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Press Release

Department of Education Encourages States to Expand Education Choice by Leveraging Flexibilities in Title I Funds

The U.S. Department of Education’s Office of Elementary and Secondary Education today sent a letter to all chief state school officers informing them of existing flexibility in federal formula funds under the Elementary and Secondary Education Act of 1965 (ESEA) to support education choice initiatives. Providing guidance to states on this flexibility is one of the Department’s first actions in implementing President Trump’s Executive Order Expanding Educational Freedom and Opportunity for Families.

The Department’s letter explains how states can use up to three percent of their Title I allocation to provide funds to local educational agencies (LEAs) for direct student services. Similarly, LEAs and schools can use their formula funds to provide greater choice for parents and improve academic outcomes.

These flexible funds can be used to give parents a range of options for their child, including advanced courses, dual enrollment, academic tutoring, career and technical education, personalized learning, and out-of-school activities.

“The Trump administration is committed to expanding education options for parents in their children’s education,” said Secretary of Education Linda McMahon. “Today’s guidance is an important early action aimed at advancing educational choice and encouraging states and schools to maximize learning options that help students excel.”

“It’s important for the parents, educators and school leaders who best know the needs of their students and families to have the go-ahead to put in place programs to match those needs,” said Stephen D. Dackin, Director of the Ohio Department of Education and Workforce. “In being the only state to use this federal flexibility, we have connected these funds that match our statewide priorities with the unique needs of students and schools. Whether it’s credit recovery programs, advanced coursework, or expanding career pathways, the goal is the same for every Ohio student – to meet their full potential.”

Background

In order to receive funds, ESEA section 1003A(d) requires an LEA to describe how it will provide adequate outreach, time, and information to parents to ensure they can exercise a meaningful choice of direct student services for their child’s education.

States must award direct student services funds to geographically diverse LEAs that serve high numbers of schools identified for support and improvement.

While a state cannot direct or limit the use of these funds by LEAs, the state could establish priorities to award these funds to LEAs that align with the state’s priorities and goals. For example, states could award points in its competitive process for those activities that it believes or has evidence the activity will provide parents the most choices and maximize the impact of these funds.

Read the full letter here.

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Page Last Reviewed:
March 31, 2025