This summer marked a significant turn in U.S. education policy as the Supreme Court gave President Donald Trump the green light to largely dismantle the Department of Education. This decision aligns with a broader federal pullback from education, championed by conservative ideologues for decades. The administration’s actions, from defunding to structural reassignments, could drastically reshape the federal role in education.

Defunding Key Initiatives and Restructuring Student Loans

One of the administration’s major moves includes trying to impound $6.8 billion in federal education funding approved during the Biden administration. States, expecting this money for programs supporting immigrant students, after-school activities, and teacher recruitment in underserved areas, have taken legal action to secure the funds. Additionally, the administration passed a bill altering the federal student loan system, limiting deferment options and narrowing repayment plans.

Simultaneously, a new tax break set to begin in 2027 incentivizes donations to private K–12 scholarship programs. This initiative effectively diverts public money to private education—an enduring conservative goal.

From Influence to Control: Federal Pressure on Diversity Programs

Beyond funding, the Trump administration is exerting influence over education by pressuring institutions to eliminate diversity programs. It has taken aim at Harvard and Columbia Universities over diversity policies and antisemitism allegations and launched investigations into other systems like the University of California. Using federal research funding as leverage, the administration is tightening its control over how education institutions operate.

Understanding the Role of the Education Department

While the Department of Education is the smallest Cabinet-level agency, its role is far from insignificant. It distributes roughly $28 billion in federal grants annually—about 10% of total K–12 funding—primarily targeting children in poverty. It also manages the $1.6 trillion student loan program, handles civil rights investigations, and publishes educational research and data.

What it does not do is dictate school curricula—a responsibility that lies with states and local districts. “They’ve created a bogeyman,” says Jon Valant from the Brookings Institution, “but the federal government doesn’t decide what’s taught in schools.”

Layoffs and a Plan to Reassign Responsibilities

Starting August 1, about 1,300 Education Department employees—nearly half the workforce—will be laid off in what the administration terms a “reduction in force.” Critics like Sheria Smith, the union president for department employees, say the layoffs appear arbitrary. Smith herself is among those dismissed.

Trump's administration proposes reallocating the department’s responsibilities: student loans to the Small Business Administration, adult education to the Department of Labor, and special education to Health and Human Services. Additionally, Trump’s 2026 budget plan proposes a 15% cut in federal education funding.

Criticism: Culture Wars Over Student Outcomes

Experts question the impact of these sweeping changes on actual student outcomes. Valant argues the administration is prioritizing political battles over urgent issues like low test scores, chronic absenteeism, and mental health struggles post-pandemic. “None of this helps students,” he said. “It’s about political gain, not progress.”

A Longstanding Conservative Goal Realized

The goal to abolish the Department of Education dates back to its founding in 1979. While Ronald Reagan and the 1996 Republican platform called for its elimination, no administration acted decisively—until now. Trump’s latest efforts, supported by the Supreme Court, bring conservatives closer than ever to that vision. Justice Sonia Sotomayor dissented sharply, warning that the Court was enabling lawlessness rather than checking it.