Department of Education (US)
US federal agency that funds schools, runs student loans, and sets education civil rights rules.
On the record
Checkpoint: First Circuit ruling on legality of the RIF and function transfers
The call
The department still exists on paper, but piece by piece its actual work is being carried out by other federal agencies.
The Department of Education runs federal school programs and student aid, but the Trump administration is shrinking it by about 40% and moving its work to other government agencies like Treasury and Labor. It is hard to replace because Congress set up education programs by law, which means they cannot be erased without Congress voting to change those laws. However, the agency is being weakened right now through executive orders and agreements between agencies, so the real question is whether a court will stop these moves or whether Congress will fight back in the next budget fight in 2027.
Why
01
AI pressure: None apparent. AI is not what is eating this agency. The threat is executive action moving its functions to other departments. Could AI do the core job? Only partly.
02
Bigger players: Trump administration, via interagency transfers to Treasury, DOJ, HHS, and Labor. Student loan portfolio moved to Treasury, civil rights to DOJ, special education to HHS, staff physically relocating in 2026. Could a giant copy it? No, they are blocked.
03
What protects it. Only Congress can abolish the department by statute, and lawmakers have so far funded its core programs and rejected full elimination.
What would change this call
First Circuit rules on the RIF and function-transfer lawsuits, expected late 2026. A reversal would restore ED's operations; an upholding would confirm the dismantling as durable.
Congress passes or rejects the FY2027 budget with ED funding levels intact or cut. Would show whether lawmakers are willing to legislatively protect or further shrink ED.
Outcome of the 20+ state attorneys general lawsuit challenging the transfers. A win for states could force functions back to ED; a loss would cement the transfers.
Congress passes or rejects the FY2027 budget with ED funding levels intact or cut. Would show whether lawmakers are willing to legislatively protect or further shrink ED.
Outcome of the 20+ state attorneys general lawsuit challenging the transfers. A win for states could force functions back to ED; a loss would cement the transfers.
Key numbers
- FSA staff began moving to Treasury's K Street office
- Civil rights, special ed oversight moved to DOJ, HHS
- About 1,300 staff cut in 2025 reduction in force
Named risks
- Core functions physically and legally transferred to Treasury, DOJ, HHS, Labor with no legislative reversal in sight.
- Sub-offices left with zero staff, including loan-servicer oversight, per June 2026 Inspector General report.
- Ongoing multi-state litigation could force reinstatement of functions, creating operational whiplash.
- Withholding of Congressionally mandated IES appropriations triggered Anti-Deficiency Act lawsuit filed 2026-06-30.
- Disparate impact Title VI standard rescinded without public comment, inviting further legal challenge.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| U.S. Department of the Treasury | losing to | Took over federal student loan servicing/portfolio via phased transfer announced 2026-03-19 |
| U.S. Department of Justice | losing to | Absorbed civil rights enforcement functions from ED as of 2026-06-16 |
| U.S. Department of Health and Human Services | losing to | Took over special education/rehabilitation oversight (OSERS) as of 2026-06-16 |
| U.S. Department of Labor | losing to | Co-administering career/technical and adult education grants per 2026-06-29 report |
| State education agencies and state AGs | contesting | 20+ state AGs litigating dismantlement, First Circuit ruling expected late 2026 |
Questions people ask
- Is the Department of Education being shut down in 2026?
- It is being hollowed out via executive action rather than formal abolition. Since March 2025 core functions like student loans, civil rights, and special education have been transferred to Treasury, DOJ, and HHS, with FSA staff physically relocating to a Treasury office by late July 2026.
- How many people did the Department of Education lay off?
- A March 11, 2025 reduction in force cut roughly 1,300 to 1,378 employees, about half the workforce, plus around 570 to 600 voluntary departures. An Inspector General report found a combined 40 percent staff cut, 1,579 departures, between January and March 2025.
- Is it safe to take a job at the Department of Education right now?
- It is a risky bet as of mid-2026: headcount fell from 4,133 in January 2025 toward the low-2,000s, whole sub-offices were left with zero staff per a June 2026 Inspector General report, and core functions keep moving to other agencies.
- Who now handles federal student loans instead of the Education Department?
- The Treasury Department, following a phased transfer announced March 19, 2026 of the roughly 1.7 trillion dollar federal student loan portfolio covering about 42.8 million borrowers, with FSA staff moving into a Treasury building on K Street by late July 2026.
- Can Congress or courts stop the Education Department's dismantlement?
- Only Congress can formally abolish ED, and it rejected deeper FY2026 cuts in March 2026. Litigation from 20-plus state attorneys general is pending, with a First Circuit ruling on the transfers expected late 2026.
- What did the Education Department do to civil rights enforcement in 2026?
- On June 16, 2026 civil rights oversight moved to the Department of Justice and special education oversight moved to HHS. On July 23, 2026 ED's Office for Civil Rights rescinded its 60-year-old disparate impact Title VI standard without public comment.
Timeline
- 2026-07-28FSA staff begin physically relocating to Treasury building on K Street
- 2026-07-24ED rescinds disparate impact Title VI enforcement standard without public comment
- 2026-06-30Protect Democracy sues over withheld IES research appropriations
- 2026-06-16Civil rights oversight moved to DOJ, special education moved to HHS
- 2026-05-14McMahon testifies on FY2027 budget request of 75.7 billion dollars
- 2026-03-19Treasury announced phased takeover of federal student loan portfolio
- 2025-07-14Supreme Court lifts injunction, allows mass firings to proceed
- 2025-03-20Trump signs executive order directing ED closure to maximum extent legal
- 2025-03-11ED initiates reduction in force cutting about 1,300 staff
- 2025-03-03Linda McMahon confirmed as Secretary of Education
Revision history
30 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- United States Department of Education
- President Trump Signs Executive Order Aimed at Eliminating the Department of Education (2026-07-07)
- Education Dept hands federal student loan portfolio to Treasury (2026-03-20)
- Trump moves special education and civil rights oversight out of Education Department (2026-06-16)
- FSA Staff Now Slated to Move to Treasury Office (2026-07-28)
- If you have student loans, here's what to know about Treasury move (2026-03-19)
- New Watchdog Report Reveals Trump Shut Down 130+ Teams
- Education for the Disadvantaged FY2027 Budget
- Fiscal Year 2027 Budget Summary
- U.S. Department of Education Initiates Reduction in Force (2025-03-11)
- 1,300 Education Department employees will be laid off (2025-03-11)
- Education Department Cut 40% Of Staff, Gutting Student Loan Oversight (2026-07-29)