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Trump Signs Order to Begin Dismantling of US Education Department

Elite Personal Finance
Last Update: March 21, 2025 • Financial News •

US President Donald Trump wants to sign an executive order to shut down the US Department of Education. Long considered a campaign promise, Democrats have stepped up to the fray, filing lawsuits to prevent Trump from doing so, along with raised voices by leading civil rights groups like the NAACP.

“This is a dark day for the millions of American children who depend on federal funding for a quality education, including those in poor and rural communities with parents who voted for Trump,” said NAACP President Derrick Johnson.

In response, the White House issued a statement earlier in the week.

The White House said, “Federal government control of education has failed students, parents, and teachers.” The department had spent over $3 trillion since its creation in 1979 without improving student achievement as measured by standardized test scores.

Donald Trump has tasked the US Department of Education and former WWE CEO Secretary Linda McMahon with the shutdown. In a recent interview with The David Webb Show on Sirius XM, Department Secretary Linda McMahon blasted the federal agency for inefficiency.

“The Department of Education doesn’t educate anyone. It doesn’t hire teachers. It doesn’t establish a curriculum. It doesn’t hire school boards or superintendents,” she said.

As of now, attorney generals from more than 15 states have filed a lawsuit in the Boston federal court, seeking to save the jobs of more than 1,300 employees. If the Trump administration succeeds in abolishing the US Department of Education, it could eliminate roughly 2,000 workers under its payroll through buyout offers, resignations, and firings.

Why is the Department of Education So Scrutinized?

There are several reasons why the US Department of Education has come under fire. Apart from the relatively poor student outcomes compared to other countries, it has also been heavily criticized for inequities in funding distribution, financial aid complexities, and overall accountability.

Inequities in Funding Distribution

One major critique of the US Department of Education is its uneven funding across states and school districts, which often relies on local property taxes. Wealthier zip codes tend to have more resources, while low-income districts suffer.

For example, Manhattan, New York, enjoys high funding compared to poorer boroughs like the Bronx or Brooklyn, which receive far less.

Financial Aid Complexities

A common issue raised by critics is how federal programs like the Free Application for Federal Student Aid (FAFSA) are managed. The FAFSA’s complicated requirements often confuse students and their families.

For instance, 70.1% of Mississippi’s 2023 graduating seniors completed a FAFSA application for the 2023-24 academic year, but many students still miss out on federal financial aid. While this is relatively high compared to other states, it’s still a significant issue.

Overall Accountability

Another area of concern is rising tuition costs at colleges and universities, with little intervention from the US Department of Education. More students are growing disillusioned with the return on investment of a college degree.

Public university tuition fees have risen steadily over the past decade, while graduates’ earning potential has remained stagnant. Additionally, some non-profit schools have been caught falsifying graduation rates and job placement numbers, which leads students into a crushing debt cycle.

These ongoing issues within the Department of Education have led to its growing scrutiny. The Trump administration’s move to shut it down could be seen as a response to these longstanding concerns.

What Does the Department of Education Do?

The US Department of Education is responsible for overseeing the country’s education system. It ensures that schools adhere to national standards, provide funding, and enforce federal laws related to education, such as civil rights protections and grants to underserved students.

The department also manages student loans and financial aid programs, including Pell Grants and federal student loans with low interest rates. It also runs work-study programs that allow students to earn partial credit toward their college education in exchange for part-time work.

In short, the Department of Education plays a crucial role in maintaining an equitable educational system for all students, regardless of their social or economic status.

Role of DOGE

Elon Musk’s Department of Governmental Efficiency (DOGE) has also played a role in the current debates surrounding the Department of Education. DOGE is partially responsible for eliminating funding for various government research programs, including those within the Department of Education.

This has led to layoffs and budget cuts, which have further fueled criticism of the department. For example, Activate Research, an independent educational research firm that collaborates with the Department of Education, laid off 20 of its 28 employees.

“Without such research, student learning and development will be harmed,” said the American Educational Research Association in a statement. “Cutting off these investments after the contract has already been inked is the definition of wasteful.”

The Trump administration’s aggressive stance on government spending, including the proposed shutdown of the Department of Education, has been met with opposition. Critics argue that such drastic cuts would harm students, especially those in underserved communities.

Conclusion

The Department of Education has long been a source of controversy. While it provides essential services like financial aid and student loans, it has also been criticized for its inefficiency, lack of accountability, and failure to address disparities in education. President Trump’s proposed shutdown of the department has intensified these debates.

Whether or not the department will be dismantled remains to be seen, but one thing is clear: the future of education in the United States is at a crossroads. The decision to eliminate or reform the Department of Education will have far-reaching consequences for students, teachers, and families across the nation.

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