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Trump says dismantling the Department of Education will fix America’s lagging academics, but opponents warn it will multiply bureaucracy

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The Trump administration says its plan to dismantle the Education Department offers a fix for the nation’s lagging academics — a solution that could free schools from the strictures of federal influence.

Yet to some school and state officials, the plan appears to add more bureaucracy, with no clear benefit for students who struggle with math or reading.

Instead of being housed in a single agency, much of the Education Department’s work now will be spread across four other federal departments. For President Donald Trump, it’s a step toward fully closing the department and giving states more power over schooling. Yet many states say it will complicate their role as intermediaries between local schools and the federal government.

The plan increases bureaucracy fivefold, Washington state’s education chief said, “undoubtedly creating confusion and duplicity” for educators and families. His counterpart in California said the plan is “clearly less efficient” and invites disruption. Maryland’s superintendent raised concerns about “the challenges of coordinating efforts with multiple federal agencies.”

“States were not engaged in this process, and this is not what we have asked for — or what our students need,” said Jill Underly, Wisconsin’s state superintendent. Underly urged the Trump administration to give states greater flexibility and cut down on standardized testing requirements.

Education Secretary Linda McMahon said schools will continue receiving federal money without disruption. Ultimately, schools will have more money and flexibility to serve students without the existence of the Education Department, she said.

Yet the department is not gone — only Congress has the power to abolish it. In the meantime, McMahon’s plan leaves the agency in a version of federal limbo. The Labor Department will take over most funding and support for the country’s schools, but the Education Department will retain some duties, including policy guidance and broad supervision of Labor’s education work.

Similar deals will offload programs to the Department of Health and Human Services, the State Department and the Interior Department. The agreements were signed days before the government shutdown and announced Tuesday.

Inking agreements to share work with other departments isn’t new: The Education Department already had dozens of such agreements before Trump took office. And local school officials routinely work with other agencies, including the U.S. Agriculture Department, which oversees school meals. What’s different this time is the scale of the programs offloaded — the majority of the Education Department’s funding for schools, for instance.

Yet Virginia schools chief Emily Anne Gullickson, for one, said schools are accustomed to working with multiple federal agencies, and she welcomed the administration’s efforts to give states more control.

Where some see risk of upheaval, others see a win over bureaucracy

Response to the plan has mostly been drawn along political lines, with Democrats saying the shakeup will hurt America’s most vulnerable students. Republicans in Congress called it a victory over bureaucracy.

Yet some conservatives pushed back against the dismantling. U.S. Sen. Lisa Murkowski, an Alaska Republican, said on social media that moving programs to agencies without policy expertise could hurt young people. And Margaret Spellings, a former education secretary to Republican President George W. Bush, called it a distraction to a national education crisis.

“Moving programs from one department to another does not actually eliminate the federal bureaucracy, and it may make the system harder for students, teachers and families to navigate and get the support they need,” Spellings said in a statement.

There’s little debate about the need for change in America’s schooling. Its math and reading scores have plummeted in the wake of COVID-19. Before that, reading scores had been stagnant for decades, and math scores weren’t much better.

McMahon said that’s evidence the Education Department has failed and isn’t needed. At a White House briefing Thursday, she called her plan a “hard reset” that does not halt federal support but ends “federal micromanagement.”

Randi Weingarten, president of the American Federation of Teachers union and one of McMahon’s sharpest opponents, questioned the logic in her plan.

“Why would you put a new infrastructure together, a new bureaucracy that nobody knows anything about, and take the old bureaucracy and destroy it, instead of making the old bureaucracy more efficient?” Weingarten said at a Wednesday event.

Schools fear the impact of lost expertise on education laws

The full impact of the shakeup may not be clear for months, but already it’s stoking anxiety among states and school districts that have come to rely on the Education Department for its policy expertise. One of the agency’s roles is to serve as a hotline for questions about complicated funding formulas, special education laws and more.

The department has not said whether officials who serve that role will keep their jobs in the transition. Without that help, schools would have few options to clarify what can and can’t be paid for with federal money, said David Law, superintendent of Minnetonka Public Schools in Minnesota.

“What could happen is services are not provided because you don’t have an answer,” said Law, who is also president of AASA, a national association of school superintendents.

Some question whether other federal departments have the capacity to take on an influx of new work. The Labor Department will take over Title I, an $18 billion grant program that serves 26 million students in low-income areas. It’s going to a Labor office that now handles grants serving only 130,000 people a year, said Angela Hanks, who led the Labor office under former President Joe Biden.

At best, Hanks said, it will “unleash chaos on school districts, and ultimately, on our kids.”

In Salem, Massachusetts, the 4,000-student school system receives about $6 million in federal funding that helps support services for students who are low-income, homeless or still mastering English, Superintendent Stephen Zrike said. He fears moving those programs to the Labor Department could bring new “rules of engagement.”

