Why It Matters
The Trump administration is shifting control of federal education dollars to states, allowing six states—including Louisiana—to consolidate billions in federal funding streams and bypass certain local requirements. The effort reflects a broader push to reduce the Education Department’s role and give states greater flexibility in how they deploy federal money for schools.
What Happened
Louisiana, along with Arkansas, Indiana, Iowa, South Dakota, and Vermont, received waivers authorizing them to consolidate four separate federal education funding streams into a single pool. This consolidation allows states to redirect money with fewer federal restrictions and reduces reporting requirements tied to individual grant programs.
The waivers, part of what the administration calls the “Returning Education to the States” initiative, represent an expansion of efforts announced since President Trump took office in January 2025. In March, Trump signed an executive order directing Education Secretary Linda McMahon to take steps toward closing the Education Department entirely.
Beyond the six consolidation waivers, the administration granted 22 states Education Flexibility Partnership (Ed-Flex) authority—the highest number in the program’s 32-year history. These states can now waive certain federal education requirements without seeking separate approval from the Education Department.
Indiana is piloting a program allowing up to 15 percent of its school districts to combine two federal funding streams. The state has also altered how it calculates college and career readiness requirements for high school performance ratings, demonstrating how states are using the increased flexibility.
By the Numbers
More than $109 million — federal education funding consolidated by the six waiver states
22 — states granted Education Flexibility Partnership authority, highest number in the program’s 32-year history
15% — percentage of Indiana school districts allowed to participate in the state’s pilot consolidation program
12% — federal funding as a percentage of total education spending nationally (88% comes from state and local sources)
$12 billion — estimated federal education funds previously awarded but disrupted by administrative actions over the past year
Zoom Out
The administration’s education strategy reflects a wider Republican emphasis on federalism and local control. Federal education funding accounts for only 12 percent of total K-12 spending nationally, with states and local communities funding 88 percent. Backers of the consolidation waivers argue that states and localities are better positioned than Washington to determine education priorities.
However, some state education groups have pushed back. The Arkansas Education Association warned that consolidation could reduce financial transparency and potentially shift money away from formula-based funding designed to support high-need districts. The administration is pairing the waivers with incentives: states pursuing “Returning Education to the States” projects receive additional points on competitive federal grant applications.
Congress created the Education Department through a 1979 law and retains the constitutional authority to eliminate it. The Education and Labor departments currently use different grant management systems, and the Department of Education has begun transferring some administrative functions to other federal agencies as part of the broader restructuring effort.
What’s Next
The Department of Education is scheduled to convene with state representatives in September to discuss results from the Learning Agenda Initiative, which pairs eight state education agencies with federally funded research and technical-assistance centers. Louisiana, along with Arkansas, Georgia, Idaho, Kansas, New Hampshire, Tennessee, Utah, and Wisconsin, participates in that initiative. As states continue implementing waivers and consolidating funding, the outcome will shape how federal education dollars flow to schools nationwide.