President Trump issued an executive order Thursday directing Secretary of Education Linda McMahon to take steps within her authority to facilitate the closure of the U.S. Department of Education.
The order, Improving Education Outcomes by Empowering Parents, States and Communities, comes on the heels of staffing reductions at the department of nearly 50% in recent weeks. The so-called Department of Government Efficiency, or DOGE, the cost-cutting initiative run by billionaire Elon Musk, has also been active at the department and authorized the cancellation of numerous grants and contracts in February.
What does the order say?
The order directs McMahon 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.
How could the order be carried out?
The Education Department was established by Congress in 1979 as the primary executive agency charged with overseeing federal education laws and programs. Most of the significant federal laws and programs—Title I of the Elementary and Secondary Education Act, the Individuals with Disabilities Education Act, and Pell Grants in the Higher Education Act—were enacted by Congress before the department was created.
Major changes to the department’s roles and responsibilities would require an act of Congress. Specific department functions and the secretary’s discretionary authorities are described in the department’s charter legislation and throughout the various education laws.
Any changes to federal education laws and programs—including allowable uses of funds, conditions for accepting federal funds and funding amounts—would also require an act of Congress. This would include proposals to “block grant” education funding to the states. While federal funding for K-12 education is distributed via formula-based categorical grants, Congress places some limitations on how funds can be spent and requires states and schools to agree to certain conditions to receive those funds.
However, McMahon will likely seek to maximize her authority to reshape the department. While nearly every administration has reorganized the department to some degree, this is the first time in recent memory that significant staffing reductions have taken place.
What changes have occurred at the department?
Significant changes were already underway at the department before the executive order. After a “reduction in force” initiated by the department in March, nearly 2,000 workers were laid off or accepted voluntary resignation offers, which reduced the workforce from more than 4,100 staff to fewer than 2,200.
According to reports, the vast majority of staff cuts occurred at Federal Student Aid, the Office of Civil Rights and the Institute of Education Sciences. Federal Student Aid, which oversees student loans and Pell grants, reportedly lost nearly half of its staff. The Office of Civil Rights similarly lost about half its staff. Other smaller, inner-agency offices, including the Office of English Language Acquisition and the Office of State and Grant Relations, lost all or nearly all of their staff.
The Institute of Education Sciences reportedly lost more than 90% of its staff. In addition, much of the institute’s work, which includes data collection, research and overseeing the National Assessment of Educational Progress, is carried out through grants and contracts. DOGE cancelled nearly all of the contracts issued under IES throughout February, which it claimed totaled $881 million, and also cancelled $575 million in contracts for the Regional Education Laboratories and Comprehensive Centers, which conduct research and help states and districts implement evidence-based practices.
In addition, DOGE cancelled a claimed $600 million in grants from various federal competitive programs to support educator effectiveness. Those cancellations have been challenged in court and were recently ordered to be restored.
What does the Education Department do?
The department is tasked with implementing a suite of laws that provide education funding to states and overseeing education-related aspects of civil rights laws. Programs overseen by the department typically account for about 10% of direct support for elementary and secondary education and less than 25% of revenues at public colleges and universities.
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.
Broadly, the department’s responsibilities can be described through six key roles, which are described in greater depth in this NCSL FAQ.
- 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. In FY 24, Title I ($18.4 billion) and IDEA ($15.7 billion) accounted for over two-thirds of spending on elementary and secondary education at the department. Pell grants ($31.4 billion) accounted for 90% of direct spending on higher education.
- 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.
- Overseeing Accountability and Quality Assurance: To receive ESEA 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, but must submit their plans to department for approval and ongoing compliance monitoring. 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. The department also oversees other higher education accountability policies.
- Collecting Data, Conducting Research and Providing Technical Assistance: The Institute of Education Sciences collects national education data, funds education research and oversees technical assistance efforts. It oversees efforts like the National Assessment of Education Progress, known as the “Nation’s Report Card,” and the College Scorecard.
- Fostering Innovation, Improvement and Student Success: Nearly 5% of the department’s budget, approximately $3.8 billion, is allocated to competitive grant programs that support efforts to improve education outcomes.
- Enforcing Civil Rights Law: The Office of Civil Rights interprets and enforces civil rights laws in schools, which involves investigating complaints of violations.
What does this mean for states?
NCSL is paying close attention to whether ongoing changes at the department will impact states. The executive order suggests that the underlying federal laws and programs will be unaffected, even if different executive agencies are given authority over those programs.
Staff reductions could limit the functions of the department. It remains to be seen whether staff reductions at Federal Student Aid will affect the operations of the Free Application for Federal Student Aid or the student loan program. The FAFSA went offline unexpectedly for a few hours in the wake of the “reduction in force,” but has otherwise functioned effectively this year after the 2024-25 FAFSA form was plagued with challenges.
It is likely the federal role in data collection and research will be curtailed, at least temporarily, given the staffing reductions and contract cancellations at the Institute of Education Sciences.
Austin Reid is a federal affairs advisor and Emily Katz is an associate legislative director in NCSL’s State-Federal Affairs Division.