States’ Education Reclamation Act of 2025

The States' Education Reclamation Act of 2025 proposes to eliminate the Department of Education entirely. If enacted, the bill would transfer responsibility for various education programs to other federal agencies: job training programs would go to the Department of Labor, special education grants to the Department of Health and Human Services, Indian education programs to the Department of the Interior, Impact Aid programs to the Department of Defense, and federal student loan and Pell Grant programs to the Treasury.

Under this proposal, the Treasury Department would provide grants to states for elementary, secondary, and postsecondary education from fiscal years 2025 through 2033. The funding levels would be based on what states received in federal education funding for fiscal year 2025, adjusted for programs transferred to other agencies. States would be required to contract for annual audits of how they spend or transfer these grant funds. The bill also directs the Government Accountability Office to study whether the federal government could reduce its tax burden and involvement in education funding, and whether other agencies could effectively manage the transferred programs.

This bill is currently in the committee stage and has not yet been voted on by the full House of Representatives.