Education Secretary Aims to Eliminate Department Through Agency Transfers

U.S. Education Secretary Linda McMahon is actively working to dismantle the Department of Education by transferring its functions to other federal agencies, a strategy she frames as a "proof of concept" to Congress.

McMahon stated that interagency agreements are allowing the Department of Education to contract with other agencies for services previously handled in-house. The Department of Labor has already taken over significant responsibilities for adult education, family literacy, and career and technical education (CTE) programs under the Workforce Innovation and Opportunity Act and the Perkins Act. While the Department of Labor manages operational duties, the Department of Education retains statutory oversight and shifts services to states and grant recipients.

Shifting Responsibilities

Under these agreements, the Department of the Treasury will manage key operations related to federal student loans and collections on defaulted debt. These initiatives, along with others, aim to demonstrate that essential federal education functions and funding can be successfully reallocated across executive branch agencies without disruption.

"I call it my proof of concept to show Congress that it works, that the money still gets to schools and to students where they need it," McMahon told Fox News Digital. She added that some departmental programs were duplicated elsewhere or could be handled more effectively by other agencies, emphasizing efficiency and accountability through student outcomes.

This approach builds on previous efforts by the Trump administration to reduce the department's scope. Donald Trump had promised to eliminate the Department of Education during his 2024 presidential campaign and subsequently signed an executive order to begin dismantling the agency. Earlier this year, the Department of Education moved out of its long-time building, a step officials described as a prudent measure to save taxpayer money and reduce federal bureaucracy.

McMahon has argued that the Department of Education primarily functions as a pass-through entity for federal funds, with Congress appropriating the money that is then distributed to states and local authorities. She believes that its day-to-day functions are not essential and that Congress ultimately holds the power to vote on closing the department.

Previous interagency agreements under administrations had typically focused on minor administrative support, but shifting core duties like student loans and formula grants represents a substantial change, according to Andrew Gillen, a higher education policy research fellow at the Cato Institute.

The administration is also pursuing a strategy to return more power to the states. The Department of Education launched a process to allow states greater flexibility in using federal education funds and reducing administrative burdens. Iowa was the first state to participate in this initiative, with a letter sent to states in July 2025 encouraging applications for waivers that would grant state education officials more discretion over federal dollars and decrease compliance costs.