Orderly Liquidation of the Department of Education Act

Congress finds the following:

(1) The Department of Education has existed for 45 years but despite its existence, education in the United States has not improved.

(2) The Department of Education has failed to supplement and complement the efforts of States, the local school systems and other instrumentalities of the States in order to improve the quality of education as outlined in section 102(2) of the Department of Education Organization Act (20 U.S.C. 3402(2)).

(3) The Department of Education has continued to promote policies that strip local elected officials, educators, and parents of the ability to direct the education of children.

The purposes of this Act are the following:

(1) To orderly liquidate the Department of Education.

(2) To return the responsibility and authority of educating students to States and local communities.

(3) To ensure that the Federal government does not continue to place unnecessary and restrictive regulation on those tasked with educating children.

The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by adding at the end the following:

There shall be in the Department of Health and Human Services an Office of Education (referred to in this section as the Office).

The Office shall be under the direction and supervision of the Director of Education (referred to in this section as the Director), who shall be appointed by the President and who shall report directly to the Secretary of Health and Human Services.

The Director shall appoint an Assistant Director of K–12 Education who shall administer such functions affecting elementary and secondary education as the Director shall delegate.

The Director shall appoint an Assistant Director of Higher Education who shall administer such functions affecting postsecondary education as the Director shall delegate.

The amendment made by this section shall take effect on the date that the President implements the plan required under section 4(b)(1).

Effective on October 1, 2026, the Department of Education is terminated, and, with the exception of functions transferred under this Act, any function for which the Secretary of Education or the Department of Education has administrative responsibility as provided by law or by delegation of authority pursuant to law is repealed.

Not later than 180 days after the date of enactment of this Act, the President shall develop and implement a plan to orderly liquidate the Department of Education.

Not later than 15 days before the date on which the plan required under paragraph (1) is implemented, the President shall consult with the appropriate congressional committees on such plan.

The plan required under paragraph (1) shall contain, in accordance with subsection (a), such elements as the President deems appropriate, including the following:

(A) Specification of the steps to be taken to terminate functions of the Department of Education in accordance with subsection (a).

(B) Specification of the steps to be taken to transfer administrative responsibility of certain Department of Education functions to other entities in accordance with section 5.

(C) Specification of the steps to be taken to transfer the Institute of Education Science to the Office of Education of the Department of Health and Human Services in accordance with section 8.

(D) Specification of the steps to be taken to transfer the Office for Civil Rights of the Department of Education to the Department of Justice in accordance with section 9.

(E) Specification of the funds available to each entity assuming administrative responsibilities transferred in accordance with section 5 to carry out such administrative responsibilities, in accordance with the provisions of section 1531 of title 31, United States Code.

(F) Specification of the proposed allocation of any unexpended funds resulting from the termination of the Department of Education.

(G) Specification of the proposed disposition of property, facilities, contracts, records, and other assets and obligations of the Department of Education.

The Secretary of Education shall, in accordance with the plan required under subsection (b)(1), take any actions as may be necessary to conclude any outstanding affairs of the Department of Education before October 1, 2026.

The Director of Education of the Office of Education of the Department of Health and Human Services shall assist with implementing the plan required under subsection (b)(1).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Director of Education of the Office of Education of the Department of Health and Human Services the following functions:

(1) Authority granted to the Secretary of Education by the Act entitled An Act to Promote the Education of the Blind, approved March 3, 1879 (20 U.S.C. 101 et seq.).

(2) The Honorable Augustus F. Hawkins Center of Excellence program under subpart 2 of part B of title II of the Higher Education Act of 1965 (20 U.S.C. 1033–1033a).

(3) Each program under subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–11 et seq.).

(4) Functions under part B of title VII of the Higher Education Act of 1965 (20 U.S.C. 1138 et seq.).

(5) Grants under section 619 of the Individuals with Disabilities Education Act (20 U.S.C. 1419).

(6) The Program for Infants and Toddlers with Disabilities under part C of the Individuals with Disabilities Education Act (20 U.S.C. 1431 et seq.).

(7) The State Personnel Development Grants program under subpart 1 of part D of the Individuals with Disabilities Education Act (20 U.S.C. 1451 et seq.).

(8) Grants under section 662 of the Individuals with Disabilities Education Act (20 U.S.C. 1462).

(9) The Helen Keller National Center for Youths and Adults who are Deaf-Blind under the Helen Keller National Center Act (20 U.S.C. 1901 et seq.).

(10) Grants under part A of title I the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.).

(11) Each program under part D of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6421 et seq.).

(12) The Student Support and Academic Enrichment program under part A of title IV of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7101 et seq.).

(13) The 21st Century Community Learning Centers program under part B of title IV of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7171 et seq.).

(14) The Magnet Schools Assistance program under part D of title IV of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7231 et seq.).

(15) The Promise Neighborhoods program under subpart 2 of part F of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7271 et seq.).

(16) Activities carried out under section 4631(a)(1)(B) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7281(a)(1)(B)).

(17) The Rural Education Achievement Program under part B of title V of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7341 et seq.).

(18) The Preschool Development Grants program under section 9212 of the Every Student Succeeds Act (Public Law 114–95; 42 U.S.C. 9831 note).

(19) The Education for Homeless Children and Youths program under part B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.).

