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Student loans, Pell grants will continue despite Education Department downsizing, expert says

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Student loans, Pell grants will continue despite Education Department downsizing, expert says

As President Donald Trump moves to downsize and eventually dismantle the Department of Education, an expert in contact with White House stakeholders assured that the department’s programs, including funding, student loans and civil rights protections, will continue.

“They want to make sure, especially with things like Title I schools for disadvantaged students, and high poverty areas to civil rights protections for girls in sports, to race equality in education through Title Six will continue to be enforced through the federal Department of Education until and unless those burdens, those responsibilities, can be shifted to other departments, and that would take place by congressional action,” Sarah Parshall Perry, top legal expert at Heritage Foundation, told Fox News Digital in an interview.

Trump signed a long-anticipated executive order Thursday to do away with the Education Department and directed Education Secretary Linda McMahon to initiate the shutdown process and transfer key functions, such as Pell Grants and Title I funding, to other federal agencies.

DEPARTMENT OF EDUCATION SIGNIFICANTLY DISMANTLED IN NEW TRUMP EXECUTIVE ORDER

President Donald Trump vowed on the campaign trail to eliminate the Department of Education and bring power over education policy to the states. (Getty Images)

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Perry said Thursday’s order “is going to be the first step in a very long, consistent, labor-intensive process to be able to continue the work of downsizing.”

“Which is exactly what we’ve seen the Department of Education already do, but also specifically continue enforcing civil rights and financial aid responsibility through the federal government until those particular duties are passed to other agencies,” she said.

For instance, Perry said, civil rights enforcement would shift to the Department of Justice, while student loan processes would be handled by the Department of the Treasury.

“They fully understand, and this is gratifying to hear that the White House has to work with Congress to offload the full responsibilities to other agencies and to ultimately unwind the Department of Education,” she added.

INJUNCTION LIFTED ON TRUMP EXECUTIVE ORDERS SLASHING FEDERAL DEI SUPPORT

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President Donald Trump has tapped Linda McMahon to lead the Department of Education. (Reuters)

Perry said the initial cuts so far within the agency have been narrowly focused on slashing critical race theory and diversity, equity and inclusion initiatives, in line with Trump’s other executive orders.

“But the only two provisions in the executive order are taking legal steps to continue narrowing the agency’s focus and continuing to enforce civil rights and administer ongoing federal financial programs, because those duties cannot be offloaded to other agencies without shifting the burden by congressional action,” she said.

Students attending college or private schools with student loans or Pell grants will continue to receive their federal funding under Trump’s order. Perry said there is “a misconception” that schools would be forced to close or raise taxes due to budget shortfalls caused by downsizing the department, but “federal taxpayer spending actually makes up less than 10% per pupil funding in the state, so the remaining amount is generally split between local and state taxpayers, not federal taxpayers.”

Since its establishment in 1979, the Education Department’s budget has grown from approximately $14 billion to about $268 billion in Fiscal Year 2024, accounting for 4% of total federal spending, according to the Office of Management and Budget.

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Prior to the department’s creation, federal student loans were administered through the Guaranteed Student Loan Program, established in 1965 under the Higher Education Act. This program involved the federal government guaranteeing loans provided by banks and non-profit lenders to students attending eligible institutions.

SCHOOL CHOICE ACTIVISTS WARN PARENTS ABOUT BLUE STATE’S HOMESCHOOL BILL WITH JAIL-TIME PROVISION

The Department of Education was established by an act of Congress in 1979. (Erin Scott/Bloomberg via Getty Images)

 

Perry said the focus should be on strengthening education at the state and local levels, while ensuring continued federal oversight of student loans, civil rights laws, and Title One funding for underprivileged and low-income students.

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“So the federal government is always going to have a responsibility to enforce, apply and sort of interpret and send these particular protections and their financial associations,” Perry said.

She suggested that these federal programs could be separated or “divested” from the Department of Education, meaning the department’s role in administering them can be reduced or transferred to other agencies.

Trump’s executive order fulfills a major campaign promise, aiming to restore local control of education and back school choice amid the ongoing culture war.

