If you’ve been scrolling through your feed lately, you’ve probably seen some pretty wild headlines about what's happening to American schools. People are talking about departments closing, "One Big Beautiful Bill," and radical shifts in how we pay for college. It’s a lot to keep track of. Honestly, the noise is so loud that it’s hard to tell what’s a campaign promise and what’s actually a law.
Basically, the Trump plan on education in 2026 is a massive attempt to pull the steering wheel away from Washington D.C. and hand it back to the states. But it’s not just about "local control" as a vague concept. We’re talking about specific, aggressive moves like slashing the Department of Education's budget by over 15% and moving core functions to other agencies. It’s a messy, complicated, and highly ambitious reorganization that is already hitting the ground.
The Shrinking Department of Education
Let’s get the big one out of the way. Is the Department of Education gone? No. Not yet, anyway. To actually kill a cabinet-level department, you need an Act of Congress, and that hasn't happened. But President Trump and Education Secretary Linda McMahon are doing what some call "dismantling from within."
The workforce is already gutted. About half of the 4,100 employees who were there in early 2025 are gone. They’ve either quit or been fired as part of a broader push to shrink the "bureaucracy." If you try to call the Department today, there’s a good chance you’re reaching a skeleton crew.
The 2026 budget proposal is where things get real. It calls for a 15.3% cut to the U.S. Department of Education. To make that happen, they are farming out jobs to other places. For example, career and technical education (CTE) programs are being shifted toward the Department of Labor. The idea is to align school with the "real world" and jobs, but critics say it’s just a way to bury the department piece by piece.
The "One Big Beautiful Bill" and School Choice
You might have heard the President mention his "One Big Beautiful Bill." This is the Educational Choice for Children Act (ECCA), and it’s arguably the biggest shift in K-12 policy in decades.
Here is how it works: it’s not a direct voucher where the government hands you a check. Instead, it’s a tax-credit scholarship program. If an individual or a company donates money to a "Scholarship Granting Organization" (SGO), they get a 100% tax credit. Those SGOs then give that money to families to pay for private school tuition, tutoring, or even homeschooling expenses.
The catch? States have to "opt-in." Governors in states like Indiana, Iowa, and Oklahoma are already all-in. But if you live in California or New York, your state government probably isn't going to play ball. This is creating a "two-track" education system in America where your zip code determines if the federal government helps you pay for private school.
Major 2026 K-12 Changes
- Universal School Choice: Using federal guidance to let Title I funds (money for low-income kids) "follow the child."
- Parental Rights: An executive order signed in early 2025 now mandates that schools must allow parents full access to curriculum and medical records.
- Civil Rights Refocus: The Office for Civil Rights (OCR) saw its budget slashed by $49 million. The focus has shifted from DEI (Diversity, Equity, and Inclusion) to monitoring "anti-merit" practices and "radical gender ideology."
Higher Ed: Endowments and the "American Academy"
Trump’s plan on education doesn’t stop at high school graduation. He’s taking a sledgehammer to how we think about college. The most "out there" idea is the American Academy.
Trump wants to create a free, online, national university. To pay for it, he plans to "tax, fine, and sue" the massive endowments of wealthy private universities like Harvard and Stanford. We’re talking about a proposed 35% tax on investment income for schools with assets over $10 billion.
"We spend more money on higher education than any other country, and yet they’re turning our students into communists," Trump said in a campaign video that has become the blueprint for this 2026 push.
The American Academy would supposedly offer a "world-class" education for free, recognized by federal contractors as the equivalent of a bachelor's degree. It’s a direct shot at the "prestige" of the Ivy League. While the Academy is still more of a vision than a fully functioning school in early 2026, the taxes on endowments are very much on the table in the current budget cycle.
What's Happening to Student Loans?
If you have student debt, 2026 is going to be a stressful year. The administration has been systematically rolling back Biden-era forgiveness plans.
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The SAVE plan, which offered a fast track to $0 payments for many, is being phased out. In its place is the Repayment Assistance Plan (RAP).
- The 30-Year Rule: Under RAP, you generally have to pay for 30 years before seeing any forgiveness.
- Parent PLUS Caps: Starting in July 2026, there will be a new annual cap of $20,000 on Parent PLUS loans, with a lifetime limit of $65,000 per child.
- Grad PLUS Phase-out: The administration is actively trying to sunset Grad PLUS loans entirely, arguing they drive up the cost of masters and law degrees.
The "Invisible" Cuts: Rural and Homeless Students
While the headlines focus on the "woke" wars, the 2026 budget contains some quieter, deeper cuts. The administration wants to consolidate several specific grants—like those for rural education, after-school programs, and homeless youth—into one $2 billion block grant.
Supporters say this lets states spend money where they actually need it. Critics, like Representative Rosa DeLauro, argue it’s a "decimation of the safety net." When you lump everything together, it’s easier to cut the total amount without people noticing which specific program died. For instance, the Supplemental Educational Opportunity Grants (SEOG), which help the absolute poorest college students, are slated for a total $910 million cut.
Actionable Insights for Parents and Students
The Trump plan on education is moving fast. If you’re trying to navigate this new landscape, here is what you actually need to do:
- Check your State’s Status: If you want to use the new federal tax-credit scholarships (ECCA), find out if your Governor has opted in. This is a state-by-state battle now.
- Audit your Student Loans: If you are on a "SAVE" or income-driven plan, talk to your servicer immediately. These plans are being re-written, and your monthly payment could spike in 2026.
- Look into Short-term Credentials: Starting in July 2026, federal funds will be available for short-term "skills" programs (like EMT or mechanics). This is a huge win if you don't want a four-year degree.
- Engage with your School Board: With federal oversight pulling back, your local school board has more power than ever over what is taught in the classroom.
The reality of education in 2026 is that the "federal" part of "federal education" is shrinking. Whether you think that’s a long-overdue correction or a disaster depends on your politics, but for your wallet and your kids, the rules of the game have definitely changed.