[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1402 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1402

    To abolish the Department of Education, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 9, 2025

  Mr. Rounds (for himself, Mr. Banks, and Mr. Sheehy) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
    To abolish the Department of Education, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Returning Education to Our States 
Act''.

SEC. 2. ABOLISHMENT OF THE DEPARTMENT OF EDUCATION.

    (a) Termination.--Effective on the date that is 1 year after the 
date of enactment of this Act, the Department of Education is hereby 
terminated.
    (b) Repeal.--Effective on the date that is 1 year after the date of 
enactment of this Act, the Department of Education Organization Act (20 
U.S.C. 3401 et seq.) is repealed.

SEC. 3. GENERAL EDUCATION PROVISIONS ACT; FERPA.

    (a) Repeal of GEPA.--Effective on the date that is 1 year after the 
date of enactment of this Act, all sections of the General Education 
Provision Act (20 U.S.C. 1221 et seq.) are repealed, except for section 
400, section 444 (20 U.S.C. 1232g, commonly known as the ``Family 
Educational Rights and Privacy Act of 1974''), and section 460 of such 
Act.
    (b) Applicability of FERPA.--Section 444 of the General Education 
Provisions Act (20 U.S.C. 1232g, commonly known as the ``Family 
Educational Rights and Privacy Act of 1974'') shall apply to each 
program under section 102 and 203 and each program that was an 
applicable program under such Act as of the day before the effective 
date of this Act and has been transferred to another Department under 
this Act, except that references to the Secretary of Education or the 
Department of Education in such section shall be deemed to refer to the 
Secretary or department that has administrative responsibility for such 
program.

SEC. 4. TRANSFER OF CIVIL RIGHTS ENFORCEMENT.

    Effective on the date that is 1 year after the date of enactment of 
this Act, the Office of Civil Rights of the Department of Education 
shall be abolished, and the Civil Rights Division of the Department of 
Justice shall be responsible for receiving complaints and otherwise 
enforcing and carrying out Federal civil rights laws that are 
applicable to the program under section 102 and 203 and the programs 
that are transferred from the Department of Education to other 
Departments under this Act, including--
            (1) section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794);
            (2) title IX of the Education Amendments of 1972 (20 U.S.C. 
        1681 et seq.);
            (3) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
        2000d et seq.); or
            (4) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
        seq.).

              TITLE I--ELEMENTARY AND SECONDARY EDUCATION

SEC. 101. ELEMENTARY AND SECONDARY EDUCATION ACT PROGRAMS.

    (a) Functions Transferred to the Department of Interior.--Effective 
on the date that is 1 year after the date of enactment of this Act, 
there shall be transferred to the Department of the Interior the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education--
            (1) that are carried out by the Office of Indian Education 
        of the Department of Education;
            (2) under the Native American and Alaska Native Children in 
        School Program authorized under subpart 1 of part A of title 
        III of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6821 et seq.); and
            (3) under title VI of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7401 et seq.).
    (b) Functions Transferred to the Department of Defense.--Effective 
on the date that is 1 year after the date of enactment of this Act, 
there shall be transferred to the Department of Defense the functions, 
programs, authorities, personnel, assets, and liabilities of the 
programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
title VII of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7701 et seq.).

SEC. 102. ELEMENTARY AND SECONDARY EDUCATION STATE BLOCK GRANT 
              PROGRAMS.

