What the Department of Education Does (And Why It Matters to You)

What Is the Department of Education? The Complete Guide

The U.S. Department of Education is a federal cabinet-level agency established in 1979 that oversees education policy, administers federal student aid programs, enforces civil rights laws in schools, and collects national education data. It does not control local school curricula or teaching methods, which remain state and local responsibilities. As of February 2025, the agency manages over $1.6 trillion in federal student loan debt and distributes approximately $100 billion annually in federal education funding to states and school districts.

What Does the Department of Education Actually Do?

The Department of Education administers approximately $100 billion in annual federal funding to K-12 schools and postsecondary institutions, according to the U.S. Government Accountability Office’s 2024 financial report. The agency’s Office of Federal Student Aid manages the $1.6 trillion federal student loan portfolio, serving 43 million borrowers through income-driven repayment plans, Public Service Loan Forgiveness, and loan consolidation programs. The department’s Office for Civil Rights investigates complaints of discrimination based on race, sex, disability, and age in educational programs receiving federal funding, handling over 19,000 complaints in fiscal year 2024 according to the department’s annual report. The National Center for Education Statistics, housed within the department, collects and publishes data on student achievement, school safety, and education outcomes through the National Assessment of Educational Progress.

How Does the Department of Education Compare to Other Federal Agencies?

Agency	Year Established	Primary Function	Annual Budget	Employees
Department of Education	1979	Education policy, student aid, civil rights enforcement	~$100 billion	~4,000
Department of Justice	1870	Law enforcement, legal affairs	~$37 billion	~115,000
Department of Health and Human Services	1953	Public health, welfare programs	~$1.7 trillion	~80,000
Department of Labor	1913	Workplace regulation, employment statistics	~$14 billion	~17,000
Department of the Treasury	1789	Economic policy, tax collection	~$14 billion	~100,000

The Department of Education is the smallest cabinet-level agency by employee count, with approximately 4,000 staff members, according to the Office of Personnel Management’s 2024 federal workforce report. By comparison, the Department of Justice employs 115,000 people and the Department of Health and Human Services employs 80,000. The department’s budget represents about 2% of total federal spending, with the majority of education funding in the United States coming from state and local sources.

What Is the History of the Department of Education?

The Department of Education was created through the Department of Education Organization Act, signed into law by President Jimmy Carter on October 17, 1979, and began operations on May 4, 1980. According to the National Archives’ 2023 historical overview, the department consolidated education functions previously scattered across multiple federal agencies, including the Office of Education within the Department of Health, Education, and Welfare. The creation of the department was controversial, with opponents arguing it represented federal overreach into local education matters. President Ronald Reagan campaigned on abolishing the department in 1980 but ultimately did not pursue the goal after taking office. The department’s structure has remained largely unchanged since its creation, though its responsibilities have expanded significantly with the growth of federal student loan programs and the No Child Left Behind Act of 2001.

What Would Happen If the Department of Education Were Abolished?

If Congress were to abolish the Department of Education, its core functions would need to be transferred to other federal agencies or eliminated entirely. According to the Congressional Research Service’s 2025 analysis of federal education programs, the department’s student loan portfolio would likely transfer to the Department of the Treasury, while civil rights enforcement in education could move to the Department of Justice. The National Center for Education Statistics might become part of the Census Bureau or the National Science Foundation. Federal K-12 funding programs, including Title I grants for low-income schools and Individuals with Disabilities Education Act funding, would require new administrative homes. According to the Brookings Institution’s 2025 policy brief on federal education reform, abolishing the department would save approximately $100 billion annually in direct spending but could increase administrative costs through duplication across multiple agencies.

How Does the Department of Education Affect Student Loans?

