Secretary of the Department of Education Linda McMahon testified before the Senate Appropriations Labor, Health and Human Services, Education, and Related Agencies Subcommittee on June 3 and the House Education and Workforce Committee on June 4. During the hearings she addressed questions regarding the fiscal year (FY) 2026 budget, her adherence to the executive order to dismantle the department, and issues related to loan servicing.
During her testimony, McMahon faced questions regarding disruptions to loan servicing. House Education and Workforce Committee Ranking Member Bobby Scott (D-Va.) expressed concerns that the executive order directing the gradual dismantling of the Department of Education could disrupt key student loan programs and consumer protections, stating, “Support for student loan borrowers has been reduced, and the key consumer protections have been threatened. The Department of Education is being dismantled through the elimination of programs and offices without congressional approval.” McMahon also suggested that institutions should bear more of the costs when students take out loans but do not complete their degrees. Rep. Randy Fine (R-Fla.) proposed conditioning federal loans on students pursuing degrees in fields such as engineering or physics to ensure stronger economic returns, an idea McMahon indicated could be viable if institutions had more "skin in the game."
In the Senate Appropriations hearing on the Department of Education’s FY 2026 budget, Ranking Member Tammy Baldwin (D-Wis.) expressed concerns that the secretary “will attempt to illegally impound funds and dismantle the Department of Education.” McMahon reiterated that she plans to follow the law.
- Washington Highlights