This bill would shut down the federal Department of Education entirely and hand control of education funding back to individual states. Instead of the federal government running education programs, the Treasury Department would send money directly to states based on what they received in 2023, and states would have complete freedom to spend it however they want under their own laws.

Here's what changes: Some education programs wouldn't disappear—they'd just move to other federal agencies. Job training programs would go to the Labor Department, special education programs for students with disabilities would go to Health and Human Services, Native American education programs would go to the Interior Department, and military-related school funding would go to the Defense Department. Federal student loans and Pell Grants (college financial aid) would be handled by the Treasury Department instead.

The main effect is that states would gain much more control over education decisions and spending, but they'd also lose federal oversight and would be required to hire independent auditors each year to track how they use the money. This represents a major shift of power from Washington to state capitals, meaning education policy could vary significantly from state to state rather than having national standards.

States’ Education Reclamation Act of 2023

Rouzer, David

States' Education Reclamation Act of 2023 This bill abolishes the Department of Education (ED) and repeals any program for which it has administrative responsibility. The Department of the Treasury shall provide grants to states, for FY2023-FY2031, for elementary, secondary, and postsecondary education purposes permitted by state law. The level of funding is set at the amount provided to states for federal elementary and secondary education programs and the amount provided for federal postsecondary education programs, respectively, for FY2023, minus the funding provided for education programs that the bill transfers to other federal agencies. States must contract for an annual audit of their expenditures or transfers of grant funds. Program administrative responsibility and delegation of authority are transferred as follows: <ul> <li>ED's job training programs to the Department of Labor,</li> <li>each special education grant program under the Individuals with Disabilities Education Act to the Department of Health and Human Services (HHS),</li> <li>ED's Indian education programs to the Department of the Interior,</li> <li>each Impact Aid program under the Elementary and Secondary Education Act of 1965 to the Department of Defense,</li> <li>the Federal Pell Grant program and each federal student loan program to Treasury, and </li> <li>programs under the jurisdiction of the Institute of Education Sciences or the D.C. Opportunity Scholarship Program to HHS.</li> </ul>