I 119THCONGRESS 1 STSESSION H. R. 369 To provide for the elimination of the Department of Education, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY13, 2025 Mr. R OUZERintroduced 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 Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘States’ Education Rec-4 lamation Act of 2025’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 (1) Principles of federalism embodied in the 8 Constitution of the United States entrust authority 9 over issues of educational policy to the States and 10 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 2 •HR 369 IH the people and a Federal Department of Education 1 is inconsistent with such principles. 2 (2) Tradition and experience dictate that the 3 governance and management of schools in the 4 United States are best performed by parents, teach-5 ers, and communities. 6 (3) The education of the Nation’s students is 7 suffering under a managerial government. 8 (4) The Department of Education has weak-9 ened the ability of parents to make essential deci-10 sions about their children’s education and has un-11 dermined the capacity of communities to govern 12 their schools. 13 (5) In the 41 years of its existence, the Depart-14 ment of Education has grown from a budget of $14 15 billion to almost $73.5 billion in annual discre-16 tionary appropriations administering around 100 17 programs. Meanwhile, education performance for 17- 18 year-olds has stagnated since 1971. 19 (6) The Department of Education has fostered 20 overregulation, standardization, bureaucratization, 21 and litigation in United States education. 22 (7) The Department of Education expends 23 large amounts of money on its own maintenance and 24 overhead. While the average national salary for pub-25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 3 •HR 369 IH lic school teachers is $61,730 the average salary for 1 a Department of Education employee is $112,724. 2 (8) In certain States, the average State salary 3 for a public school teacher is less than the national 4 average. In North Carolina, the average salary for a 5 public school teacher is $53,975. 6 (9) Recent tests reflect poor results in mathe-7 matics, science, and reading for American students 8 compared with students from other nations. 9 (10) Only through initiatives led by parents and 10 local communities with the power to act can the 11 United States elevate educational performance to-12 ward an acceptable level. 13 (11) The current system of top-down education 14 uniformity is detrimental to local businesses and 15 communities, the economic needs of the States, and 16 the Nation’s ability to compete globally for jobs. 17 (12) The Department of Education has been 18 hostile to many promising reforms, including re-19 forms that would empower parents, teachers, and 20 local communities. The United States, once a labora-21 tory of innovation through the experiments of the 22 States, is moving toward education standardization 23 that does not consider the individual educational 24 needs of our diverse population of students. 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 4 •HR 369 IH SEC. 3. ABOLITION OF DEPARTMENT OF EDUCATION. 1 The Department of Education is abolished, and, with 2 the exception of the programs transferred under section 3 7, any program for which the Secretary of Education or 4 the Department of Education has administrative responsi-5 bility as provided by law or by delegation of authority pur-6 suant to law is repealed, including each program under 7 the following: 8 (1) The Department of Education Organization 9 Act (20 U.S.C. 3401 et seq.). 10 (2) The General Education Provisions Act (20 11 U.S.C. 1221 et seq.). 12 SEC. 4. GRANTS TO STATES FOR ELEMENTARY AND SEC-13 ONDARY AND FOR POSTSECONDARY EDU-14 CATION PROGRAMS. 15 (a) I NGENERAL.—Subject to the requirements of 16 this Act, each State is entitled to receive from the Sec-17 retary of the Treasury, by not later than July 1 of the 18 preceding fiscal year— 19 (1) a grant for fiscal year 2025 and each suc-20 ceeding fiscal year through fiscal year 2033, that is 21 equal to the amount of funds appropriated for the 22 State for Federal elementary school and secondary 23 school programs for fiscal year 2025 (except for the 24 funds appropriated for fiscal year 2025 for such pro-25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 5 •HR 369 IH grams for such State that are being transferred 1 under section 7); and 2 (2) a grant for fiscal year 2025 and each suc-3 ceeding fiscal year through fiscal year 2033, that is 4 equal to the amount of funds appropriated for the 5 State for Federal postsecondary education programs 6 for fiscal year 2025 (except for the funds appro-7 priated for fiscal year 2025 for such programs for 8 such State that are being transferred under section 9 7). 