President Donald Trump signed an executive order Thursday that seeks to shut down the U.S. Department of Education, putting trillions of dollars in federal student aid and research grants into question.

A White House fact sheet obtained by USA TODAY said the order would instruct Trump’s education secretary, Linda McMahon, to take “all necessary steps to facilitate the closure of the Department of Education and return education authority to the States.”

This order comes after the department halved its workforce since the beginning of the Trump administration, with approximately 600 workers choosing to leave and more than 1,300 being terminated March 11.

The Department of Education plays a crucial role in managing federal student aid programs, including Pell Grants and federal student loans. In the 2023-24 academic year, more than 211,000 North Carolina college students received a combined $1 billion in federal grants.

During the signing of the order, Trump said Pell Grants, Title I funding and federal funds for students with disabilities will be “fully preserved,” by being handled by other federal agencies.

The abolishment of the department could significantly affect the Free Application for Federal Student Aid, or FAFSA, as it would need to be managed by another federal agency or by state governments. The department processes 17.6 million FAFSA forms annually.

Many NC State students rely heavily on federal financial aid. More than 70% of undergraduates apply for financial aid each year, and nearly 50% qualify for need-based aid based on federal guidelines. The department oversees around $1.6 trillion in student loan debt nationally.

NC State also relies on federal research funding, with the UNC System receiving about $1.4 billion in federal research funds in the 2023 fiscal year — approximately 62% of all university research funds.

The Department also plays a role in the accreditation process by reviewing all federally recognized accrediting agencies, which are responsible for evaluating institutions to ensure they meet quality standards.

The Department of Education’s Office for Civil Rights, which investigates discrimination complaints, could be moved to another agency, potentially altering how civil rights issues are addressed on campuses.

While Trump’s executive order will initiate the process, abolishing the Department of Education requires congressional approval.

University spokesperson Mick Kulikowski said NC State is monitoring developments.