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Crews Drape Tarp Over White House in Latest Trump Restoration

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Construction workers unfurled a large printed tarp to cover scaffolding installed at the White House’s front entrance. Doug Burgum, the interior secretary, said President Trump had ordered the repairs after noticing damage to columns.

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WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices

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WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices

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Energy Secretary Chris Wright is telling Americans not to be concerned about the possibility of another surge of sharp increases in gasoline prices as tensions with Iran have started to escalate once again.

Asked whether Americans should worry about higher prices at the pump and how the Trump administration is preparing to keep the economy stable if the conflict continues to worsen, Wright told Fox News Digital: “It has not been any good behavior from Iran that’s allowed oil to flow. It’s been the United States military.”

“That’s not changing,” he assured, speaking from the Great American State Fair on the National Mall this week.

US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ

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(Mario Tama/Getty Images) (Mario Tama/Getty Images)

With Iran striking three commercial vessels transiting the Strait of Hormuz on Monday and Tuesday, Wright doubled down in urging citizens to not credit Iran for the U.S. military’s work to ensure oil shipments continue flowing through the strait.

“Look, the U.S. Military has been the key asset here,” he said. “They have assured the flow of oil and gas through the Strait of Hormuz throughout. Not at the beginning of this conflict, but through the last six weeks.”

Wright said the administration is closely monitoring global oil supplies as the tentative ceasefire with Iran seemingly came to come to a halt, with President Donald Trump telling Secretary-General Mark Rutte the call for peace with Iran is “over” at the NATO Summit in Turkey on Wednesday.

But, he pointed to the continued shipping through the Strait as evidence that markets should remain stable.

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TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE

President Donald Trump speaks at the White House on Tuesday, April 22. (AP/Alex Brandon)

“We’re of course constantly watching the supply of oil, the supply of refined products and what’s going on there,” Wright said. “And I think still all positive trends.”

Beyond geopolitical concerns, Wright also praised the new chain of discounted gas stations across Pennsylvania and New Jersey, Freedom Fuel, which promises customers prices below the national average.

The Trump administration, though not involved with the network, has heavily endorsed the new chain and its 25 locations.

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“We love it,” Wright said when asked about Freedom Fuel. “I mean, look, any mechanism we can to lower energy costs for Americans of all kinds, we’re all in on.”

“With Freedom Fuels, they’re just lowering it down to their wholesale price of gasoline,” Wright said. “So they’re not making any money selling gasoline, but they’ve got convenience stores. That’s how most gas stations make money.”

NEWSOM UNDER FIRE AS CALIFORNIA GAS TAX HIKE SENDS PUMP PRICES EVEN HIGHER

Gasoline costs are a known concern for many Americans, and amid surging prices there has been a considerable increase in those opting to purchase electric vehicles to save money long-term at the pump — with Tesla dominating the market for these types of models.

Wright argued one of the benefits to living in America is having the option to choose what type of vehicle you drive.

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“We just want people to buy what they would prefer,” he told Fox News Digital when asked his thoughts on increasing calls for support of the electrification of cars. “Consumer choice — you wanna buy an electric car, you wanna buy a gas powered car, diesel powered car, buy a big truck. That’s the choice.”

“That’s why you live in America. You get the choice of all those.”

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Black mold and $1 wages: Settlement forces immigrant detention centers to protect workers

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Black mold and  wages: Settlement forces immigrant detention centers to protect workers

In 2023, California regulators levied more than $100,000 in fines against the private operator of a federal immigration facility, kicking off a three-year battle over whether detainees who do work at the facilities should be considered employees.

The question went beyond semantics: If considered employees, the detainees would be subject to state worker protection laws.

A legal settlement announced this week now affirms that private immigrant detention facilities are subject to California’s workplace safety and health requirements.

“Every worker deserves a safe and healthy workplace and should be able to report workplace hazards without fear of retaliation,” said Denisse Gómez, spokesperson for the California Division of Occupational Safety and Health or Cal/OSHA.

