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HR2456119th CongressWALLET

Orderly Liquidation of the Department of Education Act

Sponsored By: Representative Moran, Nathaniel [R-TX-1]

Introduced

Summary

Would end the Department of Education and move most of its programs into a new Office of Education at the Department of Health and Human Services and other agencies. It would require a liquidation plan and transfer or reassign many programs by October 1, 2026.

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  • Families and borrowers: Federal Direct PLUS Loan authority would end on October 1, 2026. Loans disbursed before that date would follow transitional rules.
  • Schools, colleges, and grant recipients: Programs under the Elementary and Secondary Education Act, the Individuals with Disabilities Education Act, the Higher Education Act and others would be reassigned to the HHS Office of Education or to agencies like the National Science Foundation, Interior, Treasury, Defense, and Labor. Some ESEA Title I–IV funds could not be spent after October 1, 2036, and grant recipients could refuse transferred funds.
  • Federal operations and legal continuity: The bill would create an Office of Education inside HHS to manage transfers, limit personnel moves, preserve ongoing orders and lawsuits, and update legal cross‑references so transferred authorities can exercise their pre-transfer powers.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 2 costs, 4 mixed.

End new Parent and Grad PLUS loans

For courses that start on or after October 1, 2026, no new Federal Direct PLUS Loans would be made. Exception: if your first PLUS loan is first disbursed for a period that begins on or after enactment and before October 1, 2026, you could keep getting PLUS loans for that program until you finish or until September 30, 2030, whichever comes first. Parents and graduate students would need other financing for courses that start after October 1, 2026 if they are not covered by the exception.

Most education programs move to Health

By October 1, 2026, many education programs would move from the Education Department to the new Office of Education at Health and Human Services. Listed programs include IDEA preschool and infants/toddlers, Title I Parts A and D, Student Support and Academic Enrichment, 21st Century Community Learning Centers, Magnet Schools, Preschool Development Grants, homeless student services, Promise Neighborhoods, Rural Education, and others. The Institute of Education Sciences would also move to Health on October 1, 2026. Families, students, and schools could see new processes and contacts for these programs.

Close Education Department; new office at Health

This bill would require the President to design and start a liquidation plan within 180 days of enactment. The President would consult Congress at least 15 days before starting the plan. The Department of Education would end on October 1, 2026. A new Office of Education inside the Department of Health and Human Services would start when the plan begins, led by a Director with K–12 and higher‑ed deputies. The plan would say which functions move, how money and property shift, and how to wind down remaining work.

School civil‑rights cases shift to Justice

On October 1, 2026, the Education Department’s Office for Civil Rights would move to the Department of Justice. DOJ would then handle civil‑rights complaints and enforcement in schools and colleges. Students, parents, and institutions could see new procedures and enforcement approaches.

Keep programs and cases running during transfer

Existing orders, grants, loans, permits, and contracts tied to moving functions would stay in force after transfer until changed by law. Pending applications and cases would continue, and lawsuits would not stop; parties could be swapped in. Legal references to old offices would point to the new ones, and incoming officials could use the same authorities. Any recipient could refuse transferred funds.

End Title I school funds after 2036

After October 1, 2036, the government could not spend money for Title I Part A grants or the listed Part D programs. States and school districts that rely on these funds could face gaps unless Congress later provides replacement funding. Families in high‑poverty schools could see effects depending on state and local responses.

Tribal and campus programs move agencies

By October 1, 2026, certain higher‑education and research duties would shift to the National Science Foundation, including some Howard University and Higher Education Act programs and parts of the Education of the Deaf Act. Certain tribal and career‑technical grants would shift to the Bureau of Indian Education in the Interior Department. Affected colleges, tribal schools, and grantees would work with different agencies and rules.

Sponsors & CoSponsors

Sponsor

Moran, Nathaniel [R-TX-1]

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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