States are granted plenary authority on matters of education by the 10th Amendment to the U.S. Constitution. State and local governments typically provide about 90% of revenues for elementary and secondary education and account for over 40% of revenues at public colleges and universities, the highest share from any source.
However, the federal government plays a meaningful role in education policy through laws passed by Congress, which are carried out through the U.S. Department of Education. The federal government typically accounts for about 10% of direct support for elementary and secondary education and less than 25% of revenues at public colleges and universities.
The role of the Education Department has been much debated since its founding in 1979. This FAQ provides background on the department’s key functions and the long-standing debate over its role and purpose in American education.
What major federal laws are under the purview of the Education Department?
The department is tasked with implementing a suite of federal laws that provide education funding to the states and overseeing education-related aspects of civil rights laws.
The following laws provide the vast majority of federal funding for education. The last year of reauthorization for each law is also included.
- Elementary and Secondary Education Act (ESEA); 2015
- Higher Education Act (HEA); 2008
- Individuals with Disabilities Education Act (IDEA); 2004
- Carl D. Perkins Act; 2018
- Education Sciences and Reform Act; 2002
- The McKinney-Vento Education for Homeless Children and Youth Program; 2015
The department also has oversight authority on aspects of the following civil rights laws.
- Section 504 of the Rehabilitation Act of 1973 and Title II of the Americans with Disabilities Act, which prohibits discrimination based on disability.
- Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color or national origin.
- Title IX of the Education Amendments of 1972, which prohibits discrimination based on sex.
What are the department’s key roles and responsibilities?
Broadly, the federal role in education, as carried out by the department, can be described through six key roles. In fiscal year 2024, the department received $79.1 billion in discretionary funding to carry out these broad functions, while also lending an estimated $85.7 billion in student loans.
A state-by-state breakdown of the department’s general funding streams can be found here.
1. Distributing Formula Block Grants and Student Funding
The vast majority of federal spending provides grant funding to supplement and enhance the educational experiences of low-income students and students with disabilities. These major programs—Title I, IDEA and Pell grants—are complemented by other smaller block grant programs that serve broad purposes, such as school improvement and career and technical education.
Elementary and Secondary Education
In FY 24, about $50.2 billion was appropriated for elementary and secondary education, largely through categorical block grants to states. The two single largest block grant programs are Title I and IDEA grants to states, which account for over two-thirds of spending on categorical grants for elementary and secondary education.
- Title I grants: $18.4 billion to states to support supplemental education services to low-income K-12 students.
- IDEA Parts B and C: $15.7 billion to states to support “free appropriate public education” to students with disabilities.
Other major block grant programs support:
- School improvement programs: $5.8 billion through a number of block grants in the ESEA that include programs supporting teacher professional development (Title II), after-school programs (Title IV), and activities to support well-rounded education (Title IV).
- Disability supports: $4.4 billion, largely for vocational rehabilitation grants to states.
- Career, technical and adult education: $2.2 billion, largely to support $1.5 billion in Perkins career and technical education block grants to states.
- Impact aid: $1.6 billion to support lost property tax revenue due to presence of tax-exempt federal land.
- English learners: $890 million to support instruction for students whose primary language is not English.
Postsecondary Education
The Pell grant, which provides need-based aid for low-income postsecondary students, comprises almost all of the direct federal funding for higher education. Students received an estimated $31.4 billion in Pell grants in 2023-24 ($22.5 billion was appropriated).
Other major grant programs support:
- Institution-based grant aid to students: $1.23 billion through the Supplemental Educational Opportunity Grant.
- Institutional support: $1 billion in direct support for minority-serving institutions.
- Work-study programs: $910 million in financial assistance for part-time student jobs.
2. Lending to Students in Postsecondary Education
The federal government is the largest lender for postsecondary education. The Education Department currently holds $1.6 trillion in student debt and issued $85.7 billion in new loans in FY 24, which included $45.3 billion in loans for undergraduate education and $40.4 billion in loans for graduate education.
Since 2021, the department has forgiven $188.8 billion in student debt for over 5 million borrowers through existing forgiveness and repayment programs. This includes $56.5 billion through income-driven repayment plans, $78.5 billion for Public Service Loan Forgiveness, $35 billion through Borrower Defense to Repayment, and $18.7 billion through the total and permanent disability discharge.
In FY 24, the Federal Student Aid office, which oversees the Free Application for Federal Student Aid, or FAFSA, and the student loan portfolio, received $2.1 billion for operating expenses and loan servicing activities.
