FORMAL

Five Things to Know About McMahon’s Plan to Break Up ED

Dozens of the Education Department’s programs were scattered across Washington D.C. last week, but a few core components remain at the Lyndon B. Johnson Building on Maryland Avenue: the offices for civil rights, special education and federal student aid (FSA).

These three offices, particularly FSA, oversee some of the department’s most direct services to taxpayers—including the Pell grant, federal student loans, discrimination complaints and individualized education programs for students with disabilities—so moving them would likely be more complicated and controversial.

Since President Trump first took office, some of the more vocal pushback to his plan for shutting down the department has come from the parents, families and advocacy groups who depend on these offices. But other programs at ED, including those in the Office of Postsecondary Education, were outsourced to other agencies Tuesday through a series of six interagency agreements as part of a broader effort to diminish the department. And even though the three offices were spared in this latest round of dismantling, they may not be safe in the long run.

President Trump has talked about moving FSA to the Small Business Association and sending special education to the Department of Health and Human Services. Plus, as the Department of Justice has become increasingly involved in education issues, several experts anticipate OCR could be relocated there.

A senior department official told reporters last week that ED is “still exploring the best plan” for those offices and the programs they oversee.

In the meantime, here’s a rundown of what we know about Trump’s latest effort to dismantle ED.

Why is ED Doing This?

The Trump administration has been clear from the start: its “final mission” is to shut down the department. Officials touted this latest action as a key step toward that goal.

Even though ED is still going to oversee the programs, this move is a way for Trump officials to show they don’t need the department itself to ensure “the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely,” as stated in Trump’s executive order.

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Education Secretary Linda McMahon told department staff last week that it’s all part of an effort to “streamline bureaucracy” and “return power to the states.” But she acknowledged that the agreements are a temporary solution and that Congress will need to sign off eventually.

Further, she told staff that it’s important to explain to the American public that, in the long run, shutting down the department doesn’t mean getting rid of all its programs.

“So it is important how we message that,” McMahon said, citing survey data that showed the majority of Americans opposed shutting down the department but that changed when they learned the programs would remain. “Because honestly, folks, and I’m not trying to sugarcoat this, in the end of this the goal will be to have Congressional votes to close the Department of Education.”

This move comes after years of conservatives lambasting the department for being too woke. They, like McMahon, have said reducing the federal role in education will be a way to protect students’ and parents’ rights.

“Each of us in this room has a chance to be part of history,” McMahon said.

What’s Actually Changing?

Many higher education policy analysts say not much. Aside from outsourcing dozens of grant programs and adding extra steps to the award allocation process, little is expected to change (at least directly). Still, higher ed experts are divided on whether the funding system can survive such a transition.

Congress will still decide how much money is available and what it should go toward. And the Department of Education will still receive funding, post grant applications and set guidelines for the competitions. But now, rather than that money going directly from ED to institutions, it will be funneled through four other agencies: the Departments of Health, Interior, Labor, and State, which will then dole out the money to colleges and universities.

These agencies, particularly the Department of Labor and its Employment and Training Administration, will now be the ones to actually run the competition, decide who wins and allocate the funds. When colleges have questions about drawing down federal dollars or staying in compliance with department policies, it won’t be ED they contact.

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Why the Department of Labor?

Most of the higher education grant programs are heading to the Department of Labor, including TRIO, programs supporting historically Black colleges and universities and the Fund for the Improvement of Postsecondary Education.

This shift follows a growing push across the country to better align higher education with workforce demands. Some, including the Trump administration argue that it makes sense to move college grant programs to the Department of Labor, where the mission is improving “the welfare of the wage earners” and “advanc[ing] opportunities for profitable employment.”

A photo of U.S. President Donald Trump is displayed on the side of the U.S. Department of Labor next to an American flag. A lamp post is in the foreground of the image.
Nineteen higher ed programs at moving to the Labor Department.

