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Millions of dollars for high-poverty schools, English learners and afterschool care  — along with funds from seven other federal programs — would be rolled into a single block grant under an Iowa proposal being reviewed by the U.S. Department of Education.

Submitted March 7, the plan offers a blueprint for Republican governors seeking more control over how federal education funds are spent. The current formulas, according to a brief summary of the plan provided to The 74, result in “1,400 different funding streams across 325 school districts.”  

“Unfortunately, dollars that flow through the Department of Education typically come with all kinds of bureaucratic strings attached that blunt the impact they might otherwise make,” Iowa Gov. Kim Reynolds wrote an op-ed last week. “Prescriptive requirements prevent states from scaling innovative programs.”

Iowa isn’t the only state interested in winning more control over its federal education dollars. But others say granting Iowa the waiver would bypass Congress’ authority and could shortchange the marginalized students the money was intended to help.

The proposal comes as the Trump administration moves to dismantle the federal department. In recent interviews, Education Secretary Linda McMahon said growth in states like Alabama and Louisiana, amid the generally dismal showing on last year’s national test scores, proves that leaders don’t need Washington’s help. 

The Every Student Succeeds Act, the main federal law governing K-12 education, already offers spending flexibility, allowing leaders to combine funds from some individual grant programs. But experts say Iowa’s request seems to stretch the limits of the law and would need congressional approval. For instance, the law prohibits changes to how $18 billion in Title I funds for low-income students are allocated to districts.

McMahon might nonetheless approve it, they say, to signal support for a more hands-off approach. 

“I can’t see how there would be a path to making all of these different formula grant programs into one program without Congress,” said Anne Hyslop, director of policy development at All4Ed, a think tank. She worked at the department during the Obama administration and helped draft the ESSA legislation. The largest program, Title I, provides funds for extra staff and services in high-poverty schools. Iowa’s grant last year was $110 million.  

“Title I funds have to be spent in Title I schools,” Hyslop said. “It’s an understatement to say that a lot of things have happened in the past few months that no one would have ever predicted. I would not be surprised to see something outside of the norm.”

Some think Iowa, which has a universal Education Savings Account program, might use the flexibility to allow more families to spend state funds on private schools. 

The state could argue that vouchers would better serve more vulnerable students, said Douglas Harris, a Tulane University economist and school choice expert.

“Certainly, the current administration would approve it,” he said. 

The state did not respond to a question over whether promoting school choice is part of the plan.

Iowa’s waiver request and interest from other states has already drawn concern from Democrats. In a statement Tuesday, Virginia Rep. Bobby Scott, ranking member of the House education committee, called block granting federal education funds “not only illegal but extremely dangerous.”

“Converting these funds will make it virtually impossible for the federal government to hold states accountable for providing all students with a high-quality education free from discrimination,” his statement said.

The state’s summary says Iowa has a “strong focus on accountability for student outcomes” and would continue to track achievement data for different student groups. On last year’s National Assessment of Educational Progress, Iowa’s results landed in the middle of student performance nationally. Its students saw declines in both fourth grade reading and eighth grade math.

McKenzie Snow, director of the Iowa Department of Education, was one of 12 state chiefs who asked McMahon in January to work with Congress on supporting the idea of consolidating multiple programs into a block grant. But that process could drag out, and even with Republicans in control, might not be successful. A waiver could come as early as summer.

Also on the list was Kirsten Baesler, North Dakota’s longtime superintendent, who is awaiting confirmation to become assistant secretary of elementary and secondary education. 

In a March 14 letter, Hayley Sanon, acting U.S. assistant secretary for elementary and secondary education, told staff she looked forward to working with them to “get the federal bureaucracy out of your way so you can give parents more choices, improve academic achievement and ensure students reach their God-given potential.”

Department spokeswoman Madi Biedermann confirmed that officials are considering Iowa’s plan. The department has until early July to make a decision, and other states are watching closely. 

Utah Superintendent Sydnee Dickson, who also signed the chiefs’ letter, told The 74 her state wants more flexibility to pursue “competency-based systems that adhere less to seat time and more about outcomes.”

Oklahoma state Superintendent Ryan Walters, who last year established a state Office of School Choice, is eyeing a different law for a waiver. He wants to allow families to spend funds from the Individuals with Disabilities Education Act on private schools or tutors for students with disabilities, Education Week reported.

‘Lots of federal regulations’

In addition to Title I, Iowa receives $16 million from the federal government to recruit and train educators and $8.2 million for programs like  bullying prevention, mental health support and school safety measures. Districts already have the option of combining these grants with Title I or with each other to support their own priorities.

The block grant would add into the mix funds for assessments ($5 million) English learners ($4.5 million), migrant students ($3.4 million), neglected and delinquent students ($403,180), afterschool programs ($7.8 million) and rural schools ($5 million). 

Education organizations in the state, including the administrators association and the teachers union, told The 74 that they don’t yet know enough about the plan to comment on  it. States are required to submit comments from the public along with waiver requests, but Iowa education department spokesperson Heather Doe said officials would do that if the federal department approves the waiver and then submit comments along with revisions. 

One policy analyst welcomed the idea and thinks it would help some districts focus more on meeting students’ needs than compliance with reporting requirements.

“Often for smaller, rural districts, any individual funding stream nets a small amount of dollars, but has lots of federal regulations. The funding altogether might actually be able to accomplish some important work,” said Margaret Buckton,  the executive director of the Urban Education Network of Iowa. “A low-income student might also be homeless or migratory. When the funding is consolidated, the district can determine which of the services are most appropriate.”

The state’s summary says it’s “steadfast in its commitment to ensuring the civil rights protections” outlined in federal law and that it would still require school districts to explain how they would “meet the needs of all students.” 

Iowa is also asking to waive some parts of a separate federal law that provides funds for homeless students in an effort to make services “more comprehensive and better coordinated,” Doe said.

But Barbara Duffield, executive director of SchoolHouse Connection, which advocates for homeless students, criticized the idea.

The McKinney-Vento Homeless Assistance Act “does not contain any provision that would allow for a state to distribute funds in any other way, or for any other purpose or population,” she said.

Last year, Iowa received almost $752,000 for homeless students through McKinney-Vento, funds that can pay for extra academic support and transportation so students don’t have to change schools. A recent report shows many districts are failing to identify students who would qualify for the support.

School choice advocacy

Observers noted that Snow, Iowa’s education chief, is well versed in ESSA. She worked at the U.S. Department of Education during Trump’s first term. A private school choice advocate, she helped craft a tax-credit scholarship proposal under former Secretary Betsy DeVos. While the effort failed, the plan could see new life in a major tax cut and spending package Republicans are finalizing. 

Republicans have wanted to block grant education funds for decades. Most recently, Trump and DeVos pushed the idea during 2020 budget negotiations. They proposed to consolidate 29 programs into a $19.4 billion fund that would grant states and districts more say over how to spend the money. They argued the plan would reduce federal overreach and allow the government to cut education department staff. 

But Democrats, who controlled the House at the time, didn’t go for it. Even Republicans in both houses rejected the idea, and the plan fizzled.

DeVos hasn’t given up. In December, she posted: “Take the U.S. Department of Education’s meddling bureaucrats out of the equation.”

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