U.S. Department of Education Approves Vermont’s Returning Education to the States Waiver

Today, the U.S. Department of Education (the Department) approved Vermont’s Returning Education to the States Waiver, empowering state education officials with greater discretion over their federal education dollars and allowing them to focus resources on initiatives that improve student academic achievement. Vermont is the fourth state to receive a Returning Education to the States waiver. Vermont’s waiver is similar to requests from Iowa, Louisiana, and Indiana to consolidate siloed state activities funds so the state can better direct federal resources to improve student achievement. This strategy will provide Vermont with greater autonomy in funding decisions, ensuring that resources are directed to the classroom rather than bureaucratic red tape.

This waiver will allow Vermont to consolidate over $4 million in federal funds through 2029, which the state can then align with their state-level improvement priorities and strategic plan. Across the four states with Returning Education to the States waivers, more than $80 million in federal funding will now be consolidated.

“Vermont’s waiver approval marks another key step in Returning Education to the States and restoring flexibility to our education system,” said U.S. Secretary of Education Linda McMahon. “By empowering Vermont with greater authority to direct its federal funds, state leaders can focus on what truly matters: helping students succeed. This waiver reflects the Trump Administration’s commitment to reducing unnecessary federal burden, supporting state-driven innovation, and ensuring federal resources have a real impact in Vermont classrooms.”

“As a small state, Vermont must pursue every opportunity to maximize available resources,” said Secretary of Education Zoie Saunders. “This waiver will enable Vermont to make the most of federal education dollars by targeting resources to advance statewide priorities. By consolidating state-level activities funds, Vermont can take a more coordinated approach to investing in evidence-based practices that support districts in improving literacy and math achievement, increasing attendance, and strengthening student engagement. The flexibility afforded through the waiver will allow Vermont to align resources more strategically and achieve greater impact with existing federal funds.”

Background:

When the existing statutory flexibilities for states, districts, and schools are insufficient, Title VIII of the Elementary and Secondary Education Act of 1965 as amended (ESEA), allows states and tribes to submit requests to the Secretary to waive statutory or regulatory requirements. These waiver requests are subject to certain restrictions in law and must specify how the waiver will improve student outcomes.

The Vermont Agency of Education (VTAOE) submitted a waiver request to better support students, families, educators, schools, and communities by streamlining state-level processes and consolidating resources to support State-level improvement priorities. With the U.S. Department of Education’s approval, VTAOE staff can focus more on the quality of improvement activities, rather than tracking time spend administering different programs. Specifically, the state will support the participation of cohorts of teachers and administrators in its instructional improvement initiatives.

Through this waiver, VTAOE may consolidate State-level activities funds for the following programs:

• Title II, Part A of the ESEA (Supporting Effective Instruction).
• Title IV, Part A of the ESEA (Student Support and Academic Enrichment).
• Title IV, Part B of the ESEA (21st Century Community Learning Centers).

On March 20, 2025, President Trump signed Executive Order 14242, Improving Education Outcomes by Empowering Parents, States, and Communities. Since then, ED has taken steps to break up the federal education bureaucracy, expand education freedom, and empower states by sharing guidance and resources on existing flexibilities in statute to spend federal education dollars.

For more information on how the Department has empowered states in education, click here.

Read the official letter to Secretary Saunders here.