    (a) In General.--Beginning 1 year after the date of enactment of 
this Act, the Secretary of Health and Human Services shall carry out 2 
programs under which the Secretary of Health and Human Services makes 
allocations to States to support early childhood, elementary, and 
secondary education, including career and technical education.
    (b) Allocations to States With Amounts Equal to Title I.--In 
addition to allocations under subsection (c), from amounts made 
available to carry out this subsection for a fiscal year, the Secretary 
of Health and Human Services shall allot to each State an amount that 
is equal to the amount that the State would have received for that 
fiscal year under part A of title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311 et seq.) as in effect on the day 
before the date of enactment of this Act.
    (c) Allocations to States With Other Amounts.--In addition to 
allocations under subsection (b), the Secretary of Health and Human 
Services shall carry out the following:
            (1) Reservation of funds.--From the total amount 
        appropriated to carry out this subsection for a fiscal year, 
        the Secretary of Health and Human Services shall reserve--
                    (A) one-half of 1 percent for allotments for the 
                United States Virgin Islands, Guam, American Samoa, and 
                the Commonwealth of the Northern Mariana Islands, to be 
                distributed among those outlying areas on the basis of 
                their relative need, as determined by the Secretary, in 
                accordance with the purpose of this title;
                    (B) one-half of 1 percent for the Secretary of the 
                Interior for programs under this section in schools 
                operated or funded by the Bureau of Indian Education; 
                and
                    (C) 1 percent for the Secretary of Health and Human 
                Services for the administrative costs of carrying out 
                this subsection and for providing technical assistance.
            (2) State allotments.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), from the amount appropriated to carry out this 
                subsection that remains after the Secretary of Health 
                and Human Services makes the reservations under 
                paragraph (1), the Secretary of Health and Human 
                Services shall allot to each State, an amount that 
                bears the same relationship to the remainder as the 
                number of individuals aged 5 through 17 in the State, 
                as determined by the Secretary of Health and Human 
                Services on the basis of the most recent satisfactory 
                data, bears to the number of those individuals in all 
                such States, as so determined.
                    (B) Small state minimum.--No State receiving an 
                allotment under this subsection shall receive less than 
                one-half of 1 percent of the total amount allotted 
                under this subsection.
                    (C) Puerto rico.--The amount allotted under this 
                subsection to the Commonwealth of Puerto Rico for a 
                fiscal year may not exceed one-half of 1 percent of the 
                total amount allotted under this subsection.
    (d) Use of Funds.--A State that receives an allocation under 
subsection (b) or subsection (c), or both subsections, shall use such 
funding for any purpose relating to early childhood, elementary, or 
secondary education, including career and technical education.
    (e) Block Grant Conditions.--As a condition of receiving an 
allocation under this section, a State shall provide the Secretary of 
Health and Human Services with an assurance that the State will carry 
out each of the following:
            (1) Submitting student data to the Secretary of Health and 
        Human Services, annually, as requested by the Secretary of 
        Health and Human Services and as necessary for executing the 
        program under this section.
            (2) Completing of annual audits that conform to generally 
        accepted accounting principles, auditing procedures, and 
        safeguarding of funds that conform to chapter 75 of title 31, 
        United States Code (commonly known as the ``Single Audit Act of 
        1984'') and submitting the results of such audits to the 
        Secretary of Health and Human Services.
            (3) Complying with all applicable Federal civil rights 
        laws, including those described in section 4.
    (f) Misused or Misappropriated Funds.--If the Secretary of Health 
and Human Services finds that any funds under this section have been 
misused or misappropriated by the State, the Secretary of Health and 
Human Services--
            (1) may require repayment of the misused funds and withhold 
        Federal funds under this section for the next fiscal year; or
            (2) may reach a voluntary resolution agreement with that 
        State.
    (g) Application of FERPA.--Section 444 of the General Education 
Provisions Act (20 U.S.C. 1232g, commonly known as the ``Family 
Educational Rights and Privacy Act of 1974'') shall apply to the 
program under this section, except that references to the Secretary of 
Education or the Department of Education in such section shall be 
deemed to refer to the Secretary of Health and Human Services or the 
Department of Health and Human Services.
    (h) Definitions.--In this section--
            (1) the term ``State'' means each of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and each 
        of the outlying areas; and
            (2) the term ``outlying area'' means American Samoa, the 
        Commonwealth of the Northern Mariana Islands, Guam, the United 
        States Virgin Islands, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

                       TITLE II--HIGHER EDUCATION

SEC. 201. STUDENT FINANCIAL ASSISTANCE.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of the Treasury 
the functions, programs, authorities, personnel, assets, and 
liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.).

SEC. 202. HEALTH EDUCATION ASSISTANCE LOAN PROGRAM.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of the Treasury 
the functions, programs, authorities, personnel, assets, and 
liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under the Health Education Assistance Loan program under 
title VII of the Public Health Service Act (42 U.S.C. 292 et seq.).

SEC. 203. POSTSECONDARY EDUCATION STATE BLOCK GRANT PROGRAM.

