President Donald Trump announced on Friday that the Small Business Administration (SBA) and the Department of Health and Human Services (HHS) will assume control over key programs previously managed by the Department of Education. The decision follows an executive order directing Education Secretary Linda McMahon to begin dismantling the department and returning education authority to states and local communities.
“I’ve decided that the SBA — the Small Business Administration, headed by Kelly Loeffler—will handle all of the student loan portfolio,” Trump stated. “We have a portfolio that’s very large, lots of loans—tens of thousands of loans. Pretty complicated deal, and that’s coming out of the Department of Education immediately.”
Additionally, Trump confirmed that special needs programs and school nutrition initiatives will now be overseen by HHS. “Bobby Kennedy will be handling special needs and all of the nutrition programs, and everything else,” he said. “Rather complex, but that’s going to be headed by and handled by Health and Human Services.”
McMahon reassured the public that closing the Department of Education would not result in funding cuts for essential programs. “We’re going to follow the law and eliminate the bureaucracy responsibly by working through Congress to ensure a lawful and orderly transition,” she said.
During an interview on Breitbart News Daily, McMahon emphasized that the move is not about defunding educational services but about streamlining federal bureaucracy. She highlighted that programs like the Individuals with Disabilities Education Act (IDEA) predate the Department of Education and will continue to be funded.
“Before the Department of Education was established in 1980, IDEA was already in place. It was what was then HEW (The Department of Health, Education, and Welfare), and Title I funding was already in place,” McMahon explained.
The executive order represents a major shift in federal education policy, reinforcing Trump’s commitment to reducing federal oversight and empowering state and local governments in education administration.