The Trump administration’s decision to cut nearly half of the Department of Education’s (ED) workforce is raising serious concerns across the higher education community, as institutions, students, and policy experts assess the implications of losing thousands of experienced staff members responsible for administering financial aid, enforcing civil rights protections, and overseeing federal education funding.The unprecedented reduction in force, which impacts roughly 1,300 employees, follows weeks of speculation that the administration would issue an executive order directing the department’s closure. While no such order has been announced, the scale of the layoffs has led many experts to conclude that the administration is pursuing a strategy of weakening the department’s ability to function without requiring congressional approval.
Sen. Bill Cassidy (R-LA), chair of the Senate Health, Education, Labor and Pensions Committee, told The Washington Post that he had spoken with Education Secretary Linda McMahon, who assured him that the staff reductions will not impact the department’s ability to carry out its statutory obligations. However, higher education leaders and advocates have raised concerns that eliminating such a significant portion of the workforce will inevitably lead to disruptions in financial aid processing, civil rights enforcement, and institutional oversight.
“This move puts the effectiveness of crucial programs at risk, causes nothing but chaos and confusion, and in the long run jeopardizes the futures of the millions of students those programs serve,” said ACE President Ted Mitchell in a statement. “We call on the administration and Congress to move quickly to reverse this short-sighted effort and ensure that America’s students get the support they need, and that the law requires.”
Higher education leaders are particularly alarmed by the impact these cuts could have on the office of Federal Student Aid (FSA), which manages more than $100 billion in student loans annually and oversees the distribution of Pell Grants. According to Inside Higher Ed, some of the deepest staffing reductions have occurred within FSA, particularly among teams that work directly on policy, borrower assistance, and institutional oversight. Experts have warned that these cuts could result in delayed financial aid processing, reduced enforcement of borrower protections, and increased confusion for students and institutions navigating federal aid programs.
In addition to concerns over student aid, the layoffs have raised alarms about the ability of the department’s Office for Civil Rights to investigate discrimination complaints and ensure compliance with federal civil rights laws. According to The Chronicle of Higher Education, at least one regional field office has already been shuttered, with additional closures likely.
The staff reductions may also be a precursor to shifting key ED functions to other federal agencies. The New York Times reports that department officials recently visited the Treasury Department to discuss moving student loan management there, signaling a potential transfer of the federal student aid portfolio. Other functions under discussion include relocating civil rights enforcement to the Justice Department and services for disabled students to the Department of Health and Human Services.
Beyond higher education, K-12 schools are also bracing for the fallout. The department oversees the administration of Title I funding for low-income school districts, as well as programs supporting students with disabilities. While administration officials have insisted that these programs will continue, experts have questioned whether a drastically reduced staff will be able to effectively manage the complex processes required to distribute funds and monitor compliance. Inside Higher Ed reported that these reductions may result in “outages or breakages” in core functions.
Hiring Freezes and Uncertainty Over Federal Funding
The turmoil at the Department of Education is also contributing to uncertainty for colleges and universities across the country. In response to instability surrounding federal resources, many institutions have announced hiring freezes as they brace for potential disruptions in funding.
“Federal resources are one of the main pillars of support for colleges and universities,” said Derrick Anderson, senior vice president of Education Futures at ACE, in an interview with NPR.
Anderson said the wave of hiring freezes in recent weeks is not surprising, as institutions try to manage uncertainty while avoiding more drastic measures like layoffs.
“We are clearly in a world where the [Trump] administration has an agenda for higher education, and universities have a long history of being partners with every administration in advancing the nation’s interest,” he said. “A hiring freeze allows these universities, especially those that are deeply involved in scientific research, to recalibrate where they need to start putting their emphasis.”
Federal investment in research and higher education has long been a cornerstone of the United States’ economic and scientific leadership. Anderson emphasized the need for institutions to reinforce their strengths while clearly articulating their value to the public and policymakers.
“We do higher ed well—not just well, we are the best,” he said. “Countries around the world are trying to mimic the way that we do higher ed. And I just think that we as an industry need to do better at explaining that.”