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Trump Begins Dismantling Education Department, Transfers Key Functions to Other Agencies

President Trump’s executive order shifts federal student loans to the Small Business Administration and special needs programs to Health and Human Services.

People walk by Old Main on the Penn State University main campus in State College, Pennsylvania on November 9, 2017.
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FILE - Administrator of the Small Business Administration Kelly Loeffler, right, speaks at a rally before Vice President JD Vance speaks about "America's industrial resurgence," Friday, March 14, 2025, at Vantage Plastics in Bay City, Mich. At left is Vantage Plastics President Paul Aultman. (AP Photo/Jose Juarez, File)

Overview

  • President Trump signed an executive order to begin dismantling the Department of Education, requiring Congressional approval for full elimination.
  • The Small Business Administration will take over management of the $1.6 trillion federal student loan portfolio, despite undergoing a 43% workforce reduction.
  • Special needs and nutrition programs will now be handled by the Department of Health and Human Services under Secretary Robert F. Kennedy Jr.
  • Critics warn of logistical challenges and legal disputes, including lawsuits from multiple state attorneys general arguing the president lacks authority for these actions.
  • The restructuring aligns with conservative goals outlined in the Heritage Foundation’s Project 2025, aiming to reduce federal oversight in education.