Photo by Andrew Harnik/Getty Images

One senior department official told reporters that if education is about creating the workers of tomorrow then “nowhere is it better housed than at the Department of Labor [which] thinks about this night and day.” In fact, the department has already integrated its Office of Career Technical and Adult Education with Labor and a handful of states have merged their departments of education and workforce. (During President Trump’s first term, officials briefly proposed merging Education and Labor, though that idea didn’t move forward.)

But critics fear that Labor won’t be able to effectively oversee grants for short-term, technical training programs, let alone broader initiatives focused on college access, equity and student success. Largely, they worry that the plan could sow confusion, weaken accountability measures and eventually lead to the consolidation of programs that are similar but not duplicative and intentionally separate.

Angela Hanks, a Democrat who previously served as ETA’s acting assistant secretary, said in a social media post that “it’s hard to describe” the “nonsensical” nature of what Trump and McMahon are doing and compared the transfer of power to “having a frog carry a camel on its back.”

Currently, Hanks said, the main youth-focused program at Labor serves about 130,000 students while TRIO alone serves about 870,000. The office would also take on even larger programs like Title I funding for low-income kids at K-12 schools, which serve up to 26 million students.

What’s in the Fine Print?

The interagency agreements do appear to maintain the operation of existing programs for now, but critics argue details both large and small in the text that add bureaucracy and confusion to the process rather than reducing it.

For example, while the seven grant programs for minority-serving institutions are still expected to continue, various parts are being sent off to different agencies. Four grants that involve Alaskan-, Native American–, Asian American– and Pacific Islander–serving institutions will be housed at the Department of Interior. Labor will oversee the remaining three, which support HBCUs as well as predominantly Black- and Hispanic-serving institutions.

Federal policy restricts some institutions from receiving multiple awards across different grant designations despite being eligible, but spreading out various MSI grants could still create complications. Historically, when deciding which grant program is the best fit or clarifying compliance standards, institutions could go to one office for the answers. Now, they may have to contact multiple different staffers.

Multiple higher ed experts have also expressed the concern that rather than cutting grant funds, which only Congress can do, the Trump administration may try to consolidate programs that are similar but not identical.

For example, CCAMPIS, a program focused on subsidizing child care for student parents, is being moved to HHS, which already oversees the Community Services and Child Care and Development Block Grants. These programs target a broader swath of low-income individuals and families, so college access advocates fear that if the funding pots are merged, it could pull grant dollars away from the student parents they were intended for.

Language describing such efforts to “integrate” programs appears in the announcement’s news release, as well as in the fact sheets and agreements. But legal experts say that’s what Congress was trying to avoid by creating ED, and they expect the agreements to face court challenges.

“The Department’s actions will expand federal involvement, rather than streamline it,” said Josie Eskow Skinner, a former general counsel attorney at ED who is now a partner at Sligo Law Group. “As a result of these agreements, states will now have to deal with the potentially conflicting or duplicative demands of multiple federal agencies with no central point of coordination or technical assistance.”

How Does It Align With Project 2025?

In a hearing held by the House Education and Workforce Committee the day after McMahon announced the interagency agreements, Rep. Suzanne Bonamici, an Oregon Democrat, said the Heritage Foundation’s Project 2025 “laid the groundwork for this illegal move of this program and shutting down the Department of Education.”

Project 2025, a sweeping 900-page manual, outlines a multitude of recommended changes across nearly all sectors of the federal government, including how to shut down ED. Following last week’s decision, the Trump administration has made several of the suggested changes including moving career education and postsecondary programs to Labor and transferring tribal college programs to the Interior Department. (Lindsey Burke, who now serves as ED’s deputy chief of staff for policy and programs, authored the manual’s education chapter.)

Still remaining on the Project 2025 to-do list include moving the Office for Civil Rights to the Department of Justice and giving Treasury control of federal student aid.

Trump has repeatedly denied involvement with the project, even though actions in the first few months closely follow the project’s recommendations.

But there’s one key way McMahon’s actions so far differ from Project 2025—she’s not making funding cuts or eliminating programs. Project 2025 recommends doing so through an act of Congress.

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