Nick said he will attend a follow-up meeting with DPI and report back to the board.