Sponsors (6)
The bill preserves basic federal student loan and grant access and provides new K–12 funding while shifting administration to Treasury — but it abolishes most Education Department programs on short notice, risking widespread disruption to students, schools, borrowers, federal employees, and equity in funding.
Students and federal student-loan borrowers retain access to Pell Grants and Direct Loans because those programs would continue under the Treasury rather than being immediately cut off.
Students and K–12 schools gain new federal funding allocations that states can use for education, increasing resources available to schools and students.
Taxpayers could see lower overhead if consolidating financial-aid administration in the Treasury yields administrative efficiencies and reduced duplication.
Students, families, and schools would lose virtually all Department of Education programs 30 days after enactment, causing major disruption to grants, K–12 supports, and higher-education programs.
Borrowers and students who rely on counseling, income-driven repayment, borrower relief, and oversight risk harm if moving loan and grant administration to Treasury breaks existing student-support services and servicing fixes.
States, schools, and families could face higher costs because terminating federal education programs (e.g., Title I, special education) shifts fiscal burdens to local governments and households.
Based on analysis of 2 sections of legislative text.
Abolishes the Department of Education, moves Pell and federal Direct Loans to Treasury, and creates a Treasury‑run K–12 block grant to states based on residents' federal income tax payments.
Introduced April 7, 2025 by Barry Moore · Last progress April 7, 2025
Abolishes the Department of Education 30 days after the law takes effect, ends all programs it runs except the Federal Pell Grant and Federal Direct Loan programs, and moves authority for those two programs to the Department of the Treasury. It also creates a new Treasury‑administered federal block grant for K–12 education that distributes funds to states based on the share of federal individual income taxes paid by their residents, and asks (nonbindingly) that states promote parental choice and competition when using state and local education funds.