After Indian-American Nikki Haley, DeVos, 58, is the second woman to be nominated to a Trump Cabinet.
Haley has been nominated to the position of US Ambassador to the UN.
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"Betsy DeVos is a brilliant and passionate education advocate," Trump said.
"Under her leadership we will reform the US education system and break the bureaucracy that is holding our children back so that we can deliver world-class education and school choice to all families," said the President-elect after announcing his nomination.
"I am honoured to accept this responsibility to work with the President-elect on his vision to make American education great again," said DeVos.
"The status quo in education is not acceptable. Together, we can work to make transformational change that ensures every student in America has the opportunity to fulfill his or her highest potential," she said.
A native of Michigan, DeVos has spent decades advocating for school choice reforms and helping under-served children gain access to quality education.
She is chairman of the American Federation for Children whose mission is to "improve our nation's K-12 education by advancing systemic and sustainable public policy that empowers parents, particularly those in low-income families, to choose the education they determine is best for their children".
DeVos is chair of the Windquest Group and has also served on national and local charitable and civic boards, including the Kennedy Center for the Performing Arts, American Enterprise Institute, The Philanthropy Roundtable, Kids Hope USA, and Mars Hill Bible Church.
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