Do We Trust State Government with Federal Funds?

Feb 05, 2025 at 03:15 pm by JC Bowman


The Trump administration is contemplating substantial reductions to the U.S. Department of Education, which could involve eliminating unprotected programs and requesting Congress's approval to dissolve the department entirely. It's essential to recognize that education primarily falls under the purview of state and local authorities.

An analysis of Tennessee's budget indicates that roughly 20% of the K-12 funding comes from federal sources. We are open to exploring new strategies, provided they are executed effectively. The Tennessee Senate highlighted that the federal funding received by the state exceeds all recurring increases for education over the past ten years and is larger than the budgets of nearly all state agencies, with a few exceptions like TennCare, transportation, and corrections.

The details of the Trump Administration's plans are critical, as any cuts to federal funding will impact every community. Our main concerns include school meal programs, Title I funding, and the Individuals with Disabilities Education Act. Our ability to educate children effectively relies on these financial resources.

Tennessee receives nearly $2 billion annually in federal K-12 funding across various programs, each with specific federal requirements. This includes about $340 million from Title I provisions of the Every Student Succeeds Act (ESSA), primarily for low-income students, and nearly $250 million from the Individuals with Disabilities Education Act (IDEA) for K-12 education. Additionally, the Child Nutrition Program managed by the U.S. Department of Agriculture (USDA) costs around $480 million annually.

We advocate for increased flexibility for states, local communities, and individual schools in utilizing federal education funds. This flexibility allows them to tailor resources to meet their unique needs and support local educational objectives. By promoting localized decision-making, these entities can effectively tackle challenges, implement innovative programs, and create enriching learning environments. However, many people lack trust in the state’s ability to manage this effectively.

The federal government should convert categorical program funding into a block grant for states, which could save taxpayer money and decrease federal oversight. States, school districts, or charter schools could collaborate with the federal government to demonstrate academic progress in exchange for funding, enabling them to allocate resources effectively for educational outcomes. This could include direct funding to high-performing schools and districts, bypassing state agencies.

Such a shift could lead to significant changes in education. There is considerable skepticism regarding the Tennessee Department of Education's ability to take on these increased responsibilities, especially as the Department continues to operate remotely, with uncertainty about whether Governor Lee will require a full return to in-person work for employees.

Since 2010, Republicans have governed the state, providing ample opportunity to reform education policies. However, instead of improving schools, their approach has centralized authority, expanded bureaucracy, and funneled taxpayer dollars into partnerships with limited transparency.

Consequently, student performance is scrutinized while local school boards find their influence waning. Beneath this lies a complex network of public-private partnerships that directs billions of taxpayer dollars into organizations benefiting from a government-controlled education system, prioritizing power, profit, and centralized control over genuine improvements in education. The threat is a government-controlled education system where an unaccountable elite dictates curriculum, suppresses alternative viewpoints and eliminates educational autonomy that doesn't align with their objectives. All vendors and contracts should be fully disclosed.  

The Tennessee General Assembly has granted the executive branch unrestricted access to public funds, allowing it to shape education policy with minimal oversight. To rebuild trust, Tennessee should create an independent office of inspector general (IG) to oversee the use of state funds in K-12 and higher education, ensuring they are managed efficiently and legally. IGs can investigate to identify and prevent waste, fraud, and abuse while recommending improvements for agency effectiveness.

Additionally, establishing a state-focused Department of Government Efficiency under the Tennessee General Assembly could streamline operations, reduce unnecessary regulations, eliminate wasteful spending, and restructure state agencies as needed. Continuous improvement of government competence is essential for the benefit of our citizens.

We urge Governor Lee and the Tennessee General Assembly to commit to preserving federal funding and key programs such as school meal programs, Title I funding, and the Individuals with Disabilities Education Act without interruption.

State leaders have considered rejecting federal funding in the past. Speaker Sexton has stated that if federal funds are withdrawn, “The state will cover the costs and continue to support those programs, ensuring we remain free from federal regulations.” The state must act decisively and promptly. True freedom in education means schools and districts can experiment with innovative methods that foster collaboration between schools and their communities to develop solutions without facing bureaucratic obstacles.

Do we trust the state government? While they are often seen as more trustworthy than the federal government, there is a need and an opportunity to enhance public confidence further by providing greater accountability and transparency. The state needs to remove the bureaucratic barriers that hinder educators and school districts in Tennessee from confronting their communities' unique challenges.

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JC Bowman is the executive director of Professional Educators of Tennessee.





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