President Donald Trump signed an executive order on Thursday aimed at dismantling the U.S. Department of Education, a move that significantly reduces federal oversight in public education and student financial aid.

The department, which manages the nation’s $1.6 trillion student loan portfolio and enforces civil rights protections in schools, cannot be fully abolished without congressional approval. However, the administration can limit its influence by cutting resources and personnel.

Earlier this month, nearly half of the department’s workforce was laid off, reducing staff to 2,183 employees from 4,133 when Trump took office in January. White House Press Secretary Karoline Leavitt stated that key functions, including federal student loan operations, would continue under the downsized agency.

Critics warn the decision will have severe consequences for students and families. Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending, called the move detrimental. “Today’s decision does not serve the interests of students or families,” she said in a statement. “It weakens public education, abandons civil rights enforcement, and prioritizes corporate interests over the fundamental right to a quality education.”

The Department of Education was established in 1979 under President Jimmy Carter and has faced previous threats to its existence. Former President Ronald Reagan advocated for its elimination, and during his first term, Trump proposed merging it with the Department of Labor.

With the latest order, the administration takes its most aggressive step yet in curbing federal oversight of education, raising concerns over how states and local districts will manage critical funding and protections.