What’s Happening to the Department of Education?

02 Feb 2026 5 min read
Mindy Fiscus
Mindy Fiscus
Director of Government Affairs and Purchasing, Learning Technology Center
Sam Fishel
Sam Fishel
Digital Content Manager, Learning Technology Center

Note: This blog summarizes updates and insights shared on the One-to-One podcast, “What is Happening to the Department of Education?”. Listen to the full episode for additional details ⇢

There’s been a lot of hubbub lately about the federal Department of Education (DOE), kickstarted by the current administration’s announcement last spring that they intend to “close” the department. 

Since then, there’s been a cascade of announcements and updates that have educators, school leaders, and community members asking if the DOE’s demise – along with its funding, guidance, and oversight roles – is imminent.

National education policy and procedure remain in flux now, at the start of 2026. But there are likely changes that are worth examining, such as DOE’s announced “redistribution” of key work. There are also plenty of misconceptions to clear up, including where education funding *actually* comes from and what’s happening (and not happening) to federal education dollars.

Here are the most relevant updates for K-12 folks:

A Couple Words of Warning

As you consider all of these updates, please try to keep these constraints in mind:

Outlook Hazy

The precise implication of every change, confirmed or proposed, is not always immediately clear. We often have to wait for more details to estimate impacts

Not Necessarily Negative

Not every change is necessarily negative. While uneasiness is expected, fresh ideas and approaches may also enhance how education programs are administered

Trickle Down Impact

Changes being made now at the federal level may take time to trickle down to your local level – potentially as long as 12-24 months.

It’s Only an Announcement

Announcements and confirmed plans differ significantly. A lot can change between the two, so education stakeholders should be judicious in differentiating the two and take announced plans with a grain of salt.

Redistributing, Rather than Closing Outright

Despite an executive order directing its closure, only Congress is able to formally eliminate the Department of Education entirely.

However, Secretary of Education Linda McMahon announced in November plans to substantially shrink the DOE’s footprint.

This includes layoffs, as well as transferring management of several DOE programs to other federal agencies. Six key transfers have been announced, with the most relevant to Illinois K-12 schools including:

      • Key programs under the Office of Elementary and Secondary Education to the federal Department of Labor
      • Certain institution-based grants from the Office of Postsecondary Education to the Department of Labor
      • International education and foreign language studies programs to the federal Department of State

These transfers were all formalized through intergovernmental agreements that effectively redistribute a substantive portion of DOE’s work portfolio. These do not constitute a DOE restructure; again, only an act of Congress can do that.

Not Yet Formalized

Special Education Oversight

In light of mass layoffs at DOE’s Office of Special Education and Rehabilitative Services (OSERS), speculations continue about what federal agency will be tasked with enforcing the Individuals with Disabilities Education Act (IDEA). Initial speculation indicated that these responsibilities may move to the Department of Health and Human Services, but this has not been formalized (possibly because DOE is statutorily required to administer IDEA).

Funding for K-12 Schools and Programs

Title Funding to the Dept. of Labor

With the work of DOE’s Office of Elementary and Secondary Education transferring to the Department of Labor (DOL), DOL is being asked to handle the distribution and organization of K-12 title funding. These represent the largest chunk of federal funding for K-12 education and covers everything from professional learning and classroom aides to community learning centers and supports for low income students.

This funding is not going away at this time. Instead, these funds will be managed by the DOL in DOE’s place. Precise procedures for obtaining these funds have not yet been established, but may still include some of the staff that previously oversaw these funds at DOE.

Ongoing Conversations

There have been some conversations in Washington about collapsing the multiple Title funding lines into one larger Title block grant. This could allow for more flexibility for states and districts but could also impact reporting and accountability built into the current funding structure. This type of structural change has not been enacted at this time.

These funds also differ from the Evidence-Based Formula funds, which make up a significant portion of regular school funds and come from the State of Illinois. These funds are not subject to change as a result of these federal redistributions.

Common Misconceptions

DOE is closing

Misconception: The Department of Education is closed or will close soon.

Truth: Because it was established by Congress, only Congress is able to formally eliminate the Department of Education. In practice, however, the Department of Education may not perform as many functions going forward as some of its programs are transferred to other government agencies.

Lose of Federal Funds for Schools

Misconception: If federal funds for K-12 schools are cut, schools will face major budget holes.

Truth: Federal education dollars, primarily through title funds, help support a wide range of valued programs and services for students, teachers, and schools. They account for ~10% of most schools’ budgets.

In Illinois, they do not make up the bulk of any school’s budget. In general, schools receive the majority of their funds (around 90%) through a mix of state and local sources, including the state’s Evidence-Based Formula and local property taxes.

Upcoming Funding Packages

Misconception: Congress may eliminate all education funding in an upcoming government funding package.

Truth: Based on my sources in Washington, it is not likely that federal educator dollars will be fully eliminated. More likely than not, the structure for these funds will be collapsed down into a single category that districts have more leeway to spend as they desire.

E-Rate Reduction or Elimination

Misconception: E-Rate funds may be eliminated if the Dept. of Education is reduced/closed.

Truth: E-Rate is not going anywhere. E-Rate is administered by the FCC, so changes at DOE will not change the availability of E-Rate funds or the process for obtaining those funds.

Listen in for More

On a recent episode of the LTC’s One-to-One podcast, I covered all of these updates and more. I invite you to listen to it for more context surrounding these updates, as well as a few perspectives on what’s next for federal education policies.

Mindy Fiscus
Mindy Fiscus
Director of Government Affairs and Purchasing, Learning Technology Center

Mindy provides leadership, expertise, and support related to broadband connectivity, equipment and device access, and funding sources, including E-Rate.

Sam Fishel
Sam Fishel
Digital Content Manager, Learning Technology Center

Sam leads and supports the execution and growth of LTC services through the development and creation of innovative, impactful, and timely digital content.