Federal

To abolish the Department of Education and to provide funding directly to States for elementary and secondary education, and for other purposes.

Source: Congress.gov · 614 words in original text

What This Bill Does

This bill abolishes the Department of Education 30 days after becoming law. It ends most education programs that the Department ran, but keeps two federal loan and grant programs. The bill creates a new system where the Secretary of the Treasury sends money directly to states for elementary and secondary education.

Who It Affects

States, the Department of Education, the Secretary of the Treasury, the Secretary of Education, students who receive federal Pell Grants (need-based college aid) or William D. Ford Federal Direct Loans (federal student loans), and residents whose federal income taxes would be counted to determine how much money their state receives.

Key Provisions

- The Department of Education is abolished effective 30 days after the law passes (Sec. 1) - Each program that the Secretary of Education or Department of Education ran is terminated, except for the Federal Pell Grant program and the William D. Ford Federal Direct Loan Program (Sec. 1) - Authority to manage the Federal Pell Grant program and William D. Ford Federal Direct Loan Program transfers to the Secretary of the Treasury (Sec. 1) - The Secretary of the Treasury runs a new program sending money to states for elementary and secondary education (Sec. 2) - Each state receives money based on the proportion of federal income taxes its residents paid compared to all other states (Sec. 2)

What Changes

The federal government stops running most education programs through a Department of Education. Instead, the Treasury Department sends block grants (money given with minimal restrictions) to states based on how much their residents paid in federal income taxes. Two higher education programs (Pell Grants and federal direct student loans) move to the Treasury Department rather than disappearing.

Important Definitions

"Applicable program" means each program that the Secretary of Education or Department of Education ran as of the day before this law takes effect, except for the Federal Pell Grant program and the William D. Ford Federal Direct Loan Program (Sec. 1).

Effective Date

30 days after the date this law is enacted (Sec. 1).

I 118TH CONGRESS 1ST SESSION H. R. 938 To abolish the Department of Education and to provide funding directly to States for elementary and secondary education, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 9, 2023 Mr. MOORE of Alabama (for himself, Mr. NORMAN, Mr. GAETZ, Mr. DONALDS, Ms. GREENE of Georgia, and Mr. CRANE) introduced the fol- lowing bill; which was referred to the Committee on Education and the Workforce A BILL To abolish the Department of Education and to provide funding directly to States for elementary and secondary education, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. ABOLISHMENT OF DEPARTMENT OF EDU- 3 CATION. 4 (a) IN GENERAL.—Effective on the date that is 30 5 days after the date of enactment of this Act— 6 (1) the Department of Education is abolished; 7 and 8 (2) each applicable program is terminated. 9 VerDate Sep 11 2014 07:25 Mar 02, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H938.IH H938 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 938 IH (b) APPLICABLE PROGRAM DEFINED.—The term 1 ‘‘applicable program’’ means each program for which the 2 Secretary of Education or the Department of Education 3 has administrative responsibility as provided by law or by 4 delegation of authority pursuant to law as of the day be- 5 fore the date specified in subsection (a), except such term 6 does not include— 7 (1) the Federal Pell Grant program under sec- 8 tion 401 of the Higher Education Act (20 U.S.C. 9 1070a); and 10 (2) the William D. Ford Federal Direct Loan 11 Program under part D of such Act (20 U.S.C. 12 1087a et seq.). 13 (c) TRANSFER OF FUNCTIONS.—Effective on the 14 date specified in subsection (a), the authority to carry out 15 the programs described in paragraphs (1) and (2) of sub- 16 section (b) is hereby transferred to the Secretary of the 17 Treasury. 18 SEC. 2. BLOCK GRANTS TO STATES. 19 (a) SENSE OF CONGRESS.—It is the sense of Con- 20 gress that— 21 (1) States should distribute non-Federal funds 22 for elementary and secondary education in a manner 23 that promotes competition and choices in education 24 VerDate Sep 11 2014 07:25 Mar 02, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H938.IH H938 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 938 IH in order to secure the best education available for 1 each child; and 2 (2) it is the fundamental right of parents to de- 3 termine the best education for their children. 4 (b) ELEMENTARY AND SECONDARY EDUCATION 5 GRANT PROGRAM.—The Secretary of the Treasury shall 6 carry out a program under which the Secretary makes al- 7 locations to States, in accordance with subsection (c), to 8 support elementary and secondary education. 9 (c) ALLOCATIONS TO STATES.—The allocations made 10 by the Secretary to each State under subsection (b) shall 11 be in proportion to the aggregate amount of Federal indi- 12 vidual income taxes paid by the residents of such State 13 (relative to such aggregate amount paid by residents of 14 all the States) as determined by the Secretary after con- 15 sultation with the Secretary of the Treasury. 16 (d) USE OF FUNDS.—A State that receives an alloca- 17 tion under subsection (c) shall use such funds to support 18 elementary and secondary education in the State. 19 Æ VerDate Sep 11 2014 07:25 Mar 02, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H938.IH H938 kjohnson on DSK79L0C42PROD with BILLS

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