The Trump administration is taking a major step toward reducing the footprint of the U.S. Department of Education. On Tuesday, the department announced agreements that transfer some of its largest grant programs to other federal agencies. This marks a significant move in the administration’s broader plan to dismantle the department, which has so far focused primarily on staffing reductions.

Since President Trump signed an executive action in March calling for the elimination of the department, job cuts and voluntary retirements have steadily thinned its ranks. The newly announced agreements, however, go further by shifting billions of dollars in funding streams to agencies such as Labor, Health and Human Services, Interior, and State.

Department of Labor Takes Control of K-12 Grants

The most consequential of the changes places the Department of Labor in charge of several major K-12 education grants. This includes the $18 billion Title I program, which supports schools serving low-income communities, as well as smaller grants for teacher training, English instruction, and TRIO programs designed to help low-income students access higher education.

Critics warn that moving these funds could disrupt programs for the nation’s most vulnerable students. Angélica Infante-Green, Rhode Island’s K-12 education chief, emphasized that administering these grants is not just about dispersing money. She explained that many students have overlapping needs, such as poverty, multilingual learning, and special education, that require careful coordination. Losing the department’s expertise could undermine these efforts.

Remaining Core Functions at Education Department

While the grant programs are moving, some of the department’s responsibilities will remain intact. These include oversight of the $1.6 trillion student loan portfolio, funding for students with disabilities, and the Office for Civil Rights, which handles complaints of discrimination in schools. Education Secretary Linda McMahon, however, has suggested that even these areas might eventually be better managed by other federal departments.

Department officials assured that Congress-mandated funding levels will be maintained for the transferred programs. The agreements also allow the department to reduce its scope without requiring new legislation, using formal inter-agency arrangements to shift responsibilities.

Expansion of Pilot Programs

This restructuring builds on a June pilot program in which adult education programs were moved from the Education Department to Labor. The new agreements expand this model, covering K-12 and higher education grant programs. Health and Human Services will now oversee grants for college students who are parents and manage foreign medical school accreditation, while the State Department will administer foreign language programs, and Interior will handle grants for Native American education.

Union leaders expressed concern over the scattered management of programs. Rachel Gittleman, president of AFGE Local 252, noted that students, educators, and families rely on the department’s expertise. She argued that transferring core functions to agencies that may not be prepared to provide the same level of support could weaken national education efforts.

McMahon Pushes Case for Abolition

Secretary McMahon has framed these changes as part of a larger vision: eliminating the Education Department entirely. She has criticized the department for decades of bureaucratic expansion, pointing to stagnant student performance in math and reading, which worsened during pandemic-related school closures. McMahon argues that states should have greater flexibility in spending funds currently earmarked for specific programs, from literacy initiatives to support for homeless students.

To support her case, McMahon is traveling across the country highlighting local school successes and engaging with lawmakers on Capitol Hill. These moves aim to demonstrate that schools and colleges can function without the central oversight of the Education Department.

A Controversial Step Toward Decentralization

The changes signal a dramatic shift in federal education policy. By transferring major grant programs to agencies with different priorities and expertise, the administration is testing whether decentralized management can replace centralized oversight. While funding levels remain unchanged, the long-term effects on student outcomes and educational equity remain uncertain.

As the department continues to shed programs and personnel, debates over the future role of the federal government in education are likely to intensify. Lawmakers, educators, and advocacy groups will be watching closely to see how these changes affect students, teachers, and communities across the country.