WASHINGTON, D.C. — The U.S. Department of Education is urging states to take fuller advantage of existing federal flexibility that allows Title I schools to consolidate federal, state, and local funding, a move officials say could cut red tape and improve student outcomes.
In a letter sent January 21 to every chief state school officer, the Department’s Office of Elementary and Secondary Education highlighted the authority states already have to approve Title I schools for schoolwide programs. Those programs allow schools to combine multiple funding sources into a single, flexible pool, reducing compliance costs while giving local leaders greater control over how resources are deployed.
Department officials said the approach is designed to help schools better support students and boost academic achievement, particularly in high-poverty communities served by Title I.
Assistant Secretary for Elementary and Secondary Education Kirsten Baesler said schoolwide programs can break down long-standing barriers between funding streams and empower local decision-makers. She said the Trump-McMahon Department of Education is encouraging states to expand eligibility for schoolwide programs and help districts use consolidation authority more effectively.
Federal law permits any Title I school to operate a schoolwide program if a state educational agency determines it will best serve students’ needs. Once approved, schools may consolidate all federal, state, and local funds, provided the money supports a comprehensive schoolwide plan focused on improving outcomes for all students, with particular emphasis on the lowest-achieving learners.
The Department said consolidating funds can significantly reduce paperwork burdens and streamline implementation, while still requiring compliance with statutory safeguards and community involvement. Schoolwide plans must be developed with input from parents, teachers, and other stakeholders, and all services must align with the plan’s goals.
The letter builds on a series of guidance documents issued during the first year of President Donald Trump’s second term, which emphasized returning education authority to states and expanding school choice and flexibility under the Elementary and Secondary Education Act. Previous guidance addressed direct student services, school safety, school improvement funding, equitable services for private school students, and Ed-Flex waivers that allow states to bypass certain federal requirements without prior approval.
Despite the broad authority already in place, the Department noted that relatively few schools currently consolidate Title I or other federal funds with state and local dollars. While 86 percent of Title I schools operated schoolwide programs during the 2022–23 school year, most continue to manage funding streams separately.
Education Department officials said states can play a critical role by encouraging districts to use consolidation authority and providing technical support to help schools navigate the process. The Department has also invited states to seek waivers from additional statutory and regulatory requirements to further reduce administrative burdens and promote local innovation.
Officials said the renewed push reflects a broader effort to give states and communities more control over education funding decisions while maintaining a focus on improving outcomes for students most at risk of falling behind.
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