White House announces Executive Order to close the Department of Education

Key Takeaways

On March 21, President Trump issued an Executive Order (EO) with the goal of eliminating the  U.S. Department of Education (ED). The Improving Education Outcomes by Empowering Parents, States and Communities EO comes a few weeks after the ED  issued a notice of its plans to terminate nearly 50 percent of its workforce, and a separate EO on the Public Student Loan Forgiveness (PSLF) program.

County role in education

The county role in K-12 varies, as most states designate authority to independently elected or appointed school boards. However, in all but seven states, counties set aside a significant portion of property tax revenue to help finance local education. Over 1 million county workers are directly involved in the education system, though only in nine states: Alaska, California, Maryland, Massachusetts, New Jersey, New York, North Carolina, Tennessee and Virginia. 

Public school districts are only dependent on county governments in Alaska, Tennessee, North Carolina, Maryland and Virginia, meaning counties in those states have a statutory obligation to directly fund K-12 schools. Unique educational settings such as agricultural extension schools, special or alternative education programs, and vocational schools, are in some instances dependent on county governments in Arizona, California, Massachusetts, Mississippi, New Jersey and Wisconsin. 

In New York, New Jersey, Maryland and North Carolina, community colleges are dependent on county governments. Counties in California, Mississippi, Michigan, Montana and Ohio may also play a more limited role in funding community colleges and/or technical and vocational schools.

What is the role of the U.S. Department of Education?

Established by Congress in 1979, the ED  is charged with overseeing federal education laws and programs, including Title I of the Elementary and Second Education Act, the Individuals with Disabilities Education Act (IDEA), the PSLF  program and Pell Grants.

Major changes to and the elimination of the department requires an act of Congress. Any changes to federal education laws and programs—including allowable uses of funds, conditions for accepting federal funds and funding amounts—would also require an act of Congress. This would include proposals to “block grant” education funding to the states. 

How will recent actions at the U.S. Department of Education impact counties?

• Staffing cuts: Significant staffing reductions at the ED threaten to diminish the agency’s ability to carry out key responsibilities that directly affect counties and our employees. For example, the National Center for Education Statistics (NCES) – once staffed with over 100 personnel – has been reduced to three employees. NCES plays a vital role in determining school eligibility for Title I funding, which supports educational services in low-income communities and has a direct impact on local school systems that counties help support and coordinate.  Along with NCES, the Office of Federal Student Aid (FSA), which administers PSLF, Pell Grants, and other federal student aid programs, has lost half of its staff, which could potentially lead to service disruptions for county employees applying for PSLF.
• Public Student Loan Forgiveness EO: The Restoring Public Service Loan Forgiveness EO, issued on March 7, directs the Secretary of Education to revise PSLF regulations, potentially excluding borrowers from certain nonprofit organizations. Since its creation in 2007, PSLF has allowed public service employees – including county workers – to receive student loan forgiveness after 10 years of qualifying employment and 120 qualifying monthly payments. This EO could retroactively affect county employees who counted time at previously eligible nonprofit organizations toward their 10 years of service, putting their forgiveness eligibility at risk.
• U.S. Department of Education EO: The Improving Education Outcomes by Empowering Parents, States and Communities EO, issued on March 21, instructs the agency to initiate steps towards its closure and return education authority to the states. This directive includes potential transfers of program administration – such as moving oversight of the Individuals with Disabilities Education Act (IDEA) to the U.S. Department of Health and Human Services and PSLF to the Small Business Administration. These agencies currently lack experience in administering these specialized education programs, creating uncertainty and concern for counties that depend on consistent program delivery to support educators and public employees. 

What’s next?

NACo is closely monitoring how these changes to the ED will impact county governments and local education agencies and will continue to update county leaders.