This bill abolishes the Department of Education, transferring its Pell Grant and student loan programs to the Treasury Department, and instead provides block grants to states for elementary and secondary education based on their contribution to federal income taxes.
Barry Moore
Representative
AL-1
This bill abolishes the Department of Education, transferring authority over student financial aid programs to the Treasury Secretary. It then directs the Treasury Secretary to allocate block grants to states for elementary and secondary education, based on the proportion of federal income taxes paid by residents of each state. The bill encourages states to use non-federal funds to promote educational choice and competition.
Bill Proposes Eliminating Dept. of Education, Ties State K-12 Funding Directly to Federal Income Tax Contributions
This bill proposes a major shakeup, aiming to abolish the U.S. Department of Education just 30 days after enactment. Under Section 1, nearly all functions of the department would cease, with two major exceptions: the Federal Pell Grant program and the William D. Ford Federal Direct Loan Program. Responsibility for managing these massive student financial aid programs would be transferred directly to the Secretary of the Treasury.
Where the Money Goes: State Block Grants
Instead of the current federal funding streams managed by the Department of Education, Section 2 introduces a new system for elementary and secondary (K-12) education funding. The Secretary of the Treasury would be directed to send block grants—lump sums of money with broad spending guidelines—to each state. The size of each state's grant wouldn't be based on student population or need, but rather on the proportion of total federal individual income taxes paid by that state's residents. States would be required to use these funds specifically for K-12 education.
The Real-World Math: Funding Based on Taxes
This funding formula is a critical detail. It means states with higher overall income tax contributions to the federal government would receive proportionally larger block grants for education, while states with lower aggregate income tax contributions would receive smaller shares. This could significantly shift how much federal education money flows to different states compared to current methods. Imagine two states with the same number of students; the state whose residents pay more federal income tax would get a bigger check for its schools under this plan.
A Nudge Towards School Choice
The bill also includes a 'sense of Congress'—essentially a non-binding recommendation—that states should use their own (non-federal) funds to foster educational competition and parental choice. It affirms the right of parents to choose their children's education. While not a mandate, it signals a preference for policies like charter schools or voucher programs at the state level. The shift effectively decentralizes federal education policy, placing significantly more control, funding allocation, and oversight responsibility directly in the hands of individual states and, for financial aid, the Department of the Treasury.