This bill, named the "Sovereign States Education Restoration Act," aims to fundamentally restructure federal involvement in education by abolishing the Department of Education 270 days after its enactment. Upon its abolishment, most programs currently administered by the Department of Education would be repealed, significantly reducing federal oversight in many educational areas. This legislative action seeks to shift control and responsibility for education policy and funding away from a centralized federal department.

However, certain key educational programs and functions would be transferred to other federal agencies rather than being repealed. Functions under the Individuals with Disabilities Education Act and Impact Aid programs would move to the Department of Health and Human Services, while Office of Indian Education programs would transfer to the Department of the Interior. Crucially, major student financial aid programs, including Federal Pell Grants and various federal loan programs, along with education research and technical assistance programs, would be transferred to the Department of the Treasury.

The bill further establishes two new state block grant programs to be administered by the Department of the Treasury: one for elementary and secondary education and another for postsecondary education. These grants would allocate funds to states based on student enrollment, allowing states broad discretion in using the funding for educational purposes. States receiving these block grants would be required to submit student data, conduct annual audits, and comply with applicable federal civil rights laws, with the Department of Justice's Civil Rights Division responsible for enforcement. The bill authorizes appropriations for these new structures equal to the Department of Education's 2019 budget, capping block grants at 50% and administrative costs at 20% of the total.