Overview
- The new interagency deals move management of major grant programs: K-12 and many higher education functions to Labor, Indian education to Interior, on-campus child care and foreign medical accreditation to HHS, and international education and foreign language programs to State.
- Department officials say statutory oversight remains with Education and that programs will continue at funding levels set by Congress.
- The $1.6 trillion federal student loan system stays under the Education Department for now as the administration considers next steps.
- Employees working on affected programs will be detailed to receiving agencies or may transfer, with no additional layoffs announced Tuesday after earlier staff cuts proceeded under a Supreme Court ruling.
- Democratic lawmakers, unions and some legal experts argue the transfers exceed executive authority under the Economy Act, signaling legal and congressional scrutiny of the plan.