
Trump Admin Returns Education Power to States
The Department of Education is shifting student loans to Treasury and giving states more control over federal funding. Officials say the move could save hundreds of millions while empowering local communities to make their own education decisions.
The Department of Education is actively working to reduce its size and return decision-making power to states and local communities. Under President Trump's direction, officials say the goal is proving the federal agency isn't necessary for education funding to reach students.
The administration just completed its largest step yet in this process. Student loan operations are moving from the Education Department to the Treasury Department, which will handle defaulted federal student loan debt and help borrowers return to repayment.
"We are showing Congress and others that this proof of concept works," said Nicholas Kent, Undersecretary of Education. The department has now partnered with nine other federal agencies over the past year to shift various programs and responsibilities.
Secretary Linda McMahon explained that many Americans misunderstand what the Education Department actually does. The agency doesn't control curriculum, hire teachers, or buy textbooks. Instead, it primarily passes federal funding through to states and manages competitive grant programs.
The department is also moving out of its headquarters building so the Department of Energy can move in by August. Officials estimate this will save hundreds of millions in taxpayer dollars.

The Ripple Effect
States are already gaining more flexibility in how they use federal education dollars. Iowa became the first state to join a new program that reduces administrative burden and lets local leaders decide how to best serve their students.
The changes mean parents, school board members, and state legislators will have more say in education decisions. Rather than waiting for federal guidance, communities can respond directly to what their students need.
While teachers unions and Democratic lawmakers have raised concerns about the transitions, supporters argue that local control leads to better outcomes. States understand their own communities better than a federal agency can from Washington.
The administration believes these partnerships prove that essential services like student loans and grant aid can continue flowing without a standalone Education Department. Congress would need to pass legislation to permanently close the agency, but officials say they're building the case one successful transfer at a time.
For millions of families, the practical impact could be simpler: their tax dollars staying closer to home, with education decisions made by people who know their kids' names.
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Based on reporting by Fox News Latest Headlines (all sections)
This story was written by BrightWire based on verified news reports.
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