I have interviewed many computer science majors who could not program their way out of a brown paper bag. I asked them for details about what their classes were like, what kinds of exercises they did, a summary of the topics covered, etc. And what I found was that nearly all of them had a very surface-level education in computer science with very little depth. In particular, they simply weren't made to write enough code that solves actual problems to develop the core skill that software developers need. It was kind of a joke compared to what I had to go through to get my computer science degree, long ago.
I can't assert that all schools nor even all degrees are like this. All I have is an anecdote, after all, and I have heard similar anecdotes from others. But my experience is directly the opposite of what you are implying. It looks to me like the schools just wanted to scoop up all the student loan money that was available from people who wanted those high software developer salaries but simply weren't cut out for the job, so the schools just watered down the curriculum.
This article is not the first one I have seen lamenting that what schools are churning out, by and large, doesn't match what employers want. So I am inclined to believe there is a problem here.
I also wanted to mention that ending the department of education is not ending education, by any stretch of the imagination. It's just ending the federal government's interference with education, letting the states run more independently. Which is good, because I think the department is responsible, at least in part, for the sorry state of education in America. It simply was failing at its job, so if we can't fix it we should end it. Maybe at least some states will come up with a better way.