“We don’t know what other stipulations will be attached to the funding,” he said. “The level of uncertainty is enormous.”

Other critics have noted the Education Department was created to consolidate education programs that were spread across multiple agencies.

Rep. Bobby Scott, D-Va., the ranking member on the House Education and Workforce Committee, urged McMahon to rethink her plan. He cited the 1979 law establishing the department, which said dispersion had resulted in “fragmented, duplicative, and often inconsistent Federal policies relating to education.”

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AP education writers Moriah Balingit in Washington, Bianca Vázquez Toness in Boston and Makiya Seminera in Raleigh, N.C., contributed to this report.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.



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SpaceX to offer insider shares at record-setting $800 billion valuation

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SpaceX is preparing to sell insider shares in a transaction that would value Elon Musk’s rocket and satellite maker at as much as $800 billion, people familiar with the matter said, reclaiming the title of the world’s most valuable private company. 

The details, discussed by SpaceX’s board of directors on Thursday at its Starbase hub in Texas, could change based on interest from insider sellers and buyers or other factors, said some of the people, who asked not to be identified as the information isn’t public. SpaceX is also exploring a possible initial public offering as soon as late next year, one of the people said. 

Another person briefed on the matter said that the price under discussion for the sale of some employees and investors’ shares is higher than $400 apiece, which would value SpaceX at between $750 billion and $800 billion. The company wouldn’t raise any funds though this planned sale, though a successful offering at such levels would catapult it past the record of $500 billion valuation achieved by OpenAI in October.

Elon Musk on Saturday denied that SpaceX is raising money at a $800 billion valuation without addressing Bloomberg’s reporting on the planned offering of insiders’ shares. 

“SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,” Musk said in a post on his social media platform X. 

The share sale price under discussion would be a substantial increase from the $212 a share set in July, when the company raised money and sold shares at a valuation of $400 billion. The Wall Street Journal and Financial Times earlier reported the $800 billion valuation target.

News of SpaceX’s valuation sent shares of EchoStar Corp., a satellite TV and wireless company, up as much as 18%. Last month, EchoStar had agreed to sell spectrum licenses to SpaceX for $2.6 billion, adding to an earlier agreement to sell about $17 billion in wireless spectrum to Musk’s company.

Subscribe Now: The Business of Space newsletter covers NASA, key industry events and trends.

The world’s most prolific rocket launcher, SpaceX dominates the space industry with its Falcon 9 rocket that lifts satellites and people to orbit.

SpaceX is also the industry leader in providing internet services from low-Earth orbit through Starlink, a system of more than 9,000 satellites that is far ahead of competitors including Amazon.com Inc.’s Amazon Leo.

Elite Group

SpaceX is among an elite group of companies that have the ability to raise funds at $100 billion-plus valuations while delaying or denying they have any plan to go public. 

An IPO of the company at an $800 billion value would vault SpaceX into another rarefied group — the 20 largest public companies, a few notches below Musk’s Tesla Inc. 

If SpaceX sold 5% of the company at that valuation, it would have to sell $40 billion of stock — making it the biggest IPO of all time, well above Saudi Aramco’s $29 billion listing in 2019. The firm sold just 1.5% of the company in that offering, a much smaller slice than the majority of publicly traded firms make available.

A listing would also subject SpaceX to the volatility of being a public company, versus private firms whose valuations are closely guarded secrets. Space and defense company IPOs have had a mixed reception in 2025. Karman Holdings Inc.’s stock has nearly tripled since its debut, while Firefly Aerospace Inc. and Voyager Technologies Inc. have plunged by double-digit percentages since their debuts.

SpaceX executives have repeatedly floated the idea of spinning off SpaceX’s Starlink business into a separate, publicly traded company — a concept President Gwynne Shotwell first suggested in 2020. 

However, Musk cast doubt on the prospect publicly over the years and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would be something that would take place more likely “in the years to come.”

The Information, citing people familiar with the discussions, separately reported on Friday that SpaceX has told investors and financial institution representatives that it’s aiming for an IPO of the entire company in the second half of next year.

Read More: How to Buy SpaceX: A Guide for the Eager, Pre-IPO

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

SpaceX is working to develop its new Starship vehicle, advertised as the most powerful rocket ever developed to loft huge numbers of Starlink satellites as well as carry cargo and people to moon and, eventually, Mars.



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National Park Service drops free admission on MLK Day and Juneteenth while adding Trump’s birthday

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The National Park Service will offer free admission to U.S. residents on President Donald Trump’s birthday next year — which also happens to be Flag Day — but is eliminating the benefit for Martin Luther King Jr. Day and Juneteenth.

The new list of free admission days for Americans is the latest example of the Trump administration downplaying America’s civil rights history while also promoting the president’s image, name and legacy.

