What The Department of Education Actually Does: A Parent’s Essential Guide

The Department of Education manages a staggering $268 billion budget in 2024, a dramatic increase from just $14 billion when it was established in 1979. Despite this massive financial responsibility, it operates with the smallest staff of all Cabinet agencies—just over 4,000 employees as of 2021.

Many of us as parents hear about the federal Department of Education in news headlines, but what does the Department of Education actually do? Certainly, its impact extends far beyond bureaucratic paperwork. The department oversees approximately $1.6 trillion in outstanding student loans for over 40 million borrowers while additionally focusing on four key functions: establishing federal financial aid policies, collecting educational data, highlighting important education issues, and ensuring equal access to education.

In this guide, we’ll explore how the Department of Education influences your child’s classroom experience, explain the sometimes confusing policies that affect local schools, and help you understand why federal education initiatives matter to your family’s educational journey.

What is the Department of Education and Why It Matters

What is the Department of Education and Why It Matters

The origin and purpose of the department

The roots of the Department of Education stretch back to 1867, initially created to collect information on schools and teaching to help states establish effective school systems. Initially, concerns about federal overreach led Congress to demote it to an Office of Education in 1868.

The office remained relatively small until the 1950s, when the Soviet Union’s Sputnik launch sparked nationwide concern about science education. Throughout the 1960s, President Johnson’s “War on Poverty” further expanded federal education funding. Finally, in October 1979, Congress passed the Department of Education Organization Act, establishing today’s Cabinet-level agency.

The department’s mission has remained consistent: “to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access”. Congress created the department to strengthen federal commitment to educational opportunity, complement state efforts, encourage parental involvement, and improve education through research.

How it supports public education across the U.S.

The Department of Education primarily supports education through two approaches. First, it leads national dialog on improving education outcomes. Second, it administers programs covering every educational level from preschool through post-doctoral research.

The department’s elementary and secondary programs annually serve:

• Nearly 18,200 school districts
• Over 50 million students in approximately 98,000 public schools
• Students in roughly 32,000 private schools

Furthermore, its programs provide grant, loan, and work-study assistance to more than 12 million postsecondary students. Notably, about 90% of public school funding comes from state and local governments, with federal funding providing the remaining 10%.

Why parents should care about federal education policy

For parents, the department’s work matters because it directly impacts your child’s educational experience. Title I funding helps schools in low-income areas secure vital resources, with half of all U.S. schools receiving this support. These funds help level the playing field by providing resources many underfunded communities couldn’t generate locally.

The department also plays a crucial role for students with disabilities through the Individuals with Disabilities Education Act (IDEA), ensuring they receive appropriate services. Moreover, the Office for Civil Rights (OCR) investigates discrimination complaints and enforces laws protecting students’ rights.

Given these points, federal education policy shapes everything from classroom resources to special education services to civil rights protections that affect your child’s daily educational experience.

Core Functions of the Department of Education

The Department of Education shapes education nationwide through five essential functions that directly impact students from kindergarten through college. These functions represent the core of how federal education policy translates into classroom realities.

Managing federal student aid and loans

The Federal Student Aid office administers over $120 billion annually in financial assistance, helping approximately 13 million students access higher education. This massive program processes more than 21 million FAFSA applications yearly, making it the largest provider of student financial aid in the nation. Through grants, work-study opportunities, and low-interest loans, the department makes college possible for millions who might otherwise lack access.

Enforcing civil rights in schools

The Office for Civil Rights (OCR) ensures equal educational opportunities by enforcing federal civil rights laws in schools receiving federal funding. OCR’s reach extends to approximately 79 million individuals across 18,100 local educational agencies and 6,000 postsecondary institutions. This office investigates discrimination complaints based on race, color, national origin, sex, disability, and age, safeguarding students’ rights throughout their educational journey.

Collecting and sharing education data

The department gathers and analyzes vital education statistics that help schools, parents, and policymakers make informed decisions. Through platforms like the Education Data Platform, institutions can share information while maintaining student privacy protections. This data collection serves as the foundation for identifying educational trends, measuring outcomes, and developing evidence-based policies.

Supporting special education and low-income schools

Through the Office of Special Education Programs, the department administers the Individuals with Disabilities Education Act (IDEA), providing essential services to children with disabilities. Simultaneously, Title I funding delivers crucial resources to schools serving low-income populations, helping close opportunity gaps in underserved communities.

Setting national education priorities

The department influences education direction through discretionary grants aligned with specific priorities. Secretary McMahon recently established priorities focused on evidence-based literacy, expanding education choice, and returning education control to states, demonstrating how federal priorities can shape classroom practices nationwide.

How the Department Impacts Your Child’s Schooling

From classroom resources to lunch trays, federal education policies directly affect your child’s daily school experience. Let’s explore four key areas where the Department of Education influences local education.

Title I funding and what it means for your school

Title I provides financial assistance to schools with high percentages of children from low-income families. Specifically, these funds support supplemental academic programs targeting reading and math skills. Your child’s school might use Title I money for:

• Extended learning time programs
• Additional instructional staff
• Technology and educational materials

Currently, Title I reaches more than 25 million students in approximately 60% of all public schools nationwide. Schools qualify when at least 40% of students come from low-income households.