    (a) In General.--The Secretary of the Treasury shall carry out a 
program under which the Secretary makes allocations to States to 
support postsecondary education.
    (b) Allocations to States.--The allocations made by the Secretary 
of Treasury to each State under this section for a fiscal year shall be 
in an amount that bears the same relationship to the amount 
appropriated to carry out this section for the fiscal year as the 
number of students who were enrolled in postsecondary educational 
institutions in the State for the previous fiscal year bears to the 
number of such students in all States for the previous fiscal year.
    (c) Block Grant Conditions.--As a condition of receiving a block 
grant under this section, a State shall provide the Secretary of 
Treasury with an assurance that the State will carry out each of the 
following:
            (1) Submitting student data to the Secretary of Treasury, 
        annually, as requested by the Secretary of Treasury and as 
        necessary for executing the program under this section.
            (2) Completing of annual audits that conform to generally 
        accepted accounting principles, auditing procedures, and 
        safeguarding of funds that conform to chapter 75 of title 31, 
        United States Code (commonly known as the ``Single Audit Act of 
        1984'') and submitting the results of such audits to the 
        Secretary of Treasury.
            (3) Complying with all applicable Federal civil rights 
        laws, including those described in section 4.
    (d) Misused or Misappropriated Funds.--If the Secretary of Treasury 
finds that any funds under this section have been misused or 
misappropriated by the State, the Secretary of the Treasury--
            (1) may require repayment of the misused funds and withhold 
        Federal funds under this section for the next fiscal year; or
            (2) may reach a voluntary resolution agreement with that 
        State.
    (e) Definitions.--In this section--
            (1) the term ``State'' means each of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and each 
        of the outlying areas; and
            (2) the term ``outlying area'' means American Samoa, the 
        Commonwealth of the Northern Mariana Islands, Guam, and the 
        United States Virgin Islands, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the Republic 
        of Palau.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

                         TITLE III--OTHER LAWS

SEC. 301. EDUCATION SCIENCES REFORM AND RELATED LAWS.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of the Treasury 
the functions, programs, authorities, personnel, assets, and 
liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under--
            (1) the Education Sciences Reform Act of 2002 (20 U.S.C. 
        9501 et seq.);
            (2) the Educational Technical Assistance Act of 2002 (20 
        U.S.C. 9601 et seq.); and
            (3) the National Assessment of Educational Progress 
        Authorization Act (20 U.S.C. 9621 et seq.).

SEC. 302. CARL D. PERKINS CAREER AND TECHNICAL EDUCATION ACT OF 2006.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Labor the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
the Carl D. Perkins Career and Technical Education Act of 2006 (20 
U.S.C. 2301 et seq.).

SEC. 303. ADULT EDUCATION AND FAMILY LITERACY.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Labor the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
the Adult Education and Family Literacy Act (title II of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3271 et seq.)).

SEC. 304. IDEA.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Health and 
Human Services the functions, programs, authorities, personnel, assets, 
and liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under the Individuals with Disabilities Education Act (20 
U.S.C. 1400 et seq.).

SEC. 305. VOCATIONAL REHABILITATION STATE GRANTS AND OTHER ACTIVITIES 
              UNDER THE REHABILITATION ACT OF 1973.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Labor the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under--
            (1) title I of the Rehabilitation Act of 1973 (29 U.S.C. 
        720 et seq.); and
            (2) other provisions of the Rehabilitation Act of 1973 (29 
        U.S.C. 701 et seq.) (including those of the Department of 
        Education under titles III, IV, V, VI, and chapter 2 of title 
        VII of that Act).

SEC. 306. EDUCATION OF THE DEAF ACT OF 1986.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Labor the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.).

SEC. 307. RANDOLPH-SHEPPARD ACT.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Labor the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
the Act entitled ``An Act to authorize the operation of stands in 
Federal buildings by blind persons, to enlarge the economic 
opportunities of the blind, and for other purposes'', approved June 20, 
1936 (20 U.S.C. 107 et seq.)(commonly referred to as the ``Randolph-
Sheppard Act'').

SEC. 308. HELEN KELLER NATIONAL CENTER ACT.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Labor the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
the Helen Keller National Center Act (29 U.S.C. 1901 et seq.).

SEC. 309. SPECIAL OLYMPICS SPORT AND EMPOWERMENT ACT OF 2004.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Health and 
Human Services the functions, programs, authorities, personnel, assets, 
and liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under the Special Olympics Sport and Empowerment Act of 2004 
(Public Law 108-406).

SEC. 310. EDUCATION OF THE BLIND.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Health and 
Human Services the functions, programs, authorities, personnel, assets, 
and liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under the Act to Promote the Education of the Blind of March 
3, 1879.

