Iowa has become the first state granted approval by the U.S. Department of Education for an education funding waiver aimed at “returning education to the states.”
According to the U.S. Department of Education, Iowa was the first state to apply and receive this block grant, which will allow state education officials to have more control over their federal education dollars.
Approved by U.S. Education Secretary Linda McMahon and Gov. Kim Reynolds on Jan. 7, the waiver will help Iowa save nearly $8 million in compliance costs over the next four years, McMahon said.
“Money [schools] can put directly back into the classroom,” she said in a post on the social platform X.
In Reynolds’ Condition of the State address on Jan. 13, she said “this marks an important first step toward fully returning education to the states and ensuring federal resources are aligned with Iowa priorities and Iowa student outcomes.”
Under the waiver, Iowa officials can consolidate multiple federal funding streams into a single state-level block grant and gain broader flexibility allowing states to pool their federal dollars toward priorities of their choosing.
This waiver is more versatile than the one proposed in March 2025, which asked McMahon to combine 10 funding sources into a single block grant for the state’s education agency and the state’s school districts.
McMahon also said the flexibility could support evidence-based teaching, a research-backed approach to teaching, and teacher training initiatives, helping narrow achievement gaps.
Republicans praise waiver, Democrats raise concerns
Republican lawmakers have voiced support for the block grant and said it will be beneficial for Iowa schools.
Chair of the Iowa House education committee Skyler Wheeler, R-Hull, said in a statement to The Daily Iowan he thinks the waiver will benefit students throughout the state and is the first step to building a stronger education system for the rest of the country.
“Iowa knows how to educate Iowans better than any federal bureaucrat,” Wheeler said. “We are grateful to the Trump Administration for delivering on their promise to return the power in education to the states. This block grant will allow Iowa to stop following one-size-fits-all mandates and start putting students’ needs first.”
Iowa Democrats still hold some uncertainties on what the waiver will look like and how money is going to be distributed.
Member of the Iowa House education committee Heather Matson, D-Ankeny, said her initial reaction to the block grant was met with some curiosity.
“I think what’s really important for Iowans to be aware of is that we don’t know the details of how it’s actually going to work,” she said.
“So right now, I’m personally wondering what accountability is going to be. Who’s actually going to be making the decisions about where resources go and how the money is being used?”
Matson said it is important the Department of Education is directly communicating with Iowa lawmakers.
“I think we just need more details directly from the department,” she said. “And I think the legislature should serve as a guardrail to ensure that federal dollars still go where they’re needed and as they’re required by federal law.”
In his opening remarks to the House on Jan. 12, House Minority Leader Brian Meyer, D-Des Moines, said public education is among the top agenda items for Iowa House Democrats.
“First, we are committed to making Iowa public schools the best in the nation again,” Meyer said.
He added that the lowering of class sizes, support of teachers and staff, and ensuring all students have needed resources as things to prioritize.
Meyer also said affordability and accessibility in public schools is a focus for Iowa Democrats.
“It also means making child care and preschool affordable and accessible for every Iowa family,” he said. “And it means saying clearly that taxpayer dollars should be invested in public schools, not siphoned off into reckless private school voucher programs that cost hundreds of millions while leaving too many kids behind.”
Unclear grant structure leaves school districts waiting
In Iowa City, school districts are waiting to see how that money will impact budgets, staffing, and classroom resources. President of Iowa City Community School District Ruthina Malone said she trusts leadership at the state level yet is uncertain how the grants will work out in Johnson County schools.
“What my fear is, is that somehow or another funding gets cut, and so where we would get ‘X’ number of dollars for teacher training, and ‘X’ number of dollars for English Language Learner, all of a sudden you are just getting less money to do the same thing,” she said.
Malone said after watching Reynolds’ Condition of the State address, which included discussion of the block grant, she believes state leaders are doing what they think is best for Iowa.
“I do believe Iowans know what’s best for Iowans, and we know our public schools are there to educate every single child that comes to us,” she said. “My hope is that the Department of Education understands that we cannot turn away any child, and so they will give us the flexibility and the funding in order to serve all the needs of our students that walk through our door.”