The U.S. Department of Education is pushing states to rethink how they use federal funding to give families more say in their children’s education. In a letter sent today to state school chiefs, the Office of Elementary and Secondary Education highlighted a little-known flexibility in Title I funds under the Elementary and Secondary Education Act (ESEA) of 1965. The move is one of the first concrete steps by the Trump administration to deliver on a recent executive order aimed at expanding educational freedom.
The guidance spells out how states can tap into up to three percent of their Title I allocation—money typically used to support low-income students—to fund “direct student services” through local school districts. These services could open doors to a variety of options for parents, from advanced classes and dual-enrollment programs to tutoring, career training, personalized learning plans, and even after-school activities.
“This administration is all-in on giving parents more control over their kids’ education,” said Education Secretary Linda McMahon. “This guidance is a big first step to help states and schools unlock options that let students thrive.”
The push comes as part of President Trump’s broader vision to shake up the education system, with an emphasis on choice and flexibility. States aren’t required to reinvent the wheel—Ohio, for instance, is already leading the way. Stephen Dackin, head of the Ohio Department of Education and Workforce, praised the move, noting his state has used this flexibility to tailor programs to local needs. “Whether it’s helping kids catch up with credit recovery, offering advanced courses, or building career pathways, this lets us meet students where they are and push them toward their potential,” Dackin said.
Under the rules, local districts that want a slice of these funds have to show they’re giving parents clear information and real choices about how the money will be used. States, meanwhile, are tasked with spreading the funds to a diverse mix of districts, especially those with struggling schools. While states can’t dictate exactly how the money is spent, they can nudge districts toward priorities—like boosting access to high-impact programs—by tweaking how they award the cash.
The Department’s letter is light on mandates but heavy on possibilities, signaling a hands-off approach that leaves room for states and districts to innovate. For parents, it could mean a chance to customize their child’s education like never before. For states, it’s an invitation to rethink how federal dollars can stretch further.
The full details are laid out in the Department’s letter, available online for anyone ready to dig into the fine print.
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