Following through on a longstanding campaign promise, President Trump signed an executive order Thursday ordering the Department of Education to wind down its operations so that it can eventually be closed.
The order, while light on details, comes just one week after the agency announced plans for mass layoffs that would cut its workforce in half and leaves in question the fate of federal programs that touch on almost every aspect of American education, from distributing billions of dollars to K-12 schools to managing the government’s massive student loan operation.
During a ceremony in which he was surrounded by children seated at school desks, Trump said his administration was “returning education to the states where it belongs.” He noted that key programs including Title I funding for schools that serve low-income communities, resources for disabled and special needs students, and Pell Grants for undergraduates would be “preserved in full and redistributed to other agencies.”
“Beyond these core necessities, this administration will take all lawful steps to shut down the department,” he said. “We’re going to shut it down and shut it down as quickly as possible. It’s doing us no good.”
Education advocates have widely decried Trump’s action, arguing that dismantling the department would sow chaos through the country’s education system and hurt learners.
“Without the department, fewer students would be able to go to college, student loan borrowers would default in droves, and fraudulent colleges would prey on students with impunity,” Sameer Gadkaree, head of the Institute for College Access & Success, said in a statement.
Conservatives argue those concerns are overblown, however. Frederick Hess, director of the Education Policy Studies Program at the American Enterprise Institute, noted that the administration is not planning to cut major funding streams for education, but rather is looking to change who manages them.
“Whatever happens to the department and the size of its bureaucratic staff, the impact on students, families, and college-goers is likely to be pretty limited,” he said.
Because the Education Department was created by statute, fully eliminating it would require an act of Congress. But it is widely expected that the administration will try to hollow out its operations by eliminating programs that aren’t mandated by law and moving some of its core functions to other agencies.
The order instructs Secretary of Education Linda McMahon to take “all necessary steps to facilitate the closure of the Department of Education” to “the maximum extent” permitted by law, while “ensuring uninterrupted delivery of services, programs, and benefits on which Americans rely.”
Trump has previously said he wants to move federal student lending to another department, possibly the Treasury or Small Business Administration. Right-leaning experts have also suggested that the department’s civil rights responsibilities could be reassigned to the Department of Justice, while funding for K-12 could be moved to the Department of Health and Human Services.
It’s not clear how much legal authority, if any, Trump has to scatter the Department of Education’s responsibilities throughout the federal government. For instance, the Higher Education Act appears to state plainly that Federal Student Aid — the office that runs the Pell Grant and student loan programs — must be established inside the agency and that the Secretary of Education “shall maintain responsibility” for creating the policies and regulations governing its operations.
“The law says it’s the US Department of Education’s Office of Student Aid, and I don’t know how you get past that,” said Mike Pierce, director of the Student Borrower Protection Center.
Federal law does allow agencies to run “joint” projects together, and some conservatives have argued that language would let McMahon begin moving programs over to other departments. But transferring oversight of something the size and scope of federal student lending would be effectively unheard of and could prove tricky.
Moving the student loan program would also risk major disruptions for borrowers, some former officials warned. If the transition were done sloppily, the government could end up losing track of information like how many payments individuals have made toward loan forgiveness.
”It’s extraordinarily difficult to move loans across systems, even within the Department of Education,” said Julie Margetta Morgan, a former deputy undersecretary for education. “The idea of moving them to another agency is just a massive, massive undertaking.”
Much of the student loan program is already in a state of limbo after the administration blocked access to its income-driven repayment plans — a decision many have criticized as an unnecessary overreaction to a federal court ruling.
When it comes to higher education, much of the department’s job involves managing giant contractors that handle tasks like servicing loans and processing student aid applications. Many of the department’s key online systems and databases are built and run by those private companies. In theory, another agency could supervise those contractors, but it would require much of the same expertise and staffing that currently exists in the education department.
At least some responsibilities could be handed off to other agencies with relative ease, former officials said. For instance, the Treasury Department already handles debt collection for much of the federal government and could probably take on that task for student loans.
But one major concern is that the Trump administration will try to continue running programs like student lending without the oversight staff who make sure schools and servicers obey federal rules meant to protect students and borrowers.
“It’s on the department to explain how it’s going to work, to make the case that it’s on top of oversight, and has a gameplan and has a plan for addressing those concerns,” said AEI’s Hess. “At this point, I don’t think the department has made its case very fully.”
Jordan Weissmann is a senior reporter at Yahoo Finance.
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