H.R. 2456 — Orderly Liquidation of the Department of Education Act

This section declares congressional findings that (1) the Department of Education has existed for 45 years without improving U.S. education; (2) it has failed to supplement and complement state and local efforts to improve education quality, as outlined in 20 U.S.C. 3402(2); and (3) it has promoted policies reducing the authority of local elected officials, educators, and parents over education. The section states that the purposes of the Act are to (1) orderly liquidate the Department of Education; (2) return responsibility and authority for educating students to states and local communities; and (3) ensure the federal government does not impose unnecessary and restrictive regulations on educators.

This section establishes an Office of Education in the Department of Health and Human Services (HHS), to be headed by a Director appointed by the President who reports directly to the HHS Secretary. The Director shall appoint an Assistant Director of K–12 Education to administer delegated functions affecting elementary and secondary education and an Assistant Director of Higher Education to administer delegated functions affecting postsecondary education. The amendment takes effect on the date the President implements the plan required under section 4(b)(1).

This section terminates the Department of Education effective October 1, 2026, repealing all functions vested in the Secretary or department by law (except those transferred under this Act). It directs the President to develop and implement, within 180 days of enactment and after consulting appropriate congressional committees at least 15 days prior to implementation, a liquidation plan specifying (1) steps to terminate department functions; (2) steps to transfer administrative responsibility for certain functions to other entities under section 5 of this Act; (3) steps to transfer the Institute of Education Sciences to the Office of Education in the Department of Health and Human Services under section 8; (4) steps to transfer the Office for Civil Rights to the Department of Justice under section 9; (5) funds available to receiving entities for transferred responsibilities, in accordance with existing appropriation transfer authority (31 U.S.C. § 1531, which permits transfer of necessary appropriation balances when functions move within or between executive agencies); (6) allocation of unexpended funds; and (7) disposition of property, facilities, contracts, records, and other assets and obligations. The section further requires the Secretary of Education to conclude all outstanding department affairs by October 1, 2026, with assistance from the Director of Education in the Department of Health and Human Services.

This section directs the Secretary of Education to transfer specified functions to other federal entities not later than October 1, 2026, in accordance with a plan required under section 4(b)(1). **(a) Transfers to Director of Education in HHS**—Transfers 20 functions, including the Honorable Augustus F. Hawkins Center of Excellence program under subpart 2 of part B of title II of the Higher Education Act of 1965 (20 U.S.C. 1033 et seq.), which supports teacher preparation centers of excellence at minority-serving institutions (e.g., part B institutions, Hispanic-serving institutions, Tribal Colleges or Universities); certain TRIO student support programs under title IV of the Higher Education Act; multiple programs under the Individuals with Disabilities Education Act (e.g., grants for infants and toddlers with disabilities, State Personnel Development Grants); numerous Elementary and Secondary Education Act programs (e.g., title I part A standards and assessments, Student Support and Academic Enrichment, 21st Century Community Learning Centers, Magnet Schools Assistance, Promise Neighborhoods, Rural Education Achievement Program); Preschool Development Grants; and the Education for Homeless Children and Youths program. **(b) Transfers to National Science Foundation**—Transfers 11 functions, including authorities related to Howard University; grants and functions for Predominantly Black Institutions and other minority-serving institutions under title III of the Higher Education Act; and all functions under the Education of the Deaf Act of 1986. **(c) Transfers to Director of Bureau of Indian Education**—Transfers five functions, including grants to Tribal Colleges or Universities under the Higher Education Act; tribal grants under the Carl D. Perkins Career and Technical Education Act of 2006; and Indian education programs under title VI of the Elementary and Secondary Education Act. **(d) Transfers to Secretary of the Treasury**—Transfers four functions, including Pell Grants under subpart 1 of part A of title IV of the Higher Education Act; Federal Supplemental Educational Opportunity Grants; Federal Work-Study grants under part C of title IV; and the William D. Ford Federal Direct Loan program.

This section terminates funding after September 30, 2036, for (1) grants under title I, part A, of the Elementary and Secondary Education Act of 1965 (ESEA) (20 U.S.C. 6311 et seq.) (i.e., formula grants to states and local educational agencies to improve academic achievement of disadvantaged children); and (2) programs under title I, part D, of the ESEA (20 U.S.C. 6421 et seq.) (i.e., competitive grants for prevention and intervention services for children and youth who are neglected, delinquent, or at risk). (Thus, no federal funds may be used for these programs in FY2037 or later.)

This section terminates authority to make Federal Direct PLUS Loans (i.e., unsubsidized loans available to parents of dependent undergraduate students and to graduate or professional students) for any period of instruction beginning on or after October 1, 2026. It excepts borrowers who have not previously received such a loan and for whom the first disbursement occurs after enactment but before October 1, 2026, allowing them to receive additional Federal Direct PLUS Loans until completion of the course of study for which the loan was first disbursed or September 30, 2030, whichever occurs first.

This section transfers the functions, personnel, and assets of the Institute of Education Sciences to the Office of Education in the Department of Health and Human Services, effective October 1, 2026. (As background, the Institute of Education Sciences is the Department of Education's independent research, statistics, and evaluation arm that supports federal education policy and programs.)

This section deems any references in other federal laws, executive orders, rules, regulations, delegations of authority, or documents to a department or office from which a function is transferred—or to its head—to instead refer to the department or office (or head) to which such function is transferred.

This section authorizes any official receiving a function transferred by this Act to exercise all authorities under other laws that were available to the prior official responsible for that function immediately before the transfer.

This section preserves all existing orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges issued in connection with functions transferred by this Act, continuing them in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law. The section further ensures that pending proceedings, applications for benefits or assistance, suits, and actions—including those involving the Department of Education or transferred officers—are not affected by the Act and continue as if it had not been enacted, with substitution of successor officers as parties where applicable and retention of applicable notice, hearing, and review requirements.