iv FY 2020 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION

MESSAGE FROM THE SECRETARY

November 16, 2020

Education is an investment in individuals — that is, helping 

every student develop his or her abilities and preparing every 

student to pursue his or her passion. The education of each 

student is about his or her future, and it is ultimately about 

our nation’s future. The Trump Administration’s unwavering 

commitment to empowering families and expanding 

education freedom has shaped the U.S. Department of 

Education’s (Department) accomplishments over the past 

fiscal year and informs our plans for fiscal year (FY) 2021.

The COVID-19 pandemic brought many challenges, and 

in response, we put the immediate needs of students and 

families first. In addition to ensuring the prompt release of 

the financial support authorized by the Coronavirus Aid, 

Relief, and Economic Security (CARES) Act, we announced a 

streamlined process for states to submit waivers to opt out of 

federal testing requirements for the 2019-2020 school year, 

and we took steps to make the transition to virtual learning 

easier. In addition, we delivered timely information to 

support schools, educators, and families.

The CARES Act provided almost $31 billion for states to do 

what’s right for students and to ensure that learning could 

continue during the pandemic. In addition to the Governor’s 

Emergency Education Relief Fund (almost $3 billon), the 

Elementary and Secondary Emergency Relief Fund (more 

than $13 billion), and the Higher Education Emergency 

Relief Fund ($14 billion), the legislation also provided relief 

for student loan borrowers and allowed K-12 schools to 

repurpose funds for technology infrastructure and training in 

distance learning.

The Department implemented the CARES Act according 

to its terms. We took action well before the congressionally 

required 30-day deadline to provide funding applications to 

the states and then approved funding requests within 30 days 

of receipt of the applications. 

From the beginning, we insisted — and still do — that 

learning must continue for all students during our national 

emergency. Accordingly, we specifically chose not to waive 

any of the core tenets of the Individuals with Disabilities 

Education Act. 

With respect to our FY 2021 budget that was released in 

February 2020, the Administration proposed the return 

of power to the people, to those closest to students, and 

to students themselves. The budget consolidated nearly all 

federal K-12 programs into a single block grant, right-sizing 

the federal role in education and affording states needed 

flexibility to meet the unique needs of students in their 

respective states. The Governor’s Emergency Education 

Relief Fund authorized by the CARES Act actually included 

elements of our FY 2021 budget proposal. 

The Administration again proposed Education Freedom 

Scholarships to expand options and choices for all families 

across America. The proposal provides five billion dollars in 

dollar-for-dollar federal tax credits for voluntary donations to 

state-identified, nonprofit organizations that give scholarships 

directly to students. Education Freedom Scholarships 

empower students and families to choose the educational 

setting that works best for them — regardless of where they 

live, who they know, how much they make, and how they 

learn. Families control the use of scholarships for their child’s 

elementary and secondary education, which may include 

career and technical education, apprenticeships, and dual and 

concurrent enrollment.

In addition to Education Freedom Scholarships, the 

Department published in May of this year our Final Rule 

under Title IX of the Education Amendments of 1972. 

This rule strengthens protections for survivors of sexual 

misconduct and restores due process to ensure that students 

can pursue an education free from sexual discrimination. 

The regulation, effective on August 14, 2020, holds schools 

accountable for failing to respond equitably and promptly 

to sexual misconduct and ensures a more fair and reliable 

adjudication process. The regulation provides a consistent, 
MESSAGE FROM THE SECRETARY

FY 2020 AGENCY FINANCIAL REPORT | U.S. DEPARTMENT OF EDUCATION v

We also updated and greatly improved the College Scorecard 

to help students find customized, accessible, and relevant 

data on potential debt one might incur attending certain 

schools and earnings that could be anticipated based on fields 

of study. The College Scorecard includes debt and earnings 

information for two-year, four-year, certificate, and some 

graduate programs as well as information on graduation rates 

and apprenticeships. 

Apart from the Department’s focus on individual students, 

education freedom, and regular program activities, the 

stewardship of taxpayer funds is, and has been, a priority for 

us. I have been assured that the financial data included in 

this Agency Financial Report are complete and reliable in 

accordance with federal requirements. The financial report 

includes information and assurances about the Department’s 

financial management systems and controls as well as control 

and compliance challenges noted by the Department. Similarly, 

the Department’s related Annual Performance Report and Annual 

Performance Plan (Report and Plan) provides information on 

the overall performance of the Department as a federal agency. 

Each year this Report and Plan accompanies the Department’s 

annual budget submission and links performance goals with 

resources for achieving targeted levels of performance.

This year, the Department received an unmodified or 

“clean” opinion on its FY 2020 financial statements. The 

internal control report identified one material weakness, 

“Controls over the Reliability of Underlying Data Used 

in Credit Reform Re-estimates Need Improvement.” The 

Department remains committed to evaluating its internal 

controls for improvement opportunities. 

The Department’s FY 2020 activities reflect the leadership 

of President Trump and the hard work of our staff to meet 

this decisive moment. It is time to unleash a new era of 

innovation in education. Every student must be able to 

pursue an education that aligns with his or her talents, 

interests, and values. We must invest in education that 

empowers states, communities, and families to transform 

learning and that provides students with opportunities that 

are more individualized and responsive than ever. If we each 

embrace the expansion of education freedom, this nation 

can meet any challenge and seize any opportunity.

Betsy DeVos

legally sound framework on which survivors, the accused, 

and schools can rely; protects K-12 students by requiring 

elementary and secondary schools to promptly respond to a 

notice of sexual harassment; and restores fairness on campuses 

by upholding all students’ rights.

On the career and technical education front, over the past 

year the Trump Administration has continued to promote 

multiple pathways to career success and lifelong learning. We 

have worked closely with states as they have implemented 

the Strengthening Career and Technical Education Act for the 

21st Century Act (Perkins V). These efforts have included 

offering flexibilities for career and technical education 

(CTE) leaders required to submit their state CTE plan for 

FY 2020-2023, enabling them to focus on serving students 

during the COVID-19 pandemic with high-quality, careerfocused education that is tailored to each student’s needs and 

strengths and that is responsive to 21st century realities.

With respect to innovation, Next Gen Federal Student Aid 

(FSA) provides a centralized hub for customers to retrieve 

student aid information and improves the ways in which 

students, parents, and borrowers can interact with and 

access benefits administered by FSA. In December 2019, 

the first major implementation of Next Gen kicked off with 

the consolidation of multiple websites into a single digital 

source, StudentAid.gov. Customers can learn about available 

types of student aid, find the right payment plan, complete 

loan counseling, and fill out the Free Application for Federal 

Student Aid® form.

Because we believe in the importance of investing in every 

student and helping students expand their knowledge and 

skills, the Department invited a new cohort of 67 schools to 

participate in our Second Chance Pell experiment in April, 

providing need-based Federal Pell Grants to individuals 

incarcerated in federal and state prisons. More than 4,000 

credentials — including postsecondary certificates, associate 

degrees, and bachelor’s degrees — have been awarded to 

Second Chance Pell students in three years.

Achieving FSA’s mission requires bold thinking. We have 

encouraged Congress to consider establishing FSA as a 

standalone government corporation, entirely separate from 

the Department and run by a professional, apolitical Board 

of Governors. This move would better position the agency to 

deliver world-class services to students and their families and 

to manage what has become the nation’s largest consumer 

lender, with nearly $1.6 trillion in outstanding loans.