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Florida And Illinois Gain Record-Breaking Control Over Federal School Dollars

The U.S. Department of Education has approved new applications from Florida and Illinois for a federal program called Ed-Flex, bringing the total number of participating states to a record high of 18.

The program allows state education agencies to waive specific federal rules and regulations for local school districts without waiting for approval from Washington. For example, states using Ed-Flex can let local school districts decide how to spend their Student Support and Academic Enrichment funds, removing strict caps on how those dollars are divided up.

Alongside the state approvals, federal officials issued two new guidance documents to school chiefs nationwide. The documents highlight existing flexibilities under the Elementary and Secondary Education Act (ESEA). The first, known as transferability, allows states and districts to move money between different eligible ESEA programs to target local needs. The second, called Alternative Fund Use Authority (AFUA), gives small, rural school districts more freedom in how they use their federal formula funds.

Federal officials noted that neither transferability nor AFUA changes the actual amount of money allocated to school districts; they only change how those existing funds can be spent.

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The moves follow Executive Order 14242, signed by President Donald Trump on March 20, 2025, which directed the Department of Education to reduce federal oversight and shift decision-making power back to states and local communities. The department previously sent similar guidance to state school officers in July, urging them to utilize statutory flexibilities and request waivers from federal regulations.

“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.”

Anastasios Kamoutsas
Anastasios Kamoutsas (FDOC)

Florida officials welcomed the announcement, stating the shift will help get resources directly to classrooms.

“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.”

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