Sovereign States Education Restoration Act

This bill would shut down the U.S. Department of Education 270 days after it becomes law. Before that, within 180 days, it would move key programs to other agencies: special education (IDEA) and Impact Aid to Health and Human Services; the Office of Indian Education to the Interior Department; and Pell Grants and all federal student loan programs to the Treasury Department. It replaces many federal education programs with state-run block grants managed by the Treasury. States would get money based on how many students they have and could use K–12 funds for any early childhood, elementary, or high school purpose.

States would have to send student data to Treasury each year, complete annual audits, and follow federal civil rights laws. The Justice Department’s Civil Rights Division would handle complaints and enforce laws like Title IX, Title VI, and Section 504 for these programs. Treasury could claw back misused funds or work out a resolution with a state. The bill authorizes total funding equal to what the Education Department received in 2019, with up to 50% for state block grants and up to 20% for federal administration and oversight.

• Who is affected: States, school districts, colleges; students with disabilities; Native students; and families using Pell Grants or federal student loans.
• What changes: The Education Department would close; programs move to HHS, Interior, and Treasury; states get block grants with reporting, audits, and civil rights requirements.
• When: Transfers happen within 180 days of enactment; the department closes 270 days after enactment.
• Funding: Total equals the Education Department’s 2019 level; up to 50% for block grants; up to 20% for administration/oversight.