10 (b) A PPROPRIATION.—Out of any money in the 11 Treasury of the United States not otherwise appropriated, 12 there are appropriated for fiscal years 2025 through 2033, 13 such sums as are necessary for grants under subsection 14 (a). 15 (c) R EQUIREMENTS RELATING TOINTERGOVERN-16 MENTALFINANCING.—The Secretary of the Treasury 17 shall make the transfer of funds under grants under sub-18 section (a) directly to each State in accordance with the 19 requirements of section 6503 of title 31, United States 20 Code. 21 (d) E XPENDITURE OFFUNDS.—Amounts received by 22 a State under this section for any fiscal year shall be ex-23 pended by the State in such fiscal year or in the suc-24 ceeding fiscal year. 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 6 •HR 369 IH (e) USE OFFUNDS.—Funds made available to a 1 State— 2 (1) under subsection (a)(1), shall be used by 3 the State for any elementary or secondary education 4 purpose permitted by State law, including increases 5 in teacher salaries; and 6 (2) under subsection (a)(2), shall be used by 7 the State for any postsecondary education purpose 8 permitted by State law. 9 (f) S UPPLEMENT, NOTSUPPLANT.—A grant received 10 under subsection (a) shall only be used to supplement the 11 amount of funds that would, in the absence of such grant, 12 be made available from non-Federal sources for elemen-13 tary school and secondary school programs or postsec-14 ondary education programs, and not to supplant those 15 funds. 16 SEC. 5. ADMINISTRATIVE AND FISCAL ACCOUNTABILITY. 17 (a) A UDITS.— 18 (1) C ONTRACT WITH APPROVED AUDITING EN -19 TITY.—Not later than October 1, 2025, and annu-20 ally thereafter, a State shall contract with an ap-21 proved auditing entity (as defined under paragraph 22 (3)(B)) for purposes of conducting an audit under 23 paragraph (2) (with respect to the fiscal year ending 24 September 30 of such year). 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 7 •HR 369 IH (2) AUDIT REQUIREMENT .—Under a contract 1 under paragraph (1), an approved auditing entity 2 shall conduct an audit of the expenditures or trans-3 fers made by a State from amounts received under 4 a grant under section 4, with respect to the fiscal 5 year which such audit covers, to determine the ex-6 tent to which such expenditures and transfers were 7 expended in accordance with section 4. 8 (3) E NTITY CONDUCTING AUDIT .— 9 (A) I N GENERAL.—With respect to a 10 State, the audit under paragraph (2) shall be 11 conducted by an approved auditing entity in ac-12 cordance with generally accepted auditing prin-13 ciples. 14 (B) A PPROVED AUDITING ENTITY .—For 15 purposes of this section, the term ‘‘approved 16 auditing entity’’ means, with respect to a State, 17 an entity that is— 18 (i) approved by the Secretary of the 19 Treasury; 20 (ii) approved by the chief executive of-21 ficer of the State; and 22 (iii) independent of any Federal, 23 State, or local agency. 24 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 8 •HR 369 IH (4) SUBMISSION OF AUDIT .—Not later than 1 April 30, 2026, and annually thereafter, a State 2 shall submit the results of the audit under para-3 graph (2) (with respect to the fiscal year ending on 4 September 30 of such year) to the State legislature 5 and to the Secretary of the Treasury. 6 (b) R EIMBURSEMENT AND PENALTY.—If, through an 7 audit conducted under subsection (a), an approved audit-8 ing entity finds that a State violated the requirements of 9 subsection (d) or (e) of section 4, the State shall pay to 10 the Treasury of the United States 100 percent of the 11 amount of State funds that were used in violation of sec-12 tion 4 as a penalty. Insofar as a State fails to pay any 13 such penalty, the Secretary of the Treasury shall offset 14 the amount not so paid against the amount of any grant 15 otherwise payable to the State under this Act. 16 (c) A NNUALREPORTINGREQUIREMENTS.— 17 (1) I N GENERAL.—Not later than January 31, 18 2026, and annually thereafter, each State shall sub-19 mit to the Secretary of the Treasury and the State 20 legislature a report on the activities carried out by 21 the State during the most recently completed fiscal 22 year with funds received by the State under a grant 23 under section 4 for such fiscal year. 24 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 9 •HR 369 IH (2) CONTENT.