Department of Education Act

Department of Education Act - Establishes the Department of Education, to be administered by a Secretary of Education appointed by the President by and with the advice and consent of the Senate.

Sets forth the Secretary's powers and duties.

States that the principal function of the Department shall be to promote the cause and advancement of education throughout the United States. Transfers to the Secretary specified education-related functions of the Secretary of Health, Education, and Welfare and of the Commissioner of Education. Authorizes the President to transfer to the Department any Federal agency or instrumentality which the President determines to have functions relating to education and should be transferred to promote bureaucratic efficiency and the purposes of this Act.

Redesignates the Department of Health, Education, and Welfare as the Department of Health and Welfare.

Establishes the Federal Interagency Committee on Education to study and make recommendations relative to the coordination of Federal programs affecting education.

Establishes the National Advisory Committee on Education. Specifies the Committee's advisory, investigatory, and supervisory duties.

Establishes, within the Department, an Office of the Inspector General. Directs the Inspector General to oversee auditing and investigative activities relating to programs and operations of the Department and to take specified actions to promote economy and efficiency in the administration of, and the prevention and detection of fraud and abuse in, programs administered or financed by the Department. Requires the Inspector General to submit specified reports of the Office's activities to the Secretary and to Congress. Transfers to the Office functions, powers, and duties of certain agencies and offices within the Department of Health, Education, and Welfare.

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.

Authorizes the Secretary to establish a working capital fund for expenses necessary for the maintenance and operation of such common administrative services as the Secretary shall find to be desirable.

Authorizes the Secretary to provide specified services, supplies, and facilities for employees of the Department and their dependents stationed in remote areas.