USDOE Enters Into Interagency Agreements That Cause Concern

On November 18, the US Department of Education announced six new agency partnerships that shift core programs and responsibilities away from the USDOE for the stated purpose of “breaking up federal bureaucracy” and returning education to the states. While there is quite a bit of speculation on how these agreements will impact K-12 and higher education, one thing for sure is that administrators need to be proactive if they want to stay true to their mission, values, and goals of serving students.

The multiple interagency agreements transfer key USDOE functions to the Departments of Labor, Health and Human Services, Interior and State. Although the USDOE says its staff will maintain statutory and policy oversight, these agreements will likely still challenge K-12 and higher education administrators. To illustrate, one agreement transfers to the DOL several higher education and workforce development programs currently managed by the USDOE’s Office of Postsecondary Education. This agreement tasks the DOL with administering most postsecondary education grant programs authorized under the Higher Education Act. The USDOE fact sheet identifies the specific programs including TRIO, Historically Black Colleges and Universities among other programs that will now fall under the auspices of the DOL.

Many New Jersey administrators question the operational efficiency of having one agency administer a program while another provides oversight. They are not alone. In fact, on November 25, 2025, an amended complaint was filed in the matter of State of New York v. Linda McMahon, et. al., No. 1:25-cv-10601 (D. Mass. Filed March 13, 2025) challenging the legality of these interagency agreements. New Jersey is a party to this action.

Despite the uncertainty, administrators need to take proactive measures to ensure that their students are receiving the services provided by these key programs:

• Review the USDOE announcement and fact sheets linked here;
• Audit your current grant programs to determine which are affected by the interagency agreements;
• Compile lists of your USDOE contacts with oversight authority of the affected programs;
• Follow up with contacts in the new agency to determine who will be administering your programs; and
• Consult your legal counsel regarding all compliance and legal obligations under your grants.

While Congress must act to formally shut down the USDOE, the USDOE’s actions of shifting responsibilities through interagency agreements does not alleviate an educational institution’s obligation to follow the law, fulfill its mission, uphold its values, and serve its students.