White House starts dismantling Education Dept; most school funds shift to Labor, other agencies
The White House has begun dismantling the Education Department by signing six interagency agreements that shift most K–12 and higher‑education programs and school funding/support to the Department of Labor and other agencies (HHS, State, Interior), with adult education already moved; Education will retain policy guidance and oversight of Labor’s education work and continue to administer FAFSA, Pell Grants, federal student loans and college accreditation. Secretary Linda McMahon says the transfers won’t disrupt funding and will give states more flexibility, but officials and state leaders warn of added bureaucracy and confusion, staff retention remains unclear, and the department—hobbled by mass layoffs upheld by the Supreme Court—now sits in a limbo only Congress can resolve.
📌 Key Facts
- Six interagency agreements were signed days before the shutdown to shift major K–12 and higher-education responsibilities; most school funding and support will move to the Department of Labor, with additional program transfers to HHS, the State Department and the Interior Department.
- Education Secretary Linda McMahon is publicly campaigning to dismantle the Education Department, praising the changes and arguing other agencies and states can take over grantmaking and support; she says federal money will continue without disruption and states will gain flexibility, but only Congress can abolish the department, leaving it in a de facto 'limbo' state.
- Adult education programs were moved to the Department of Labor in June; former Education Secretary John King warns that shifting programs (including some career and technical education) has already slowed money distribution and created confusion.
- The U.S. Supreme Court in July upheld mass layoffs that reduced Education Department staff by roughly half; officials have not said whether current ED employees will keep their jobs after the transfers, and King has alleged regional Office for Civil Rights closures and layoffs.
- The Education Department will continue to oversee federal student loans (managing roughly a $1.6 trillion portfolio) and college accreditation for purposes of federal financial aid; FAFSA support will continue and Pell Grants and federal student loans will still be disbursed.
- Although much program administration is shifting to Labor, ED will retain policy guidance and oversight of Labor’s education-related work.
- State officials and political figures are divided: officials in Washington, California, Maryland and Wisconsin warned of added bureaucracy and disruption while Virginia’s chief welcomed more state control; the plan has GOP backing in some quarters but also pushback from Republicans such as Sen. Lisa Murkowski and criticism from former GOP Education Secretary Margaret Spellings.
📰 Sources (4)
Education Department changes: How could students be affected?
New information:
- Specifies that six interagency agreements are being used to shift major K–12 and higher-education responsibilities to Labor, HHS, Interior and State.
- Clarifies ED will continue overseeing federal student loans and college accreditation, including management of the roughly $1.6 trillion student-loan portfolio.
- Adds on‑record reactions: Education Secretary Linda McMahon’s statement praising the changes; former ED Secretary John King’s warning that shifting programs (e.g., some CTE to Labor) has slowed money distribution and created confusion.
- Alleges ED Office for Civil Rights regional office closures and layoffs, per John King’s account.
Schools fear disruptions as the White House begins dismantling the Education Department
New information:
- Interagency agreements were signed days before the shutdown and announced Tuesday to move much of ED’s work.
- Most school funding/support will shift to the Department of Labor; ED will retain policy guidance and oversight of Labor’s education work.
- Additional program transfers will go to HHS, the State Department, and the Interior Department.
- Education Secretary Linda McMahon said federal money will continue without disruption and argued states will gain flexibility; only Congress can abolish ED, so the agency enters a 'limbo' state.
- State officials (WA, CA, MD, WI) warned of added bureaucracy and disruption; VA’s chief welcomed more state control.
- Political reaction includes GOP support but also pushback (e.g., Sen. Lisa Murkowski) and criticism from former GOP Education Secretary Margaret Spellings.
The Education Department is dismantling. Here’s what that means
New information:
- Education Secretary Linda McMahon is publicly campaigning to dismantle the department, arguing other agencies and states can take over grantmaking and support.
- The U.S. Supreme Court in July upheld mass layoffs that reduced Education Department staff by roughly half.
- Adult education programs already moved to the Department of Labor in June, preceding the broader transfers.
- FAFSA remains open and Education will continue supporting applicants; Pell Grants and federal student loans continue to be disbursed.
- Education will continue to oversee college accreditation for purposes of federal financial aid.
- Officials did not say whether current Education Department staff will keep their jobs after the transfers.