—A report under paragraph (1) 1 shall, with respect to a fiscal year— 2 (A) contain the results of the audit con-3 ducted by an approved auditing entity for a 4 State for such fiscal year, in accordance with 5 the requirements of subsection (a) of this sec-6 tion; 7 (B) specify the amount of the grant made 8 to the State under section 4; and 9 (C) be in such form and contain such other 10 information as the State determines is nec-11 essary to provide— 12 (i) an accurate description of the ac-13 tivities conducted by the State for the pur-14 pose described under section 4; and 15 (ii) a complete record of the purposes 16 for which amounts were expended in ac-17 cordance with this section. 18 (3) P UBLIC AVAILABILITY.—A State shall make 19 copies of the reports required under this section 20 available on a public website and shall make copies 21 available in other formats upon request. 22 (d) F AILURETOCOMPLYWITHREQUIREMENTS.— 23 The Secretary of the Treasury shall not make any pay-24 ment to a State under a grant authorized by section 4— 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 10 •HR 369 IH (1) if an audit for a State is not submitted as 1 required under subsection (a) during the period be-2 tween the date such audit is due and the date on 3 which such audit is submitted; 4 (2) if a State fails to submit a report as re-5 quired under subsection (c) during the period be-6 tween the date such report is due and the date on 7 which such report is submitted; or 8 (3) if a State violates a requirement of section 9 4 during the period beginning on the date the Sec-10 retary becomes aware of such violation and the date 11 on which such violation is corrected by the State. 12 (e) A DMINISTRATIVE SUPERVISION AND OVER-13 SIGHT.— 14 (1) L IMITED ROLE FOR SECRETARY OF THE 15 TREASURY.—The authority of the Secretary of the 16 Treasury under this Act is limited to— 17 (A) promulgating regulations, issuing 18 rules, or publishing guidance documents to the 19 extent necessary for purposes of implementing 20 subsection (a)(3)(B), subsection (b), and sub-21 section (d); 22 (B) making payments to the States under 23 grants under section 4; 24 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 11 •HR 369 IH (C) approving entities under subsection 1 (a)(3)(B) for purposes of the audits required 2 under subsection (a); 3 (D) withholding payment to a State of a 4 grant under subsection (d) or offsetting a pay-5 ment of such a grant to a State under sub-6 section (b); and 7 (E) exercising the authority relating to 8 nondiscrimination that is specified in section 9 6(b). 10 (2) L IMITED ROLE FOR ATTORNEY GENERAL .— 11 The authority of the Attorney General to supervise 12 the amounts received by a State under section 4 is 13 limited to the authority under section 6(b). 14 (f) R ESERVATION OF STATEPOWERS.—Nothing in 15 this section shall be construed to limit the power of a 16 State, including the power of a State to pursue civil and 17 criminal penalties under State law against any individual 18 or entity that misuses, or engages in fraud or abuse re-19 lated to, the funds provided to a State under section 4. 20 SEC. 6. NONDISCRIMINATION PROVISIONS. 21 (a) N ODISCRIMINATIONAGAINSTINDIVIDUALS.— 22 No individual shall be excluded from participation in, de-23 nied the benefits of, or subjected to discrimination under, 24 any program or activity funded in whole or in part with 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 12 •HR 369 IH amounts paid to a State under section 4 on the basis of 1 such individual’s— 2 (1) disability under section 504 of the Rehabili-3 tation Act of 1973 (29 U.S.C. 794); 4 (2) sex under title IX of the Education Amend-5 ments of 1972 (20 U.S.C. 1681 et seq.); or 6 (3) race, color, or national origin under title VI 7 of the Civil Rights Act of 1964 (42 U.S.C. 2000d 8 et seq.). 9 (b) C OMPLIANCE.— 10 (1) I N GENERAL.—If the Attorney General de-11 termines that a State or an entity that has received 12 funds from amounts paid to a State under a grant 13 under section 4 has failed to comply with a provision 14 of law referred to in subsection (a), the Secretary of 15 the Treasury shall notify the chief executive officer 16 of the State of such failure to comply and shall re-17 quest that such chief executive officer secure such 18 compliance. 19 (2) E NFORCEMENT.