Trump Eyes Education Department Overhaul: DEI Grants Scrutinized, Student Loan Program Faces Uncertainty

President Trump addressed Congress, highlighting over $1 billion in DEI grants spent by the Department of Education under the previous administration, as revealed by Parents Defending Education. Erika Sanzi, from Parents Defending Education, clarified that dismantling the department requires Congressional approval, not just executive action. Sanzi noted that funds for special education and Title 1 are protected by federal law. The DEI grants, according to Sanzi, were largely allocated to race-based and LGBTQ+ initiatives. Separately, Trump's administration is considering restructuring the Department of Education's financial arm, which manages $1.64 trillion in student loan debt. Options under consideration include transferring the loan portfolio to the Treasury, Commerce, or Small Business Administration. The Heritage Foundation's Project 2025 suggests creating a new agency for future lending, shifting the government's role to guaranteeing loans issued by other entities. Currently, about 40% of loans are delinquent. The Department of Education has already eliminated applications for income-driven repayment plans from its website. Staff reductions are underway, with approximately a quarter of the Student Aid division's 1,500 employees departing. Further layoffs are anticipated.