Sponsors (6)
The bill preserves federal student loan and Pell access and redirects new K–12 funds through Treasury‑managed allocations, but it does so by abolishing the Education Department in 30 days—creating major implementation, equity, oversight, and fiscal-shift risks for students, states, and schools.
Students and borrowers keep access to Pell Grants and federal Direct Loans because those programs are continued under Treasury administration rather than being abruptly cut off.
States (and their K–12 systems) receive new federal K–12 funding with allocations tied to state federal income‑tax contributions, creating a predictable, tax-data-based funding stream that some states can use to boost school resources.
Taxpayers could benefit from administrative consolidation if Treasury achieves efficiencies managing financial aid programs, potentially lowering overhead costs.
Students, families, and schools would lose virtually all Education Department programs 30 days after enactment, eliminating many federal grants, K–12 supports, and higher‑education programs and causing major disruption to education services.
States, schools, and families would likely face higher costs because terminating federal education programs shifts expenses for Title I, special education, and other supports to state and local budgets.
Borrowers who rely on counseling, borrower relief, income-driven repayment, and loan-servicing fixes risk losing those supports if administration shifts to Treasury and current student-support services break down.
Based on analysis of 2 sections of legislative text.
Abolishes the Department of Education, moves Pell and Direct Loan programs to the Treasury, and creates Treasury‑run state block grants for K–12 funding 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 is enacted, ends the Department’s programs except for the Federal Pell Grant and the William D. Ford Federal Direct Loan Program, and moves authority for those two programs to the Secretary of the Treasury. Creates a new Treasury‑administered federal block grant program that sends funds to states for elementary and secondary education, with each state's share based on the proportion of federal individual income taxes paid by its residents. States must use the block grant funds to support K–12 education; the bill also includes a non‑binding statement encouraging states to promote competition, parental choice, and a parental right to direct their children’s education.