The Feds Flunked, Now It’s the States’ Turn.

Decentralizing Education: How States Can Succeed Where the Federal Government Has Failed

For over 40 years, the U.S. Department of Education (DOE) has been tasked with overseeing education through federal mandates, data collection, and billions in funding. Despite this, American students are falling behind, and taxpayers are footing an enormous bill with minimal results. The question now is: Would we be better off without the DOE?

The answer is simply yes.

The Case for State Control: Letting States Compete and Win

One of the great strengths of the United States is that each state has the freedom to govern in ways that best serve its people. This system of federalism allows competition among states, driving improvement, innovation, and efficiency. When states compete on education, students benefit, taxpayers save, and schools are more responsive.

Historical Precedent: Education Before the DOE

Before the Department of Education’s creation in 1979, states controlled their own schools, and many urban minority communities had higher literacy and math scores than students today. In this pre-DOE era:

• Education spending was lower, but outcomes were higher in many regions.

• Schools reflected local values, had higher parental involvement, and were more accountable to their communities.

Since federal involvement expanded, test scores have stagnated or declined, while spending has skyrocketed.

The Cost of Federal Oversight: Billions with Little to Show

The U.S. spends over $260 billion annually on K–12 education. According to the National Center for Education Statistics (NCES), per-pupil spending is over $13,000—one of the highest in the world.

Despite this:

• 33% of 8th graders read below basic level (NAEP 2023).

• 40% of 4th graders read below basic level—the worst performance in two decades.

• 54% of U.S. adults read below a 6th-grade level (National Literacy Institute, 2024).

Compare this to Japan (99% literacy), Cuba (100%), and Seychelles (96.2%).  All spending less per student while achieving better results.

Financial Waste: Where Does the Money Go?

Federal funds often never reach the classroom. According to a 2021 report by the Heritage Foundation, only about 65 cents of every education dollar goes directly to instruction—the rest is absorbed by administration and bureaucracy.

Let’s examine where the money is going and what taxpayers are getting in return. Here are key programs under the DOE, their approved funding, and their intended outcomes:

Program

Purpose

Annual Funding (USD)

Title I, Part A

Support low-income schools

$16.1 billion

Title II, Part A

Improve teacher and principal quality

$2.1 billion

Title III, Part A

Support English Learners and Immigrant students

$797 million

Title IV, Part A/B

Improve learning environments; after-school programs

$2.5 billion

IDEA Part B (Special Education)

Support children with disabilities

$12.9 billion

McKinney-Vento (Homeless Students)

Support homeless student access to education

$106 million

Despite over $35 billion annually just in these programs, the U.S. has not significantly improved in core academic areas. Not only that, many of these funds are filtered through layers of federal, state, and district administration, reducing the amount that reaches classrooms.

By returning control and funding to states, we could:

• Cut waste from federal bureaucracy.

• Redirect billions to teachers, student resources, and infrastructure.

• Save taxpayers billions each year, while improving outcomes.

Evidence of Success: States That Control Their Own Programs Thrive

Several states have taken steps to assert more local control—and the data supports the move:

Florida

• Launched literacy-focused reforms in early grades.

• Expanded school choice, allowing families to choose programs that work.

• Result: 4th grade reading scores rose faster than national average (NAEP 2019).

Texas

• Developed career and technical education (CTE) programs tied to local industries.

• Result: Higher graduation rates and better workforce readiness among high school students.

Arizona

• Leads in education choice, with Education Savings Accounts (ESAs) giving families control over funding.

• Result: Students in choice programs show academic growth in reading and math (EdChoice 2022).

State Competition = Better Results

When states have control:

• They adopt best practices from high-performing peers.

• Low-performing states are pressured to improve or risk losing families and businesses.

• Policies reflect local needs, not a distant federal agenda.

College Costs and Debt: A DOE-Driven Crisis

The DOE’s role in higher education has contributed to the student loan crisis:

• $1.77 trillion in total student loan debt (Federal Reserve, 2024).

• Average borrower owes $29,000 after undergrad.

Why? Because federal student loans are issued without limits—colleges raise tuition, knowing the DOE will cover it.

No Accountability = No Incentive to Improve

In today’s system:

• Schools are paid whether students succeed or fail.

• There is no tie between federal aid and student outcomes.

• Colleges profit, students struggle, and taxpayers foot the bill.

With modified or replaced DOE control:

• Colleges would be forced to lower tuition to attract students.

• Students would graduate with less debt, improving credit scores, housing access, and job opportunities.

Local Control = Higher Accountability

In a state-run system:

• Parents have a stronger voice in curriculum and school policy.

• Schools are accountable to local boards, not federal regulators.

• Flexibility allows quick responses to community needs.

States can focus on outcomes, not compliance. This means better reading scores, stronger math proficiency, and real-world skills—measured by results, not federal paperwork.

What About Fairness? What About Accountability?

Some people say federal oversight is needed to keep things fair. But if the federal government was so good at fairness, we wouldn’t have millions of students stuck in failing schools right now.

Local control means real accountability—parents, school boards, and communities can demand better from their schools. It’s easier to fix a local problem than to hope someone in D.C. will fix it for you.

The Path Forward: Empower the States, Empower Our Students

The Department of Education has had over 40 years, billions of dollars, and complete oversight. The results:

• Worse literacy and math scores.

• Crippling student debt.

• Bloated bureaucracy, with little classroom impact.

It’s time to trust the states again. Let them compete, innovate, and serve their communities. Let education be responsive, efficient, and accountable—not dictated by Washington.

Final Word: Education Reform Starts with Trusting the States

The evidence is overwhelming: centralized control has failed. By dismantling the Department of Education, we can:

• Save billions,

• Raise standards,

• And help students thrive through state-led accountability and competition.

It’s not just an idea—it’s a necessary step toward restoring excellence in American education. Let’s return education to those who know their students best—the states, the schools, and the families.

Dr. Nichele Buchanan

The Akar Institute