States’ Education Reclamation Act of 2025

States' Education Reclamation Act of 2025

This bill abolishes the Department of Education (ED) and repeals any program for which it has administrative responsibility.

The Department of the Treasury must provide grants to states, for FY2025-FY2033, 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 FY2025, 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:

• ED's job training programs to the Department of Labor,
• each special education grant program under the Individuals with Disabilities Education Act to the Department of Health and Human Services (HHS),
• ED's Indian education programs to the Department of the Interior,
• each Impact Aid program under the Elementary and Secondary Education Act of 1965 to the Department of Defense,
• the Federal Pell Grant program and each federal student loan program to Treasury, and
• programs under the jurisdiction of the Institute of Education Sciences or the D.C. Opportunity Scholarship Program to HHS.

The Government Accountability Office must report to Congress on (1) the feasibility of reducing the federal tax burden and eliminating federal involvement in providing grants for education programs, and (2) the feasibility of successor federal agencies maintaining transferred education programs.