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Home Education

US Education Department Layoffs Threaten $50 Billion in Critical Grants

October 18, 2025
in Education
Reading Time: 5 min

The U.S. Department of Education has initiated a significant reduction-in-force, sending layoff notices to 465 employees across six of its seventeen primary offices. This move threatens to cripple the oversight and management of dozens of federal education programs. Launched during an ongoing government shutdown, these cuts directly impact critical divisions responsible for distributing and monitoring over $50 billion in grants each year.

A majority of the affected personnel are in offices that manage crucial funding initiatives, including Title I grants for low-income students and the Individuals with Disabilities Education Act (IDEA) grants. Unless there’s an intervention, these employees are slated to lose their jobs by December 9th. While a federal judge has temporarily blocked the layoff plan, the administration, as reported by EducationWeek, is still determined to proceed with these cuts.

Key Education Offices Face Drastic Staff Reductions

According to a court filing from October 17th by Jacqueline Clay, the Education Department’s chief human resources officer, nearly all staff members in several grant-focused offices have received layoff notices. For instance, 121 employees from the Office of Special Education and Rehabilitation Services and 64 from the Office of Postsecondary Education are facing job termination.

Despite these concerns, Education Secretary Linda McMahon asserted on October 15th that the layoffs would not affect future funding, even going so far as to label the department ‘unnecessary,’ according to EducationWeek. This perspective is sharply contested by current and former staff, lawmakers, and education advocates who warn that without the essential personnel to manage grants, distribute funds, respond to inquiries, and ensure compliance, these vital programs could effectively cease to function.

Critical Programs at Risk Due to Staffing Shortages

The layoff notices impact over 40 grant programs, collectively valued at more than $50 billion annually, across various offices. Here’s a breakdown of the affected areas:

  • Office of Discretionary Grants and Support Services
    • Charter Schools Program (CSP)
    • American History and Civics
    • Supporting Effective Educator Development (SEED)
    • Teacher Quality Partnership
    • Teacher and School Leader Incentive
  • Office of Innovation and Early Learning Programs
    • Education Innovation and Research
    • Preschool Development Grants
    • Ready to Learn
  • School and Community Improvement Programs
    • Fostering Diverse Schools
    • Full-Service Community Schools
    • Magnet Schools Assistance Program
    • Promise Neighborhoods
    • Statewide Family Engagement Centers
  • Well-Rounded Education Programs
    • Arts Education Assistance Program
    • Comprehensive Literacy State Development
    • Innovative Approaches to Literacy
    • Javits Gifted and Talented
  • Office of Formula Grants
    • Office of Impact Aid
    • Impact Aid
  • Program and Grantee Support Services
    • Comprehensive Centers
    • Equity Assistance Centers
  • Office of Rural, Insular and Native Achievement Programs
    • Alaska Native Education Program
    • Native Hawaiian Education Program
    • Rural Education Achievement Programs
  • Office of Safe, Supportive Schools
    • School-Based Mental Health Services and Mental Health Service Professional Demonstration Grant Programs
    • Project SERV
    • Title IV, Part A
  • School Support and Accountability
    • Title I, Part A
    • Title II, Part A
    • Title IV, Part B: 21st Century Community Learning Centers
    • McKinney-Vento Homeless Assistance Act
  • Office of Migrant Education
    • Title I, Part C: Migrant Education
    • High School Equivalency Program (HEP) and College Assistance Migrant Program (CAMP)
  • Office of Indian Education
    • Indian Education
  • Office of Special Education and Rehabilitation Services
    • IDEA, Part B
    • IDEA, Part C
    • IDEA, Part D
  • Rehabilitation Services Administration
    • Office of Postsecondary Education
    • Child Care Means Parents in School (CCAMPIS)
    • Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)
    • TRIO
    • Strengthening Historically Black Colleges and Universities Division (Title III, Parts B, E, and F)
    • Strengthening Institutions Division (Title III, Parts A and F)
    • Hispanic-Serving Institutions Division (Title V and Title III, Part F)
    • Fund for the Improvement of Postsecondary Education (FIPSE)
    • Institutional Programs Development Division

Circumventing Congressional Funding Through Staffing Cuts

Even though Congress continues to allocate funds for these programs, the administration’s fiscal year 2026 budget suggests consolidating several into a ‘K-12 Simplified Funding Program’ with a reduced overall value, as reported by EducationWeek. Some existing grants have already been unilaterally terminated by the administration.

While direct legislative action is usually required to eliminate many of these programs, staffing reductions could serve as an indirect method. If there are no employees to manage day-to-day operations, distribute funds, and ensure accountability, grants could effectively go unfunded or unmonitored, regardless of congressional appropriations. EducationWeek notes that most of the impacted offices have been integral to the Department of Education since its establishment in 1980.

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