BIRMINGHAM, Ala. — Alabama officials are working to navigate the sweeping changes the Trump administration is making to the federal government’s role in education.
They’re still assessing the full scope of these federal education changes. With lawsuits expected or ongoing over key policies, the future remains uncertain for higher education research, student aid programs and K-12 funding.
Alabama Commission on Higher Education Executive Director Jim Purcell described the rapid shifts as “problematic.”
“The question is how do you do this? Especially how do you do this so fast?” Purcell asked at ACHE’s meeting this month.
Recent developments
The biggest shift came Thursday when President Donald Trump signed an executive order dismantling the U.S. Department of Education, aiming to shift control to the states. While details remain unclear and legal challenges are expected, the move represents a historic overhaul of federal education oversight.
Education Secretary Linda McMahon defended the decision, saying it will eliminate burdensome regulations.
“Closing the department does not mean cutting off funds from those who depend on them,” McMahon said. “We will continue to support K-12 students, students with special needs, college student borrowers, and others who rely on essential programs.”
In an op-ed published Friday on the Fox News website, McMahon said the Department of Education has failed at its mission.
“Despite more than a trillion dollars in federal spending, test scores have flatlined and millions of students remain stuck in failing government-run schools.”
In remarks Friday, Trump outlined specific changes, including transferring special education oversight to the Department of Health and Human Services and moving the $1.6 trillion federal student loan portfolio to the Small Business Administration. He claimed these reforms would position the U.S. education system to compete with top-performing countries like Norway, Sweden and Denmark.
Nearly half of the U.S. Department of Education’s 4,000-person workforce was cut earlier this month, with 1,300 employees laid off and 600 opting for retirement or resignation. The layoffs are facing legal challenges, and the final outcome remains uncertain.
Title I and Other Federal Programs
Alabama Superintendent Eric Mackey has previously expressed confidence that federal Title program funding—which supports low-income, migrant, homeless, and English learner students—will continue uninterrupted for now. However, further federal restructuring could still bring unexpected changes.
Office for Civil Rights changes
The Office for Civil Rights, which investigates discrimination complaints in K-12 and higher education, has undergone major shifts. Trump froze all ongoing OCR investigations and redirected the agency’s focus to cases involving alleged antisemitism, discrimination against white students and allowing transgender athletes in women’s sports.
The University of Alabama at Birmingham is currently under investigation for alleged civil rights violations, but beyond an allegation of “race-based scholarships and race-based segregation,” it’s unclear what the violation is. UAB officials said they are cooperating with the investigation.
In addition to slashing the OCR workforce, ProPublica reported that six regional offices were closed, though Alabama schools remain served by the Atlanta office.
Impact on higher education research
Federal education research funding has been slashed, raising concerns about the future of long-term projects. Cuts to National Institutes of Health (NIH) and National Science Foundation (NSF) grants have added financial pressure on Alabama institutions.
In 2023, NIH awarded Alabama $386 million, supporting more than 4,700 researchers. The University of Alabama at Birmingham received $414 million, ranking it among the top 1% of NIH-funded institutions. Southern Research and HudsonAlpha Institute for Biotechnology, other key research hubs in Alabama, are closely monitoring funding changes.
Purcell warned that higher education institutions are facing financial pressures on multiple fronts. Had the NIH’s proposed indirect cost cap of 15% been implemented last year, UAB alone would have lost $41 million.
“We don’t know exactly who’s on first, who’s on second,” Purcell said, referencing the confusion caused by rapidly shifting funding decisions.
Student aid and financial aid adjustments
Federal grants from the U.S. Department of Education support more than just research; they also fund work-study programs, teacher development and college readiness initiatives. One area under review is student financial aid eligibility.
Under the Biden administration, financial aid formulas placed greater weight on family wealth, inadvertently disadvantaging families with valuable assets but limited cash flow – such as farmers and small business owners. The Trump administration is reportedly looking to shift back to an income-based model.
Purcell warned that any financial aid changes could impact scholarship offerings and require adjustments by university financial aid offices.
Meanwhile, some universities nationwide have enacted hiring freezes in response to federal funding cuts. While no Alabama schools have taken this step yet, Purcell advised institutions to prepare for budget constraints by considering larger class sizes and delaying faculty hiring.
Pell Grants and student loans
On Friday, Trump reassured that Pell Grants – critical for low-income students – will be “preserved in full.” Nearly 40% of Alabama’s community college students and about 30% of four-year college students rely on Pell Grants, which amount to $7,395 per student annually.
However, student loan administration is shifting. Trump announced that the federal government’s $1.6 trillion student loan portfolio will be moved out of the U.S. Department of Education and will be overseen by the Small Business Administration.
The Student Borrower Protection Center quickly criticized the move, calling it “illegal, unserious, and a clear attempt to distract the public from the fact that Trump has broken the student loan system.”
According to federal student loan information, in Alabama, 657,200 people owe nearly $25 billion in student loans. That’s an average of $37,700, higher than the national average of $36,400 among the 45 million students with outstanding loans.
Additional loan repayment changes have fueled confusion among borrowers. The U.S. Department of Education recently suspended processing for new income-driven repayment plans, which set monthly payments based on a borrower’s earnings.
Trump also issued an executive order modifying the Public Service Loan Forgiveness program, aiming to limit eligibility for what he called “activist organizations” that do not serve the public interest. The program, created in 2007 under President George W. Bush, forgives student debt for public service workers after 10 years of qualifying payments. The order is already facing legal challenges.
Currently, borrowers enrolled in IDR plans will be allowed to maintain them through 2026. Advocates urge student loan holders to document their payment history and balances to prepare for potential policy shifts.
PreK-12 impacts
Alabama’s public schools receive about 10% of their funding from federal sources. While this may seem small, some districts—three traditional and two charter—rely on federal funding for more than 20% of their budgets.
School Meals
The U.S. Department of Agriculture, not the Department of Education, oversees school meals, so Trump’s executive order should not directly impact them. However, a COVID-era food program, which Alabama named “Farm2School,” was cut, costing Alabama farmers $16 million in lost revenue.
Special Education
Trump announced Friday that special education oversight will move to the Department of Health and Human Services. The specifics remain unclear, leaving questions about the impact on Alabama’s 50+ special education employees and ongoing programs. A March 14 memo from the U.S. Department of Education had assured state leaders that special education services would continue without interruption, but whether that assurance still holds is uncertain.