CED Newsletters & Policy Alerts

Policy Alert: US Department of Education Staff Cut by Nearly Half

March 12, 2025

Action: On March 11, 2025, the US Department of Education announced a reduction in force (RIF) that will nearly halve its workforce from 4,133 to 2,183. The count includes approximately 600 employees who accepted an earlier voluntary resignation offer. Staff identified for the current round of layoffs will be placed on administrative leave on March 21 and will receive severance pay or retirement benefits as well as their full salary until June 9, in accordance with regulatory and collective bargaining requirements.

Key Insights

• Education Secretary Linda McMahon forewarned the cuts in a speech to agency staff, framed as "Our Department's Final Mission," last week. In the statement, she reiterated the President's vision to "send education back to the states" and outlined a new role for the Department, "to restore the rightful role of state oversight in education and to end the overreach from Washington." The primary responsibility for education rests with the states and localities, with the Federal government providing about 8% of a state’s K-12 education funding.
• There were speculations that the President was preparing an Executive Order to direct the Secretary to facilitate the closure of the Department, an act that would require Congressional approval. McMahon acknowledged strong Congressional interest, noting that she would work “in close consultation with Congress and looking at how the needs of students can best be serviced.”
• The Order has not yet materialized, but halving the agency's workforce advances the agenda. The Department was established in 1980.
• According to the announcement, despite the staff reduction, the Department will "continue to deliver on all statutory programs that fall under the agency's purview, including formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking." The layoffs will impact all divisions including the seminal Office for Civil Rights and the Federal Student Aid office. McMahon also signaled that “Pell grants, student loans might best be served in another department, and we’re looking at where that can best be handled [.]”
• The plan was released two days before Agency RIF and Reorganization Plans (ARRP) are due at the Office of Management and Budget (OMB), for which agency heads are to evaluate whether their agency should be eliminated or expanded, specific tools available to reduce staff size, a list of essential job positions, and a suggested plan to work with Congress.