Texas Border Business
Under President Donald Trump and U.S. Secretary of Education Linda McMahon, the Department of Education (ED) is advancing its commitment to return education to the states by expanding access to longstanding federal flexibilities.
ED announced it has approved Florida and Illinois’ Ed-Flex applications, marking a record high number of 18 states now utilizing Ed-Flex authority. Ed-Flex allows states to waive certain federal requirements that could hinder local efforts to improve education. Under this authority, state education agencies (SEAs) can waive select statutory or regulatory requirements for districts and schools without first having to submit those waivers to the U.S. Department of Education for review and approval. For example, Ed-Flex states can allow districts flexibility on how to spend their Student Support and Academic Enrichment funds, releasing them from rigid spending caps.
ED also sent two pieces of guidance today to all chief state school officers encouraging them to implement existing Elementary and Secondary Education Act (ESEA) flexibilities, which: 1) allow states and districts to transfer funds between eligible programs and 2) allow small, rural school districts to use certain federal funds more freely.
- Transferability allows states and school districts to transfer some or all their funds under certain ESEA programs to other ESEA programs to better meet state and local needs.
- Alternative Fund Use Authority (AFUA) allows Small, Rural School Achievement (SRSA)-eligible districts significant flexibility to use formula ESEA funds in ways that best address local needs.
These tools are designed to empower states and districts to deploy federal dollars strategically to drive improvement in academic outcomes.
“Today’s announcement marks another bold step forward in strengthening states’ ability to fully harness the flexibilities already at their fingertips in support of better serving students, families, educators, and communities,” said Kirsten Baesler, Assistant Secretary for the Office of Elementary and Secondary Education. “With a record 18 states now taking advantage of Ed-Flex authority, we urge state leaders to build on this momentum by adopting forward‑leaning strategies that move decision-making closer to the classroom and elevate the power of local leadership.”
“I am very thankful Florida received the Ed-Flex Waiver from the U.S. Department of Education,” said Anastasios Kamoutsas, Commissioner of Education for Florida. “Under the leadership of Secretary McMahon, states now have greater flexibility to ensure federal funds are directed to where they matter most, supporting students, empowering teachers, and strengthening learning in the classroom.”
Background:
On March 20, 2025, President Trump signed Executive Order 14242, Improving Education Outcomes by Empowering Parents, States, and Communities. Since then, ED has taken steps to break up the federal education bureaucracy, expand education freedom, and empower states by sharing guidance and resources on existing flexibilities in statute to spend federal education dollars.
States can better leverage existing flexibilities in federal law to move certain federal funds across programs to meet state and local priorities. Transferability and AFUA do not change the allocation or distribution of federal funds, only how they are spent.
Today’s letters build on the guidance sent to states in July encouraging chief state school officers to implement existing statutory flexibilities and seek waivers from burdensome statutory and regulatory provisions.
Read the full letters here:
- Dear Colleague Letter – Transferability
- Dear Colleague Letter – Alternative Fund
ED has previously sent 8 Dear Colleague Letter to State Chiefs of Education encouraging them to use existing flexibilities in federal law for states to have more discretion over their education systems:
- Guidance to States on Seeking Waivers to Maximize Opportunity to Improve Academic Achievement
- Guidance to States on Using Title II, Part A Funds to Support Innovative Teacher Workforce Strategies
- Guidance to States on Schoolwide Program Flexibilities to Improve Student Success
- Guidance to States on the Ed-Flex Option to Encourage Local Innovation
- Guidance to States on Equitable Services School Choice
- Guidance to States on Turning Around Failing Schools
- Guidance to States on the Unsafe School Choice Option
- Guidance to States on Using Title I Funds for Direct Student Services
ED sent a letter encouraging states to consider applying for Ed-Flex on September 17, 2025. To date, 18 states have Ed-Flex Authority. View the full list of participating states here.
