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The Education Department, already drastically reduced under the Trump administration’s restructuring plan, will see most of its remaining operations come to a standstill as the federal government enters a shutdown this week.
According to the department’s contingency plan, about 87% of its workforce — more than 2,000 employees — will be furloughed, halting investigations, new grants, and much of its administrative oversight. Only limited essential services, such as the processing of federal student aid, will continue.
Trump’s push to dismantle the agency
President Donald Trump has repeatedly called for the elimination of the Education Department, arguing that education should be handled entirely at the state level. Since taking office, his administration has steadily downsized the agency and sought to shift many of its functions to other federal departments.
In July, the Supreme Court upheld mass layoffs that cut the department’s staff by nearly half, bringing its workforce down to roughly 2,500 employees from more than 4,000 when Trump entered office. Now, the shutdown is expected to leave only a few hundred active employees.
The White House’s Office of Management and Budget has warned that some furloughed workers may not return, as the administration considers eliminating additional federal positions entirely.
Education Secretary Linda McMahon, speaking in May before a House Appropriations subcommittee, defended the earlier cuts but acknowledged they may have gone too far.
“You hope that you’re just cutting fat,” McMahon said. “Sometimes you cut a little muscle, and you realize it as you’re continuing your programs.”
Student loans and financial aid continue
Despite the shutdown, federal student aid programs will largely continue. Pell Grants and student loans will still be disbursed, and borrowers must continue making payments. About 9.9 million students rely on federal aid across more than 5,000 institutions.
The Office of Federal Student Aid will furlough roughly 85% of its employees — 632 of 747 workers — but contracted loan servicers will remain operational, meaning borrowers should see few immediate disruptions. The department also plans to continue processing the Free Application for Federal Student Aid (FAFSA) to keep colleges’ aid packages on track.
Certain staff involved in rulemaking related to the Republican-backed “One Big Beautiful Bill,” which governs recent changes to student loans, will remain on duty to meet legal deadlines.
School funding and grants
Federal funding for most K–12 schools should see minimal immediate disruption, since the bulk of federal grants — including Title I funding for high-poverty schools and IDEA support for students with disabilities — were distributed before the fiscal year began.
However, schools that depend on Impact Aid, which supports districts near federal lands or military bases, could face payment delays. More than 1,200 districts nationwide rely on that program. If the shutdown extends beyond a week, the department says it may need to revise its contingency plans to prevent major funding gaps.
Civil rights enforcement suspended
The department’s Office for Civil Rights (OCR) will suspend investigations into complaints of discrimination involving race, sex, or disability during the shutdown. The office was already operating under strain after losing half of its staff in Trump’s March layoffs.
Civil rights advocates warn that the pause will worsen an already large backlog of unresolved cases. “Every day these investigations are stalled means more students are left without recourse,” said a former OCR attorney familiar with the agency’s operations.
A department on pause
The shutdown marks the latest step in the Trump administration’s broader effort to redefine or dismantle federal education oversight. What remains of the Education Department’s functions — managing student loans and administering limited grant funds — continues to shrink under both budgetary and political pressure.
“This is not just a pause in operations,” said one senior department official speaking on condition of anonymity. “It’s a preview of what the administration wants the department’s future to look like.”
