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:
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.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 369 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 369
To provide for the elimination of the Department of Education, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 13, 2025
Mr. Rouzer introduced the following bill; which was referred to the
Committee on Education and Workforce
_______________________________________________________________________
A BILL
To provide for the elimination of the Department of Education, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``States' Education Reclamation Act of
2025''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Principles of federalism embodied in the Constitution
of the United States entrust authority over issues of
educational policy to the States and the people and a Federal
Department of Education is inconsistent with such principles.
(2) Tradition and experience dictate that the governance
and management of schools in the United States are best
performed by parents, teachers, and communities.
(3) The education of the Nation's students is suffering
under a managerial government.
(4) The Department of Education has weakened the ability of
parents to make essential decisions about their children's
education and has undermined the capacity of communities to
govern their schools.
(5) In the 41 years of its existence, the Department of
Education has grown from a budget of $14 billion to almost
$73.5 billion in annual discretionary appropriations
administering around 100 programs. Meanwhile, education
performance for 17-year-olds has stagnated since 1971.
(6) The Department of Education has fostered
overregulation, standardization, bureaucratization, and
litigation in United States education.
(7) The Department of Education expends large amounts of
money on its own maintenance and overhead. While the average
national salary for public school teachers is $61,730 the
average salary for a Department of Education employee is
$112,724.
(8) In certain States, the average State salary for a
public school teacher is less than the national average. In
North Carolina, the average salary for a public school teacher
is $53,975.
(9) Recent tests reflect poor results in mathematics,
science, and reading for American students compared with
students from other nations.
(10) Only through initiatives led by parents and local
communities with the power to act can the United States elevate
educational performance toward an acceptable level.
(11) The current system of top-down education uniformity is
detrimental to local businesses and communities, the economic
needs of the States, and the Nation's ability to compete
globally for jobs.
(12) The Department of Education has been hostile to many
promising reforms, including reforms that would empower
parents, teachers, and local communities. The United States,
once a laboratory of innovation through the experiments of the
States, is moving toward education standardization that does
not consider the individual educational needs of our diverse
population of students.
SEC. 3. ABOLITION OF DEPARTMENT OF EDUCATION.
The Department of Education is abolished, and, with the exception
of the programs transferred under section 7, any program for which the
Secretary of Education or the Department of Education has
administrative responsibility as provided by law or by delegation of
authority pursuant to law is repealed, including each program under the
following:
(1) The Department of Education Organization Act (20 U.S.C.
3401 et seq.).
(2) The General Education Provisions Act (20 U.S.C. 1221 et
seq.).
SEC. 4. GRANTS TO STATES FOR ELEMENTARY AND SECONDARY AND FOR
POSTSECONDARY EDUCATION PROGRAMS.
(a) In General.--Subject to the requirements of this Act, each
State is entitled to receive from the Secretary of the Treasury, by not
later than July 1 of the preceding fiscal year--
(1) a grant for fiscal year 2025 and each succeeding fiscal
year through fiscal year 2033, that is equal to the amount of
funds appropriated for the State for Federal elementary school
and secondary school programs for fiscal year 2025 (except for
the funds appropriated for fiscal year 2025 for such programs
for such State that are being transferred under section 7); and
(2) a grant for fiscal year 2025 and each succeeding fiscal
year through fiscal year 2033, that is equal to the amount of
funds appropriated for the State for Federal postsecondary
education programs for fiscal year 2025 (except for the funds
appropriated for fiscal year 2025 for such programs for such
State that are being transferred under section 7).
(b) Appropriation.--Out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated for fiscal
years 2025 through 2033, such sums as are necessary for grants under
subsection (a).
(c) Requirements Relating to Intergovernmental Financing.--The
Secretary of the Treasury shall make the transfer of funds under grants
under subsection (a) directly to each State in accordance with the
requirements of section 6503 of title 31, United States Code.
(d) Expenditure of Funds.--Amounts received by a State under this
section for any fiscal year shall be expended by the State in such
fiscal year or in the succeeding fiscal year.
(e) Use of Funds.--Funds made available to a State--
(1) under subsection (a)(1), shall be used by the State for
any elementary or secondary education purpose permitted by
State law, including increases in teacher salaries; and
(2) under subsection (a)(2), shall be used by the State for
any postsecondary education purpose permitted by State law.
