119 Ed. Programs Move to New Federal Agencies

The U.S. Department of Education is no longer the sole manager of American education policy. In one of the most significant organizational changes to the federal education system in decades, the department is transferring more than 100 programs to other Cabinet-level agencies — and the transfers are already happening.

An April 2026 analysis by Education Week found that the Education Department has struck 10 interagency agreements with five Cabinet-level agencies, moving at least 119 K-12 and higher education programs out of the department.¹ The move is part of a broader push by Education Secretary Linda McMahon to demonstrate that the department's programs can function inside other agencies — a precursor to potential congressional action to formally eliminate the department.

Which Agency Gets What

The transfers aren't random. Each agency is absorbing programs connected to its existing mission:

Department of Labor is the largest recipient. It will take over approximately $28 billion in elementary and secondary education funding, including grants for schools serving low-income communities (Title I), and roughly $3.1 billion in postsecondary education operations. Career and technical education programs are also moving to Labor. When complete, Labor will distribute more education funding than it does for its own labor programs.

Treasury Department is taking over the federal student loan portfolio — all $1.7 trillion of it. That transfer was covered separately when the administration announced the three-phase student loan move to Treasury in March 2026.

Health and Human Services is receiving grants for school safety programs, community schools, and family engagement initiatives.

State Department will assist in overseeing foreign funding and gifts received by U.S. colleges and universities — a portfolio that has drawn significant attention amid concerns about foreign influence on campus research.

Staff Are Moving Too

It's not just programs on paper that are shifting. Since November 2025, the Education Department has detailed 50 higher education staffers to the Department of Labor.¹ More staff working on career-and-technical education and K-12 programs have also been moved on temporary "detail" arrangements — agreements that can be renewed indefinitely.

The department also announced plans to vacate its Lyndon B. Johnson headquarters building in Washington, D.C., citing annual savings of $4.8 million on a building that is 70% vacant.

Critics Say Oversight Could Break Down

The Education Department's own inspector general raised concerns in a February 2026 report about what happens when two agencies share oversight of a single program. The report warned it "will be critically important for the Department to ensure that program expertise is transferred and that there is continuous communication between the agencies to avoid any gaps in grantee oversight."¹

Former Education Department employees and education nonprofits have told House Democrats that the interagency agreements will create more bureaucracy, duplicative efforts, and higher costs — not less. Congress has not yet approved legislation to formally eliminate the department, and current spending law bars agencies from relocating offices or reorganizing programs using covered funds.

What This Means for Students Right Now

For most students and families, the day-to-day experience of applying for aid and managing loans hasn't changed yet. The FAFSA process is still operating, FAFSA deadlines are still in place, and your current loan servicer is still your point of contact.

But the longer-term picture is harder to predict. Programs that have moved to Labor, HHS, or State are now managed by agencies that weren't built to run education programs. If a grant application gets delayed, or if an appeal on a financial aid award hits a bureaucratic snag, the cause may now be rooted in a handoff between departments rather than a single agency's error.

Keep records of every FAFSA submission, financial aid award, and loan correspondence. As program oversight fragments across agencies, having documentation becomes more important than ever if you need to escalate an issue.

The Bigger Picture

Secretary McMahon has described these agreements as evidence that skeptical lawmakers can safely vote to codify the department's elimination without risking the programs. Congress has not yet acted on that proposal, and the current funding law running through September 2026 explicitly bars using those funds to relocate or reorganize programs.

That legal tension means the transfers could be reversed, slowed, or challenged. But as of April 2026, the programs are moving — and the people who administer federal research funding at universities, student loan forgiveness programs, and career education grants are now working inside a different building with a different agency letterhead.

What to Do

1. Continue filing the FAFSA normally — the application hasn't changed
2. Save your FSA ID, all aid offer letters, and loan correspondence in one place
3. If you have a loan servicer, keep your contact information updated so notices reach you
4. Monitor your studentaid.gov account directly rather than relying on servicer emails
5. If a grant or aid decision seems delayed or wrong, ask specifically which agency is now responsible — don't assume it's still the Education Department

Footnotes

1. Education Week. (2026, April). See Which Ed. Dept. Programs Are Moving to New Agencies: A Tracker. Education Week. https://www.edweek.org/policy-politics/see-which-ed-dept-programs-are-moving-to-new-agencies-a-tracker/2026/04 ↩ ↩² ↩³

2. Federal News Network. (2026, February). Congress fully funded Education Dept, but it's moving ahead with reassigning employees to other agencies. Federal News Network. https://federalnewsnetwork.com/reorganization/2026/02/congress-fully-funded-education-dept-but-its-moving-ahead-with-reassigning-employees-to-other-agencies/ ↩