Trump's Push to Eliminate the Department of Education Could Impact $1.6 Trillion in Student Loans and 4,100 Jobs

President Donald Trump's proposal to eliminate the Department of Education could have far-reaching effects on the U.S. education system. The department manages programs that benefit millions of students, including the $1.6 trillion student loan portfolio. It also employs around 4,100 staff members who ensure equal access to education, enforce civil rights laws, and oversee federal funding for schools. As reported by Reuters on February 19, 2025, Trump’s stance reflects a long-standing Republican push to reduce the Department's influence, with critics arguing that it has too much power in regulating and overseeing education in the US.
The department, although not the primary source of funding for most public schools, plays a crucial role in distributing federal grants and ensuring that educational standards are maintained across the country. With its 2024 fiscal year budget totaling $251 billion, including mandatory spending for student loans and Pell Grants, Trump's proposal to shut down the department raises serious questions about the future of federal support for the US education system.
What does the Department of Education oversee?
The US Department of Education manages a variety of initiatives aimed at supporting both K-12 and higher education. It oversees more than 100,000 public schools and around 34,000 private schools in the country. While more than 85% of public school funding comes from state and local taxes, the department provides essential federal grants that help finance programs for disadvantaged students. These include funding for teachers who work with children with special needs, support for arts education, and programs to replace outdated school infrastructure.
In addition, the Department of Education plays a critical role in monitoring whether public and private schools meet federal educational standards and ensuring equal access to quality education. It also enforces Title IX, which bans sex discrimination in education, and oversees the roughly $30 billion annual Pell Grant program for low-income college students. According to Reuters, the department's role in these areas means that its closure would have significant consequences for educational equity in the United States.
The Department's budget and the impact of its closure
The Department of Education's total 2024 budget is a substantial $251 billion, which includes mandatory spending such as the $1.6 trillion student loan program. The discretionary portion of the budget, amounting to $79 billion, funds vital programs aimed at supporting homeless children, offering arts education, and backing initiatives for the deaf and blind. In the wake of the Covid-19 pandemic, the department's budget ballooned as federal funds were allocated to address virtual learning and school safety.
Eliminating the department would not only disrupt federal funding for millions of students but also place the $1.6 trillion student loan program under scrutiny. As of the latest figures, tens of millions of Americans carry student loans, with the department responsible for managing this extensive portfolio. Shutting down the department would create massive uncertainty for those already burdened with student debt.
States at risk of losing federal education funding
As part of its mission to reduce educational inequalities, the Department of Education provides critical funding to states with lower local taxes, poorer districts, and more rural areas. States like Alaska, North Dakota, Montana, Kentucky, and South Dakota, which are big beneficiaries of Title I funds, would be significantly impacted by the closure of the department. These states rely on federal assistance to close gaps in local school funding, as reported by the Education Data Initiative. If the Department of Education were to shut down, these states could lose vital support for their public school systems, exacerbating educational disparities and putting more strain on local resources.
The debate over school choice and critical race theory
One of the main drivers of Trump's push to close the Department of Education is his administration's opposition to what it sees as a left-leaning education agenda. The issue of student loan forgiveness, along with policies related to diversity, equity, and inclusion, has long been a point of contention. In February 2025, as reported by Reuters, the Department of Education cut $600 million in funding for teacher training on what it considered “inappropriate and unnecessary topics,” including critical race theory.
Critical race theory, an academic framework that explores how racial bias is embedded in US laws and institutions, has become a focal point of conservative criticism. Trump and many Republicans argue that the theory is too pervasive in schools and undermines American values. On the other hand, supporters of the theory argue that understanding institutional racism is essential to addressing social inequality.
Furthermore, Republicans have long championed “school choice” initiatives that would allow taxpayers' dollars to fund private and religious schools, a policy that critics claim could undermine the free public education system. These disagreements have fueled calls from Trump and other conservatives to reduce the federal government's role in education.
Defenders of public education weigh in
Defenders of the Department of Education argue that its mission is essential for maintaining high standards and ensuring equal access to education. As quoted by Reuters, Gerald Griggs, president of the NAACP Georgia chapter, emphasized that the department plays a crucial role in protecting students' rights and holding schools accountable. Education Secretary Miguel Cardona, who served as a teacher before his appointment, also criticized the critics of the department, stating that their attacks on public education are “deliberate attempts” to promote private school options at the expense of public schools.
Cardona further argued that the effort to dismantle the Department of Education, under the guise of reducing federal influence, could disproportionately hurt marginalized communities and undermine the progress made toward educational equality in the US.