The Every Student Succeeds Act (ESSA) has generated considerable buzz in education circles and the general media. But how much has really changed, and what does this mean for states as they begin the process of implementing a new federal education law? In this article, we apply principal-agent theory to explore intergovernmental relations under ESSA, focusing specifically on the relationship between the federal government (the principal) and state governments (the agents). First, we review power dynamics under No Child Left Behind (NCLB) and ESSA, exploring implications of changes in the substance of both laws for the principal-agent problem. Next, using political discourse analysis, we show how shifts in the content of Elementary and Secondary Education Act (ESEA) and its implementation by the current administration influenced the federal review process of state plans for the sixteen states that submitted plans under the early deadline. We find the federal government was most likely to provide feedback around Title I, Part A, Section 4 pertaining to accountability and school improvement. Ultimately, however, states that ignored or defied federal feedback were successful given both the limits ESSA places on U.S. Department of Education authority and the current administration’s reliance on negotiation over sanction. Thus far, this approach has ensured states are realizing the maximum flexibility available through the law, as all state plans were approved, regardless of whether states heeded federal feedback and complied with the law.

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