President Donald Trump on Thursday signed an executive order to dismantle the U.S. Department of Education, a move that has sparked widespread debate over the future of federal funding for schools and colleges across the country.
This decision has raised concerns about the potential impact on education funding, particularly in Maryland, where federal contributions total approximately $1.6 billion for K-12 schools and $754 million for public colleges and universities. However, the full consequences of the Education Department closure remain uncertain, as the White House has yet to clarify which department functions might be reassigned to other agencies or eliminated entirely, according to the Associated Press.
White House Response and Policy Details
Despite the sweeping nature of the executive order, the White House press secretary stated Thursday morning that essential programs such as Pell grants, Title I funding, student loans, and financial aid for special education students will remain under federal oversight. She assured that a smaller version of the department would persist to handle “critical functions,” although she did not specify what that would entail.
Before signing the order, Trump reiterated that these essential services will be “redistributed to various other agencies and departments that will take very good care of them.” However, many education policy experts argue that restructuring these programs will create administrative hurdles that could delay funding disbursements, complicate financial aid processes, and disrupt key educational services.
While Trump’s executive order sets the stage for the Education Department closure, experts note that fully dismantling the department would likely require an act of Congress, as it was formally established in 1979. This legislative hurdle makes it unclear whether the order will result in a complete shutdown or a significant reduction in the department’s responsibilities.
Federal Funding for Maryland Schools
Maryland schools receive about $1.6 billion in federal funding, which accounts for less than 10% of their total budget. The state itself spent over $9 billion on education in the last fiscal year, while local city and county governments contributed an additional $8.2 billion.
A significant portion of this federal funding—approximately $313 million—goes to Title I schools, which serve high percentages of students living in poverty. The districts that stand to lose the most funding include Baltimore City, which receives $71 million, and Prince George’s County, which receives $57 million annually.
Montgomery and Baltimore counties also receive more than $40 million in Title I funds each year. These funds support additional staff, such as reading specialists and music teachers, as well as supplementary educational materials for schools. For students from low-income backgrounds, these resources play a critical role in closing achievement gaps and ensuring equitable access to quality education.
In addition to Title I funding, Maryland schools receive about $241 million in federal aid specifically for special education services. These funds help provide essential support, including specialized instruction, therapy services, and assistive technology for students with disabilities.
Additionally, federal pandemic relief funds contributed approximately $20 million to Maryland’s education budget. However, those emergency funds expired in October, leaving some districts scrambling to cover the gaps left by their absence.
“This potential chaos redoubles the importance of doing all we can in Maryland to strengthen and protect our commitment to our students, especially those coming from backgrounds of poverty, receiving special education services, or who are multilingual learners,” said Paul Lemle, president of the Maryland Education Association, the state’s largest teachers union.
Impact on Maryland’s Public Colleges and Universities
Maryland’s public colleges and universities also rely on substantial federal funding, receiving an average of $2,991 per student, according to the Education Data Initiative. This funding supports financial aid programs, research grants, and campus infrastructure projects.
Additionally, Congress has allocated $400 million through the Department of Education to support historically Black colleges and universities (HBCUs) in Maryland, including Bowie State, Coppin State, Morgan State, and the University of Maryland Eastern Shore. The future of this funding remains uncertain as lawmakers and educational leaders assess how the Education Department closure could alter financial support for these institutions.
The Maryland Higher Education Commission declined to comment on how the department’s dissolution might affect funding for state colleges. University System of Maryland Chancellor Jay Perman also declined an interview request, leaving many students and faculty members with unanswered questions.
What Happens to Federal Student Aid?
Each year, the U.S. Department of Education distributes approximately $100 billion in federal student loans to college students nationwide. These funds are managed by the Office of Federal Student Aid, which oversees a staggering $1.7 trillion in student loan debt.
In Maryland, over 45,000 low-income students rely on Pell grants to afford higher education. Although Education Secretary Linda McMahon has pledged to continue supporting Pell grants, the transition of financial aid oversight to other agencies could create significant administrative disruptions.
For instance, after the department initiated a 50% reduction in staff last week, the Free Application for Federal Student Aid (FAFSA) system experienced severe technical failures. This led to widespread frustration and confusion among students and families attempting to apply for financial aid.
“That really caused chaos for students and families,” said Veronica Goodman, senior director of workforce development at the Center for American Progress. “It really introduces concerns over what is the capacity of the department now that there have been these significant and unprecedented staff cuts, and how that will impact families.”
Civil Rights and Legal Protections for Maryland Students
Another critical function of the Department of Education is its Office for Civil Rights, which enforces laws prohibiting discrimination in educational institutions. In 2024 alone, the office received 22,687 discrimination complaints nationwide, with projections indicating that number could exceed 24,000 in 2025.
With the Education Department closure, it remains unclear which federal agency—if any—would take on the responsibility of investigating discrimination claims in schools and universities. Civil rights advocates worry that without appropriate staffing and enforcement mechanisms, protections for students experiencing discrimination could be significantly weakened.
“Without appropriate staffing of investigators and attorneys, the Office of Civil Rights will be unable to protect students from discrimination,” Goodman warned.
Trump has distanced himself from Project 2025, a conservative policy plan that includes transferring the Office for Civil Rights to the Department of Justice. However, the Trump administration has actively used the office to launch investigations into various colleges and universities. Recent cases include an inquiry into antisemitism allegations at Johns Hopkins University and an investigation into Towson University’s diversity initiatives.
Uncertain Future for Maryland’s Education System
As the implications of the Education Department closure unfold, Maryland’s schools, colleges, and students face significant uncertainty. Without clear guidance on how federal education programs will be administered in the future, educators and policymakers must navigate a rapidly shifting landscape.
While Trump’s executive order marks a major shift in federal education policy, its full implementation remains subject to legal and legislative challenges. In the meantime, Maryland’s education leaders, teachers, students, and families will be watching closely as the federal government determines the next steps.
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