If you’ve been scrolling through your feed lately, you’ve probably seen some pretty wild headlines about the Department of Education. Some folks are saying it’s already gone, while others think nothing has changed at all. Honestly, the reality is somewhere in the middle—and it’s a bit of a mess.
Basically, Donald Trump has spent the first part of 2026 trying to pull off a "disappearing act" for one of the biggest agencies in D.C. He isn't just talking about it anymore; he’s actively moving the furniture out. But since he can't technically "delete" a department without Congress giving him the green light, he’s found some pretty creative—and controversial—workarounds.
What Is Trump Doing To The Department of Education Right Now?
To understand what’s happening, you have to look at the "One Big Beautiful Bill" (OBBBA) and a series of executive orders signed throughout 2025 and early 2026. Instead of waiting for a slow-moving Congress to officially shutter the doors, the administration is essentially "selling it off for parts."
They are using something called Interagency Agreements (IAAs). It sounds like boring paperwork, but it’s actually a massive shift in power.
Here is the breakdown of who is getting what:
- The Department of Labor (DOL): This is the big winner. They are taking over most of the career and technical education (CTE) programs. The idea is to stop treating school like a bubble and start treating it like job training.
- The Department of the Interior: They’ve taken charge of Indian Education programs, moving that authority away from D.C. bureaucrats and closer to tribal leaders.
- Health and Human Services (HHS): They are now handling things like the "Child Care Access Means Parents in School" program.
It’s a "proof of concept." Secretary Linda McMahon has been pretty open about it: they want to show Congress that the world won't end if the Department of Education doesn't exist. By the time you read this, Iowa has already become the first state to receive a "Returning Education to the States" waiver. This basically means Iowa gets a lump sum of federal money and can do whatever they want with it, bypassing the usual red tape.
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The Student Loan Shake-up
You’ve probably heard about the FAFSA drama. It’s been a headache for years. The current administration claims they’ve "fixed" it by adding something called an earnings indicator. Now, when a student fills out the form, they see a projection of how much money they’ll actually make with their degree before they sign on the dotted line for a loan.
They’re also putting a hard cap on graduate loans. Starting in July 2026, graduate students can only borrow $20,500 a year. No more "cost of attendance" blank checks. The goal? Force universities to lower tuition because they know students can't just borrow infinite amounts of taxpayer money anymore.
The Fight Over Title IX and "Woke" Schools
This is where things get really heated. The Office for Civil Rights (OCR) has been busy. Just this week, they launched 18 investigations into school districts and colleges. The reason? These schools are allowing trans athletes to compete in girls' sports.
The Trump administration has officially defined "sex" under Title IX as biological sex assigned at birth. They’ve basically tossed out the Biden-era rules that protected gender identity. It's a total 180.
At the same time, they are going after what they call "radical leftist ideology." They’ve already struck deals with big-name schools like Columbia and Brown to shut down DEI (Diversity, Equity, and Inclusion) offices in exchange for keeping their federal funding. If a school doesn't play ball, the administration is making it much easier to just cut off their money entirely.
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What’s Happening to the Money? (The 2026 "Skinny" Budget)
Trump’s 2026 budget proposal—often called a "skinny budget" because it’s more of a blueprint than a finished product—is a hatchet job on traditional spending.
He’s looking to cut $12 billion from the education budget. That’s a 15% drop.
Some programs, like the Federal Supplemental Educational Opportunity Grant (FSEOG), are on the chopping block to be eliminated entirely. Why? The administration argues that this money just helps colleges hike up prices.
Instead of that, they want to dump $500 million into charter schools. It’s a huge win for the "school choice" movement. They want the money to follow the student, not the school district. If you want to take your kid to a private school or a charter school, they want to make sure your tax dollars go with you through something called the Education Freedom Tax Credit.
Is the Department Actually Gone?
Not yet. Legally, only Congress can kill a department.
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But if you reduce the staff by 50% (which is the goal for 2026), move all the important programs to other agencies, and give the states waivers to ignore federal rules, does the department even exist anymore? It’s becoming a "ghost agency."
Secretary McMahon is currently on a 50-state tour to "gather best practices." Critics call it a victory lap for dismantling public education; supporters call it a long-overdue return to local control.
Actionable Insights: What You Should Do Now
Whether you love these changes or hate them, they are happening fast. Here is how to stay ahead of it:
- Check Your State’s Waiver Status: If your state applies for a "Returning Education to the States" waiver like Iowa did, the rules for your local school district could change overnight. Keep an eye on your State Board of Education meetings.
- Recalculate Graduate School Plans: If you were planning on a high-cost master’s degree, the new $20,500 annual loan cap might leave you with a massive gap. You’ll need to look for private loans or find a cheaper program before the July 2026 deadline.
- Monitor FAFSA Earnings Indicators: If you’re a parent or student, use the new FAFSA tools to compare the "Return on Investment" for different majors. The government is literally telling you which degrees they think are a bad deal.
- Watch Title IX Litigation: If you are involved in school sports or administration, be aware that the 2020 Trump rules are back in full force. Policies that were legal under Biden last year might now trigger a federal investigation.
The Department of Education isn't just being reorganized; it's being redefined. We're moving away from a central D.C. hub and toward 50 different versions of education policy. It's going to be a bumpy ride for the rest of 2026.