How the U.S. Education Department Is Being Broken Up — What It Would Mean for Students

The U.S. Education Department is being reorganized, with several core offices and program responsibilities in the process of being reassigned to other federal agencies. Administration officials describe the changes as administrative transfers rather than immediate cuts to congressional funding, but many details — including staff retention and operational logistics — remain unclear.

Programs and oversight that the Education Department has long handled are being parceled out to agencies such as the Department of Labor, the Department of Health and Human Services (HHS), the State Department and the Interior Department. Officials say congressional funding formulas will not change, but the origin of the funding, day-to-day administration and enforcement mechanisms could shift significantly.

How key responsibilities are being reassigned

Money for schools and colleges

While most K–12 funding comes from state and local sources, the Education Department has served as the primary federal channel for billions of dollars in aid to states, districts and colleges. Under the reorganization:

• The Department of Labor is expected to take on administration of some large federal education programs, including some that benefit low-income students and adult-education initiatives.
• HHS is slated to manage certain grant programs that support parents enrolled in college.
• The State Department will oversee foreign-language program funding, and the Interior Department will handle programs supporting Native American education.

Federal student loans and financial aid

The Education Department currently manages the federal student loan portfolio — roughly $1.6 trillion — and oversees Pell Grants, the Free Application for Federal Student Aid (FAFSA) process, and accreditation policies that allow colleges to accept federal aid. Officials say disbursement of Pell Grants and loans will continue and borrowers must keep making payments. The FAFSA system remains operational and the Department will continue to provide support for applicants during the transition.

Students with disabilities and civil rights enforcement

The department continues to distribute funds intended to help schools serve students with disabilities and enforces federal civil rights laws in education, including complaints related to race, sex and disability discrimination. Some administration officials have proposed moving certain enforcement or disability-related functions to other agencies such as HHS or the Justice Department, but those proposals have not been finalized.

Concerns and open questions

Observers — including state education officials, advocates and education experts — warn that moving specialized responsibilities to agencies without deep experience in K–12 and higher education could create gaps in oversight and service delivery. Key unresolved issues include:

• How transfers will be phased to avoid interruptions in payments, compliance reviews and technical assistance for schools.
• Which staff will remain in place to ensure institutional knowledge is preserved.
• Whether agencies taking on new roles have the capacity and expertise to interpret complex education laws and handle complaint investigations.

Advocates are particularly concerned about the potential impact on rural and low-income students and on students with disabilities, groups that often rely heavily on federal supports. The pace of reorganization and any staffing reductions in civil rights or enforcement offices could lengthen the time it takes to resolve complaints and deliver services.

What to watch next

• Official transfer notices and implementation plans from the agencies involved.
• Congressional responses, since funding authority and some program rules rest with lawmakers.
• How state and local education agencies and colleges adapt to new federal points of contact for funding and compliance.

As responsibilities shift, monitoring the transition closely will be essential to ensure federal supports continue to reach the students who need them most.