Support for students with disabilities (IDEA)

The Individuals with Disabilities Education Act (IDEA) ensures children with disabilities receive appropriate education services. Under IDEA, schools must develop Individualized Education Programs (IEPs) tailored to each eligible student’s unique needs. In fact, IDEA serves nearly 7.5 million students across America, providing critical support services that might otherwise be unavailable.

Nutrition and school lunch programs

Although housed within the Department of Agriculture, school nutrition programs work in conjunction with Education Department initiatives. The National School Lunch Program serves approximately 30 million children daily, offering free or reduced-price meals to eligible students. These programs ensure your child has access to nutritious food regardless of family income.

Standardized testing and accountability measures

Standardized tests must be administered annually in grades 3–8 and once in high school, per federal education policy. Consequently, these assessments help identify achievement gaps and measure school performance. Every Student Succeeds Act (ESSA) now gives states more flexibility in designing accountability systems while still requiring interventions for consistently underperforming schools.

Recent Changes and Controversies Parents Should Know

Recent Changes and Controversies Parents Should Know

The federal education landscape is undergoing dramatic transformation under the current administration, with policies shifting rapidly in ways that directly affect students and schools nationwide.

Workforce reductions and what they mean

The Department of Education recently cut its workforce by nearly 50%, terminating more than 1,300 positions while another 600 employees accepted voluntary resignations or retirement. These reductions included closing seven of the Office of Civil Rights’ 12 regional offices. Such dramatic staffing cuts impact the department’s ability to process student loan applications, respond to civil rights complaints, and distribute federal funding to schools serving vulnerable populations.

Shifts in student loan management

Presently, student loan policies are in flux. The administration restarted interest accrual for borrowers in the SAVE Plan beginning August 1, 2025, while collections on defaulted loans resumed on May 5 after a five-year hiatus. According to reports, the administration may transfer student loan management from the Department of Education to the Treasury Department or Small Business Administration, potentially changing how federal loans are serviced.

DEI program rollbacks and investigations

The department eliminated its Diversity & Inclusion Council and withdrew its Equity Action Plan. Furthermore, it opened investigations into 45 universities for alleged Title VI violations regarding race-based programs and threatened to withhold Title I funding from schools with diversity programs. These actions follow executive orders targeting what the administration calls “radical and wasteful government DEI programs”.

Efforts to dismantle the department

In March, Secretary McMahon initiated what she termed the department’s “final mission”, coupled with an executive order to begin phasing out the Department of Education. On July 14, the Supreme Court ruled to allow the administration to continue dismantling efforts despite legal challenges. The stated goal is to “return authority over education to the States and local communities”.

Reactions from educators and lawmakers

Responses have been sharply divided. Teacher unions and parent organizations condemn the cuts, warning they will harm vulnerable students. Meanwhile, school choice advocates applaud the moves as “sending education back to the states and parents”. Democratic lawmakers have filed lawsuits to block the dismantling efforts, arguing that federal protections for student civil rights and special education funding could be jeopardized.

Conclusion

Throughout this guide, we’ve explored the Department of Education’s far-reaching influence on America’s educational landscape. Despite operating with the smallest staff among Cabinet agencies, this department manages hundreds of billions in funding while overseeing federal student loans affecting millions of borrowers.

Parents should certainly recognize how federal education policies directly impact their children’s daily school experiences. Title I funding provides essential resources for schools serving low-income communities. Meanwhile, IDEA ensures students with disabilities receive appropriate services and accommodations. These programs work alongside standardized testing requirements and nutrition initiatives to shape classroom environments nationwide.

The department’s historical evolution reflects our changing national priorities regarding education. From its humble beginnings collecting school information to today’s comprehensive agency, it has consistently aimed to promote educational excellence while ensuring equal access.

Recent developments, however, have created significant uncertainty about the department’s future. Workforce reductions, shifts in student loan management, and potential dismantling efforts could fundamentally alter federal education policy. Therefore, staying informed about these changes becomes particularly important for parents navigating their children’s educational journeys.

Regardless of political debates surrounding the department, understanding its core functions helps parents advocate effectively for their children. Whether supporting civil rights enforcement or questioning standardized testing approaches, knowledge empowers families to engage meaningfully with education systems.

As we look ahead, the relationship between federal education policy and local classrooms will undoubtedly continue evolving. Still, the fundamental goal remains unchanged – providing every child access to quality education that prepares them for future success. Ultimately, parents who understand how the Department of Education operates can better support their children through the educational system, advocating for policies that benefit all students.

FAQs

Q1. What are the main responsibilities of the Department of Education?

The Department of Education manages federal student aid, enforces civil rights in schools, collects and shares education data, supports special education and low-income schools, and sets national education priorities.

Q2. How does the Department of Education impact local schools?

It provides Title I funding for low-income schools, supports students with disabilities through IDEA, influences nutrition programs, and implements standardized testing and accountability measures.

Q3. What recent changes have occurred in the Department of Education?

Recent changes include significant workforce reductions, shifts in student loan management, rollbacks of diversity and inclusion programs, and efforts to reduce the department’s scope and authority.

Q4. How does federal education policy affect my child’s daily school experience?

Federal policies influence classroom resources, special education services, school lunch programs, and standardized testing requirements that directly impact your child’s educational environment.

Q5. Why should parents care about the Department of Education’s activities?

Understanding the department’s role helps parents advocate for their children, stay informed about policy changes affecting schools, and engage more effectively with the education system to support their child’s learning.