U.S. Education Secretary Linda McMahon is working to demonstrate to Congress that the Department of Education is no longer needed by transferring key federal functions to other executive branch agencies. She described these transfers as a proof of concept intended to show lawmakers that federal support for students can continue without a standalone Cabinet department.
McMahon told Fox News Digital that the agency has signed interagency agreements allowing other departments to perform functions previously handled by the Department of Education. The first major block of work was transferred to the Department of Labor. Under these agreements, the Department of Labor is taking on the day-to-day administration of adult education, family literacy, and career and technical education programs. These programs operate under the Workforce Innovation and Opportunity Act and the Perkins Act. While the Department of Labor manages these operational duties, the Department of Education retains its statutory responsibilities and oversight roles.
The department has also partnered with the Department of the Treasury. Treasury has agreed to take over key operations related to federal student loans and collections on defaulted debt. Department of Education officials stated that the goal of these partnerships is to show Congress that essential federal education functions and funding flows can be reallocated across agencies without disruption. McMahon said she wants to prove that money still reaches schools and students where it is needed, noting that some programs were duplicated in other agencies or handled more effectively elsewhere.
During his 2024 presidential campaign, President Donald Trump promised to eliminate the Department of Education. He later signed an executive order directing his administration to begin dismantling the agency. McMahon said that ultimately, Congress must vote on whether to close the department. She expressed hope that lawmakers would vote for closure because she believes the outcome will be better for students. She also noted that closing the department aligns with the president's goals.
Andrew Gillen, a higher education policy research fellow at the Cato Institute, told Fox News Digital that shifting core duties like student loans and formula grants represents a substantial change from previous interagency agreements. He noted that such agreements historically focused on minor administrative support rather than major operational responsibilities.
McMahon has previously argued that the Department of Education acts primarily as a pass-through entity for federal money. She contended that its day-to-day functions are nonessential because Congress appropriates the funds, which then flow through the department to states and local authorities. The department took another step toward reducing its footprint by moving out of the Lyndon B. Johnson Department of Education building so the Department of Energy could move in by August. Officials described this move as a prudent step to save hundreds of millions of taxpayer dollars and reduce federal education bureaucracy.
The Trump administration is also seeking to return more power to the states. The Department of Education introduced a new mechanism for state officials to request expanded discretion over federal education dollars while lowering compliance requirements. In July 2025, the department sent a letter to states encouraging them to apply for this waiver, which would give state education officials more control over funding and reduce administrative costs. Iowa became the first state to participate in this effort.