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Trump Moves to Shutter Education Department, Impacting Student Borrowers

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March 21, 2025

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President Donald Trump signed an executive order to largely dismantle the Education Department — an organization created by Congress and tasked with sweeping responsibilities that involve billions in funds that impact millions of American students.

The move is part of Trump’s vision to overhaul the US government. The order directs Education Secretary Linda McMahon to “take all necessary steps to facilitate the closure” of the department, according to a White House fact sheet. It follows an effort to slash its workforce of more than 4,000 employees by nearly half.

The move portends a clash with powerful labor unions and risks roiling parents and students at all levels of education who rely on the department’s programs. The president’s attempted demolition of a cabinet-level department is in many ways unprecedented and faces legal and logistical hurdles.

Jennifer Lawless, professor of politics and public policy at the University of Virginia, discusses the limits of the president's power to dismantle the federal agency and explains what the move might mean for public school funding and holders of student debt. Professor Lawless speaks with Paul Sweeney and Damian Sassower on Bloomberg Radio.

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Guests & Subjects Covered

President Donald TrumpEducation DepartmentEducation Secretary Linda McMahonWhite HouseJennifer LawlessProfessor LawlessPaul SweeneyDamian Sassower

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