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Trump’s Plan to Cut Compliance Costs, Boost Funding for Teachers and Students

Compliance and Regulatory Technology

Business Honor - Trump’s Plan to Cut Costs, Fund Education

Business Honor
12 August, 2025

Secretary McMahon outlines reforms to reduce federal oversight and improve student outcomes.

US Education Secretary Linda McMahon last week unveiled President Donald Trump's proposal to transform the education system by reducing unnecessary compliance expenses. More than 50% of the school budget, McMahon says, is spent on complying with federal regulations instead of on students and teachers directly. During an interview with Newsmax, she criticized the allocation of funds to administrative overhead and stated clearly that such resources should be redirected to pay teachers and support student learning instead. McMahon referred to the present system as "ridiculous," calling for education dollars to be distributed directly to schools rather than spent on compliance management.

One of the focal points of Trump's reform proposal is closing down the US Department of Education. McMahon described how the department's functions would be passed to other agencies, some of which could possibly be done away with. This is aimed at reducing federal authority and eliminating layers of bureaucracy that lead to inefficiency in the education system. The administration aims to restore more authority to the communities, where teachers, parents, governors, and state superintendents would be in a position to influence education policy more.

In order to justify these reforms, McMahon referenced shocking data from the National Assessment of Educational Progress (NAEP). It indicated that 30% of eighth-grade readers are at standard, while 70% are below standard. McMahon termed this an "unacceptable statistic" and the need for change imperative. The proposed reforms aim to shift the funding and control back to the states, while keeping a keen eye on improving student achievement and halting the inefficiencies created by federal regulation.