Key facts
- Indiana received flexibility from the Trump administration on federal education spending.
- The waiver consolidates $50 million in federal funds from five streams into one.
- State officials estimate $20 million in cost savings from reduced compliance.
- The waiver allows changes to Indiana's school accountability system, focusing more on college and career readiness.
- A proposal for a school choice program was denied by the Education Department.
The Trump administration has granted Indiana more flexibility in how it spends federal education grant money, a move aimed at reducing federal oversight and empowering state-level decision-making. This marks the third state to receive such an exemption, with Indiana consolidating $50 million from five different funding streams into a single pool with fewer spending restrictions. State officials anticipate this will save approximately $20 million in compliance and documentation costs.
Education Secretary Linda McMahon approved Indiana's plan, which also includes changes to the state's school accountability system, placing a greater emphasis on college and career readiness. However, a proposal to create a school choice program by redirecting funds was denied by the Education Department, as it exceeded the secretary's waiver authority.
Critics, such as Denise Forte, CEO of EdTrust, have voiced concerns that the waiver could lead to reduced transparency and accountability, potentially diverting funds away from students who need them most. Similar waivers have previously been granted to Iowa and Louisiana, though Iowa's plan also faced initial hurdles and was approved for a smaller amount of funding.