The ongoing debate over federal education funding has resurfaced with a push from state education leaders for increased flexibility in how funds are allocated and utilized. Recently, 12 state education chiefs called on federal leadership to consolidate categorical title funds—such as Title I for low-income students and Title III for English learners—into a single block grant. Title funds are federal monies that are meant to supplement, not replace, existing state funding for education.
Their argument centers on the idea that state and local agencies can more effectively allocate resources when freed from rigid compliance constraints. However, this shift also introduces risks. Without the guardrails provided by targeted funding, vulnerable student populations could see reduced support.
At the heart of this discussion lies a fundamental challenge: How can state education agencies (SEAs) ensure outcome-based accountability in a block grant system? Can we have grant systems that promote flexibility at the state or local level, yet still provide information needed to ensure accountability and support policy decisions?
Historically, SEAs have operated primarily as compliance-driven organizations, ensuring that districts adhere to strict spending guidelines. However, as the Every Student Succeeds Act (ESSA) intended, SEAs must evolve into service-oriented agencies that provide actionable insights, resources, and support to local districts. This transformation demands a robust data ecosystem capable of tracking, measuring, and improving student outcomes.
Let’s use the Preventive Health and Health Services (PHHS) Block Grant as an example. Researchers have created a measurement framework that does not get in the way of flexibility while providing a way to measure effectiveness.
Being able to answer how citizens are achieving outcomes (process evaluation) and what they are achieving (outcome evaluation) is what SEAs must be prepared to answer when managing block grant funding. We can use this framework to help us make sense of the data we are collecting, or should be collecting.
Key Data Infrastructure Improvements for Effective Block Grant Management
Regardless of potential shifts in grant funding, SEAs must move from being compliance-driven to performance-driven. Just like decades of research enabled COVID vaccines to be developed in record time, the education sector needs to start investing in modern tools and strategies to prepare for radical changes in funding.
For SEAs to successfully manage block grants while maintaining accountability, they must invest in modernizing their data infrastructure. This involves:
- Integrated State Longitudinal Data Systems (SLDS) and P20W
States need comprehensive SLDS that link early childhood, K–12, postsecondary, and workforce data. This enables SEAs to track long-term student outcomes and assess the impact of funding decisions across the education pipeline. SLDS should also be interoperable with transactional data and linked in the cloud to ensure data availability and enable real-time data analysis and reporting.
2. Real-Time Data Analytics and Dashboards
Traditionally, reporting cycles have been annual or semi-annual, limiting the ability to make timely interventions. Modern analytics platforms, powered by cloud-based solutions, can provide real-time insights into student performance, attendance, and program efficacy, allowing SEAs to respond dynamically.
3. Advanced Grant Management Systems
A shift to block grants requires rethinking how funds are tracked and distributed. SEAs must deploy intelligent grants management platforms that not only streamline the application and disbursement process but also integrate financial data with student performance metrics. Resultant has partnered with EDDI, an AI-powered platform that optimizes and increases funding sources for organizations, to support these efforts with SEAs.
4. Outcome-Based Funding Models
Data-driven decision-making should extend to funding formulas. SEAs can implement performance-based funding models that allocate resources based on measurable student outcomes rather than historical expenditure patterns.
5. Enhanced Data Governance and Security
With greater reliance on integrated data systems comes an increased need for stringent governance policies. SEAs must establish clear data-sharing agreements, privacy protections, and compliance measures to ensure data integrity while fostering collaboration between agencies.
6. The Role of SEAs as Strategic Partners
As grants (block grants or not) shift the focus from compliance to performance, SEAs have an opportunity to make a similar shift and redefine their role. Rather than solely enforcing regulations, they can serve as strategic partners to local districts, providing:
- Professional development in data literacy and evidence-based decision-making.
- Technical support for districts implementing advanced analytics platforms.
- Centralized research and development to identify and scale effective interventions.
The move toward block grants presents both opportunities and challenges. While increased flexibility allows states to address local priorities, it also necessitates a sophisticated approach to measuring and driving outcomes. By investing in modern data systems and a culture of continuous improvement, SEAs can fulfill their mission of ensuring that every dollar contributes to meaningful student success.
At Resultant, we help education agencies navigate these transitions, ensuring that data and technology serve as catalysts for better decision-making. Contact us to learn how we can support your journey toward an outcome-driven funding strategy.
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