How Trump plans to dismantle the Education Department after Supreme Court ruling
The justices on Monday paused a lower court order that had halted nearly 1,400 layoffs and had called into question the legality of President Donald Trump's plan to outsource the department's operations to other agencies.
Now, Donald Trump and McMahon are free to execute the layoffs and break up the department's work among other federal agencies. Trump had campaigned on closing the department, and McMahon has said the department has one 'final mission' to turn over its power to the states.
'The Federal Government has been running our Education System into the ground, but we are going to turn it all around by giving the Power back to the PEOPLE,' Trump said late Monday in a post on Truth Social. 'Thank you to the United States Supreme Court!'
Department lawyers have already previewed McMahon's next steps in court filings.
What happens with student loans, civil rights cases
Trump and McMahon have acknowledged only Congress has authority to close the Education Department fully, but both have suggested its core functions could be parceled out to different federal agencies.
Among the most important decisions is where to put management of federal student loans, a $1.6 trillion portfolio affecting nearly 43 million borrowers.
Trump in March suggested the Small Business Administration would take on federal student loans, but a June court filing indicated the Treasury Department is expected to take over the work. The Education Department said it had been negotiating a contract with Treasury but paused discussions when the court intervened. That work is now expected to proceed in coming days.
Under a separate arrangement, nine Education Department workers already have been detailed to Treasury, according to a court filing.
The department had also recently struck a deal to outsource the management of several grant programs for workforce training and adult education to the Department of Labor. The Education Department agreed to send $2.6 billion to Labor to oversee grants, which are distributed to states to be passed down to schools and colleges.
Combining workforce training programs at Education and Labor would 'provide a coordinated federal education and workforce system,' according to the agreement.
Additional agreements are expected to follow with other agencies. At her Senate confirmation hearing, McMahon suggested that enforcement of the Individuals with Disabilities Education Act could be handled by the Department of Health and Human Services. Civil rights work could be managed by the Justice Department, she said.
Democracy Forward, which represents plaintiffs in the lawsuit, said it will pursue 'every legal option' to fight for children. The group's federal court case is proceeding, but the Supreme Court's emergency decision means the Education Department is allowed to downsize in the meantime.
'No court in the nation — not even the Supreme Court — has found that what the administration is doing is lawful,' said Skye Perryman, president and CEO of the group, in a statement.
Laying off staff
Trump campaigned on a promise to close the agency, and in March ordered it to be wound down 'to the maximum extent appropriate and permitted by law.' McMahon had already started a dramatic downsizing, laying off about 1,400 workers.
Education Department employees targeted by the layoffs have been on paid leave since March, according to a union that represents some of the agency's staff. The lower court order had prevented the department from fully terminating them, though none had been allowed to return to work, according to the American Federation of Government Employees Local 252. Without the lower court order, the workers would have been terminated in early June.
The absence of those staffers already had caused problems in the office that handles student loans, said Melanie Storey, president and CEO of the National Association of Student Financial Aid Administrators. College financial aid staffers reported delays and breakdowns in federal systems — such as an hours-long outage on StudentAid.gov the day after departmental layoffs. Communication with the Education Department eroded, Storey said.
'It is concerning that the Court is allowing the Trump administration to continue with its planned reduction in force, given what we know about the early impact of those cuts on delivering much-needed financial assistance to students seeking a postsecondary education,' Storey said.
Gutting the Education Department will hinder the government's ability to enforce civil rights laws, especially for girls, students with disabilities, LGBTQ+ students and students of color, said Gaylynn Burroughs, vice president at the National Women's Law Center. Laid-off staff in the Office of Civil Rights were handling thousands of cases.
'Without enough staff and resources, students will face more barriers to educational opportunity and have fewer places to turn to when their rights are violated,' Burroughs said in a statement. 'This is part of a coordinated plan by the Trump administration to dismantle the federal government and roll back hard-won civil rights protections.'
___
AP education writers Annie Ma and Cheyanne Mumphrey contributed reporting.
___
The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Fox News
26 minutes ago
- Fox News
FNC Correspondent Matt Finn reports on Latest Trump Approved ICE raids
Matt Finn, Fox News National Correspondent, joined Guy Benson to discuss the latest on what happened during Trump administration-approved ICE raids of marijuana farms in California. Matt also shares his experience in Westwood, CA and how disgusting it looks today despite high rental and housing prices.
Yahoo
26 minutes ago
- Yahoo
Stock Market News for Jul 15, 2025
U.S. stocks closed higher on Monday, with the Nasdaq closing at a fresh record high, as President Donald Trump's tariff threats kept investors on edge while they waited for key economic data and the start of the earnings season. All three major indexes ended in positive territory. The Dow Jones Industrial Average (DJI) rose 0.2% or 88.14 points, to close at 44,459.65 points. The S&P 500 edged up 0.1%, or 8.81 points, to finish at 6,268.56 points. Communication services and financial stocks were the biggest gainers, while material stocks were the worst performers. The Financials Select Sector SPDR (XLF) gained 0.8%, while the Communication Services Select Sector SPDR (XLC) added 1%. The Materials Select Sector SPDR (XLB) lost 0.6%. Seven of the 11 sectors of the benchmark index ended in positive territory. The tech-heavy Nasdaq added 0.3%, or 54.80 points, to end at 20,640.33 points, hitting a fresh all-time closing high. The fear-gauge CBOE Volatility Index (VIX) was up 4.88% to 17.20. A total of 15.43 billion shares were traded on Monday, lower than the last 20-session average of 17.62 billion. Stocks ended mostly higher on Monday despite Trump's tariff threats over the weekend. Trump announced on Saturday that he would impose 30% tariffs on the European Union and Mexico starting Aug 1. Investors have been closely monitoring any developments on the tariff front after EU leaders hinted at negotiating with the Trump administration this month to reach a deal that would lower the duties. The optimism kept losses in check on Monday as investors believe that the high tariffs will ultimately be negotiated down before Aug 1. Trump's renewed tariff threats come just days ahead of the key inflation reading. The consumer price index reading, which will be released on Tuesday, will give investors a clearer picture of how Trump's tariffs, which are already in effect, are impacting the economy. The second-quarter earnings season, which kicks off later this week, and investors are eagerly waiting to assess the financial outlook of the major companies after the new tariffs go into effect. Major banks, including JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Wells Fargo & Company (WFC) are scheduled to report their quarterly results on Tuesday. Also, Bank of America Corporation (BAC) and The Goldman Sachs Group, Inc (GS) will report their quarterly results later this week. Goldman Sachs has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. No major economic data was released on Monday. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Bloomberg
29 minutes ago
- Bloomberg
US Threatens to Abandon IEA Over Green-Leaning Energy Forecasts
The US may depart the International Energy Agency without changes to forecasting that Republicans have criticized as unrealistically green, President Donald Trump's energy chief said. 'We will do one of two things: we will reform the way the IEA operates or we will withdraw,' Energy Secretary Chris Wright said during an interview Tuesday. 'My strong preference is to reform it.'