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“Individuals who perform work in these facilities are entitled to workplace safety protections, and this settlement reinforces Cal/OSHA’s commitment to enforcing those protections and safeguarding vulnerable workers,” she added.

Under the settlement between California and the GEO Group, a Florida-based private prison company, the company recently withdrew its legal challenges and agreed to pay more than $100,000 in the fines.

The GEO Group did not respond to requests for comment.

Back in 2023, Cal/OSHA issued $104,510 in fines against the GEO Group. The agency had found six violations of state code by the company after detainees complained about a lack of protective equipment and proper training while cleaning the facility for $1 per day.

Detainees alleged they routinely wiped black mold off shower walls at the facility, saw black dust spew from air vents and used cleaning solutions that lacked instructions during the COVID-19 pandemic.

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The biggest fine levied against the GEO Group was for failure to establish and maintain “effective written procedures to reduce employee risk of exposure to aerosol transmissible disease.”

Advocates viewed Cal/OSHA’S recognition of the detainees as workers as a victory that could pave the way for future labor rights fights at other detention centers in the state.

But the GEO Group appealed, arguing that detainees participating in ICE’s voluntary work program make their own schedules and aren’t employees, so hazard exposure couldn’t be “as a result of assigned duties,” as California law states. Plus, the company argued, there wasn’t enough evidence that detainees were exposed to any hazard.

Early last year, the state’s Occupational Safety and Health Appeals Board rejected the GEO Group’s argument and found that detainees should be considered “affected employees.”

The GEO Group sued, but three days before a California Superior Court hearing in May, the company and Cal/OSHA reached the settlement.

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Along with paying the fines, the GEO Group agreed to draft plans for avoiding aerosol transmissions at 12 secure and reentry facilities in California, including five detention centers that hold immigrants.

“GEO ensures detainees are afforded the necessary tools, equipment, and personal protective equipment … to safely and effectively perform any necessary tasks,” the settlement states.

Gómez said the settlement also leaves intact the appeals board’s ruling that civil immigration detainees who participate in work programs can participate in proceedings anonymously, “acknowledging the potential for retaliation when individuals raise workplace safety concerns.”

But the question of whether detainees are employees and deserve certain protections isn’t entirely resolved — at least not for the federal government.

Last month, U.S. Immigration and Customs Enforcement released new standards for detention facilities across the country. The revised guidelines “emphasize that detainee volunteers participating in the voluntary work program are not considered facility and/or government employees” and thus not entitled to labor regulations.

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Attorney Mariel Villarreal said the timing of the new detention standards made her question whether the GEO Group had asked ICE to specify in its standards that detainees are not workers in response to its battle with Cal/OSHA.

“To me, it’s a reaction to this very settlement,” she said. Villarreal works for the California Collaborative for Immigrant Justice, which filed the original complaint on behalf of detainees who said they worked in unsafe conditions.

Villarreal pointed to a Washington Post report that GEO Group executives privately asked ICE to specify that detainees are not employees of the facilities where they work. Two top Trump administration officials, border czar Tom Homan and acting ICE director David Venturella, previously worked for the GEO Group.

New versions of ICE detention standards take effect as contracts are established or modified, so this year’s rules won’t immediately apply to every facility.

An ICE spokesperson did not comment about the settlement. The spokesperson, who did not provide their name in an emailed statement Wednesday, said the agency has begun transitioning detention facilities to meet the 2026 standards, “building on its longstanding commitment to safe, secure, and professional detention operations.”

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“ICE has consistently implemented many of these best practices independently, reinforcing its role as the leader in detention operations,” the spokesperson added.

The GEO Group and other immigrant detention center operators have faced other legal battles over workers’ rights, including lawsuits in Washington, Colorado and California over the $1-per-day payment.

Villarreal said she’s confident that the Cal/OSHA settlement would continue to hold even if California facilities incorporated the new standards. But she said she believes the statements are an attempt by the GEO Group to “sidestep responsibility” and avoid the possibility of being fined under similar circumstances in other states.

“These statements in the new standards are a way for them to try and preserve profits as much as possible,” she said. “GEO and ICE are so intertwined at this point that they have the same motives.”

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