More states receive ESSA Waivers: What this means for afterschool and 21st CCLC funding

Since Iowa became the first state to receive a Returning Education to the States Waiver under the Elementary and Secondary Education Act (ESEA) in January 2026, the U.S. Department of Education (the Department) has approved waivers for three additional states: Louisiana in May 2026 and Indiana and Vermont in June 2026. Each waiver gives the state new flexibility in how it manages certain federal education dollars, with the Department framing the approvals as a step toward reducing administrative compliance burdens and redirecting resources toward improving student achievement. Across all four states, more than $80 million in federal funding will now be consolidated under these waivers.

How 21st CCLC Funding is Allocated at the State Level

Under the 21st Century Community Learning Centers (21st CCLC) program (authorized under ESEA/ESSA Title?IV, Part?B), State Educational Agencies (SEAs) are allowed to reserve a portion of their total federal grant allocation for state-level activities and administration.

SEAs may allocate up to 2% of the state’s 21st CCLC funding to administrative costs, such as managing application reviews and supervising awards. Additionally, SEAs can use up to 5% of the funds for activities that support grantees, including monitoring and evaluating programs, supporting program quality, and providing training and professional development for program staff, as well as technical assistance.

These limits ensure that at least 93% of each state’s allocation goes directly to local grantees for programming, while allowing a capped amount for essential administrative and support activity functions.

What the ESSA Waiver Does

Each of the three new waivers permits the state to combine federal funds allocated for state-level activities across multiple funding streams into a single consolidated fund.

Louisiana's waiver consolidates more than $18 million in federal funds through 2029 and covers state activities funds under Title II, Part A (Supporting Effective Instruction); Title III, Part A (English Language Acquisition); Title IV, Part A (Student Support and Academic Enrichment); and Title IV, Part B, which is 21st CCLC.

Indiana's waiver similarly consolidates approximately $50 million in federal funds over four years, combining state-level activities funds across Title I-B (State Assessment Grants); Title II, Part A; Title III, Part A; Title IV, Part A; and Title IV, Part B.

Vermont's waiver consolidates over $4 million in federal funds through 2029, covering Title II, Part A; Title IV, Part A; and Title IV, Part B.

None of the waivers alter the total amount of federal funding a state receives for 21st CCLC or other ESEA programs, nor do they impact the requirement that most funds flow to local grantees. Local 21st CCLC-funded afterschool and summer programs in each of these states should continue to be supported as they were prior to the waivers being approved. Each state must annually report to the U.S. Department of Education how it uses the waiver and meets the needs of students.

What This Means for Afterschool Programming in These States

For local afterschool and summer learning providers in Louisiana, Indiana, and Vermont, the most important takeaway is stability: the core funding that supports direct services for students remains unchanged. Federal law continues to require that at least 93% of each state's 21st CCLC funding go directly to local school and community-based programs, and none of these waivers change that requirement. Local programs should not see decreases in their grant awards as a result.

The waiver affects the state-level portion of 21st CCLC funding, specifically the funds used for statewide activities such as professional development, technical assistance, monitoring, evaluation, and capacity-building. Under the waiver, each state may blend the 21st CCLC state activities funds with similar funds from other federal education programs and use them to support broader statewide priorities. The professional development, technical assistance, and capacity-building support for local programs are essential to ensure that local 21st CCLC programs provide high-quality services to meet the needs of students and families.

Research like the National Academies report, The Future of Youth Development: Building Out-of School-Time (OST) Systems and Strengthening Programs, suggests that these types of supports are essential for quality programming that leads to positive outcomes for youth, such as improved school day attendance, decreased chronic absenteeism, improved student behavior, and greater overall student success. 

As Louisiana, Indiana, and Vermont implement these waivers and other states consider similar requests, the effectiveness of this model will be measured by how well each state can balance flexibility with continued supports that contribute to strong, high-quality afterschool and summer programs that benefit students, families, and communities.