U.S. Education Secretary Linda McMahon is actively seeking congressional approval to dismantle the Department of Education (ED), presenting interagency agreements as a demonstration that its core functions can be absorbed by other federal agencies without disrupting student loans or K-12 funding. McMahon has stated her intention to close the department, arguing it is no longer necessary.
McMahon explained that these interagency agreements signify the Department of Education is contracting with other agencies to perform its designated functions. This initiative is designed as a proof of concept to convince lawmakers that federal support for students will not falter even without a dedicated Cabinet department. McMahon indicated she is asking Congress to allow her to demonstrate that the approach works, hoping lawmakers will ultimately vote to close the department and enable her to "fire myself," as she believes it will result in better outcomes for students.
A significant portion of this effort involves the Department of Labor (DOL) taking on key responsibilities. The DOL is now managing the day-to-day administration of adult education, family literacy, and career and technical education (CTE) programs, specifically those under the Workforce Innovation and Opportunity Act (WIOA) and the Perkins Act. While the Department of Labor handles these operational duties, the Department of Education maintains its statutory responsibilities and oversight, shifting services directly to states and grant recipients. This transfer of duties began with CTE and is planned to extend to K-12 and higher education as well.
In another major move, the Department of the Treasury has partnered with the Department of Education to oversee critical operations related to federal student loans and the collection of defaulted debt. This student loan partnership with Treasury, alongside the workforce initiative with DOL, forms part of a broader series of interagency agreements. Department of Education officials indicate the goal is to show Congress that essential federal education functions and funding can be successfully reallocated across executive branch agencies without disruption. McMahon referred to this strategy as her proof of concept, aiming to demonstrate to Congress that funding will continue to reach schools and students effectively.
This push to eliminate the Department of Education aligns with President Donald Trump's 2024 presidential campaign promise. President Trump later signed an executive order in March 2025, directing his administration to begin the dismantling process. The administration has urged returning greater control over education to states, citing approximately $3 trillion of taxes spent and concerns over proficiency scores.
McMahon's rationale for these changes includes the belief that some programs within the Department of Education were duplicating efforts in other agencies or could be handled more effectively elsewhere. She advocates for greater efficiency, ensuring funds reach their intended recipients, measuring success by student outcomes, and holding educators and administrators accountable. McMahon previously argued that the ED largely functions as a pass-through entity for federal money, with funds appropriated by Congress often passing through the department to states and local authorities.
Further demonstrating a shift in federal education bureaucracy, the Department of Education announced earlier this year that it relocated from the Lyndon B. Johnson Department of Education building. The Department of Energy is slated to move into the building by August. Officials involved in the relocation described the move as a prudent step, stating its purpose was to save hundreds of millions in taxpayer dollars and reduce federal education bureaucracy.
The Trump administration is also pursuing efforts to reduce the department's federal footprint by empowering states. The Department of Education launched a new process that allows states to seek greater flexibility in using federal education funds and to reduce administrative burdens. Iowa was the first state to participate in this initiative. In July 2025, the Department of Education sent a letter to states, encouraging them to apply for waivers that would grant state education officials more discretion over federal dollars and decrease compliance costs. Andrew Gillen, a higher education policy research fellow at the Cato Institute, described the shifting of major core duties like student loans and formula grants as a substantial change compared to previous interagency agreements, which typically focused on minor administrative support.
