Following President Donald Trump’s landmark executive order to dismantle the Department of Education, the administration has now revealed which federal agencies will take over its key functions, ensuring a smooth transition and continued delivery of essential services as power shifts back to states and local communities.
The announcement marks a critical next step in Trump’s effort to eliminate wasteful bureaucracy and return education control to parents, teachers, and local school boards—not Washington bureaucrats.
? President Trump announces that the SBA will begin handling student loans — and that HHS will handle the special needs and nutrition programs.
“Coming out of the Department of Education immediately.” pic.twitter.com/2gbz2n2Q7s
— Rapid Response 47 (@RapidResponse47) March 21, 2025
Student Loans Transferred to the SBA
The Small Business Administration (SBA), led by Administrator Kelly Loeffler, will now manage the federal student loan portfolio, which impacts more than 40 million Americans and totals over $1.6 trillion in outstanding loans.
The move is intended to streamline the process, cut out inefficiency, and bring a business-minded approach to loan servicing—something the Department of Education has routinely failed to do.
According to President Trump, the transition to the SBA will begin immediately, signaling a major shift in how the federal government handles student lending.
HHS to Take Over Special Education and School Nutrition Programs
The Department of Health and Human Services (HHS), under the leadership of Secretary Robert F. Kennedy Jr., will absorb programs previously managed by the Department of Education, including:
- Special education services for students with disabilities
- Federal nutrition programs, including the National School Lunch Program and school breakfast programs
By consolidating these responsibilities under HHS, the Trump administration believes it can better align education-related health and welfare services, improving delivery and efficiency without sacrificing support for vulnerable students.
Executive Order Sets Course for Full Shutdown
Trump’s executive order directed Education Secretary Linda McMahon to begin the shutdown process and “take all necessary steps” to return education authority to the states.
While the executive order lays the foundation, the complete closure of the Department of Education requires an act of Congress. Republican lawmakers in both chambers are already moving to draft legislation to finish what Trump started, with growing support among grassroots conservatives who want federal interference out of local classrooms for good.
Reactions: Praise and Predictable Panic
Conservative leaders have hailed the move as a common-sense reform that cuts bureaucratic waste and restores freedom to schools and parents. Education reform advocates say it’s long overdue, citing years of declining academic performance despite skyrocketing federal spending.
Meanwhile, the left is in meltdown mode, with union leaders and Democrat politicians warning that the change will lead to “chaos”—even though many of the same people presided over a federal system that has failed students for decades.
Critics have especially focused on concerns over funding and access for low-income and special-needs students, though the administration insists that all essential services will continue uninterrupted under the new structure.
The Bottom Line
The Department of Education is on its way out—and President Trump is delivering on his promise to return control of education to the American people.
Student loans will now be managed by a leaner, more accountable agency, and core services for vulnerable students will remain intact under more competent oversight.
For millions of parents, teachers, and taxpayers across the country, the message is clear: The era of Washington dictating your child’s education is coming to an end.