Arkansas Latest State to Receive ESEA Waiver

July 17, 2026

On July 7, the U.S. Department of Education (ED) for a Sec. 8401 waiver under the Elementary and Secondary Education Act (ESEA), including some flexibility that other States have not yet received, as well as for Ed-Flex authority.

Like other approved States this year, Arkansas will be permitted to consolidate its State-level activities funds under Titles II-A, III-A, IV-A, and IV-B. In addition, ED will allow the State to count students enrolled in an alternative learning environment, which is a short-term placement, as part of their school of origin for accountability and school identification purposes. On assessments, Arkansas may allow students in grades 5-8 who are enrolled in high school level courses to take the associated end-of-course assessment in lieu of standardized testing.

ED also approved Arkansas for a new pilot flexibility for rural school districts. Local educational agencies (LEAs) that are eligible for the Rural and Low-Income School program under Title V of ESEA will be permitted to take advantage of the Alternative Fund Use Authority (AFUA). Under the ESEA statute, AFUA is limited to LEAs eligible for the Small, Rural School Achievement program, and allows LEAs to use Title II-A and IV-A funds for activities under other ESEA programs. While similar to transferability, AFUA does not require an LEA to actually shift funds from one program to another. This new flexibility will allow rural school districts to use their ESEA funds more strategically. Arkansas is approved for this pilot program through the 2029-2030 school year.

Several other States are in the process of preparing and submitting a “Returning Education to the States” waiver to the U.S. Department of Education.