Death of The Department of Education

The Department of Education (ED) is Dead—What Happens Now?

The headlines sound alarming, but there's a lot of misinformation surrounding the closure of the Department of Education (ED). This blog aims to provide an apolitical overview of the past, present, and future of the ED.

The Past: Why Was the Department of Education Created?

The ED was established in 1979 by President Jimmy Carter under the Department of Education Organization Act. The main reason, as stated in the act itself, was to address fragmentation in federal education programs and improve oversight. At the time, no single federal education official was directly accountable to the President, Congress, or the public.

The goal was to create a more efficient system for distributing federal education funds while consolidating oversight under one agency. Various programs from multiple organizations were brought under the ED, including:

• Title I Program (funding for disadvantaged schools)

• Federal Pell Grant Program (financial aid for low-income college students)

• Federal Student Loan Program

• Individuals with Disabilities Education Act (IDEA)

• Head Start Program (early childhood education for low-income families)

• National School Lunch Program

• GI Bill Program (education benefits for veterans)

Beyond administration, the ED had a broader mission:

• Strengthening the federal commitment to equal educational opportunity.

• Supporting state and local education systems by supplementing, not replacing, their efforts.

• Promoting research, evaluation, and information-sharing to improve education quality.

When it was created in 1980, the ED’s budget was $14 billion, with 17,000 employees. Adjusted for inflation, that would be about $54 billion today.

The Present: Where Does the Money Go?

By 2024, the ED's budget had grown to $268 billion ($80B discretionary budget passed by congress plus other mandatory spending). Here’s where the money was allocated:

• $165 billion in direct education spending, funding programs like Title I (for disadvantaged schools), IDEA (special education funding), and higher education support for colleges and universities.

• $64 billion in "pass-through" funds, where federal dollars flow through to state and local governments to support public education.

• $35 billion for Pell Grants, which provide financial aid for low-income college students.

The Future: What Happens Next?

Secretary of Education, Linda McMahon, has been tasked with dismantling the department. However, President Trump cannot close it entirely without congressional approval. Instead, funding responsibilities will either be redistributed to other federal agencies or eliminated altogether.

According to NBC, Trump stated that Pell Grants, Title I funding, and resources for students with disabilities will be preserved and reassigned to other departments.

The primary argument for closing the ED is the belief that state and local governments are better equipped to determine how education funding should be used. The biggest changes will likely involve:

• Transferring key funding programs to other departments.

• Eliminating bureaucratic red tape that states must navigate to receive federal education funds.

In short, states and local governments will still receive federal funding, students with disabilities will continue to receive necessary support, and financial aid will still be available. While some programs may undergo restructuring, the most essential funding sources are expected to remain intact. However, the new spending amounts are unknown until full restructuring is completed.

There may be unintended consequences that arise from this transition, requiring adjustments in the future. In summary, the funding will still continue, but the oversight changes. For now, daunting headlines surrounding the ED’s closure appear to be more overblown than reality.