Insights

Federal Restructuring Shifts Major Education Responsibilities Across Multiple Agencies

Nov 19, 2025

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Published by Fractional Coordinator, Inc. | November 2025

The Trump administration has announced a significant reorganization of federal education functions, outlining a plan that will shift several long standing responsibilities out of the United States Department of Education and into other federal agencies. The changes represent one of the most extensive restructurings of the Department since its establishment in 1979.

Redistribution of Federal Education Functions

Under the new plan, academic support programs for both K through 12 schools and colleges will be transferred primarily to the Department of Labor. These include a range of initiatives focused on student services, institutional capacity building, and education aligned with workforce needs.

Additional transfers include:

  • A child care assistance program for college students and foreign medical school accreditation shifting to the Department of Health and Human Services

  • International education and Fulbright programs moving to the Department of State

  • Oversight of the Indian Education Office transitioning to the Department of the Interior

According to administration officials, the realignment is intended to consolidate similar programs within agencies whose missions more closely match the responsibilities being reassigned.

Alignment With Long Term Administrative Goals

The restructuring reflects President Trump’s stated goal of eventually closing the Department of Education, a change that would require congressional action. While that outcome remains uncertain, the transfer of programs significantly reduces the Department’s operational scope and distributes responsibilities across several Cabinet agencies.

Education Secretary Linda McMahon described the restructuring as part of a broader effort to streamline federal operations and reduce administrative layers.

Staffing Reductions and Program Impact

The restructuring follows earlier actions that included significant staff reductions, most notably within the Office for Civil Rights and the Department’s research division. Following Supreme Court authorization for mass layoffs, more than one thousand three hundred positions were eliminated, reducing federal capacity for civil rights enforcement and national education data analysis.

Remaining Responsibilities at the Department of Education

Despite the restructuring, several core functions remain within the Department:

  • The Office for Civil Rights

  • Federal Student Aid

  • Special Education and Rehabilitation Services

These offices continue to oversee civil rights protections, financial aid distribution, and disability related educational services.

Political Response and Legislative Outlook

Responses from lawmakers and policy organizations have varied. Some members of Congress and advocacy groups have expressed concerns about program continuity and the possibility of fragmented oversight. Others have suggested that the plan aligns with broader efforts to modernize federal operations following recent government shutdowns.

Republican leadership has expressed limited interest in advancing legislation to fully close the Department, leaving the current restructuring as the operative framework.

Institutional Considerations Moving Forward

As education responsibilities shift across multiple agencies, institutions including school districts, colleges, and training organizations will need to adjust to new reporting structures and compliance requirements. Navigating several federal entities may introduce complexities in administration, funding, and oversight that were previously centralized.

Fractional Coordinator will continue monitoring developments to support institutions in understanding the changing federal landscape and maintaining operational continuity throughout the transition.

A Partnership for the Future

Fractional Coordinator partners with K through 12 districts, charter schools, colleges, and universities to build compliance systems that are both responsive and resilient. Through policy audits, faculty training, and active case consultation, our team helps institutions convert complexity into clarity.

To request a readiness assessment or consultation, visit www.fractionalcoordinator.com or contact support@fractionalcoordinator.com.