Legislation has been introduced to close the Department of Education and return the funds currently flowing through it to the individual states.
The Returning Education to Our States Act was introduced by Senator Mike Rounds (R-SD). He first introduced the bill in November 2024. While it had no chance of advancing under the Biden administration, there is more potential for it to become law under the Trump administration.
President Trump issued an Executive Order last month which directed the Secretary of Education to undertake all necessary steps to facilitate the closure of the agency and ensure a seamless transition of educational authority to the states.
Rounds’ bill essentially lays out a detailed plan to do what was stipulated in the Executive Order.
The legislation doesn’t cut any money from education funding. Instead, funds will continue to flow directly to states through block grants. Other critical programs will be funded through the appropriate federal agencies. Rounds estimates that eliminating the bureaucracy at the Department of Education will save approximately $2.2 billion annually in taxpayer dollars.
He said in a statement:
We all know that teachers, parents, local school boards and state Departments of Education know what’s best for their students, not bureaucrats in Washington. The Department of Education was created to collect education data and advise state and local organizations on best practices. Since then, it has grown into an oversized bureaucracy that dictates one-size-fits-all policies, standards and practices for students across the nation. The Returning Education to Our States Act would preserve important programs and federal funding while eliminating the bureaucracy of the Department of Education. This has been a priority of mine for years, and it’s one that President Trump shares. I’m looking forward to working with the President, Secretary McMahon and the rest of the administration to get this legislation across the finish line and return education decisions to the state and local levels where they belong.
Education Secretary Linda McMahon is on board with closing the agency as well. She said in a statement after Trump issued his Executive Order:
Education is fundamentally a state responsibility. Instead of filtering resources through layers of federal red tape, we will empower states to take charge and advocate for and implement what is best for students, families, and educators in their communities.
Closing the Department does not mean cutting off funds from those who depend on them—we will continue to support K-12 students, students with special needs, college student borrowers, and others who rely on essential programs. We’re going to follow the law and eliminate the bureaucracy responsibly by working through Congress to ensure a lawful and orderly transition.
Details of the Legislation
Some of the programs operating at the agency would be moved to other agencies and their funding formulas would remain in place. They are as follows:
Department of the Interior
- Indian Education Formula Grants and National Activities
- Native American and Alaska Native Children in School Program
- Special Programs for Indian Children
Department of the Treasury
- William D. Ford Federal Direct Loan Program
- Federal Family Education Loan Program
- Federal Perkins Loan Program
- Federal Pell Grant Program
- Health Education Assistance Loan Program
- Education Sciences Reform Act
- Education Technical Assistance Act
- National Assessment of Educational Progress Authorization Act
Department of Health and Human Services
- Individuals with Disabilities Education Act (IDEA)
- Education of the Blind
- Helen Keller Center for Deaf/Blind Youth and Adults
- Special Education Grants
- Scholarships for Opportunity and Results Act
- Special Olympics Sport and Empowerment
- McKinney-Vento Homeless Assistance Act
Department of Labor
- All Office of Career, Technical and Adult Education programs
- Randolph Sheppard Vending Facility Program
- Vocational Rehabilitation State Grants
- American Indian Vocational Rehabilitation Services Program
- Carl D. Perkins Career and Technical Education Act
- Adult Education and Family Literacy Act
- Education of the Deaf Act
- Randolph-Sheppard Act
- Helen Keller National Center Act
Department of Defense
- Impact Aid Programs
Department of Justice
- Civil Rights Enforcement
Department of State
- Fulbright-Hays Program
The legislation would also alleviate the following compliance requirements:
- Eliminate Federal Accountability Mandates: Schools would no longer be required to administer standardized assessments or track performance for identifying struggling schools (CSI and TSI), allowing for more flexibility in assessment and school improvement strategies.
- Reduce Funding Compliance Burdens: Schools would no longer have to comply with complex Title I funding regulations, maintenance of effort standards or provide equitable services for private school students. This would simplify financial management.
- Relax Teacher Qualification Requirements: Schools would have more autonomy to set teacher certification standards and professional development plans, reducing federal oversight and allowing for tailored approaches to educator qualifications.
History of the Department of Education
The Department of Education, established in 1979, aims to strengthen federal commitment to equal educational opportunity and improve education quality. Its origins date back to 1867, evolving from the Office of Education to a cabinet-level agency in 1980.
According to the agency’s website, President Andrew Johnson signed legislation in 1867 establishing the inaugural Department of Education. Its primary objective was to compile information and statistics pertaining to the nation’s educational institutions. However, concerns arose regarding the potential overreach of the Department in controlling local schools, leading to its demotion to an Office of Education in 1868.
Federal education funding increased in the 1950s-1970s due to political and social changes, including the Sputnik launch and the War on Poverty. This led to the creation of programs for disadvantaged students and the establishment of the Department of Education.
In the 1860s, the agency had a budget of $15,000 and four employees handled education fact-finding. By 1965, the Office of Education had more than 2,100 employees and a budget of $1.5 billion. As of mid-2010, the Department has nearly 4,300 employees and a budget of about $60 billion.
Congress declared these purposes for the agency when it was established in 1979:
- to strengthen the Federal commitment to ensuring access to equal educational opportunity for every individual;
- to supplement and complement the efforts of States, the local school systems and other instrumentalities of the States, the private sector, public and private educational institutions, public and private nonprofit educational research institutions, community-based organizations, parents, and students to improve the quality of education;
- to encourage the increased involvement of the public, parents, and students in Federal education programs;
- to promote improvements in the quality and usefulness of education through federally supported research, evaluation, and sharing of information;
- to improve the coordination of Federal education programs;
- to improve the management and efficiency of Federal education activities, especially with respect to the process, procedures, and administrative structures for the dispersal of Federal funds, as well as the reduction of unnecessary and duplicative burdens and constraints, including unnecessary paperwork, on the recipients of Federal funds; and
- to increase the accountability of Federal education programs to the President, the Congress and the public. (Section 102, Public Law 96-88)
The Education Department announced recently that it was cutting its workforce roughly in half via reduction in force (RIF). ABC News reported that RIF notices began to be distributed to agency employees this past week.
