President Donald Trump unveiled a major shift in federal education management on Friday, announcing plans to reassign essential programs from the Department of Education to other agencies as part of a broader effort to dismantle the department.
This restructuring aims to decentralize federal authority over education and enhance administrative efficiency.
“We have a portfolio that’s very large, lots of loans, tens of thousands of loans,” Trump said.
Speaking at an Oval Office briefing, Trump revealed that the Small Business Administration (SBA), led by Kelly Loeffler, would take over the federal student loan portfolio, valued at approximately $1.6 trillion and serving over 44 million borrowers.
“I do want to say that I’ve decided that the SBA, the Small Business Administration, headed by Kelly Loeffler — terrific person — will handle all of the student loan portfolio,” Trump stated.
Additionally, the Department of Health and Human Services (HHS), under the leadership of Secretary Robert F. Kennedy Jr., will assume control over special education services and nutrition programs.
“Health and Human Services will be handling special needs and all of the nutrition programs,” Trump explained, highlighting his administration’s intention to streamline such services under HHS supervision.
These announcements came shortly after Trump signed an executive order directing Education Secretary Linda McMahon to commence the dissolution process of the Department of Education.
The order requires a detailed plan to transfer the agency’s responsibilities to other federal entities and delegate certain authorities to state and local governments.
The proposal has generated significant debate. Critics argue the move could destabilize vital services and disproportionately affect disadvantaged students, including those from low-income families and those with disabilities.
The National Education Association (NEA), which represents millions of educators, has expressed concern that disbanding the department could undermine educational access and equity.
Proponents, however, believe transferring educational oversight to agencies like the SBA and HHS, as well as state governments, could improve efficiency and better address local needs.
They argue that regional authorities are more equipped to handle community-specific educational challenges without federal intervention.
The transition is expected to unfold gradually, with the relevant agencies preparing comprehensive plans for program transfers. However, the administration acknowledged that some aspects of the process would require congressional approval, leaving the timeline for the department’s closure uncertain.
