Updated: 15 Jul 2026
The Dept. of Ed is moving programs to other agencies.
The Department of Education (USED) is being dismantled through interagency agreements (IAAs) that shift management of Title funds, grants, and key programs from the experienced, centralized, USED to other departments and through the shuttering of offices. Most recently, USED entered into agreements to transfer the Office of Special Education and Rehabilitative Services (OSERS) to the Department of Health and Humans Services (HHS), impacting the administration of programs for infants, toddlers, students, and individuals with disabilities. Additionally, the responsibilities of USED’s Office for Civil Rights (OCR) will be moved to the Department of Justice (DOJ). As of July 2026, the 14 IAAs in place affect at least 144 federal programs that are collectively responsible for tens of billions of dollars in education funding. Seventy-six of the programs will move to the Department of Labor; others will go to the Department of Interior (22), State Department (12), Health and Human Services (30), Department of Justice (3), and Department of the Treasury (1).
11.9%
Average share of Illinois school district budgets from federal funding
330
Open OCR cases in Illinois as of January 2025
Impact
Programming: Relegating education to incidental status in an array of agencies with other primary objectives can reduce education as a priority, inhibit cohesive national leadership, and make it easier to decrease education funding at the federal level. Additionally, differing priorities at receiving agencies can result in drastic changes to programs and inconsistencies in program requirements. For example, TRIO’s program priorities were altered from a college focus to a college and workforce focus, shrinking program eligibility for TRIO programs by two-thirds.
Grantees: Education agencies, providers, and grantees will likely need to learn new sets of rules and procedures, and how to navigate, apply for, and receive funding across multiple agencies. Contrary to the stated goal of reducing bureaucracy, this will almost certainly increase paperwork and administrative burden at the state and local level.
OSERS: OSERS being housed in USED was the product of years of advocacy to ensure free and appropriate public education that is tailored to meet the needs of all students– including those with severe disabilities or learning difficulties. Because HHS does not hold the same level of expertise in K-12 education as USED, there are concerns that transferring OSERS will shift its priority from an education-centered to a health-centered approach. While health services are an important part of supporting some students with disabilities, they are only one component of ensuring students receive the free and appropriate public education (FAPE) to which they are legally entitled. USED is uniquely positioned to protect students’ access to that education, raising concerns that moving OSERS to HHS could weaken OSERS’ focus on ensuring educational access.
OCR: USED’s Office for Civil Rights has historically focused specifically on getting school districts to change inappropriate/illegal practices, rather than penalizing violations, a practice more common in DOJ investigations. The shift in responsibilities may result in more monetary penalties rather than systemic/programmatic shifts within districts.
Where federal education programs are going
As of July 15, 2026, the Department of Education has 14 interagency agreements in place to move at least 144 federal programs, collectively responsible for tens of billions in education funding.
| Receiving agency | Number of programs | Programs |
|---|---|---|
| Department of Labor | 76 | Title funding; Rural school programs; Impact Aid; Career & Technical Education; Some competitive grant programs; TRIO and GEAR UP; Select graduate assistance programs; Teacher preparation at HBCUs / other Minority Serving Institutions; Some college & university funding initiatives |
| Health & Human Services | 30 | Early intervention & special education; CCAMPIS (childcare for low-income college-going parents); Full-service community schools |
| Department of Interior | 22 | Office of Indian Education; Support for tribal colleges & universities |
| Department of State | 12 | International & foreign-language education programs |
| Department of Justice | 3 | Civil rights enforcement; Federal privacy rights compliance & activities |
| Department of Treasury | 1 | Federal student aid |
| Total | 144 | Across 14 interagency agreements |
Possible Federal Action:
- Congress has not approved the closure or dismantling of USED and might consider putting an end to the transfer of programs and offices from USED to other agencies. Congress could instead ensure that USED is meeting congressionally required tasks consistent with Congressional intent.
- Congress might hold public hearings with Secretary McMahon and the secretaries from the receiving agencies on the transfer of education programs through interagency agreements and require the USED and receiving agencies to demonstrate that these changes will not disrupt services or weaken accountability.
- Congress could direct the Government Accountability Office (GAO) to investigate the legality of the 14 interagency agreements and assess USED’s authority to enter into those agreements.
Possible State Action:
- Districts, organizations, and advocates should collect and share expected impact with members of Congress and the Illinois Attorney General’s Office.
- Illinois state agency leaders and advocates should support school leaders and other providers to ensure they are aware of new and changing procedures.
Learn how federal changes are impacting Illinois school communities
How have you seen federal changes impact interagency agreements in your community?
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