Ohio school officials have received federal authorization to consolidate more than $38 million in federal education funding, granting the state the flexibility to direct those dollars toward locally identified classroom priorities through 2029.
Under an agreement announced Friday by the U.S. Department of Education, Ohio becomes the eighth state to receive a “Returning Education to the States” waiver. The arrangement eliminates standard federal mandates that have historically restricted grant funding to narrow, single-purpose streams, enabling Ohio to combine four distinct funding sources into a unified framework supporting reading instruction, student health, and workforce preparation programs.
Ohio joins Iowa, Louisiana, Indiana, Vermont, Arkansas, South Dakota, and Mississippi in the program, bringing the total amount of state-redirected federal education dollars nationwide to more than $158 million.
Rather than maintaining separate accounts for teacher professional development, English language acquisition, academic enrichment, and after-school programming, the Ohio Department of Education and Workforce may now consolidate state-level activity funds from Title II-A, III-A, IV-A, and IV-B under the Elementary and Secondary Education Act.
“Ohio has already proven it is ready to meet the moment in education, recently boasting a five-year high in reading proficiency by aggressively incorporating evidence-based literacy instruction,” said U.S. Secretary of Education Linda McMahon. “By embracing new flexibilities and aligning federal resources with Ohio’s own priorities, the state is driving exciting innovation that puts students and workforce readiness at the center.”
McMahon further emphasized that the federal government must function as a partner in supporting state success rather than as an obstacle to it.
For Ohio officials, the change translates directly into reduced administrative burden and a greater ability to direct resources toward the actual needs of individual schools.
“Every Ohio family wants their child to read well, feel supported at school, and graduate ready for a good career, and every Ohio employer is counting on that same graduate,” said Stephen D. Dackin, director of the Ohio Department of Education and Workforce. “This waiver gives schools and districts the flexibility to focus resources on those priorities: stronger literacy, student well-being, and preparation for in-demand jobs.”
Dackin further noted that local communities possess the most accurate understanding of their students’ needs, and that state and local leaders will remain accountable for measurable outcomes.
The policy change also delivers practical relief at the district budgeting level. Under standard federal regulations, districts receiving Title III-A funds designated for English language learners are required to divide those grants across three separate categories: direct instruction, teacher training, and parent outreach. Because individual grant allocations are frequently modest in size, dividing the funds often leaves districts with amounts too small to produce meaningful impact. Under the waiver, districts may direct the full allocation toward the area of greatest need in a given year, while continuing to satisfy core programmatic requirements across all categories.
The state has also been relieved of a burdensome administrative requirement related to Direct Student Services under Title I-A. Ohio will no longer be required to construct and maintain an approved directory of commercial tutoring vendors as a condition of distributing grants, freeing state staff to concentrate their efforts on supporting local schools that independently develop and operate tutoring programs.
The waiver derives its authority from Title VIII of the 1965 Elementary and Secondary Education Act, which allows states to request that the federal government waive specific regulatory constraints in order to improve student outcomes. The measure also aligns with Executive Order 14242, signed by President Donald Trump on March 20, 2025, which seeks to reduce federal involvement in education policy and return greater fiscal authority to state governments.
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