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President Donald Trump said Friday that the U.S. Small Business Administration would handle the student loan portfolio for the slated-for-elimination Education Department, and that the Department of Health and Human Services would handle special education services and nutrition programs.

The announcement 鈥� which raises myriad questions over the logistics to carry out these transfers of authority 鈥� came a day after  a sweeping executive order that directs Education Secretary Linda McMahon to 鈥渢ake all necessary steps to facilitate the closure鈥� of the department to the extent she is permitted to by law.

鈥淚 do want to say that I鈥檝e decided that the SBA, the Small Business Administration, headed by Kelly Loeffler 鈥� terrific person 鈥� will handle all of the student loan portfolio,鈥� Trump said Friday morning.

The White House did not provide advance notice of the announcement, which Trump made at the opening of an Oval Office appearance with Defense Secretary Pete Hegseth.

The Education Department manages student loans for millions of Americans, with a portfolio of more than $1.6 trillion, according to the White House.

In his聽聽Trump said the federal student aid program is 鈥渞oughly the size of one of the Nation鈥檚 largest banks, Wells Fargo,鈥� adding that 鈥渁lthough Wells Fargo has more than 200,000 employees, the Department of Education has fewer than 1,500 in its Office of Federal Student Aid.鈥�

鈥楨verything else鈥� to HHS

Meanwhile, Trump also said that the Department of Health and Human Services 鈥渨ill be handling special needs and all of the nutrition programs and everything else.鈥�

It is unclear what nutrition programs Trump was referencing, as the U.S. Department of Agriculture manages  and other major nutrition programs.

One of the Education Department鈥檚 core functions includes supporting students with special needs. The department is also tasked with carrying out the federal guarantee of a free public education for children with disabilities Congress approved in the Individuals with Disabilities Education Act, or IDEA.

Trump added that the transfers will 鈥渨ork out very well.鈥�

鈥淭hose two elements will be taken out of the Department of Education,鈥� he said Friday. 鈥淎nd then all we have to do is get the students to get guidance from the people that love them and cherish them, including their parents, by the way, who will be totally involved in their education, along with the boards and the governors and the states.鈥�

Trump鈥檚 Thursday order also directs McMahon to 鈥渞eturn authority over education to the States and local communities while ensuring the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely.鈥�

SBA, HHS heads welcome extra programs

Asked for clarification on the announcement, a White House spokesperson on Friday referred States Newsroom to comments from White House press secretary Karoline Leavitt and heads of the Small Business Administration and Health and Human Services Department.

Leavitt noted the move was consistent with Trump鈥檚 promise to return education policy decisions to states.

鈥淧resident Trump is doing everything within his executive authority to dismantle the Department of Education and return education back to the states while safeguarding critical functions for students and families such as student loans, special needs programs, and nutrition programs,鈥� Leavitt said. 鈥淭he President has always said Congress has a role to play in this effort, and we expect them to help the President deliver.鈥�

Loeffler and HHS Secretary Robert F. Kennedy Jr. said their agencies were prepared to take on the Education Department programs.

鈥淎s the government鈥檚 largest guarantor of business loans, the SBA stands ready to deploy its resources and expertise on behalf of America鈥檚 taxpayers and students,鈥� Loeffler said.

Kennedy, on the  X, said his department was 鈥渇ully prepared to take on the responsibility of supporting individuals with special needs and overseeing nutrition programs that were run by @usedgov.鈥�

The Education Department directed States Newsroom to McMahon鈥檚 , where she said the department was discussing with other federal agencies where its programs may end up, noting she had a 鈥済ood conversation鈥� with Loeffler and that the two are 鈥済oing to work on the strategic plan together.鈥� 

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Maine Morning Star maintains editorial independence. Contact Editor Lauren McCauley for questions: [email protected].

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