Department of Education Closure Proposed by 2026: Bill Would Scatter Functions, End PLUS Loans

This legislation sets a deadline of October 1, 2026, to completely dismantle the U.S. Department of Education. Citing a need to return educational authority to states and localities and cut federal red tape (Sec. 2), the bill proposes transferring the Department's wide-ranging responsibilities – from student loans to civil rights enforcement – across various other federal agencies. A detailed liquidation plan is required from the President within 180 days of the bill's enactment (Sec. 4).

Unpacking the Department: Where Do Education Programs Land?

Think of it like a massive government reorganization. Instead of one central department, education functions would be spread out. Key student financial aid programs, like Pell Grants and the main Direct Loan program (excluding PLUS loans), shift to the Department of the Treasury (Sec. 5). Programs under the Individuals with Disabilities Education Act (IDEA) and many K-12 initiatives like Title I grants (initially) would move to a new Office of Education within Health and Human Services (HHS) (Sec. 3, Sec. 5). The Department of Justice would take over the Office for Civil Rights (Sec. 9), handling discrimination complaints. Other programs land at agencies like Labor (vocational training), Defense (impact aid for military areas), and the National Science Foundation (Sec. 5). Notably, the bill specifies that personnel generally don't transfer with these functions, except for the Institute of Education Science (to HHS) and the Office for Civil Rights (to DOJ) (Sec. 5, Sec. 8, Sec. 9).

Funding Futures: Loan Changes and Program Sunsets

Two major financial shifts are embedded here. First, Federal Direct PLUS Loans, often used by graduate students and parents to cover education costs beyond other aid, would be terminated for any instruction period starting after October 1, 2026 (Sec. 7). There's a limited window for current borrowers who take out their first PLUS loan between the bill's enactment and that date. Second, while Title I grants (support for high-poverty schools) are initially transferred, the bill schedules their funding, along with funding for programs serving neglected or delinquent youth (ESEA Title I Part D), to terminate entirely after October 1, 2036 (Sec. 6). This creates a long-term funding cliff for these specific programs. States and local entities receiving funds under the transferred programs also get an explicit option to refuse them (Sec. 10).

The Real-World Ripple Effect: What Could This Mean?

Dissolving a cabinet-level agency is a major undertaking with significant potential impacts. Shuffling programs across agencies could lead to confusion for students, parents, and schools trying to navigate federal aid, disability services, or civil rights processes. For instance, applying for student aid might feel different under the Treasury Department compared to the current system. The effectiveness of civil rights enforcement could change under the Department of Justice's structure and priorities (Sec. 9). While the stated goal is empowering states and localities (Sec. 2), the transition itself presents logistical hurdles, especially with personnel not automatically moving with their programs. The long-term sunsetting of certain funds (Sec. 6) also raises questions about future support for specific student populations. The bill ensures legal continuity for existing rules and lawsuits during the transition (Sec. 13), but the practical execution of this massive shift remains the central question.