Indiana Leads Republican Push To Cut ‘Red Tape’ Of Federal Grants The 74

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Indiana has become one of the first states seeking to cut restrictions on federal grants currently targeted for low income and other vulnerable students so the state and school districts have freedom in using the money.

But the state’s request before the U.S. Department of Education has raised concerns by advocates who worry needy students could “lose both dedicated attention and resources” in Indiana and other states.

Indiana joined Iowa this fall in asking the U.S. Department of Education for permission to merge their federal “Title” education grants – such as Title I to combat poverty and Title III to help English Language Learners — into one block grant for states and schools.

A similar attempt by Oklahoma is on hold after state Superintendent Ryan Walters resigned in Septemberwhile several state school leaders have asked U.S. Secretary of Education Linda McMahon to work with Congress to ease restrictions.

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“Our goals…include less red tape for our people,” state Education Secretary Katie Jenner told the state school board. “We’re shifting towards…the flexibility to put the resources where they’re needed the most.”

At the same time, advocacy groups are shouting warnings that removing guardrails on the $30 billion in Title grants, created in 1965 as part of President Lyndon Johnson’s “War on Poverty,” could lead to the country’s most needy students being left out.

In Indiana, officials have asked the U.S. Department of Education to pool the than $350 million it receives in Title grants in the name of efficiency — to save time and millions of dollars now spent documenting how each dollar is used for specific groups of students.

Instead, the state wants the freedom to use the money for its main statewide education priorities — literacy, STEM (Science, Technology, Engineering and Math) proficiency and reshaping high school education.

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It’s also seeking freedom to spend federal School Improvement Grants — money now targeted at improving failing schools — to go instead toward state school choice goals.

Indiana would create an “innovation fund” with that money to help other schools nearby that students could choose instead. Such a fund would “better support a growing ecosystem of effective, innovative school models,” according to Indiana’s application.

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“Students and families cannot wait — sometimes for years — for a chronically underperforming school to improve in order to receive access to high-quality instruction,” the application adds..

Both Iowa and Indiana’s request to the Education Department — with rulings expected early next year — “are expected to set a precedent for the scope of future waivers granted to other states,” the American School Superintendents Association has told members.

Indiana’s request, however, is raising concerns from several education advocacy groups — including The Education Trust, All4Ed, UnidosUS and the National Parents Union — that removing restrictions on the money will mean that students that most need extra help won’t get it.

“This approach fundamentally misunderstands — and threatens to undermine — the purpose of these targeted federal programs, which were created to address specific, documented gaps in support for vulnerable student populations,” the groups said in a joint statement. “When Indiana lists numerous state priorities without any specific commitments to individual student groups, it signals that these populations would lose both dedicated attention and resources under the proposed consolidation.”

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Indiana’s request to the U.S. Department of Education to waive restrictions on the money goes beyond Iowa’s, said Nicholas Munyan-Penney, Assistant Director of P12 Policy at The Education Trust. Indiana is seeking leeway from restrictions both for the state and for individual schools and districts, while Iowa is asking for an exemption just for the state, he said.

“In its current form, Indiana’s is much dramatic and wide-ranging in its scope and potential impact,” Munyan-Penney said.

Within Indiana, the Indiana State Teachers Association is also raising concerns.

“ISTA believes flexibility can be beneficial when paired with transparency, collaboration and a clear focus on student success,” the association said on its website. “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.”

The union also has concerns about shifting the School Improvement Grant money.

“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,” the union said.

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And residents of Gary, a high-poverty city, also worry that the neediest students will be left out if guardrails are removed.

“When I hear…this waiver is about ‘cutting red tape,’ I don’t buy it,” Natalie Ammons, grandmother of three students in the Gary school district, testified last week in a webcast to Congressional staff. “It may be cutting something, but it’s not red tape — it’s cutting away the few protections families like mine have left.”

Asked for school officials who are seeking the waivers, the Indiana Department of Education did not suggest any. The 74 also requested a copy of feedback the department sought from residents and officials on the waiver, but the department did not provide it.

The goal of combining Title grants, which total about $30 billion a year nationally, have been a growing priority of Republican officials after a version of it was proposed in Project 25. Oklahoma and Iowa proposed merging them this springbut concerns arose about what the U.S. Department of Education could legally allow.

Trump also put a hold on disbursing several Title grants to states this year before backing down.

In July, McMahon sent guidance to states encouraging them “to seek creative and effective waivers for improving student academic achievement and maximizing the impact of Federal funds” and spelling out a waiver process.

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Title I, which accounts for than half of that money, is awarded to states and schools according to poverty levels and enrollment. All4Ed, estimates that than two thirds of school districts receive some Title I money, though sometimes in low amounts if poverty is low.

Indianapolis Public Schools, for example, are scheduled to receive $15.7 million in Title I money next school year, while several smaller districts receive well under $100,000.

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