Education Department Transferred Programs and Cut Staff
Federal program management has shifted to other agencies as the Department of Education reduces its workforce to 2,200.
Updated on Oct. 3, 2026 in Administration
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The Department of Education has transferred management of over 100 programs to other federal agencies and reduced its staff count from 4,100 to 2,200. This administrative shift follows an executive order signed by President Donald Trump to close the department.
Why it matters
The administration aims to reduce federal bureaucracy and return authority to states and local school systems. These changes include the cancellation of over $1 billion in existing contracts and grants.
The department reduced its workforce by nearly half, leaving 2,200 employees, and canceled more than $1 billion in contracts and grants. Over 100 programs have been offloaded to various federal bodies.
The players
Department of Education
A federal agency responsible for overseeing K-12 and higher education grants and policy.
Donald Trump
The current President of the United States who signed the executive order to close the department.
Linda McMahon
The Secretary of Education overseeing the plan to make the agency position obsolete.
The details
The Secretary of Education is executing these transfers through inter-agency agreements authorized by the Economy Act. Under this mechanism, K-12 and Title I grants have been moved to the Labor Department, while portions of the student-loan portfolio were transferred to the Treasury Department. These shifts are designed to shift oversight responsibilities away from the central Washington D.C. headquarters.
Timeline
March 2025: President Donald Trump signed an executive order to close the Department of Education.
March 2025: The department completed staff layoffs.
October 2, 2026: Updates regarding the department status were reported.
The Home Front
This reorganization marks a significant departure from long-standing federal education management protocols. It signals a shift toward decentralized oversight as the government works to return authority to state and local school districts.
Families receiving K-12 grants or managing student loans should monitor their respective program portals for changes in administrative points of contact. Keep documentation of all current grant or loan statuses as agencies transition management responsibilities.
The takeaway
The administrative restructuring of federal education programs is currently underway. Families and educators should track communications from their local school districts for updates on how the shift of K-12 grants affects regional school funding.
Further reading
For more on changes to federal oversight and policy, visit Administration.
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Do you believe moving federal education powers to the states will improve American schools?
