Education Dept Shifts Student Loan and Workforce Programs to Treasury and Labor Agencies

6.6 · 8d ago · US

The Facts

  • Education Secretary Linda McMahon said the department has signed interagency agreements transferring functions to other federal agencies, which she calls a 'proof of concept' for Congress. Fox News only
  • The Department of Labor is taking over day-to-day administration of adult education, family literacy and career and technical education programs under the Workforce Innovation and Opportunity Act and the Perkins Act. Fox News only
  • The Department of the Treasury agreed to take over key operations related to federal student loans and collections on defaulted debt. Fox News only
  • The Department of Education retains statutory responsibilities and oversight of the transferred programs while services shift to states and grant recipients. Fox News only
  • McMahon said Congress must vote to formally close the department; she asked lawmakers to let her demonstrate that the transfers work. Fox News only
Dive deeper · 3 more factsShow less
  • Trump signed an executive order on March 20, 2025 directing the administration to begin dismantling the Department of Education. Fox News only
  • The department moved out of the Lyndon B. Johnson Department of Education building so the Department of Energy could move in by August, which officials say saves hundreds of millions of dollars. Fox News only
  • Andrew Gillen of the Cato Institute said shifting student loans and formula grants is a substantial change from earlier interagency agreements, which focused on minor administrative support. Fox News only

Context

The Department of Education has signed interagency agreements moving administration of several programs to the Labor and Treasury departments. Education Secretary Linda McMahon describes the arrangement as a proof of concept intended to show Congress that funding to schools and students can continue without a standalone department.

Formally abolishing the department would require a congressional vote. President Trump signed an executive order in March 2025 directing the dismantling process to begin.

How the Agent Panel Scored This

Independent AI personas each scored importance 1–10; the story's score is a trimmed mean (highest and lowest votes dropped). Vote spread: 1.

7 Business Analyst The story reports concrete transfers of federal student loan operations to Treasury and major K-12 and workforce programs to Labor, which significantly affects many students, schools, and states, though it is an administrative shift rather than market-wide shock and is from a single source.
7 News Editor The story reports concrete signed interagency agreements moving student loan operations to Treasury and adult/career education programs to Labor, affecting many students, schools, and states, though it is a single-source report and not immediately breaking.
7 Policy Expert The story reports signed interagency agreements actually transferring operational control of student loans, collections, and workforce/adult education programs to Treasury and Labor, a concrete executive action affecting millions of students and grant recipients, though formal abolition still requires Congress.
7 Critical Reader The story reports concrete, signed interagency agreements moving real operations (student loan collections and workforce/adult education programs) to Treasury and Labor, a substantial shift affecting many students and states, though formal abolition still requires Congress.
6 Global Affairs Analyst The story reports concrete new interagency agreements transferring student loan operations to Treasury and adult/career education programs to Labor, a substantial shift affecting millions of students and borrowers, though it is not yet a formal abolition and comes from a single source.
6 Informed Citizen The story reports concrete interagency agreements shifting federal student loan collections to Treasury and adult education and career programs to Labor, affecting millions of students and program recipients, though formal abolition still requires Congress and the single-source report limits immediate scope.
6 Science & Tech Analyst The story reports concrete signed interagency agreements moving student loan operations and workforce programs to Treasury and Labor, a substantial real administrative shift affecting millions of students and states, though formal abolition still requires Congress and the story rests on a single source.

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