Last year, the list of free days included Martin Luther King Jr Day and Juneteenth — which is June 19 — but not June 14, Trump’s birthday.

The new free-admission policy takes effect Jan. 1 and was one of several changes announced by the Park Service late last month, including higher admission fees for international visitors.

The other days of free park admission in 2026 are Presidents Day, Memorial Day, Independence Day, Constitution Day, Veterans Day, President Theodore Roosevelt’s birthday (Oct. 27) and the anniversary of the creation of the Park Service (Aug. 25).

Eliminating Martin Luther King Jr. Day and Juneteenth, which commemorates the day in 1865 when the last enslaved Americans were emancipated, removes two of the nation’s most prominent civil rights holidays.

Some civil rights leaders voiced opposition to the change after news about it began spreading over the weekend.

“The raw & rank racism here stinks to high heaven,” Harvard Kennedy School professor Cornell William Brooks, a former president of the NAACP, wrote on social media about the new policy.

Kristen Brengel, a spokesperson for the National Parks Conservation Association, said that while presidential administrations have tweaked the free days in the past, the elimination of Martin Luther King Jr. Day is particularly concerning. For one, the day has become a popular day of service for community groups that use the free day to perform volunteer projects at parks.

That will now be much more expensive, said Brengel, whose organization is a nonprofit that advocates for the park system.

“Not only does it recognize an American hero, it’s also a day when people go into parks to clean them up,” Brengel said. “Martin Luther King Jr. deserves a day of recognition … For some reason, Black history has repeatedly been targeted by this administration, and it shouldn’t be.”

Some Democratic lawmakers also weighed in to object to the new policy.

“The President didn’t just add his own birthday to the list, he removed both of these holidays that mark Black Americans’ struggle for civil rights and freedom,” said Democratic Sen. Catherine Cortez Masto of Nevada. “Our country deserves better.”

A spokesperson for the National Park Service did not immediately respond to questions on Saturday seeking information about the reasons behind the changes.

Since taking office, Trump has sought to eliminate programs seen as promoting diversity across the federal government, actions that have erased or downplayed America’s history of racism as well as the civil rights victories of Black Americans.

Self-promotion is an old habit of the president’s and one he has continued in his second term. He unsuccessfully put himself forwardfor the Nobel Peace Prize, renamed the U.S. Institute of Peace after himself, sought to put his name on the planned NFL stadium in the nation’s capital and had a new children’s savings program named after him.

Some Republican lawmakers have suggested putting his visage on Mount Rushmore and the $100 bill.



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JPMorgan CEO Jamie Dimon says Europe has a ‘real problem’

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JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called out slow bureaucracy in Europe in a warning that a “weak” continent poses a major economic risk to the US.

“Europe has a real problem,” Dimon said Saturday at the Reagan National Defense Forum. “They do some wonderful things on their safety nets. But they’ve driven business out, they’ve driven investment out, they’ve driven innovation out. It’s kind of coming back.”

While he praised some European leaders who he said were aware of the issues, he cautioned politics is “really hard.” 

Dimon, leader of the biggest US bank, has long said that the risk of a fragmented Europe is among the major challenges facing the world. In his letter to shareholders released earlier this year, he said that Europe has “some serious issues to fix.”

On Saturday, he praised the creation of the euro and Europe’s push for peace. But he warned that a reduction in military efforts and challenges trying to reach agreement within the European Union are threatening the continent.

“If they fragment, then you can say that America first will not be around anymore,” Dimon said. “It will hurt us more than anybody else because they are a major ally in every single way, including common values, which are really important.”

He said the US should help.

“We need a long-term strategy to help them become strong,” Dimon said. “A weak Europe is bad for us.”

The administration of President Donald Trump issued a new national security strategy that directed US interests toward the Western Hemisphere and protection of the homeland while dismissing Europe as a continent headed toward “civilizational erasure.”

Read More: Trump’s National Security Strategy Veers Inward in Telling Shift

JPMorgan has been ramping up its push to spur more investments in the national defense sector. In October, the bank announced that it would funnel $1.5 trillion into industries that bolster US economic security and resiliency over the next 10 years — as much as $500 billion more than what it would’ve provided anyway. 

Dimon said in the statement that it’s “painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing.”

Investment banker Jay Horine oversees the effort, which Dimon called “100% commercial.” It will focus on four areas: supply chain and advanced manufacturing; defense and aerospace; energy independence and resilience; and frontier and strategic technologies. 

The bank will also invest as much as $10 billion of its own capital to help certain companies expand, innovate or accelerate strategic manufacturing.

Separately on Saturday, Dimon praised Trump for finding ways to roll back bureaucracy in the government.

“There is no question that this administration is trying to bring an axe to some of the bureaucracy that held back America,” Dimon said. “That is a good thing and we can do it and still keep the world safe, for safe food and safe banks and all the stuff like that.”



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