—If, not later than 60 days 20 after receiving notification under paragraph (1), the 21 chief executive officer of a State fails or refuses to 22 secure compliance with the provision of law referred 23 to in such notification, the Attorney General may— 24 (A) institute an appropriate civil action; or 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 13 •HR 369 IH (B) exercise the powers and functions pro-1 vided under section 505 of the Rehabilitation 2 Act of 1973 (29 U.S.C. 794a), title IX of the 3 Education Amendments of 1972 (20 U.S.C. 4 1681 et seq.), or title VI of the Civil Rights Act 5 of 1964 (42 U.S.C. 2000d et seq.) (as applica-6 ble). 7 SEC. 7. TRANSFER OF CERTAIN DEPARTMENT OF EDU-8 CATION PROGRAMS. 9 (a) T RANSFER OFCERTAINPROGRAMS.—Not later 10 than 24 months after the date of the enactment of this 11 Act— 12 (1) each job training program under the juris-13 diction of the Department of Education, including 14 the Carl D. Perkins Career and Technical Education 15 Act of 2006 (20 U.S.C. 2301 et seq.), shall be trans-16 ferred to the Department of Labor; 17 (2) each special education grant program under 18 the Individuals with Disabilities Education Act (20 19 U.S.C. 1460 et seq.) shall be transferred to the De-20 partment of Health and Human Services; 21 (3) each Indian education program under the 22 jurisdiction of the Department of Education shall be 23 transferred to the Department of the Interior; 24 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 14 •HR 369 IH (4) each Impact Aid program under title VIII 1 of the Elementary and Secondary Education Act of 2 1965 (20 U.S.C. 7701 et seq.) shall be transferred 3 to the Department of Defense; 4 (5) the Federal Pell Grant program under title 5 IV of the Higher Education Act of 1965 (20 U.S.C. 6 1070a) shall be transferred to the Department of 7 the Treasury; 8 (6) each Federal student loan program under 9 the jurisdiction of the Department of Education 10 shall be transferred to the Department of the Treas-11 ury; 12 (7) each program under the jurisdiction of the 13 Institute of Education Sciences shall be transferred 14 to the Department of Health and Human Services; 15 and 16 (8) each program under the jurisdiction of the 17 D.C. Opportunity Scholarship Program shall be 18 transferred to the Department of Health and 19 Human Services. 20 (b) L IMITATION ONTRANSFER OFCERTAINPRO-21 GRAMS.—The transfer of programs pursuant to subsection 22 (a) is limited to only the transfer of administrative respon-23 sibility as provided by law or the delegation of authority 24 pursuant to law and does not extend to the transfer of 25 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 15 •HR 369 IH personnel employed by the Department of Education to 1 carry out such programs. 2 SEC. 8. GAO REPORT. 3 Not later than 90 days after the date of the enact-4 ment of this Act, the Comptroller General of the United 5 States shall submit to the Committee on Education and 6 the Workforce of the House of Representatives and the 7 Committee on Health, Education, Labor, and Pensions of 8 the Senate report, which shall include— 9 (1) a review and evaluation as to the feasibility 10 of enhancing the ability of States and local commu-11 nities to fund education by reducing the Federal tax 12 burden and commensurately eliminating Federal 13 Government involvement in providing grants for edu-14 cation programs; and 15 (2) an evaluation of the feasibility of the suc-16 cessor Federal agencies for maintaining the pro-17 grams to be transferred under section 7. 18 SEC. 9. PLAN FOR CLOSURE OF THE DEPARTMENT OF EDU-19 CATION. 20 Not later than 365 days after the date of the enact-21 ment of this Act, the President shall submit to the Con-22 gress a plan to implement closure of the Department of 23 Education in accordance with this Act. 24 VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS 16 •HR 369 IH SEC. 10. DEFINITIONS. 1 In this Act: 2 (1) E LEMENTARY SCHOOL ; SECONDARY 3 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec-4 ondary school’’ have the meanings given the terms 5 in section 8101 of the Elementary and Secondary 6 Education Act of 1965 (20 U.S.C. 7801). 7 (2) I NSTITUTION OF HIGHER EDUCATION .—The 8 term ‘‘institution of higher education’’ has the 9 meaning given the term in section 102 of the Ele-10 mentary and Secondary Education Act of 1965 (20 11 U.S.C. 1002). 12 (3) S TATE.—The term ‘‘State’’ has the mean-13 ing given the term in section 103 of the Higher 14 Education Act of 1965 (20 U.S.C. 1003). 15 Æ VerDate Sep 11 2014 02:50 Feb 11, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6301 E:\BILLS\H369.IH H369 ssavage on LAPJG3WLY3PROD with BILLS