(20) Grants under the Scholarships for Opportunity and Results Act (division C of Public Law 112–10).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Director of the National Science Foundation the following functions:

(1) Authority granted to the Secretary of Education by the Act entitled An Act to incorporate the Howard University in the District of Columbia, approved March 2, 1867 (20 U.S.C. 121 et seq.).

(2) Functions under the Howard University Endowment Act (20 U.S.C. 130aa et seq.).

(3) Functions under section 318 of the Higher Education Act of 1965 (20 U.S.C. 1059e).

(4) Grants under section 323 of the Higher Education Act of 1965 (20 U.S.C. 1062).

(5) Grants under section 326 of the Higher Education Act of 1965 (20 U.S.C. 1063b).

(6) Functions under part D of title III of the Higher Education Act of 1965 (20 U.S.C. 1066 et seq.).

(7) Functions under part F of title III of the Higher Education Act of 1965 (20 U.S.C. 1067q et seq.).

(8) Grants under section 723 of the Higher Education Act of 1965 (20 U.S.C. 1136a).

(9) Functions under part A of title I of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.).

(10) Functions under part B of title I of the Education of the Deaf Act of 1986 (20 U.S.C. 4331 et seq.).

(11) Functions under title II of the Education of the Deaf Act of 1986 (20 U.S.C. 4351 et seq.).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Director of the Bureau of Indian Education of the Department of the Interior the following functions:

(1) Grants under section 316 of the Higher Education Act of 1965 (20 U.S.C. 1059c).

(2) Grants under section 116 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2326).

(3) Grants under section 117 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2327).

(4) Grants under subpart 1 of part A of title VI of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7421 et seq.).

(5) Grants under subpart 2 of part A of title VI of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7441 et seq.).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Secretary of the Treasury the following functions:

(1) Each program under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

(2) Grants under subpart 3 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070b et seq.).

(3) Grants under part C of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087–51 et seq.).

(4) The William D. Ford Federal Direct Loan Program under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Secretary of Defense the following functions:

(1) Functions under section 7002 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702).

(2) Functions under section 7003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703).

(3) Functions under section 7007 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7707).

(4) Assistance under section 7008(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7708(a)).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Secretary of Labor the following functions:

(1) Functions under parts A and B of title I of the of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.).

(2) Grants under section 303 of the Rehabilitation Act of 1973 (29 U.S.C. 773).

(3) Allotments under title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795g et seq.; also known as the Employment Opportunities for Individuals With Disabilities Act).

(4) Functions under sections 111, 112, 113, 114, and 115 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2321 et seq.).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Education shall transfer to the Director of the Bureau of Indian Affairs of the Department of the Interior the administration of grants under section 121 of the Rehabilitation Act of 1973 (29 U.S.C. 741).

In accordance with the plan required under section 4(b)(1), and not later than October 1, 2026, the Secretary of Health and Human Services and the Secretary of Education shall transfer to the Director of Education the administration of the Preschool Development Grants program under section 9212 of the Every Student Succeeds Act (Public Law 114–95; 42 U.S.C. 9831 note).

The transfer of functions pursuant to this section does not extend to the transfer of personnel employed by the Department of Education to carry out such functions.

(1) Grants under part A of title I the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.).

(2) Each program under part D of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6421 et seq.).

Subject to subparagraph (B) and notwithstanding any provision of this part or part B, no Federal Direct PLUS Loans may be made under this part for any period of instruction beginning on or after October 1, 2026.

A borrower who has not received a Federal Direct PLUS Loan before the date of enactment of the Orderly Liquidation of the Department of Education Act and for whom a Federal Direct PLUS Loan is first disbursed for any period of instruction beginning on or after such date, but not later than October 1, 2026, may be eligible to receive Federal Direct PLUS Loans until the completion of the course of study for which such loan was first disbursed or September 30, 2030, whichever occurs first.

(1) to the head of such department or office is deemed to refer to the head of the department or office to which such function is transferred; or

(2) to such department or office is deemed to refer to the department or office to which such function is transferred.

All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges—

(1) that have been issued, made, granted, or allowed to become effective by the President, the Secretary of Education, or any other Government official, or by a court of competent jurisdiction, in the performance of any function that is transferred by this Act, and

(2) that are in effect on the effective date of such transfer (or become effective after such date pursuant to their terms as in effect on such effective date),

shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, any other authorized official, a court of competent jurisdiction, or operation of law.

This Act shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending on the date of enactment of this Act before an office transferred by this Act, but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this Act had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this Act had not been enacted.

This Act shall not affect suits commenced before the date of the enactment of this Act, and in all such suits, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this Act had not been enacted.

No suit, action, or other proceeding commenced by or against the Department of Education, or by or against any individual in the official capacity of such individual as an officer or employee of an office transferred by this Act, shall abate by reason of the enactment of this Act.

If any Government officer in the official capacity of such officer is party to a suit with respect to a function of the officer, and under this Act such function is transferred to any other officer or office, then such suit shall be continued with the other officer or the head of such other office, as applicable, substituted or added as a party.

Except as otherwise provided by this Act, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to any function transferred by this Act shall apply to the exercise of such function by the head of the Federal agency, and other officers of the agency, to which such function is transferred by this Act.