The United States Department of Education, established in 1979, plays a crucial role in overseeing federal funding for public schools and administering student loans. However, its future has been a topic of debate, with some questioning its necessity and proposing alternative ways to manage its responsibilities. With an allocation of $238 billion in fiscal year 2024, the Department handles a vast portfolio of over $1.5 trillion in student loans affecting more than 40 million Americans. Despite its significant impact, the Department remains the smallest cabinet-level department, employing approximately 4,400 people.
The Department of Education's primary responsibilities include managing federal funding for public schools and running programs that assist low-income students in accessing higher education. While the Department oversees funding, states and local districts retain control over curricula, emphasizing the localized nature of education within the United States. Furthermore, the Department's allocation accounts for less than 2% of the total federal budget, highlighting its relatively modest financial footprint compared to other federal departments.
In addition to its funding responsibilities, the Department administers student loans through a substantial portfolio that supports millions of American university students. Some critics, however, argue that the Department should not be involved in loan management.
"I don't think the Education [Department] should be handling the loans," said Donald Trump, reflecting a sentiment shared by some who believe that these functions could be transferred to other federal agencies such as the US Department of the Treasury.
The idea of dismantling or significantly restructuring the Department has been considered by Republicans since its inception. Proponents of this view suggest that other agencies, like the Department of Justice or the Treasury, could assume the Department's current responsibilities. This proposal stems from a belief that education management could be more effectively handled outside of a centralized federal entity.
Despite these discussions, the Department of Education continues to fulfill its role in supporting public education and facilitating access to higher education for low-income students. Its programs are designed to reduce educational disparities and provide opportunities to underserved communities across the country.