SEC. 311. SOAR ACT.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Health and 
Human Services the functions, programs, authorities, personnel, assets, 
and liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under the Scholarships for Opportunity and Results Act 
(division C of Public Law 112-10; 125 Stat. 199).

SEC. 312. MCKINNEY-VENTO HOMELESS ASSISTANCE ACT.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of Health and 
Human Services the functions, programs, authorities, personnel, assets, 
and liabilities of the programs and activities of the Department of 
Education, and the functions and authorities vested in the Secretary of 
Education, under title VII of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11421 et seq.).

SEC. 313. FULBRIGHT-HAYS.

    Effective on the date that is 1 year after the date of enactment of 
this Act, there shall be transferred to the Department of State the 
functions, programs, authorities, personnel, assets, and liabilities of 
the programs and activities of the Department of Education, and the 
functions and authorities vested in the Secretary of Education, under 
the Fulbright-Hays Program authorized under section 102 of the Mutual 
Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2452).

                    TITLE IV--TRANSITION PROVISIONS

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the transfer of functions authorized under this 
Act, which shall be available to be expended until the date that is 180 
days after the date of enactment of this Act.

SEC. 402. REORGANIZATION PLAN.

    (a) Submission of Plan.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall transmit to 
        Congress a reorganization plan regarding the following:
                    (A) The transfer of functions, personnel, assets, 
                and liabilities in accordance with this Act.
                    (B) Any consolidation, reorganization, or 
                streamlining of functions transferred under this Act.
                    (C) Any efficiencies or cost savings achieved or 
                additional costs incurred as a result of the transfer 
                of functions, personnel, assets, and liabilities under 
                this Act, including reductions in unnecessary or 
                duplicative operations, assets, and personnel.
            (2) Consultation.--Not later than 30 days before the date 
        on which the plan is transmitted pursuant to this subsection, 
        the President shall consult with the Congress on such plan.
    (b) Modification of Plan.--The President shall consult with 
Congress before making any material modification or revision to the 
plan before the plan becomes effective in accordance with subsection 
(c).
    (c) Effective Date.--
            (1) In general.--The reorganization plan described in this 
        section, including any modifications or revisions of the plan 
        under subsection (b), shall become effective on the date 
        specified in the plan (or the plan as modified pursuant to 
        subsection (b)), except that such date may not be earlier than 
        90 days after the date the President has transmitted the 
        reorganization plan to Congress pursuant to subsection (a).
            (2) Statutory construction.--Nothing in this subsection may 
        be construed to require the transfer of functions, personnel, 
        records, balances of appropriations, or other assets of an 
        agency on a single date.

SEC. 403. TRANSITIONAL AUTHORITIES.

    (a) Provision of Assistance by Officials.--Until the transfer of 
functions required under this Act, any official having authority over, 
or functions relating to, the Department of Education on the day before 
the date of the enactment of this Act shall provide to the relevant 
Department to which such functions are transferred under this Act 
(referred to in this Act as the ``recipient Department'') such 
assistance, including the use of personnel and assets, as the recipient 
Department may request in preparing for the transfer and integration of 
the relevant functions.
    (b) Services and Personnel.--During the transition period, upon the 
request of the receiving Department, the Secretary of Education may, on 
a reimbursable or non-reimbursable basis, provide services or detail 
personnel to assist with the transition.
    (c) Transfer of Personnel, Assets, Obligations, and Functions.--
Upon the transfer of functions under this Act--
            (1) the personnel, assets, and liabilities held by or 
        available in connection with such functions at the Department 
        of Education shall be transferred to the recipient Department 
        for appropriate allocation, subject to the approval of the 
        Director of the Office of Management and Budget and in 
        accordance with section 1531(a)(2) of title 31, United States 
        Code; and
            (2) the recipient Department shall have all functions--
                    (A) relating to the transferred functions that any 
                other official could by law exercise in relation to 
                those functions immediately before such transfer; and
                    (B) vested in the recipient Department by law.

SEC. 404. SAVINGS PROVISIONS.

