Iowa Unified Allocation Plan

U.S. Department of Education ESEA Waiver Approval Letter (1-7-26)

Updated Proposed 2025 Iowa Unified Allocation Plan (9-25-25)

Proposed 2025 Iowa Unified Allocation Plan (3-7-25)

Approval

On Jan. 7, 2026, Iowa became the first state in the nation to receive federal approval of critical steps to redirect federal resources from compliance to the classroom in its innovative Unified Allocation Plan. 

The U.S. Department of Education’s “Returning Education to the States” federal waiver approval marks the first step in fully realizing Iowa’s comprehensive Unified Allocation Plan, providing flexibility of certain requirements under the federal Elementary and Secondary Education Act of 1965, as amended (ESEA). Iowa’s first-in-the-nation plan seeks to focus more federal resources on improving student achievement over federal compliance. The flexibilities provided by the waiver will reduce some of these compliance costs, allowing nearly $8 million in time and resources to be redirected from compliance to the classroom over four years. Those flexibilities include

1. State Educational Agency (SEA) Flexibility 
   This waiver allows the Iowa Department of Education to operate a block grant for 100% of ESEA federal state-level funds, consolidating state activities funds from four ESEA federal education programs— Title II, Part A, Title III, Part A and Title IV, Parts A and B, which focus on supporting effective instruction and professional development, English language learners, student support and academic enrichment and 21st Century Community Learning Centers. Immediately, this block grant of ESEA federal state-level activities funds will total about $3.8 million for Federal Fiscal Years 2024 and 2025. For example, the Iowa Department of Education proposed to use this state-level block grant to support continued investments in evidence-based literacy professional learning and new investments in professional learning to empower all teachers to best serve English learners offered statewide at no cost to schools or educators.

2. Local Education Agency (LEA) Flexibility
   The U.S. Department of Education approved program-specific waivers, which will enable the Iowa Department of Education to expand flexibility to local school districts for how they use Title I-A, Title I-D and Title IV-A funds. These funds support schools with high numbers of children from low-infocusing come families, neglected or delinquent youth and student support and academic enrichment on improving academic achievement and digital literacy. Without seeking additional federal approval, this will help enable schools to move beyond short-term spending pressures and support multi-year initiatives, including intensive tutoring, evidence-based professional learning, and services supporting successful student transitions. 

3. Programmatic and Fiscal Reporting 
   The U.S. Department of Education has committed to advancing Iowa’s request to streamline programmatic and fiscal reporting as a model for the nation. This will allow more flexibility to support innovative solutions that focus on classroom instruction for students and reduce time and resources spent on duplicative administrative duties, while ensuring transparency and accountability. Iowa will focus on implementing the approved elements of the Unified Allocation Plan, demonstrating impact, and continuing to build the case for broader flexibility.

Iowa’s first-in-the-nation Unified Allocation Plan proposes to:

• Align ESEA programs and resources to Iowa’s state and local education priorities,
• Bolster school improvement efforts informed by accountability and assessment, and
• Support school districts’ focus on best serving students most in need of support.

The five articulated requests are based on continuous comment and input received by the Department from the public, public school districts, public charter schools, nonpublic schools, and area education agencies as education leaders implement and ensure compliance with the numerous programmatic and fiscal requirements under the Elementary and Secondary Education Act of 1965, as amended by the Every Student Succeeds Act (ESEA).

To better support students, families, educators, schools, and communities, the Department seeks to implement its unified allocation plan through a combination of waivers, modernized administrative interpretations, and administration flexibilities:

• Allow state administrative and state activities set-aside funds to be consolidated based on existing statutory formulas;
• Allow school district formula and competitive funds to be consolidated based on existing statutory formulas utilizing expanded transferability flexibilities;
• Allow the Department to calculate and retain the equitable participation proportionate share in all relevant ESEA programs for school districts and nonpublic schools that opt in through meaningful consultation to provide equitable services to nonpublic school students and teachers through a third-party provider(s);
• Explore opportunities to best support school districts in prioritizing schools most in need of support through revised USED administrative interpretation;
• Modernize supplement, not supplant implementation across multiple ESEA programs through revised USED administrative interpretations.

Recognizing Iowa’s strong focus on accountability for student outcomes, the Department’s plan continues to rely upon its 2024 USED-approved ESSA State Plan and statewide school performance accountability system. The Iowa School Performance Profiles utilize all student achievement data and the disaggregated achievement data of student groups from annual assessments to inform school designations and comprehensive support and improvement investments.

The Department remains steadfast in its commitment to ensuring the civil rights protections in ESEA, including requirements for school districts to provide specific services and supports to student groups, including students who are English learners, migratory, considered neglected and delinquent, and experiencing homelessness. Under this proposal, school districts’ consolidated application to the Department would articulate their ESEA services and supports plans to meet the needs of all students, including the submission of each school districts’:

• Lau Plan to support students who are English Learners;
• Migratory liaison,
• Foster care/neglected and delinquent liaison;
• Partnerships with State-run institutions and residential facilities that support education continuity and successful transitions;
• Homeless liaison; and
• Partnerships with community-based organizations, especially in the provision of out-of-school programming.

We appreciate the opportunity to provide this preliminary update based on the Department’s proposal, which may be revised based on USED’s review and feedback. The Department will continue to provide additional opportunities for the public and education stakeholders to provide comment throughout the review and revision process. Informed by Iowa’s educators and families, the Department looks forward to continuing to partner with the U.S. Department of Education to meet the needs of all learners and to realize the purpose of these ESEA programs.