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Indiana GEAR UP, a Purdue-run college-prep program for more than 13,000 low-income students, will end Sept. 30 after the U.S. Education Department canceled its $35 million grant.
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Indiana is expected to receive roughly $100 million in grants to fund a wide range of education programs, including migrant education, services for English language learners and adult education.
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The U.S. Education Department's Office for Civil Rights investigates discrimination in schools. It recently lost more than 40% of its staff.
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"I support President Trumps bold action to return education to where it belongs and to put parents in the drivers seat of their children's education," Indiana Gov. Mike Braun said.
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The Trump administration has already moved to cut the Department of Education's staff by nearly half.
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The schools under scrutiny also include dozens of state schools and two Ivy Leagues.
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More than 1,300 positions will be cut as a result of this reduction in force. Roughly another 600 employees have accepted voluntary resignations or retired.