Created by the Department of Education Organization Act ( Public Law 96-88 ) , it was signed into law by President Jimmy Carter on October 17 , 1979 and began operating on May 4 , 1980 . Created by the Department of Education Organization Act ( Public Law 96-88 ) and signed into law by President Jimmy Carter on October 17 , 1979 , it began operating on May 16 , 1980 .