Trump administration proposes $12 billion education budget cut

06/10/2025 / By Laura Harris

The U.S. Department of Education‘s proposed budget would be reduced by 15.3 percent, dropping to $66.7 billion for fiscal year 2026.
The maximum Pell Grant award would be cut from $7,395 to $5,710 for the 2026 to 2027 academic year to address a $2.7 billion funding shortfall, though total Pell funding remains flat.
Federal Work-Study would lose $980 million, with employers now required to cover 75 percent of student wages (up from 25 percent).
TRIO and GEAR UP, programs aiding disadvantaged students, would be eliminated to save over $2.13 billion.
The administration cites nearly $90 million in aid to ineligible recipients, including the deceased, as evidence of “chronic mismanagement” and a reason to reduce federal involvement in education.

The Trump administration has slashed $12 billion from the budget of the U.S. Department of Education (ED), including deep cuts to Pell Grants and the elimination of key college access programs in its proposal for the fiscal year 2026 budget.

According to the fiscal year 2026 budget proposal, released on May 30, the funding of the Education Department would drop to $66.7 billion – a 15.3 percent decrease from 2025 levels. The plan involves cutting the maximum Pell Grant award from $7,395 to $5,710 for the 2026 to 2027 academic year, reverting it to the amount offered during President Donald Trump’s first term. Although overall Pell Grant funding would remain unchanged, administration officials argue that the cut is needed to cover a $2.7 billion deficit and avoid additional financial pressure.

The plan also targets other forms of federal student aid. The Federal Work-Study program would see a $980 million cut and the federal share of student wages would shrink dramatically – from 75 percent to just 25 percent – placing the majority of the cost on employers.

It also eliminates two major programs that help disadvantaged students: TRIO and GEAR UP. Together, the cuts would save over $2.13 billion. The administration characterized both programs as ineffective or misaligned with ED’s core mission, suggesting that support for such services should instead come from state and local governments or private sources.

For K to 12 education, the budget maintains funding for Title I-A ($18.4 billion) and IDEA Part B ($14.9 billion), which support low-income students and those with disabilities, respectively. However, 18 other K–12 grant programs totaling $6.5 billion would be consolidated into a new, streamlined “Simplified Education Fund” of just $2 billion – effectively a 70 percent reduction. States would be given wide leeway in how to use these funds.

“Overall, this request reflects the Department’s commitment to returning education to the States,” the document read. “Balancing the provision of support with the responsibility of each student to choose their own path and work toward a post-secondary credential and restoring the rightful role and responsibility of State oversight in and support of higher education.”

Trump: ED’s chronic mismanagement puts access to post-secondary education at risk

The budget cut proposal follows a sweeping internal review from the department that revealed nearly $90 million in aid distributed to ineligible recipients, including more than $30 million granted to deceased individuals over the past three years.

In a press release on May 28, the department also identified improper payments to individuals granted immigration parole status – a temporary designation from the Department of Homeland Security that does not qualify recipients for federal student aid.

The Trump administration pointed to these findings as proof of “chronic mismanagement,” which “puts students’ and families’ access to post-secondary education at risk.” Thus, cutting the education budget. (Related: Trump moves to dismantle Department of Education, sparking legal and political showdown.)

“The President is committed to fulfilling his promise to preserve the Pell Grant program,” the budget proposal read. “However, the growing funding shortfall created by past congressional decisions makes it necessary to decrease the maximum award. The administration looks forward to working with Congress to develop a long-term, sustainable solution.”

Check out Trump.news for more stories like this.

Watch the video below that talks about the Trump administration’s move to dismantle ED.

This video is from the Neroke-5 channel on Brighteon.com.