Department of Education Act

Department of Education Act - Establishes an executive department to be known as the Department of Education to be headed by a Secretary of Education appointed by the President.

Transfers to such Department all functions and assets of the Office of Education and of the Commissioner of Education, as well as other functions and related assets of the Department of Health, Education, and Welfare under specified laws and provisions of law relating to education.

Transfers specified functions and related assets of other executive departments relating to education to such new Department.

Redesignates the Department of Health, Education, and Welfare as the Department of Health and Welfare. Authorizes the Secretary to establish a working capital fund for the maintenance and operation of administrative services of the Department.

Authorizes the Secretary to provide specified services, supplies, and facilities for employees of the Department and their dependents stationed in remote areas. Allows the Secretary of the Treasury to invest and reinvest in securities of the United States or in federally guaranteed securities, any moneys contained in the capital fund created by the Secretary of Education.

Authorizes the Secretary to appoint advisory committees for consultation purposes, and to enter into contracts for research into any aspect of the problems related to the programs of the Department.

Makes specified amendments in various laws to carry out the purposes of this Act.

Requires the Secretary to make an annual report to the President for submission to the Congress regarding the activities of the Department.

States that all orders, regulations, contracts and licenses previously in effect under any provision of law amended under this Act or in the exercise of functions transferred under this Act shall remain in effect until modified or terminated by the Secretary. States that this Act shall not affect any proceedings pending before any department or agency, but that such proceedings to the extent they relate to functions transferred under this Act shall be continued before the Department.

Requires the Secretary to submit to the Congress, within two years from the effective date of this Act, a proposed codification of all laws which contain functions transferred to the Secretary by this Act.