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Threats to the Department of Education: Private Equity Replacing Public Funding

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Bibliographic Details
Title: Threats to the Department of Education: Private Equity Replacing Public Funding
Language: English
Authors: Christian Collins, Center for Law and Social Policy (CLASP)
Source: Center for Law and Social Policy, Inc. (CLASP). 2025.
Availability: Center for Law and Social Policy. 1015 15th Street NW Suite 400, Washington, DC 20005. Tel: 202-906-8000; Fax: 202-842-2885; Web site: http://www.clasp.org
Peer Reviewed: N
Page Count: 13
Publication Date: 2025
Intended Audience: Policymakers
Document Type: Reports - Descriptive
Education Level: Postsecondary Education
Descriptors: Public Support, Financial Support, Educational Finance, Public Agencies, Federal Aid, Postsecondary Education, Private Financial Support, Ownership
Abstract: Throughout the 2024 campaign cycle, post-election messaging, and proposed administrative appointments, the incoming Trump Administration has sent a clear message that undermining educational access for marginalized populations will be a priority. The most direct threat has been the repeated promise of closing the federal Department of Education (ED) in its entirety, a move that has been attempted multiple times since the department was founded in 1979 but that has failed in every instance. This brief details the threat that the new administration poses to ED and its impact on postsecondary institutions. It analyzes how there is little political will to close ED, but significant federal education funding cuts are a possibility. Next, the brief outlines how postsecondary institutions are looking to private equity firms to cover potential financial shortfalls and provides policy recommendations for institutions, policymakers, and advocates on pathways to fiscally protect the postsecondary system.
Abstractor: ERIC
Entry Date: 2026
Accession Number: ED678120
Database: ERIC
Description
Abstract:Throughout the 2024 campaign cycle, post-election messaging, and proposed administrative appointments, the incoming Trump Administration has sent a clear message that undermining educational access for marginalized populations will be a priority. The most direct threat has been the repeated promise of closing the federal Department of Education (ED) in its entirety, a move that has been attempted multiple times since the department was founded in 1979 but that has failed in every instance. This brief details the threat that the new administration poses to ED and its impact on postsecondary institutions. It analyzes how there is little political will to close ED, but significant federal education funding cuts are a possibility. Next, the brief outlines how postsecondary institutions are looking to private equity firms to cover potential financial shortfalls and provides policy recommendations for institutions, policymakers, and advocates on pathways to fiscally protect the postsecondary system.