Honestly, the headline sounds like something out of a political thriller, but it's actually happening. Or at least, the gears are turning. Ever since January 2025, the phrase president Donald trump plans to close the education department has moved from a campaign slogan to a stack of signed executive orders. People are panicking, while others are cheering, and most are just plain confused about how you even "close" a multi-billion dollar federal agency.
It's not like shutting down a retail store. You don't just lock the front door and walk away.
Basically, the administration is trying to do a massive "controlled demolition." Since only Congress can legally kill a department created by law, the White House is using every loophole in the book to hollow it out from the inside. They're moving programs to other agencies, cutting staff by the thousands, and telling states like Iowa, "Hey, here’s your money, do whatever you want with it." It’s messy. It’s fast. And if you have a kid in school or a student loan, it’s going to hit your kitchen table sooner than you think.
The 2026 Reality of Dismantling a Federal Agency
If you're looking for a single "Closing Today" sign, you won't find it. Instead, you'll find Secretary Linda McMahon—yes, the former WWE CEO—presiding over what she calls a "return to the states." As of early 2026, the Department of Education (ED) is already a ghost of its former self.
Trump signed a massive executive order in March 2025 that basically told McMahon to start packing the boxes. By the time we hit the 2025-26 school year, the department had already fired nearly half its workforce. We’re talking about 2,000 employees left to oversee the education of over 50 million K-12 students. That’s a skeleton crew trying to run a marathon.
Where is the money actually going?
One of the biggest moves happened recently. In November 2025, the administration announced they were shipping core functions to other departments. It’s sort of like a corporate merger, but in reverse.
- The Department of Labor (DOL) is now handling career and technical education. They’re also taking over a big chunk of postsecondary grants.
- The Department of the Interior has taken over Indian Education.
- HHS (Health and Human Services) is now managing programs for student-parents.
Basically, the administration is betting that if they scatter the pieces far enough, the Department of Education will effectively cease to exist as a central power, even if the building is still standing.
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Why President Donald Trump Plans to Close the Education Department Now
You’ve probably heard the "woke" argument. Trump and his allies, including the folks behind Project 2025, argue that the ED has become a "radical" indoctrination camp. They point to falling test scores despite billions in COVID-19 relief as proof that the federal government is just bad at this.
They aren't just talking, either. In February 2025, the department flat-out labeled Diversity, Equity, and Inclusion (DEI) programs as discriminatory. They’ve threatened to pull funding from any school district that keeps them. It’s a total 180 from the previous administration.
Then there’s the "DOGE" factor—the Department of Government Efficiency. They’ve looked at the ED’s $10 million-a-year public relations office and asked, "Why?" For the administration, this isn't just about culture; it's about the bottom line. They want to take the "strings" attached to federal money—the rules about how you teach or who you hire—and cut them.
The "Iowa Model" and the Block Grant Push
Iowa recently became the "guinea pig" for this new era. The Trump administration gave them a waiver that lets them pool federal money for teacher training, English learners, and after-school programs into one big pot. Iowa claims this will save them $8 million in "bureaucratic staff time."
Critics, like Rosa DeLauro and various teacher unions, are terrified. They argue that without federal "strings," states will just use that money to plug budget holes or fund private school vouchers, leaving the poorest kids in the dust. Honestly, both sides have a point. Local control sounds great until a local district decides they don't want to fund special education anymore.
What Happens to Your Student Loans?
This is the $1.6 trillion question. Literally. The Department of Education currently manages a massive portfolio of student debt. You can’t just "delete" that debt (well, some people wish they could, but that’s not the plan here).
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Trump’s team has proposed moving the federal loan program to the Small Business Administration (SBA).
- The Good: They think the SBA can run it like a business, maybe making it more efficient.
- The Bad: It’s a logistical nightmare. The SBA isn't built to handle millions of individual student accounts.
- The Result: We’re looking at potential delays in loan disbursements and a lot of "wait-and-see" for people on income-driven repayment plans.
The Legal Wall: Can He Actually Do It?
Here’s the thing: Trump can’t legally kill the department with a pen. The Department of Education was created by the Department of Education Organization Act of 1979. To "close" it, Congress has to pass a law.
Representative Thomas Massie introduced a bill to do exactly that by the end of 2026. Will it pass? That depends entirely on the stomach of moderate Republicans in the Senate. Even if it doesn't pass, the administration is proving they can make the department irrelevant through "Interagency Agreements" (IAAs). They are essentially bypassing Congress by just moving the furniture while no one is looking.
The Civil Rights Concern
The Office for Civil Rights (OCR) is the part of the ED that makes sure schools don't discriminate. McMahon has already slashed its staff. If a student is being harassed or a school isn't following the Americans with Disabilities Act (ADA), there are now fewer people to call. The administration says "critical functions" will remain, but when the team is cut in half, "remaining" and "working" are two different things.
Actionable Insights: How to Prepare for the Shift
Whether you think this is a long-overdue housecleaning or a national disaster, the reality is changing. You need to be proactive.
1. Watch Your State Capital, Not D.C.
The power is shifting. If you’re a parent or a teacher, your local state legislature is now 10x more important. They are the ones who will decide if that "block grant" money goes to your kid's reading program or a new stadium.
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2. Audit Your Student Loan Status
If your loans are being moved to the SBA or another agency, do not assume the paperwork will be perfect. Download your payment history now. Keep physical records. If the system glitches during the transition, you’ll need proof of what you’ve paid.
3. Check on Special Education (IDEA) Protections
If you have a child with an Individualized Education Program (IEP), stay in close contact with your school's administration. Federal oversight is weakening, which means you might have to fight harder at the local board meetings to ensure those services stay funded.
4. Diversify Your Funding (for Higher Ed)
Colleges are already seeing research grants frozen over DEI non-compliance. If you’re in academia or a research-heavy field, look for private sector partnerships. Relying solely on federal "discretionary" grants is becoming a high-risk strategy.
The era of a "Department of Education" as we’ve known it for 40 years is effectively over, regardless of whether the building officially closes its doors in 2026. The pieces are already moving.
Next Steps to Stay Informed:
- Identify your state’s education waiver status: Check your state's Department of Education website to see if they have applied for "flexibility" waivers similar to Iowa, Indiana, or Kansas.
- Review the Educational Choice for Children Act (ECCA): See if your state is participating in the new federal private school voucher tax credit program, as this will directly impact local public school funding.
- Contact your loan servicer: Ask specifically about any scheduled transitions to the SBA or Treasury to ensure your contact information is up to date before any data migration begins.