Updated October 2026. This article was first published in November 2025; it now covers every transfer through mid-2026, corrects the original list of programs, and adds the court, budget and congressional developments since.
The Department of Education restructuring is one of the biggest changes in federal education governance since Congress created the department in 1979. Rather than abolishing the agency, which would require an act of Congress, the administration has moved the day-to-day management of its programs to other federal agencies through interagency agreements. By July 2026 there were 14 such agreements with six agencies, covering special education, Title I, student loans and much of the department’s higher education work.
How the restructuring began
On March 20, 2025, President Trump signed Executive Order 14242, which directs the Secretary of Education, “to the maximum extent appropriate and permitted by law,” to facilitate the closure of the department. Days earlier, the department had announced layoffs that cut its staff from 4,133 to about 2,183, and it closed seven of the Office for Civil Rights’ 12 regional offices, according to a K-12 Dive timeline. In July 2025 the Supreme Court allowed the layoffs to proceed while lower courts consider whether they are legal.
The first program transfer came in May 2025, when career, technical and adult education moved to the Department of Labor; management began shifting in July 2025.
The November 2025 agreements
On November 18, 2025, the department announced six interagency agreements with four agencies. The department remains legally responsible for the programs, while partner agencies take over day-to-day management. According to K-12 Dive and a McGuireWoods summary, the six were:
| Partner agency | Programs |
|---|---|
| Labor | Elementary and secondary education programs, including Title I and the Rural Education Achievement Program |
| Labor | Postsecondary institutional grants under the Higher Education Act (about $3.1 billion) |
| Interior | Indian education programs across K-12, higher education, career education and vocational rehabilitation |
| Health and Human Services | Support for the National Committee on Foreign Medical Education and Accreditation |
| Health and Human Services | Child Care Access Means Parents in School (campus child care grants) |
| State | International education and foreign language studies (Fulbright-Hays) |
Correction: the original version of this article listed early childhood technical assistance centers and family engagement units as moving to HHS, career and technical education offices and youth workforce programs as moving to Labor, and international student exchange as moving to State in November 2025. Those descriptions were inaccurate; the table above reflects the agreements as reported. Family engagement programs moved to HHS later, in February 2026, and career and technical education had moved to Labor in May 2025.
What moved in 2026
- February 2026. Two more agreements sent school safety and mental health grants to HHS and higher education foreign-gift reporting to State. An amendment also moved Statewide Family Engagement Centers, Full-Service Community Schools, Promise Neighborhoods and Ready to Learn from Labor to HHS, Education Week reported.
- March 2026. Management of the roughly $1.7 trillion federal student loan portfolio began moving to the Treasury Department, with FAFSA administration expected to follow.
- June 16, 2026. The Office of Special Education and Rehabilitative Services, which runs IDEA, moved to HHS, and parts of the Office for Civil Rights’ work moved to the Justice Department, Chalkbeat reported.
By July 2026 the department had 14 interagency agreements with six agencies: HHS, Justice, State, Labor, Interior and Treasury. Education Week counted 148 programs moving. More than 2,000 employees remained at the department.
Congress, the courts and oversight
- Funding. The fiscal 2026 spending law, enacted in February 2026, kept the department’s budget at about $79 billion and did not ban the agreements, but its accompanying report says the department cannot transfer its “fundamental responsibilities” and requires biweekly briefings on staffing and service delivery, K-12 Dive reported. The administration’s fiscal 2027 request asks for $76.5 billion, a 3 percent cut, and would combine 17 K-12 grant programs into one.
- Senate bill. On July 30, 2026, the Senate education committee advanced a bipartisan bill, 13 to 9, that would bar moving programs out of the special education, elementary and secondary, postsecondary and Indian education offices, Education Week reported. It has not received a full Senate vote.
- Courts. States challenging the dismantling have amended their lawsuit in federal court in Massachusetts to target the interagency agreements. No ruling on the agreements has been reported.
- Oversight. In October 2026 the department’s inspector general agreed to review how the department manages its higher education agreement with Labor, after a request from Sen. Elizabeth Warren, her office announced. The Government Accountability Office has also expanded its reviews.
What supporters and critics say
Supporters argue that moving programs to agencies with related missions reduces duplication, puts workforce programs with Labor and health-related programs with HHS, and returns more authority over education to states. Secretary Linda McMahon has framed the moves as making federal oversight more effective where it is needed.
Critics argue that splitting programs across six agencies makes federal education governance harder for districts to navigate, risks losing expertise in programs such as Title I, IDEA and civil rights enforcement, and achieves through agreements what would otherwise require Congress. In June 2026, all 47 Senate Democrats urged that special education and civil rights stay at the department.
What this means for schools and districts
- Know who manages each program. Title I and rural education are managed through Labor, special education through HHS, and student loans through Treasury. Check which agency now handles each grant, reporting requirement and technical assistance contact.
- Watch for changed procedures. New host agencies may change grant timelines, reporting systems and guidance.
- Strengthen internal compliance. With fewer federal staff, districts carry more of the burden for Title I, IDEA and civil rights compliance.
- Keep families informed. Parents of students with disabilities in particular may ask whether services will change. The law, IDEA, has not changed.
- Follow Congress. Appropriations language and the Senate bill could limit or reverse some transfers.
Frequently asked questions
Is the Department of Education closing? Not formally. Closing it would require Congress. The administration has instead moved the management of most programs to other agencies, while the department remains legally responsible for them.
Where did special education go? The Office of Special Education and Rehabilitative Services moved to the Department of Health and Human Services in June 2026.
Who manages federal student loans now? The Treasury Department began taking over the student loan portfolio in March 2026.
How many interagency agreements are there? Fourteen with six agencies as of July 2026.
CNN – Trump admin accelerates push to dismantle Department of Education (Play video) (November 2025)
Subscribe to edCircuit to stay up to date on all of our shows, podcasts, news, and thought leadership articles.
Related reading
More on Department of Education
