The Arkansas Department of Education (ADE) is launching two new federal flexibilities for the 2026–2027 school year: the Ed-Flex Waiver and the Alternative Fund Use Authority (AFUA) pilot. Both are part of ADE's broader unification effort to align funding, accountability, and assessment under a single, state-led system and to reduce administrative burden so districts can focus on student outcomes.

On July 7, 2026, the U.S. Department of Education (USED) granted ADE three related flexibilities: a Returning Education to the States Waiver, a revised ESEA State Plan, and the Ed-Flex Waiver described below. This memo explains what ADE received for each flexibility and what your district needs to do to participate.

Alternative Fund Use Authority (AFUA) Pilot

ADE’s Returning Education to the States Waiver expands AFUA eligibility to a broader group of districts, approved as a four-year pilot covering the 2026–27 through 2029–30 school years. Previously, only a limited set of small, rural districts qualified for this flexibility. 

Under AFUA, eligible districts can use their Title II-A and Title IV-A dollars for any allowable use under the Small, Rural School Achievement (SRSA) program without transferring funds. 

ADE is looking for districts interested in participating in a pilot. If your district is eligible for the Rural and Low-Income School (RLIS) program, or the Small Rural School Achievement (SRSA) program, it is eligible for the pilot.  Please see the list of eligible districts here. 

Districts interested in participating should complete the Intent to Participate in the District Application for Federal Flexibility.

For additional guidance about the AFUA pilot and requirements, please see ADE’s AFUA-ED Flex District Guidance. 

ED-Flex Waiver

ADE was granted ED-Flex authority by the U.S. Department of Education. This authority lets ADE waive certain federal requirements on behalf of districts in exchange for stronger accountability for student performance. Ed-Flex does not change how much federal funding a district receives — only how it may be used and administered.

For 2026–2027, ADE will offer statewide flexibilities only. Districts may apply to ADE for any of the following flexibilities: 

• Time-and-Effort Certification Forms: Districts no longer need to collect, sign, and retain semi-annual time certification forms for staff paid 100% from a single Ed-Flex-covered program, as long as the employee's job description states 100% assignment to that program.
•  Title I, Part A — 15% Carryover Limitation: Districts may carry over more than 15% of unspent Title I, Part A funds into the next fiscal year. 
•  Title I, Part A funds into the next fiscal year: Districts may allocate Title I, Part A per-pupil funding across participating schools more flexibly, based on need rather than the fixed 125% formula.
•  Title I, Part A — 40% Poverty Threshold for Schoolwide Eligibility: Title I schools below the 40% threshold may operate a schoolwide program.
•  Title IV, Part A — Required Spending Categories: Districts are no longer required to meet the minimum and maximum reservation requirements for Well-Rounded Education, Safe and Healthy Students, and Effective Use of Technology.

Districts that are interested in these flexibilities must submit the District Application for Federal Flexibility to ADE. The application is due by October 1, 2026. 

Districts must provide public notice of the waiver(s) and a meaningful opportunity for public comment before submitting. Follow your district's existing public comment policy, or — if none exists — provide a two-day notice period followed by a ten-day comment period. ADE has created a public notice sample in the application document to help with this process, districts are not required to use this sample.

For additional guidance about the ED-Flex application process and requirements, please see ADE’s AFUA-ED Flex District Guidance. 

For More Information ADE will host a webinar on Wednesday, August 19th, at 9:00 am that covers ED-Flex waivers and the AFUA pilot in more detail.

Join Zoom Webinar

Additional information available on the Office of Federal Programs website.

Any additional questions about the District Application for Federal Flexibility should be directed to jayne.green@ade.arkansas.gov or matt.sewell@ade.arkansas.gov.