(f) Supplement, Not Supplant.--A grant received under subsection
(a) shall only be used to supplement the amount of funds that would, in
the absence of such grant, be made available from non-Federal sources
for elementary school and secondary school programs or postsecondary
education programs, and not to supplant those funds.
SEC. 5. ADMINISTRATIVE AND FISCAL ACCOUNTABILITY.
(a) Audits.--
(1) Contract with approved auditing entity.--Not later than
October 1, 2025, and annually thereafter, a State shall
contract with an approved auditing entity (as defined under
paragraph (3)(B)) for purposes of conducting an audit under
paragraph (2) (with respect to the fiscal year ending September
30 of such year).
(2) Audit requirement.--Under a contract under paragraph
(1), an approved auditing entity shall conduct an audit of the
expenditures or transfers made by a State from amounts received
under a grant under section 4, with respect to the fiscal year
which such audit covers, to determine the extent to which such
expenditures and transfers were expended in accordance with
section 4.
(3) Entity conducting audit.--
(A) In general.--With respect to a State, the audit
under paragraph (2) shall be conducted by an approved
auditing entity in accordance with generally accepted
auditing principles.
(B) Approved auditing entity.--For purposes of this
section, the term ``approved auditing entity'' means,
with respect to a State, an entity that is--
(i) approved by the Secretary of the
Treasury;
(ii) approved by the chief executive
officer of the State; and
(iii) independent of any Federal, State, or
local agency.
(4) Submission of audit.--Not later than April 30, 2026,
and annually thereafter, a State shall submit the results of
the audit under paragraph (2) (with respect to the fiscal year
ending on September 30 of such year) to the State legislature
and to the Secretary of the Treasury.
(b) Reimbursement and Penalty.--If, through an audit conducted
under subsection (a), an approved auditing entity finds that a State
violated the requirements of subsection (d) or (e) of section 4, the
State shall pay to the Treasury of the United States 100 percent of the
amount of State funds that were used in violation of section 4 as a
penalty. Insofar as a State fails to pay any such penalty, the
Secretary of the Treasury shall offset the amount not so paid against
the amount of any grant otherwise payable to the State under this Act.
(c) Annual Reporting Requirements.--
(1) In general.--Not later than January 31, 2026, and
annually thereafter, each State shall submit to the Secretary
of the Treasury and the State legislature a report on the
activities carried out by the State during the most recently
completed fiscal year with funds received by the State under a
grant under section 4 for such fiscal year.
(2) Content.--A report under paragraph (1) shall, with
respect to a fiscal year--
(A) contain the results of the audit conducted by
an approved auditing entity for a State for such fiscal
year, in accordance with the requirements of subsection
(a) of this section;
(B) specify the amount of the grant made to the
State under section 4; and
(C) be in such form and contain such other
information as the State determines is necessary to
provide--
(i) an accurate description of the
activities conducted by the State for the
purpose described under section 4; and
(ii) a complete record of the purposes for
which amounts were expended in accordance with
this section.
(3) Public availability.--A State shall make copies of the
reports required under this section available on a public
website and shall make copies available in other formats upon
request.
(d) Failure To Comply With Requirements.--The Secretary of the
Treasury shall not make any payment to a State under a grant authorized
by section 4--
(1) if an audit for a State is not submitted as required
under subsection (a) during the period between the date such
audit is due and the date on which such audit is submitted;
(2) if a State fails to submit a report as required under
subsection (c) during the period between the date such report
is due and the date on which such report is submitted; or
(3) if a State violates a requirement of section 4 during
the period beginning on the date the Secretary becomes aware of
such violation and the date on which such violation is
corrected by the State.
(e) Administrative Supervision and Oversight.--
(1) Limited role for secretary of the treasury.--The
authority of the Secretary of the Treasury under this Act is
limited to--
(A) promulgating regulations, issuing rules, or
publishing guidance documents to the extent necessary
for purposes of implementing subsection (a)(3)(B),
subsection (b), and subsection (d);
(B) making payments to the States under grants
under section 4;
(C) approving entities under subsection (a)(3)(B)
for purposes of the audits required under subsection
(a);
(D) withholding payment to a State of a grant under
subsection (d) or offsetting a payment of such a grant
to a State under subsection (b); and
(E) exercising the authority relating to
nondiscrimination that is specified in section 6(b).
