Education Dept Seeks Feedback on School Funding Waivers
Published Date: 11/28/2025
Notice
Summary
The Department of Education is keeping its current form for schools to request a Maintenance of Effort waiver, which helps schools manage funding rules. They’re asking for public comments by January 27, 2026, but no changes or new costs are planned. This means schools and districts can keep using the same form without extra hassle for now.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Funding Cuts If LEA Fails MOE Threshold
Under the law, a local educational agency (LEA) that falls below 90 percent of its prior combined fiscal effort per student or aggregate expenditures may have its Title I and other covered program funds reduced. The State must reduce the LEA's allocation in the exact proportion by which the LEA falls below 90 percent, but only if the LEA also failed to maintain effort for one or more of the five immediately preceding fiscal years.
ED May Waive MOE for Exceptional Circumstances
The Department of Education may waive the MOE requirement if granting a waiver is equitable due to an exceptional or uncontrollable circumstance, such as a natural disaster, a change in the LEA's organizational structure, or a precipitous decline in the LEA's financial resources. If a waiver is granted, the required reduction in funding does not occur for that fiscal year; requesting a waiver is discretionary and only an LEA that failed to maintain effort would request one.
MOE Waiver Form Renewed Without Change
The Department of Education is renewing its current form for Maintenance of Effort (MOE) waiver requests without making changes. The form renewal covers respondents listed as State, Local, and Tribal Governments, with an estimated 20 annual responses and 1,600 total annual burden hours; public comments are invited by January 27, 2026.
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Key Dates
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