The Biden administration's successor (as reported) is actively shrinking the U.S. Department of Education by relocating its headquarters, transferring student loan operations to the Treasury, and forging multiple interagency agreements intended to redistribute federal education responsibilities. Officials call the steps a "proof of concept" to return authority to states and local officials; supporters praise the downsizing while Democrats and teachers' unions warn it could disrupt programs and enforcement. Congress ultimately controls any permanent abolition, and debates continue over student protections and program continuity.
Education Department Officials Say They're Working To 'Put Themselves Out Of A Job' As Agency Is Shrunk
A Department of Education (ED) official told Fox News Digital that staff are working to put themselves out of a job because the agency is not needed.(Getty Images)
Senior officials at the U.S. Department of Education (ED) told Fox News Digital that staff are carrying out an administration directive to shrink the agency and return more authority to states and local school leaders.
"We are going to continue to take steps every single day to wind down the agency to return education to the state—to put more power back in the hands of governors and state legislatures and state superintendents and local school board members," Undersecretary of Education Nicholas Kent said.
Last week the department announced plans to vacate the Lyndon B. Johnson (LBJ) headquarters building so the Department of Energy can occupy the space by August, calling the move "a prudent step to save hundreds of millions of taxpayer dollars and further reduce the federal education bureaucracy."
Major Interagency Shift: Student Loans Move To Treasury
The administration disclosed an interagency agreement transferring student lending operations to the Department of the Treasury. Under the agreement, Treasury will "assume operational responsibility for collecting on defaulted federal student loan debt and provide operational support to ED’s efforts to return borrowers to repayment." Officials characterized the pact as the largest single step yet toward minimizing the ED's current operational footprint.
Hawaii Sen. Mazie Hirono.
This transfer is one of nine interagency partnerships formed over the past year that reallocate ED responsibilities to other federal agencies. Secretary Linda McMahon has described these moves as a "proof of concept" to demonstrate to Congress that federal grant aid and student loan services can continue without a standalone Department of Education.
"We are showing Congress and others that this proof of concept works and that we want to continue to work with Congress to memorialize these changes in legislation with the ultimate goal of closing down the department and putting ourselves out of a job," Kent told Fox News Digital.
Responses: Supporters Praise Shrink, Critics Warn Of Risks
Republicans largely applauded the downsizing. Sen. Rand Paul (R-Ky.) praised the administration for pursuing a long-sought effort to reduce the federal role in education.
Democrats, teachers' unions, and some senators strongly opposed the plan. In March of last year, McMahon cut roughly half of the department’s workforce as part of broader reductions, a move critics said would weaken federal oversight and program continuity. Senator Mazie Hirono (D-Hawaii) and others warned that transferring programs to agencies without relevant experience could set vital programs up to fail.
The National Education Association called the effort to dissolve the ED "illegal," arguing the department is needed to enforce federal statutes that prohibit discrimination and ensure access to education. Randi Weingarten, president of the American Federation of Teachers, said members are concerned about the potential impact on students.
Secretary of Education Linda McMahon.
State Flexibility And The Administration's Rationale
As part of its strategy, the ED launched a waiver process allowing states to seek reduced administrative burdens and greater flexibility in using federal funds. Iowa was the first state to participate, and the administration praised Iowa Governor Kim Reynolds for redirecting federal dollars more directly to students rather than toward compliance costs.
Kent pointed to federal spending of "over $3 trillion since 1980" on education and noted declining K–12 scores on the National Assessment of Educational Progress (NAEP) as evidence that current federal structures are not delivering improved outcomes.
What Comes Next
While the executive branch can reassign responsibilities between agencies, Congress retains authority to change statutes or abolish the department. The administration intends to use interagency agreements as demonstrations to persuade lawmakers to codify the changes. Critics continue to press for safeguards to ensure that programs, compliance enforcement, and services for students are not disrupted during the transition.
Key facts: relocation of the LBJ building, transfer of student loan operations to Treasury, nine interagency partnerships, workforce reductions, state waiver program, and continuing debate over the ED’s role and oversight responsibilities.
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