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Home / News / What Happens If The Department Of Education Is Shut Down?

What Happens If The Department Of Education Is Shut Down?

Updated: March 6, 2025 By Robert Farrington | < 1 Min Read Leave a Comment

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Eliminate The Department of Education Infographic | Source: The College Investor
Source: The College Investor

Key Points

  • President Trump may announce an executive order this week to begin the process of dismantling the Department of Education.
  • While eliminating the department requires congressional approval, the administration is exploring ways to reassign responsibilities to states and other federal agencies.
  • House Republicans have already introduced H.R. 899, a bill stating simply: “The Department of Education shall terminate on December 31, 2026.”

President Donald Trump and newly confirmed Education Secretary Linda McMahon are preparing to take the first steps toward shutting down the U.S. Department of Education. According to reports from the Wall Street Journal, the administration may issue an executive order directing federal agencies to explore the legal steps necessary to begin winding down the department.

The move aligns with Trump’s long-standing campaign promise to eliminate federal oversight in education and shift control back to the states. House Republicans have already introduced a bill, H.R. 899, that calls for terminating the department by December 31, 2026.

While abolishing the Department of Education requires an act of Congress, Trump’s executive order could lay the groundwork for redistributing its responsibilities to other federal agencies and state governments. Some Republicans argue that the federal government has overreached in education policy, while critics warn that dismantling the department could create chaos for schools, students, and federal financial aid programs.

Short History Of The Department of Education

The Department of Education is actually one of the "youngest" Federal agencies, having been formed in 1979 and really only started operating in 1980. For context, the first Federal agencies (State, Treasury, War/Defense, and Justice) were formed back in 1789.

The Department of Education also came into existence well after the first student loans were ever issued in 1958, and also after the first Higher Education Act of 1965 (which is the foundation of the current Federal student loan program).

However, closing the Department of Education is not a unilateral decision the president can make. It requires congressional approval - and likely a full 60 vote super-majority in the Senate. And beyond the actual closing, there will need to be a lot of legislation to adjust all the other various Departments to accommodate the change. 

What Trump Has Said About The Department Of Education?

Trump has called the Department of Education a poor investment for taxpayers, claiming the U.S. spends three times more money on education than any other nation. Here's a clip from Twitter/X where he shares his thoughts on the matter:

TRUMP ANNOUNCES HE WILL END THE DEPARTMENT OF EDUCATION 🚨 pic.twitter.com/qTQgf4BMAv

— Young Americans for Liberty (@YALiberty) November 11, 2024

It's important to remember, though, that closing the Department of Education requires congressional approval.

According to legal analysts, such a move would likely need a super-majority of 60 votes in the Senate to overcome any filibuster. Given the current political landscape where Republicans only hold 52 seats, achieving this threshold would require bipartisan support.

For reference, in a 2023 House vote, 60 Republicans opposed an amendment to eliminate the department.

Where The Functions Of The Department Of Education Will Go

If Trump does eliminate the Department of Education, it's important to realize that the functions of the Department would simply be reassigned to other areas of government. There is no proposal to eliminate the actual functions of the Department as a whole (though some programs would inevitably face cuts).

Eliminate The Department of Education Infographic | Source: The College Investor

Programs like Federal student loans would transition to the Department of the Treasury. Civil rights enforcement might fall under the purview of the Department of Justice. Other initiatives, such as special education programs could move to Health and Human Services.

However, the biggest change would impact K-12 education. President Trump has signaled that he would like to see this return to the States (which already control most of the policy around K-12 education). This would be done by providing block grants of money to the states to fund their K-12 education programs.

Here's where some of the Department programs could move to:

  • K-12 Education Funding: Block Grants To The States
  • Federal Student Loans: Department Of Treasury
  • Civil Rights Enforcement: Department Of Justice
  • Special Education And Disability Programs: Department Of Health And Human Services
  • Vocational And Adult Education Programs: Department Of Labor
  • Educational Statistics And Research: National Science Foundation

Notably, unless the administration also changes what programs exist, the only elimination would be overhead for the Department of Education. Most of the functions would simply be moved to other Departments, employees and all.

Implications For Education Funding In The United States

The Department of Education had funding of $238 billion in 2024, but the bulk of the funding went to three key areas: K-12 education funding, the student loan program, and federal Pell grants. Of that $238 billion, $119 billion went to supplement state education budgets.

Eliminating the Department of Education could jeopardize these funding streams, as each state would have to adapt and outcome discrepancies would likely emerge on a broader scale nationwide.

However, the public sentiment towards the Department of Education is mixed. A Pew Research study found that only 44% of Americans hold a favorable view of the Department. And there are have been several attempts to dismantle the Department of Education before - about once each decade since it was created.

President-elect Trump's proposal to eliminate the Department of Education has huge implications for the future of education in the United States. However, until the actual bill is proposed, it's impossible to say for certain how the actual elimination of the Department could play out.

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Editor: Colin Graves

Robert Farrington
Robert Farrington

Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.

Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.

He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.

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Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
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