Trump is to sign an executive order related to student loans.

Friday, Mar 7, 2025 12:01 pm ET1min read

Trump is to sign an executive order related to student loans.

The White House made waves on Wednesday when President Donald Trump signed an executive order on student loans, marking a significant shift in federal education funding [1]. This order, which fulfills Trump's campaign promises on school choice, could potentially reshape the way students access education and how taxpayer dollars are allocated.

According to CNN, the order involves multiple agencies in the effort to provide taxpayer funds to parents to pay for private schools [1]. The Department of Education, which Trump has vowed to shut down, is ordered to issue guidance on using federal funding to support scholarship programs for grade school students. The Department of Defense is instructed to submit a plan on how military families can use DOD funds to send their children to their preferred school. Similar plans are required from the secretaries of interior and health and human services.

These directives could significantly expand the reach of school choice programs, which have already gained traction in various red states across the country [1]. Vouchers and education savings accounts that allow parents to spend public funds on private schools have been implemented in some of these states, and the Trump administration's move to allow federal tax dollars to be directed to school choice could further accelerate this trend.

However, this executive order has sparked concerns among public school advocates and teachers' unions, who argue that redirecting taxpayer dollars from public schools to private schools could harm poorer public schools [1]. School districts are already grappling with budget shortfalls and a decline in public school enrollment, and the potential loss of funding could exacerbate these issues.

It remains to be seen how this executive order will be implemented and what its long-term effects on education funding will be. As the administration continues to push its "America First" agenda, the future of federal education policies is likely to be a topic of ongoing debate and discussion.

References:
[1] CNN. (2025, January 29). President Donald Trump signs executive orders on school funding, combating antisemitism. Retrieved from https://www.cnn.com/2025/01/29/politics/executive-actions-trump-school-choice/index.html

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