ED Proposes Major Shift of Federal Education Functions: What States, Districts, and Providers Need to Know

On November 18, 2025, the U.S. Department of Education (ED) announced a sweeping plan to redistribute several of its core responsibilities to other federal agencies—including the Departments of Labor, Health and Human Services, the Interior, and State (“partner agencies”)—through a series of interagency agreements. Although ED states that it will “retain oversight,” the partner agencies would assume responsibility for actually administering the transferred programs, including grant competitions, technical assistance, and other functions ED has historically carried out as part of its statutory obligations.

While ED describes the effort as an attempt to enhance efficiency, the proposal raises significant legal, structural, and operational questions for states, school districts, and education providers. A full list of the offices and programs that ED has announced will be impacted is provided at the end of this post.

The agreements have been signed by agency representatives, but little information has been provided about when the agencies intend to begin implementing changes and what that will look like for agency staff and stakeholders.

A Return to Fragmentation?

Congress created the Department of Education in 1979 to consolidate federal education programs under a single Cabinet-level entity, having found that “the dispersion of education programs across a large number of Federal agencies has led to fragmented, duplicative, and often inconsistent Federal policies relating to education.” Department of Education Organization Act, section 101(8).

ED’s new plan risks reversing that consolidation by dispersing education programs across multiple agencies with their own agency missions and priorities, regulatory structures, and administrative processes.

As a result, states and grantees may soon find themselves navigating several different federal agencies—rather than a unified ED—for guidance, oversight, grant competitions, reporting, and compliance. This shift could increase administrative complexity, result in inconsistent interpretations of federal requirements, and create new burdens for State educational agencies, local educational agencies, higher education institutions, and education nonprofits.

Legal Questions Loom

Many of the responsibilities ED intends to transfer are specifically assigned to the Department by statute. Reassigning those duties through interagency agreements rather than through Congressional action raises substantial legal concerns. Federal education statutes—including ED’s authorizing statute—establish clear lines of responsibility for program administration, rulemaking, enforcement, and oversight. Altering these responsibilities through executive action alone may exceed the Department’s authority and invite litigation.

Stakeholders should also be aware that the integration of education programs into unrelated agencies—such as Labor or Interior—may trigger additional layers of oversight, changes in program administration, and uncertainty in the interpretation of longstanding requirements.

Implications for States and Grantees

If implemented, ED’s plan could affect:

• Grant administration and competitions

• Technical assistance and program monitoring

• Fiscal oversight and reporting obligations

• Interpretation and enforcement of statutory and regulatory requirements

• Points of contact for program support and implementation

States may face increased administrative burdens as they attempt to reconcile divergent expectations and unclear lines of authority across multiple federal agencies. Consistency, predictability, and clarity—critical components of effective federal education oversight—could become harder to maintain.

How Sligo Law Group Can Help

Sligo Law Group is closely monitoring this proposed restructuring and its potential impact on education programs nationwide. As former senior attorneys at the U.S. Department of Education, our team has deep experience with federal program administration, statutory interpretation, and interagency coordination. We can assist states, school districts, higher education institutions, nonprofits, and other stakeholders with:

• Assessing how the proposed changes may affect specific programs

• Evaluating compliance risks and developing mitigation strategies

• Interpreting statutory and regulatory requirements in a shifting landscape

• Preparing comments, inquiries, or formal responses to federal agencies

• Supporting grantees as they navigate new administrative structures

We will continue to track developments and provide updates as more information becomes available.

For questions or assistance, please contact contact@sligolawgroup.com

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Impacted Programs

ED–DOL Interagency Agreement – Office of Elementary and Secondary Education (OESE) › ED–DOI Interagency Agreement – Office of Indian Education / Native Education › ED–DOL Interagency Agreement – Higher Education Programs (OPE) › ED–HHS Interagency Agreement – National Committee on Foreign Medical Education and Accreditation (NCFMEA) › ED–HHS Interagency Agreement – CCAMPIS › ED–State Interagency Agreement – International and Foreign Language Education (IFLE) ›