By Hikmat N. Al-Chami
The U.S. Department of Education (ED) provides billions in annual funding to state schools, particularly serving low-income students, children with disabilities, and special education programs. If eliminated, states would need to find alternative funding sources or face difficult decisions about which educational services to maintain or cut.
Financial Ramifications
The financial implications of dismantling ED are substantial. According to financial analyst Michael McTague, ED oversees approximately $126 billion in federal Title IV financial aid for 2024, including $38 billion in Pell Grants and $86 billion in student loans. This massive funding stream is unlikely to be eliminated, but would likely be transferred to the Treasury Department or another federal agency.
"For many, this is the primary role of [ED]," McTague notes. "Numerous families and students depend on this system to provide a make-or-break factor in whether to attend college."
Beyond financial aid, McTague points out that any significant reduction in federal education funding could create a major shakeup in higher education, potentially benefiting mid-tier colleges that "lack the swagger of the top schools and are much more expensive than community colleges."
State-by-State Reactions
South Carolina officials are divided on the potential impacts. Governor Henry McMaster's office supports "returning education to those who know their students and communities," while State Superintendent Ellen Weaver promises to protect funding for low-income and special needs students.
Meanwhile, South Carolina Education Association President Sherry East warns of potential staff shortages and increased class sizes if federal funding disappears.
Virginia state Senator Schuyler VanValkenburg, who also teaches in Henrico County, warned that the effects would disproportionately harm vulnerable communities and localities with the least amount of resources.
When asked about the federal changes, Virginia Governor Glenn Youngkin's office released a statement saying the Governor "supports President Trump's efforts to provide states more control over educational outcomes," though he did not directly address whether he supports eliminating ED.
North Carolina state education superintendent Maurice "Mo" Green expressed concern about the lack of clarity. "We have no idea what dismantle means," he said, noting that North Carolina receives approximately $1.5 billion annually from ED.
In West Virginia, where federal funds accounted for about 10 percent of pre-pandemic education budgets, education policy researcher Tamaya Browder told local media that federal money plays "a small but incredibly meaningful role when it comes to equity."
Ohio
Ohio Governor Mike DeWine expressed "cautious optimism" after attending the executive order signing. "The most important thing is for some of the bureaucracy to be eliminated so that dollars from the federal government can be more effectively utilized in Ohio," DeWine said. With Ohio receiving $1.5 billion annually from ED, DeWine promised to prioritize Title I and special education funding. Meanwhile, parents remain concerned about access to Pell Grants.
Pennsylvania
Aaron Chapin, President of the Pennsylvania State Education Association, warns that Pennsylvania faces the potential loss of $1.6 billion in annual federal education funding that currently supports Title I programs and special education services across the state. "Today's executive order has put $1.6 billion in funding for Pennsylvania's public schools at risk," said Chapin.
Technical Challenges Emerging
The National Education Statistics Center, which ED operates, has already been dramatically reduced from more than 100 employees to just three, according to Chase Meyer, a political science professor at the University of South Carolina. "If you were a school that got that money before... getting someone to answer the phone is going to be impossible," Meyer said in reference to anticipated logistical challenges.
As the battle over ED’s future moves to both the courts and Congress, America’s educational landscape stands at a crossroads. With $2.4 billion in Virginia education funding alone at stake, and similar amounts across all 50 states, the outcome will determine not just administrative structures but the fundamental resources available to students during a period of economic uncertainty. Whatever path emerges, schools will need to navigate a complex transition period while ensuring that essential services remain intact for the millions of students who depend on them.