(2) Limited role for attorney general.--The authority of
the Attorney General to supervise the amounts received by a
State under section 4 is limited to the authority under section
6(b).
(f) Reservation of State Powers.--Nothing in this section shall be
construed to limit the power of a State, including the power of a State
to pursue civil and criminal penalties under State law against any
individual or entity that misuses, or engages in fraud or abuse related
to, the funds provided to a State under section 4.
SEC. 6. NONDISCRIMINATION PROVISIONS.
(a) No Discrimination Against Individuals.--No individual shall be
excluded from participation in, denied the benefits of, or subjected to
discrimination under, any program or activity funded in whole or in
part with amounts paid to a State under section 4 on the basis of such
individual's--
(1) disability under section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 794);
(2) sex under title IX of the Education Amendments of 1972
(20 U.S.C. 1681 et seq.); or
(3) race, color, or national origin under title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
(b) Compliance.--
(1) In general.--If the Attorney General determines that a
State or an entity that has received funds from amounts paid to
a State under a grant under section 4 has failed to comply with
a provision of law referred to in subsection (a), the Secretary
of the Treasury shall notify the chief executive officer of the
State of such failure to comply and shall request that such
chief executive officer secure such compliance.
(2) Enforcement.--If, not later than 60 days after
receiving notification under paragraph (1), the chief executive
officer of a State fails or refuses to secure compliance with
the provision of law referred to in such notification, the
Attorney General may--
(A) institute an appropriate civil action; or
(B) exercise the powers and functions provided
under section 505 of the Rehabilitation Act of 1973 (29
U.S.C. 794a), title IX of the Education Amendments of
1972 (20 U.S.C. 1681 et seq.), or title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.) (as
applicable).
SEC. 7. TRANSFER OF CERTAIN DEPARTMENT OF EDUCATION PROGRAMS.
(a) Transfer of Certain Programs.--Not later than 24 months after
the date of the enactment of this Act--
(1) each job training program under the jurisdiction of the
Department of Education, including the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.),
shall be transferred to the Department of Labor;
(2) each special education grant program under the
Individuals with Disabilities Education Act (20 U.S.C. 1460 et
seq.) shall be transferred to the Department of Health and
Human Services;
(3) each Indian education program under the jurisdiction of
the Department of Education shall be transferred to the
Department of the Interior;
(4) each Impact Aid program under title VIII of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7701
et seq.) shall be transferred to the Department of Defense;
(5) the Federal Pell Grant program under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070a) shall be
transferred to the Department of the Treasury;
(6) each Federal student loan program under the
jurisdiction of the Department of Education shall be
transferred to the Department of the Treasury;
(7) each program under the jurisdiction of the Institute of
Education Sciences shall be transferred to the Department of
Health and Human Services; and
(8) each program under the jurisdiction of the D.C.
Opportunity Scholarship Program shall be transferred to the
Department of Health and Human Services.
(b) Limitation on Transfer of Certain Programs.--The transfer of
programs pursuant to subsection (a) is limited to only the transfer of
administrative responsibility as provided by law or the delegation of
authority pursuant to law and does not extend to the transfer of
personnel employed by the Department of Education to carry out such
programs.
SEC. 8. GAO REPORT.
Not later than 90 days after the date of the enactment of this Act,
the Comptroller General of the United States shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate report, which shall include--
(1) a review and evaluation as to the feasibility of
enhancing the ability of States and local communities to fund
education by reducing the Federal tax burden and commensurately
eliminating Federal Government involvement in providing grants
for education programs; and
(2) an evaluation of the feasibility of the successor
Federal agencies for maintaining the programs to be transferred
under section 7.
SEC. 9. PLAN FOR CLOSURE OF THE DEPARTMENT OF EDUCATION.
Not later than 365 days after the date of the enactment of this
Act, the President shall submit to the Congress a plan to implement
closure of the Department of Education in accordance with this Act.
SEC. 10. DEFINITIONS.
In this Act:
(1) Elementary school; secondary school.--The terms
``elementary school'' and ``secondary school'' have the
meanings given the terms in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(2) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 1002).
(3) State.--The term ``State'' has the meaning given the
term in section 103 of the Higher Education Act of 1965 (20
U.S.C. 1003).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Workforce.
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