3. Overseeing Accountability and Quality Assurance
Elementary and Secondary Education
To receive Title I funding, states agree to administer annual academic assessments, implement an accountability system that meaningfully differentiates schools based on student performance, and undertake school-improvement activities based on accountability determinations. States are granted fairly broad discretion in carrying out these requirements, including choosing the assessments, developing an accountability system within broad federal parameters, and implementing state-directed strategies for school improvement. However, states are required by statute to develop and submit plans on how they will implement their accountability and improvement systems. The department is tasked with reviewing and approving these plans and undertaking ongoing compliance monitoring.
Postsecondary Education
The federal government oversees a postsecondary quality assurance structure known as the “triad,” which delegates responsibility to states, accreditation agencies and the Department of Education. To participate in federal student aid programs, colleges and universities must receive accreditation from a recognized accrediting body and be formally authorized by each state where they enroll students. The Education Department plays a significant role in monitoring accrediting bodies, which must meet federal standards to be recognized as a valid accreditor.
The department also oversees other higher education accountability policies, such as Gainful Employment, cohort default rate and the “90/10 rule.”
4. Collecting Data, Conducting Research and Providing Technical Assistance
Collecting and collating data on education is the longest-running federal role in education, dating to the 1860s. The Institute of Education Sciences, or IES, functions as the federal repository for national education data. It oversees the National Assessment of Education Progress, the Integrated Postsecondary Education Data System and the annual Condition of Education report. The IES is a major funder of education research and evaluation projects, and it oversees technical assistance efforts such as the Regional Education Laboratories.
In FY 24, the institute received $793 million to support its work.
5. Fostering Innovation, Improvement and Student Success
Approximately $3.8 billion, or nearly 5%, of the Education Department’s budget is allocated to competitive grant programs. Nearly $1.6 billion supports over 12 grant programs for elementary and secondary education. The three largest programs are charter school grants ($440 million), Education Innovation and Research grants ($259 million) and magnet school assistance ($139 million).
Another $2.18 billion supports student success and innovation in postsecondary education. Half of this funding ($1.2 billion) supports the TRIO programs, which help students from disadvantaged backgrounds navigate and succeed in postsecondary education.
6. Enforcing Civil Rights Law
The department’s Office of Civil Rights is tasked with interpreting and enforcing civil rights laws in schools and other recipients of federal education aid. In FY 24, the office was funded at $627 million.
When was the Education Department formed?
Until the 1960s, the federal government played a minor role in education. However, during the ongoing desegregation efforts spurred by the Supreme Court’s Brown v. Board Education decision in 1954 and the passage of the Civil Rights Act of 1964, Congress passed a series of landmark laws from 1965 to 1975 to expand federal support for elementary, secondary and higher education and for students with disabilities.
These laws established the modern federal role in education, which largely persists to this day. In 1979, Congress established the U.S. Department of Education as the primary executive agency tasked with implementing federal education law and enforcing education-related civil rights law. Before the chartering legislation, many education programs were under the authority of the former U.S. Department of Health Education and Welfare.
Can the department’s roles and responsibilities be changed or eliminated?
An act of Congress is necessary to make major changes to the department’s roles and responsibilities. Federal education laws delegate to the department key responsibilities in carrying out laws and grant specific discretionary authority to the department’s secretary and staff.
The broad structure of the department, including the roles of internal divisions and positions of leadership, are described in detail in the charter legislation establishing the department. In addition, many details about the department’s operating functions and procedures are directed by the General Education Provisions Act.
Can major federal education programs be changed or eliminated?
An act of Congress is required to make major changes to federal education programs and funding amounts. All federal programs that provide direct funding for education are authorized through law and are funded through annual congressional appropriations.
While the department is granted authority to interpret federal law through guidance and regulation, it cannot create new policies or substantially alter existing programs in a manner that bears no relation to existing law. In addition, the Supreme Court’s decision in Loper Bright Enterprises v. Raimondo may further limit a federal agency’s ability to interpret ambiguous statute, and thus, its regulatory authority.
What is proposed in Trump’s recent executive order?
The order, Improving Education Outcomes by Empowering Parents, States, and Communities, directs the secretary of education to take steps to close the department to the extent permitted by law and “return authority over education to the States and local communities while ensuring the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely.” The order also directs the secretary to ensure “the allocation of any Federal Department of Education funds” complies with federal law and administration policy.
Have past administrations reorganized the Department of Education?
Presidents of both parties have changed some of the internal structures at the department. In 1982, President Ronald Reagan proposed eliminating the department but was unable to convince Congress to do so. In 2002, President George W. Bush's administration created a new Office of Innovation and Improvement. In 2014, President Barrack Obama’s administration created the Office of State Support. Most recently, Trump’s first administration attempted to condense some of the department’s functions. Many of the proposed changes would have required congressional actions and were ultimately unsuccessful. However, the administration did succeed in combining the Office of Innovation and Improvement with the Office of Elementary and Secondary Education.