Full Breakdown
Indiana Receives Broad Education Waiver Under Trump Administration
6/17/2026, 8:46:59 AM
Core Event: Waiver Consolidates Federal Funding and Alters Accountability
On June 16 2026, U.S. Secretary of Education Linda McMahon approved Indiana’s request to merge five federal education formula grants—Title I Part B, Title II Part A, Title III Part A, Title IV Part A, and Title IV Part B—into a single block grant covering roughly $50 million over four years. The waiver also permits Indiana to replace the federal high-school accountability system with a state-developed model that reduces the weight of academic indicators. A pilot provision allows up to 15 percent of local districts to combine Title II-A and Title IV-A funds for professional development and student-support services.
Background & Context: Federal Flexibility Initiative
The waiver is the third “Returning Education to the States” exemption granted by the Trump administration, following similar approvals for Iowa and Louisiana. The administration frames the program as a way to lower compliance costs and expand state control, while critics note that the waivers limit federal safeguards for disadvantaged students. Indiana’s earlier request to redirect $25 million in School Improvement Grant money was denied because it would alter statutory allocation rules.
Key Figures & Groups
- Linda McMahon – U.S. Secretary of Education, signatory of the waiver.
- Katie Jenner – Indiana Secretary of Education, primary spokesperson for the state’s request.
- Governor Mike Braun – Indiana governor who supported the waiver at the announcement.
- Denise Forte – President and CEO of EdTrust, a nonprofit monitoring education equity.
Data & Statistics
- Consolidated funding: $50 million (2024-2028) from five ESSA formula streams.
- Estimated compliance savings: $20 million over four years.
- Total federal education receipts for Indiana in 2024: $99 million.
- Pilot district participation cap: 15 percent of Indiana’s 290 school districts.
- Funding streams retain their original federal amounts; only the state portion (?5 percent) is repurposed.
Why It Matters / Impact
Proponents argue the waiver reduces administrative burden and enables faster allocation of resources to state-identified priorities. Opponents warn that merging dedicated streams—such as those for English-language learners and low-income students—could dilute targeted support and obscure performance data, potentially affecting accountability for vulnerable populations.
Official Statements & Responses
McMahon emphasized that the waiver “supports holding schools accountable for equipping students with the knowledge, skills, and training needed to meet the demands of higher education and the workforce.” Jenner highlighted the new flexibility, noting that “our hands have always been tied” regarding federal funding and that the waiver “will specifically be able to be deployed exactly how they need it in a timely manner.” Assistant Secretary Kirsten Baesler affirmed that the changes “are within the law and within the intent of Congress.”
Criticism & Opposition
Denise Forte of EdTrust contended that the waiver “will mask student performance and move millions of dollars in dedicated funding away from students who need it most.” She warned that the revised accountability system could allow the state to report uniformly positive outcomes while varying standards across student groups.
Conflicting Reports & Gaps
- The waiver does not grant Indiana’s requested school-choice program.
- The request to redirect School Improvement Grant funds was rejected, leaving $25 million in annual allocations unchanged.
- Details on how pilot districts will report fund usage and academic outcomes remain unspecified.
Verbatim Quotes
- “As states, we have significant control over education. We set standards, choose our curriculum, and design assessments. When it comes to federal funding, our hands have always been tied, until now,” — Katie Jenner, Indiana Secretary of Education
- “and Indiana’s request supports holding schools accountable for equipping students with the knowledge, skills, and training needed to meet the demands of higher education and the workforce.” — Linda McMahon, U.S. Secretary of Education
- “The Department of Education will allow Indiana to rewrite its accountability system in a way that will mask student performance and move millions of dollars in dedicated funding away from students who need it most,” — Denise Forte, President, EdTrust
- “Everything is within the law and within the intent of Congress,” — Kirsten Baesler, Assistant Secretary of Elementary and Secondary Education
- “Now, the money will specifically be able to be deployed exactly how they need it in a timely manner,” — Katie Jenner, Indiana Secretary of Education
What’s Next
Indiana will implement the new accountability model for the 2026-27 school year and begin the pilot district program later in 2026. The Education Department is reviewing additional waiver requests from other conservative-led states, while Congress debates budget proposals that could eliminate the five ESSA formula funds altogether in the 2027 fiscal cycle. Monitoring groups plan to track the impact on student outcomes and funding transparency throughout the waiver’s four-year term.