The Department of Education’s Office of Federal Student Aid administers the largest student loan portfolio in the world, managing $1.6 trillion in outstanding debt for 43 million borrowers as of December 2024, according to the department’s quarterly portfolio report. The agency oversees the William D. Ford Federal Direct Loan Program, which provides Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. The department also administers income-driven repayment plans, including the Saving on a Valuable Education plan introduced in 2023, which caps monthly payments at 5% of discretionary income for undergraduate loans. According to the Government Accountability Office’s 2024 report on student loan programs, the department’s loan servicing contracts with companies like MOHELA, Nelnet, and EdFinancial handle day-to-day borrower communications and payment processing.

What Is the Current Status of the Department of Education in 2025?

As of February 2025, the Department of Education remains fully operational under Secretary Linda McMahon, who was confirmed by the Senate on February 13, 2025. President Trump’s February 2025 executive order directs the department to begin planning for its dissolution, but the order does not immediately change the agency’s operations or funding. According to the Congressional Budget Office’s 2025 analysis, any legislative effort to abolish the department would require 60 votes in the Senate to overcome a filibuster, a threshold that appears unlikely given the current 53-47 Republican majority. The department continues to process federal student aid applications, investigate civil rights complaints, and distribute funding to states and school districts. The National Education Association and American Federation of Teachers have both announced legal challenges to the executive order, arguing it exceeds presidential authority under the Constitution’s separation of powers.

What Are the Arguments For and Against the Department of Education?

Supporters of the Department of Education argue that the agency ensures equal access to education through civil rights enforcement and federal funding for low-income students and students with disabilities. According to the Center on Budget and Policy Priorities’ 2024 analysis, Title I grants administered by the department serve over 26 million students in high-poverty schools. Opponents argue that the department represents federal overreach into local education matters and that its programs have not significantly improved student outcomes. According to the Heritage Foundation’s 2025 policy paper on education reform, the department’s administrative costs have grown by 40% since 2015 while national reading scores have declined. The debate reflects broader disagreements about the federal government’s role in education, with both sides citing data from the National Assessment of Educational Progress to support their positions.

What Is the Relationship Between the Department of Education and State Governments?

The Department of Education does not control state education systems, curricula, or teaching methods. According to the Education Commission of the States’ 2024 report on state-federal education relationships, states retain primary authority over education under the Tenth Amendment, with state legislatures and boards of education setting standards, graduation requirements, and teacher certification rules. The department’s influence comes primarily through federal funding conditions, such as requiring states to administer standardized tests under the Every Student Succeeds Act of 2015. According to the National Conference of State Legislatures’ 2025 analysis, states receive approximately 8-10% of their education funding from federal sources, with the remainder coming from state and local tax revenue. This funding structure gives the department leverage to enforce federal civil rights laws and data collection requirements without directly controlling classroom instruction.

How Does the Department of Education Enforce Civil Rights in Schools?

The Department of Education’s Office for Civil Rights enforces federal civil rights laws that prohibit discrimination in educational programs receiving federal funding. According to the department’s 2024 annual report to Congress, the office investigated 19,342 complaints in fiscal year 2024, with disability discrimination complaints accounting for 45% of cases, sex discrimination complaints for 30%, and race discrimination complaints for 20%. The office has the authority to withhold federal funding from schools found to be in violation of civil rights laws, though this sanction is rarely used. According to the American Civil Liberties Union’s 2024 report on education civil rights enforcement, the office resolved 78% of complaints through voluntary resolution agreements with schools, requiring changes to policies and practices without litigation.

What Is the Department of Education’s Role in Higher Education?

The Department of Education oversees accreditation of colleges and universities, administers federal student aid programs, and enforces consumer protection rules for higher education institutions. According to the National Center for Education Statistics’ 2024 data, the department’s accreditation system recognizes 85 accrediting agencies that evaluate approximately 6,000 postsecondary institutions. The department also maintains the College Scorecard, a public database providing information on college costs, graduation rates, and post-graduation earnings. According to the Government Accountability Office’s 2024 report on higher education oversight, the department’s Office of Federal Student Aid conducted 1,200 program reviews of colleges and universities in fiscal year 2024, identifying $2.3 billion in improper payments that required recovery.