Education in the United States, from early childhood to higher education, is primarily funded and regulated by state and local governments. The federal government plays a relatively minor financial and operational role in K-12 and postsecondary education. However, it plays a crucial role in ensuring students have access to quality educational opportunities and in preparing an informed citizenry and skilled workforce.
The U.S. Department of Education (ED) is responsible for administering and coordinating key federal education programs. With 4,233 employees as of May 2024, ED is the smallest of the 15 Cabinet-level executive departments. Despite its limited size and scope, ED has been a frequent target for efforts to reduce or eliminate its functions, dating back to Ronald Reagan’s presidency. While some of ED’s responsibilities could be reassigned to other federal agencies, doing so would require congressional approval, as its key functions are mandated by law.
The president lacks the authority to unilaterally dismantle ED since it was established through congressional legislation. However, the current administration’s intentions regarding ED’s role remain uncertain. This article provides an overview of the federal government’s involvement in education and explains how ED fulfills its responsibilities. A separate FAQ document offers additional details on what actions the Trump administration may or may not take regarding ED.
The Federal Role in Education
Although the U.S. Constitution does not explicitly mention education, the federal role has evolved through legislation, court decisions, and established practices. This role includes funding programs to enhance educational opportunities, protecting students’ civil rights, and supporting research to inform policy.
The U.S. Department of Education was created in 1979 through the Department of Education Organization Act. However, federal involvement in education dates back to the Civil War and Reconstruction era with the establishment of land-grant colleges and historically Black colleges. The first iteration of a federal education department also emerged during this time.
Significant federal education legislation was enacted in the 1960s under President Lyndon B. Johnson’s “War on Poverty,” including the Elementary and Secondary Education Act (ESEA) and the Higher Education Act (HEA). These laws created funding programs such as Title I grants for K-12 education and federal financial aid for college students. Additional legislation in 1975 laid the groundwork for the Individuals with Disabilities Education Act (IDEA), which supports children with disabilities.
Congress is responsible for passing education laws and appropriating funds through the annual budget process. ED administers these funds, ensuring compliance with legislative requirements. Some education programs are managed by other federal agencies, such as Head Start (U.S. Department of Health and Human Services), the National School Lunch Program (U.S. Department of Agriculture), and the GI Bill (U.S. Department of Veterans Affairs).
Beyond funding programs, ED enforces civil rights laws and promotes education research.
Federal Support for Schools and Students
K-12 Education Funding
Approximately 90% of public school funding comes from state and local sources, with the federal government contributing the remainder. During crises like the Great Recession and COVID-19 pandemic, federal funding temporarily increased.
Federal K-12 funding primarily supports disadvantaged students. The largest federal program, Title I of ESEA, allocates $18.4 billion (FY 2024) to schools based on poverty rates. IDEA follows with $15.5 billion for students with disabilities. Additional programs provide funding for teacher development (Title II) and English learners (Title III). Impact Aid supports districts affected by federal land ownership or Native American reservations.
These funds are distributed based on formulas set by Congress, and ED is responsible for disbursing them accordingly.
Postsecondary Education Funding
HEA established multiple funding streams for higher education, including support for minority-serving institutions and teacher training programs. Title IV of HEA governs federal financial aid, including Pell Grants and student loans.
Federal student loans help students finance their education, with repayment options including income-driven plans. The Public Service Loan Forgiveness Program (PSLF) provides loan forgiveness for public service workers after 10 years of payments. The Biden administration introduced the Saving on a Valuable Education (SAVE) plan, though its implementation faces legal challenges.
ED also manages the Free Application for Federal Student Aid (FAFSA), determining students’ eligibility for financial aid. The recent FAFSA overhaul faced technical issues, causing delays in processing applications.
Oversight of Federal Education Funds
The federal government influences education policy by attaching conditions to funding. For example, Title I funds must support disadvantaged students, and IDEA funds must serve students with disabilities. ED ensures compliance through regulations, data collection, and audits.
In K-12 education, federal oversight expanded with No Child Left Behind (NCLB) in 2002, which mandated standardized testing and accountability measures. The Every Student Succeeds Act (ESSA) later relaxed these requirements but maintained standardized testing.
Despite its funding authority, federal law (General Education Provisions Act and ESSA) prohibits ED from dictating curriculum or instructional materials. Any attempts to do so violate these laws.
In higher education, ED enforces regulations to improve accountability and transparency. Institutions risk losing federal funding if they fail to meet performance criteria, such as student loan repayment rates. The Biden administration reinstated the “gainful employment” rule, which had been repealed under the Trump administration.
Recent Supreme Court decisions, such as Loper Bright Enterprises, have increased judicial scrutiny of federal regulations, potentially affecting ED’s rulemaking authority.
Civil Rights Enforcement
ED’s Office for Civil Rights (OCR) enforces laws prohibiting discrimination in federally funded educational institutions. These laws protect students based on race, sex, disability status, and other factors.
OCR investigates civil rights violations and can withhold funding from non-compliant institutions. However, penalties are rare, and most cases result in voluntary resolution agreements.
OCR also issues guidance on civil rights compliance and collects data on discrimination in schools through the Civil Rights Data Collection initiative.
Federal Investment in Education Research
The federal government supports education research through the Institute of Education Sciences (IES), which received $800 million in FY 2024. This funding is a small fraction of the $1.5 trillion spent annually on education.
IES administers the National Assessment of Educational Progress (NAEP), known as the “Nation’s Report Card,” which tracks student performance nationwide. NAEP data has highlighted learning losses from the COVID-19 pandemic and identified successful education recovery strategies.
IES also funds research grants and supports state education data systems. Its What Works Clearinghouse compiles evidence-based practices for educators and policymakers.