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Indiana Becomes the Latest State to Receive Flexibility From Trump on Federal Education Spending

The plan merges five federal funding streams into one block grant and adds a state accountability system focused more on college and career readiness.

  • On Tuesday, Education Secretary Linda McMahon announced President Donald Trump's administration granted Indiana a federal waiver, allowing the state to consolidate five federal funding streams into one block grant.
  • The 'Returning Education to the States' waiver aims to reduce federal administrative burdens and top-down mandates; Indiana joins Iowa and Louisiana in receiving this flexibility to prioritize state-led educational goals.
  • Consolidating $50 million in federal funds over four years, the waiver reduces compliance costs, allowing Indiana to redirect nearly $20 million toward classroom needs and work-based learning initiatives.
  • EdTrust CEO Denise Forte criticized the waiver for limiting transparency and de-emphasizing standardized metrics, while Indiana Secretary of Education Katie Jenner dismissed concerns, calling state control of funds a "myth."
  • This move aligns with the Trump administration's broader effort to minimize the federal footprint in education, as additional states are expected to pursue similar flexibility before the federal government launches its own school choice program next year.
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Indy Star broke the news in Indianapolis, United States on Tuesday, June 16, 2026.
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