U.S. Education Department approves waiver giving Indiana more control of federal K–12 dollars

U.S. Secretary of Education Linda McMahon announced that the Department of Education has approved a flexibility waiver for Indiana that will merge five federal K–12 funding streams into a single, state-directed block-style grant, she said at a ceremonial event in Indianapolis.

"That's why today my team and I are proud to announce that we are rewarding Indiana a returning education to the state's waiver," McMahon said, adding the waiver allows the state to consolidate federal funding and direct more resources to classroom instruction.

Why it matters: supporters said the change will reduce administrative red tape and let local leaders spend funds where they judge them most effective. McMahon said the consolidation will allow Indiana to invest more in evidence-based literacy and numeracy programs and to emphasize college- and career-readiness measures in its high school accountability system.

At the event, state officials and federal staff placed the size and mechanics of the change in concrete terms. McMahon said the waiver enables Indiana to merge five streams and "consolidating $50 million over the next four years," and to free "$20 million in state and local funds from bureaucratic red tape" to return to classrooms. Tristan Beazley, assistant secretary for elementary and secondary education, later outlined the federal streams the department approved for consolidation and the reporting expectations.

"The streams that will be consolidated are Title I-B, Title 2A, Title 3A, Title 4A, and Title 4B," Beazley said, and the department expects a monthly report — first noted as due Oct. 30 — tracking how the money was spent and what progress the state made with those dollars.

Concerns and responses: during a brief question-and-answer period, a questioner asked how the state would ensure that vulnerable students do not "slip through the cracks" under a consolidated model. McMahon and state officials emphasized that federal legal protections remain in place. "Nothing happens that's not in compliance with the law," McMahon said, specifically citing Title I protections and IDEA funding for students with disabilities. A state official (referred to in remarks as Katie) said funding formulas continue to direct dollars to schools and that local superintendents will be able to deploy consolidated funds to address individual student needs more quickly, reducing paperwork burden.

Accountability: officials said the waiver also permits Indiana to use one shared high school accountability model that will include traditional proficiency measures as well as work-based learning and credential attainment. State leaders framed the waiver as part of an effort to align federal and state accountability to local priorities.

Ceremony and next steps: the department and state leaders held a ceremonial signing of the waiver onstage; officials said the document had already been signed administratively and the onstage signing was symbolic. The department and state must follow the reporting requirements described at the event as they implement the consolidated funding structure.