Trump plans to shift school funding control to local communities, has yet to pick DOE secretary

President-Elect Donald Trump has proposed a dramatic shakeup in American education: "disbanding" or drastically reducing the power of the Department of Education (DOE), a move that would shift control and funding of public schools back to local communities.

While Trump's specific plan and choice of secretary have yet to be announced, Neal McCluskey, the director for educational freedom at libertarian think tank Cato Institute, said there's a high likelihood Trump's agenda of shuttering the DOE could be carried out through "block granting."

"Block granting is a little easier for people to understand, because it takes money and it doesn't just suddenly go away from states and districts, it keeps it," McCluskey told Fox News Digital in an interview. "It just gives them more control over it."

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"This would be a pretty big change if it went from the federal government giving out money with all kinds of rules and regulations through a whole bunch of different programs, to the federal government consolidating almost every K-12 and giving them the money," he said.

McCluskey noted a shift in the federal government’s role in education, moving from funding support to more direct control, particularly until the Every Student Succeeds Act (ESSA) in 2015, which rolled back some federal oversight due to backlash against standardized testing and federal mandates. While ESSA reduced federal intervention, he believes funding pressures keep pushing Washington to influence school operations.

"I think that higher education, the Department of Education, has proved itself to be just a bad administrator," McCluskey said. "The bungling of simplifying FAFSA, the student aid for. It's sort of ironic that it's making it easier, making the form easier that they just couldn't handle."

"I also think the programs are really bad," he added.

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While McCluskey acknowledged a legitimate role for federal civil rights enforcement, he argued it should be housed within the Department of Justice, not education. He cautioned against overreach, particularly with "Dear Colleague" letters from the Office of Civil Rights, which, he argued, altered policies unilaterally without formal changes in the law.

In 1979, Congress passed and President Jimmy Carter signed the Department of Education Organization Act, leading to the creation of the department, which began its operations in May 1980 under the Carter administration. In his 1982 State of the Union address, former President Reagan called for shuttering the department.

McCluskey said the DOE started largely as a political move to gain National Education Association support and initially focused on K-12 and student-aid funding.

Although intended to equalize funding between low- and high-income communities, its role expanded over time to include accountability measures, especially from the Reagan era onward, as concerns grew about educational quality and outcomes. 

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This push for accountability led to the "A Nation at Risk" report in 1983 and eventually to the No Child Left Behind Act in 2002, positioning the federal government as a major driver of standards and test-based accountability. 

However, backlash against centralized standard testing like Common Core led to a retreat from heavy oversight, and today the department’s primary roles are K-12 funding support, federal student aid management, and civil rights enforcement, he said.

So far, Fox News Digital has learned former Secretary of Education Betsy DeVos, Rep. Byron Donalds, Cade Brumley, Rep. Virginia Foxx, Tiffany Justice, Oklahoma public education superintendent Ryan Walters and Virginia Gov. Glenn Youngkin could be possible contenders for the DOE secretary role.

Fox News Digital has reached out to the Trump-Vance transition team for comment.

Fox News Digital's Joshua Comins contributed to this report.