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Indiana Gets More Control Over Some Federal Education Dollars

By: Charlotte Burke • June 17, 2026 • Indianapolis, IN
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(INDIANAPOLIS) - Indiana will have more flexibility in how it spends some federal education funding under a new agreement approved by the U.S. Department of Education.

The waiver allows the state to combine $50 million from five federal education programs into a single funding pool with fewer restrictions on how the money can be used.

State officials say the change will reduce paperwork and administrative costs by about $20 million.

Indiana will also be allowed to make changes to how schools are graded. Under the waiver, the state can place less emphasis on academic test scores and more emphasis on college and career readiness when measuring school performance.

Supporters say the changes will give Indiana more control over education funding and reduce government red tape.

Critics argue the move could make it harder to track how money is spent and could reduce focus on programs that serve low-income students and English-language learners.

Indiana is the third state to receive this type of waiver from the Trump administration.