Sponsors (5)
The bill preserves core student-aid continuity by shifting Pell and loan functions to the Treasury and creates a new state-directed funding mechanism and parental-choice signal, but it abolishes the Department of Education in a way that risks large program cuts, loss of oversight, administrative disruption, higher costs, and funding shifts that favor wealthier states and private-choice priorities over existing public programs.
Students nationwide keep access to Pell Grants and steady student-loan servicing because those programs are preserved and moved to the Department of the Treasury, avoiding an immediate disruption to grant payments and loan disbursements.
States receive a dedicated stream of federal education funds distributed based on residents' federal income tax contributions, providing a predictable federal funding mechanism tied to state tax payments.
The bill affirms—nonbindingly—that parents have a fundamental right to determine their children's education, signaling federal support for parental choice.
Students, colleges, and schools lose Department of Education oversight and program supports, creating major uncertainty for federal higher-education policy, accreditation, compliance, and student protections.
Most other federal education programs would end after 30 days, cutting funds and services for K–12 schools, higher-education programs, teachers, and beneficiaries who rely on those supports.
Borrowers, institutions, federal employees, and taxpayers would face major administrative disruption and transition costs (including potential contract terminations and restructuring) during and after the shift, risking gaps in payments and services.
Based on analysis of 2 sections of legislative text.
Abolishes the Department of Education, moves Pell Grants and Direct Loans to Treasury, and establishes a Treasury-run state block grant for K–12 allocated by residents' federal income tax payments.
Introduced April 7, 2025 by Barry Moore · Last progress April 7, 2025
Abolishes the U.S. Department of Education 30 days after the law is enacted and ends all Department-run programs except the Pell Grant and Direct Loan programs, which are moved to the Department of the Treasury. Creates a new Treasury-run block grant that gives states money for elementary and secondary education, with each state's share set by the total federal individual income taxes paid by its residents. States must use those funds for K–12 education; the bill also includes a nonbinding statement encouraging states to allocate nonfederal education dollars to promote parental choice and competition.