Sponsors (6)
The bill preserves core student loan access and sends new K–12 funds to states but does so by dismantling the Education Department and shifting administration to Treasury—creating major disruption, oversight and servicing risks, geographic inequities, and local fiscal burdens.
Students and borrowers keep access to Pell Grants and federal direct loans because those aid programs continue under Treasury rather than being terminated.
States receive new federal K–12 funding they can use for schools and students, increasing resources available to local education systems.
Allocations tied to state federal income-tax contributions could make funding flows more predictable by linking grants to tax data.
Virtually all Department of Education programs would end within 30 days, eliminating many federal grants and K–12/higher-education supports and causing major disruption for students, families, and schools.
Shifting grant and loan administration to Treasury risks breaking student-support services (counseling, borrower relief, income-driven repayment), complicates coordination and oversight of K–12 programs, and could harm borrowers and state program delivery.
Rapid abolition creates legal and administrative uncertainty (contract winddowns, grants-in-progress, compliance monitoring) that could interrupt benefit and payment flows to students and institutions.
Based on analysis of 2 sections of legislative text.
Abolishes the Department of Education, transfers Pell and Direct Loan programs to Treasury, and creates a Treasury‑administered K–12 block grant allocated by state income tax share.
Official title: To abolish the Department of Education and to provide funding directly to States for elementary and secondary education, and for other purposes.
Introduced April 7, 2025 by Barry Moore · Last progress April 7, 2025
Abolishes the U.S. Department of Education 30 days after enactment and ends most programs it administers, but preserves the Pell Grant and Direct Loan programs and transfers their administration to the Secretary of the Treasury. Establishes a new Treasury‑administered federal block grant for states to support elementary and secondary education, with each State's allocation based on the share of federal individual income taxes paid by its residents. The bill also expresses a nonbinding sense of Congress encouraging states to direct nonfederal education dollars toward parental choice and competition.