Donald Trump signed an executive order on Thursday that would "minimise" the work and authority of the Department of Education, in a move that only partly delivers on a major campaign promise and long-time goal of many Republicans.
Surrounded by schoolchildren, Republican governors and other supporters, Mr Trump signed the order at the White House, instructing Education Secretary Linda McMahon to immediately begin reducing the work of the agency and hand over much of the authority over education to the states.
"The United States spends more money on education by far than any other country, and spends, likewise, by far, more money per pupil than any country, and it's not even close, yet we rank near the bottom of the list in terms of success," Mr Trump said.
"We're going to be returning education, very simply, back to the states where it belongs, and this is a very popular thing to do, but much more importantly, it's a common sense thing to do and it's going to work."
The move is part of a wider effort by Mr Trump to reduce the size and powers of the federal government, based on ideology held by many conservatives that a larger government limits civil liberties.
"As you know, the President directed Linda McMahon to greatly minimise the agency," White House press secretary Karoline Leavitt told reporters earlier on Thursday. "The Department of Education will be much smaller than it is today."
Mr Trump said he hoped Ms McMahon would be the last US education secretary and that critical measures to oversee student loans and grants programmes will be "fully preserved".
Many Republicans have identified federal programmes such as social security, unemployment, disability, food stamps and federally funded health insurance as interventionist and wasteful. They accuse the Department of Education of promoting a progressive agenda in schools, including critical race theory and “gender ideology”.
Mr Trump, who took office on January 20, has already narrowed the powers and work of the Department of Education. Its workforce has been halved and he ended funding for many of its programmes.
He also charged Elon Musk, his billionaire adviser, with making major cuts to other government agencies, including the US Agency for International Development (USAID). But this is the first attempt to dismantle a cabinet-level agency.
Public schools are already largely controlled by states and funded by taxes collected in each municipality. The federal government supplies between 7 per cent and 13 per cent of the funding, depending on the needs of each district.
The funds provide student loans, school meals, funding for disability programmes and support for homeless students. The department also oversees public universities.
Critics say ending these programmes will disproportionately affect poorer students who are already at a disadvantage.
“Without the Department of Education, there is no guarantee that our children will receive the public education they are entitled to,” the National Parents' Union wrote in a statement.
“Eliminating this critical infrastructure weakens our nation, erodes opportunity and makes it even harder for families to advocate for the resources and support their children need.”
The Department of Education was created in 1979 in a bipartisan effort by Congress. Experts say only Congress has the authority to terminate it. Mr Trump's Republican Party has a majority in Congress but to pass such legislation in the legislature, he would need the support of several Democrats.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