    (a) Completed Administrative Actions.--
            (1) In general.--Completed administrative actions of the 
        Department of Education shall not be affected by the enactment 
        of this Act or the transfer of the functions of the Department 
        of Education under this Act, but shall continue in effect 
        according to their terms until amended, modified, superseded, 
        terminated, set aside, or revoked in accordance with law by an 
        officer of the United States or a court of competent 
        jurisdiction, or by operation of law.
            (2) Completed administrative action defined.--In this 
        subsection, the term ``completed administrative action'' 
        includes orders, determinations, rules, regulations, personnel 
        actions, permits, agreements, grants, contracts, certificates, 
        policies, licenses, registrations, and privileges.
    (b) Pending Proceedings.--
            (1) In general.--Pending proceedings of the Department of 
        Education that apply to a function that is transferred to 
        another Federal Department under this Act, including notices of 
        proposed rulemaking, and applications for licenses, permits, 
        certificates, grants, and financial assistance, shall continue 
        notwithstanding the enactment of this Act or the transfer of 
        those functions under this Act, unless discontinued or modified 
        under the same terms and conditions and to the same extent that 
        such discontinuance could have occurred if such enactment or 
        transfer had not occurred.
            (2) Orders.--Orders issued in proceedings described in 
        paragraph (1), and appeals therefrom, and payments made 
        pursuant to such orders, shall issue in the same manner and on 
        the same terms as if this Act had not been enacted or the 
        functions of an agency had not been transferred, and any such 
        orders shall continue in effect until amended, modified, 
        superseded, terminated, set aside, or revoked by an officer of 
        the United States or a court of competent jurisdiction, or by 
        operation of law.
    (c) Pending Civil Actions.--Pending civil actions relating to a 
function that is transferred to another Federal Department under this 
Act shall continue notwithstanding the enactment of this Act or the 
transfer of the functions of an agency under this Act, and in such 
civil actions, proceedings shall be had, appeals taken, and judgments 
rendered and enforced in the same manner and with the same effect as if 
such enactment or transfer had not occurred.
    (d) References.--References relating to the Department of Education 
that are relevant to functions that are transferred to another Federal 
Department under this Act in statutes, Executive orders, rules, 
regulations, directives, or delegations of authority that precede such 
transfer or the date of the enactment of this Act shall be deemed to 
refer, as appropriate, to the recipient Department, to its officers, 
employees, or agents, or to its corresponding organizational units or 
functions. Statutory reporting requirements that applied in relation to 
the Department of Education relating to a function that is transferred 
to another Federal Department under this Act immediately before the 
effective date of this Act shall continue to apply following such 
transfer if they refer to the Department of Education.
    (e) Employment Provisions.--
            (1) Regulations.--The recipient Department may, in 
        regulations prescribed jointly with the Director of the Office 
        of Personnel Management, adopt the rules, procedures, terms, 
        and conditions, established by statute, rule, or regulation 
        before the date of the enactment of this Act, relating to 
        employment in the Department of Education relevant to functions 
        transferred under this Act.
            (2) Effect of transfer on conditions of employment.--Except 
        as otherwise provided in this Act, or under authority granted 
        by this Act, the transfer pursuant to this Act of personnel 
        shall not alter the terms and conditions of employment, 
        including compensation, of any employee so transferred.
    (f) Statutory Reporting Requirements.--Any statutory reporting 
requirement that applied to the Department of Education relevant to 
functions that are transferred under this Act immediately before the 
date of the enactment of this Act shall continue to apply following 
that transfer if the statutory requirement refers to the Department of 
Education.

SEC. 405. OTHER TERMINATIONS.

    Except as otherwise provided in this Act, whenever all the 
functions vested by law in the Department of Education have been 
transferred or terminated pursuant to this Act, each position and 
office the incumbent of which was authorized to receive compensation at 
the rates prescribed for an office or position at level II, III, IV, or 
V of the Executive Schedule under subchapter II of chapter 53 of title 
5, United States Code, shall terminate.

SEC. 406. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, in 
consultation with the recipient Department, is authorized and directed 
to make such additional incidental dispositions of personnel, assets, 
and liabilities held, used, arising from, available, or to be made 
available, in connection with the functions transferred by this Act, as 
the Director may determine necessary to accomplish the purposes of this 
Act.

SEC. 407. REFERENCES.

    With respect to any function transferred under this Act (including 
under a reorganization plan under section 402) and exercised on or 
after the date of the enactment of this Act, reference in any other 
Federal law to any department, commission, or agency or any officer or 
office the functions of which are so transferred shall be deemed to 
refer to the recipient Department or official or component of the 
recipient Department to which that function is so transferred.
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