Ivan Panov
July 18, 2026
Education Secretary Linda McMahon first voiced her support for House Republican legislation to transfer student loan portfolios to the Treasury Department.
McMahon first announced the move to transfer federal student loans to the Treasury Department on March 19, 2026, writing on X that it “restores fiscal sanity and better aligns student aid programs with students, families, and borrowers.”
On July 9, the chairman of the House Committee on Education and the Workforce, Tim Walberg, introduced the Less Bureaucracy, Better Student Aid Act, which would codify the executive proposal to transfer all federal student loans from the Department of Education to the Department of the Treasury.
In a press release, Walberg said the legislation would “transfer key statutory authorities to agencies better equipped to carry them out.”
Supporters say the legislation would place responsibilities with agencies they believe are better equipped to administer them.