By Katie Blankenship

Elon Musk’s Department of Government Efficiency (DOGE) is reportedly using artificial intelligence to sift through the U.S. Department of Education’s data, seeking ways to slash federal spending. According to The Washington Post, the AI—powered by Microsoft’s Azure—has been running an analysis on sensitive information, including personally identifiable details about grant managers and internal financial records. Naturally, this has set off alarm bells among Democrats, who are already wary of the Trump administration’s plans to gut the department entirely.

These drastic measures, while controversial, stem from long-standing criticisms of the department’s spending practices. Reports have highlighted $311 billion in miscalculations in the federal student loan program, $1 billion lost to fraud in charter school funding, and $190 billion in pandemic relief misspending, including expenditures on football stadium renovations and electric bus fleets instead of academic recovery. These staggering figures provide the backdrop for Musk’s intervention, reinforcing his argument that bureaucratic inefficiency demands radical solutions.

Trump’s War on the Department of Education

This news comes on the heels of President Donald Trump’s recent remarks that he wants to shut down the Department of Education altogether. His pick to lead the agency, former WWE executive Linda McMahon, has been tasked with “putting herself out of a job,” according to Trump. Meanwhile, an unnamed White House official told The Washington Post that an executive order is in the works to begin shrinking the department, even if full elimination requires congressional approval.

The administration’s aggressive approach has already had tangible effects. As of January 31, at least 55 Education Department employees have been placed on paid leave in connection with Trump’s order banning diversity, equity, and inclusion (DEI) programs. The move follows Trump’s executive order titled “Ending Radical Indoctrination in K-12 Schooling,” which cuts federal funding to schools that teach what the administration describes as “gender ideology and discriminatory equity ideology.”

Why DOGE’s AI Experiment Raises Eyebrows

The idea of using AI to optimize government spending isn’t new, but having an experimental system comb through sensitive federal education data under Musk’s watch is a different beast entirely. Critics argue that giving AI access to this level of detail could pose risks related to data security and potential misuse. A spokesperson for the Education Department attempted to downplay concerns, telling The Washington Post that the AI is simply being used to find inefficiencies and that “nothing inappropriate or nefarious” is happening.

That assurance hasn’t convinced lawmakers. Some fear that Musk’s long-standing antagonism toward bureaucratic inefficiency—and his controversial track record with AI—could lead to hasty decisions that put federal student aid programs at risk. Others worry about conflicts of interest, given Musk’s deep ties to the tech industry and his unpredictable policy positions.

Adding to concerns, The New York Times and USA TODAY have reported that Musk’s DOGE team is not only analyzing Education Department data but also reviewing its operations. According to a leaked recording, Craig Trainor, acting assistant secretary in the Office for Civil Rights, confirmed that DOGE is scrutinizing the department’s functions as part of Trump’s broader government overhaul. Meanwhile, USA TODAY reports that the department is shifting its civil rights enforcement priorities, including halting investigations related to book bans and directing resources toward antisemitism complaints on school campuses.

What This Means for Federal Student Aid

The Department of Education is responsible for overseeing the country’s $1.6 trillion student loan program, impacting over 40 million borrowers. If Trump succeeds in dismantling the department, the big question remains: who would take over this function? While some conservatives advocate for returning student loans to the private sector, others suggest shifting oversight to another federal agency.

Trump’s record on student loans offers few clues about his endgame. He was a vocal opponent of President Biden’s loan forgiveness plans, calling them “vile.” However, his administration hasn’t clarified whether it intends to reform, privatize, or simply scrap federal student loan management altogether.

The Bottom Line

The combination of Trump’s efforts to dismantle the Department of Education and Musk’s AI-driven cost-cutting initiative creates an uncertain future for federal education programs. Whether DOGE’s AI is a brilliant efficiency tool or an overreach into sensitive government data remains to be seen, but one thing is clear: the fate of American education is now, more than ever, being shaped by the unorthodox alliance between Trump and Musk.

While critics argue that Musk’s intervention is reckless, supporters see it as a necessary response to a bloated and inefficient system. The $311 billion in student loan miscalculations, $1 billion in fraudulent charter school funding, and $190 billion in misused pandemic relief underscore the need for aggressive reforms. For now, all eyes are on the executive order Trump is expected to sign later this month. If past actions are any indicator, it’s only a matter of time before more government agencies find themselves in DOGE’s crosshairs.

Sources

• Bohannon, Molly. Forbes, Feb 6, 2025. “Trump Vs. Education Department: Musk’s DOGE Reportedly Using AI To Looking For Cuts—Here’s What We Know.”
• The Washington Post, Feb 5, 2025. “DOGE’s AI Analysis of Education Department Data Raises Concerns.”
• The New York Times, Feb 4, 2025. “Musk’s Team Scrutinizes Education Department Operations.”
• Schermele, Zachary. USA TODAY, Feb 4, 2025. “What will DOGE target next? Musk looks to the Education Department.”
• Associated Press, Jan 31, 2025. “Trump’s DEI Ban Results in Paid Leave for 55 Education Department Employees.”
• The Hill, April 1, 2024. “Public Schools Wasted COVID Funds, Biden’s Education Budget Tacitly Admits.”
• Committee on Education & the Workforce, August 1, 2022. “The Education Department’s $311 Billion Budget Mistake.”
• Forbes, March 29, 2019. “Report: The Department of Education Has Spent $1 Billion On Charter School Waste And Fraud.”