Nothing scary about this at all.
Update: apparently already backtracked: https://abcnews.go.com/US/trump-preparing-executive-order-telling-education-secretary-dissolve/story?id=119499614
This might be the normal Trump tactic of floating horrible ideas, so don’t be surprised if it comes back later.
I want to add to the other good answers that DoE is also responsible for enforcing special education in schools, along with all other protections against discrimination and support for low income families. This in particular helps red states more, usually, and is a big reason Congress hasn’t acted when Reagan took office and had a hate boner for the department.