Educator Input Needed on IDOE’s Proposed Changes to Federal Education Funding
08/18/2025

The Indiana Department of Education (IDOE) is seeking a waiver from the U.S. Department of Education (USDOE) that could significantly alter how federal education dollars are used in our state. The proposal, currently open for public comment, would consolidate several federal funding streams and redirect school improvement funds away from schools identified as needing support under federal law.

While the waiver is framed as a way to reduce red tape and empower local innovation, ISTA believes it is essential to ensure that these changes continue to center equity and transparency. We appreciate IDOE’s willingness to explore new approaches but are raising several concerns that we hope will be addressed through meaningful dialogue and stakeholder input.

What’s in the Waiver Request?
IDOE is asking for broad flexibility under the Elementary and Secondary Education Act (ESEA), including:

• The ability to consolidate multiple Title programs into a single block grant, removing current requirements tied to how each pot of money is used.
• A new "innovation grant" approach that would shift School Improvement Grants (SIGs) away from public schools identified for Comprehensive Support and Improvement (CSI) to other entities such as microschools, charter schools, or partnerships with industry or higher education institutions.
• Approval to use Indiana’s new A-F accountability model (currently in development) to satisfy both state and federal school accountability requirements.

These changes could take effect as early as the 2026–27 school year if the USDOE approves the waiver.

Why It Matters
ISTA supports reducing administrative burden when it can be done without undermining educational equity or outcomes for students. This proposal raises several important considerations:

• Maintaining educator and parent input: Federal law currently requires meaningful consultation with educators, parents and other stakeholders in the planning and use of federal funds. Consolidating programs into a block grant structure risks weakening these rights, potentially limiting opportunities for educators to shape the programs they help deliver.
• Ensuring resources reach schools that need them most: Title I School Improvement Grants are designed to support public schools identified for additional support based on student outcomes. The proposed waiver could redirect these funds to schools or programs that are not identified as low-performing, potentially diluting the impact on historically underserved students.
• Preserving transparency and accountability: The waiver request would benefit from greater clarity on how funds will be monitored, how recipients will be selected, and how student progress will be tracked. It also leaves open questions about how the new accountability model will continue to support data disaggregation and school improvement planning tied to subgroup performance.

National Context
The USDOE issued a Dear Colleague Letter on July 29 providing guidance to states seeking waivers under ESEA. The letter emphasizes that waiver requests must:

• Demonstrate how students will benefit,
• Preserve the intent of federal programs, and
• Ensure meaningful consultation with stakeholders.

As currently written, Indiana’s waiver would benefit from additional detail to show how it meets these criteria.

ISTA’s Position
ISTA believes flexibility can be beneficial when paired with transparency, collaboration and a clear focus on student success. However, we remain concerned about provisions in the waiver that could reduce input from educators and parents and divert critical resources from schools working to close opportunity gaps.

We are committed to partnering with IDOE and other education stakeholders to ensure Indiana's federal education dollars support strong public schools, equitable opportunity and improved outcomes for all students.

We encourage ISTA members to review the proposal and share their perspectives during the public comment period. Educator voices are essential to shaping the future of education in Indiana.

Take Action
The IDOE is accepting public comment on the waiver request through Monday, August 25. Read the waiver and submit your feedback here: Submit Waiver Feedback

You can also submit feedback on the state’s proposed new A-F accountability model, which is referenced in the waiver: Submit A-F Accountability Feedback