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Trump, McMahon Cut Education Dept Nearly in Half; Loans Shifted

The Department of Education is smaller, sleeker, and suddenly a lot more like what conservatives have been asking for: fewer headquarters hot desks, more work shifted to other agencies, and strict new rules for student borrowing. That is the message Under Secretary Nicholas Kent gave in a recent on‑the‑record interview — and the federal budget papers back him up.

What Under Secretary Nicholas Kent Announced

Kent told reporters the Department of Education has been “shrunk” by nearly half under Secretary Linda McMahon and President Donald Trump’s direction. He pointed to major staff cuts, interagency deals that move programs to other departments, and new student‑loan limits implemented after Congress passed the One Big Beautiful Bill Act. Kent also said courts have slowed some changes by issuing injunctions, especially around civil‑rights office staffing — which explains why the cut figure is not an even round number.

The Numbers: FTE Cuts and Real Change

This is not just talk. The Department’s own budget documents show full‑time equivalent (FTE) counts falling from the mid‑3,000s down toward roughly 2,182 in the FY2026 estimate and 1,946 in the FY2027 request. Depending on which baseline you pick, that works out to about a 40–45 percent reduction — close enough to Kent’s “nearly 50%” claim to make critics squirm. Bottom line: the agency is smaller, and that was done on purpose.

Interagency Shifts: Department of Labor and Treasury Steps In

Part of the slimming is changes in who does what. Day‑to‑day administration of career, technical, and adult education has been moved under an interagency agreement with the Department of Labor, while some student‑loan functions — starting with default collections — are being phased to the Department of the Treasury. The Education Department says it will still set policy and keep oversight, but the paperwork and payments are increasingly handled elsewhere. That approach keeps services running while cutting Washington headcount, which seems pretty smart unless your job depends on a pay stub that says “ED.”

What Borrowers and Schools Will Notice

The practical effects are already showing up. Colleges are rethinking how much they charge because the new One Big Beautiful Bill Act rules limit graduate borrowing and cap program‑level loans. Borrowers can expect different notices and collection practices if Treasury handles more of the loan machinery. States and school systems will also get new points of contact as payment systems shift to DOL and Treasury. Predictable chaos? Maybe. Better stewardship of taxpayer dollars? That’s the sell.

Why Conservatives Should Cheer — and Why Caution Still Matters

For conservatives who want smaller federal footprints and more accountability, this is a win. Cutting bloated FTE counts, forcing agencies to share work, and reining in unlimited student borrowing are concrete moves, not just talking points. But courts and concerned lawmakers have slowed some parts of the plan, and there’s a real legal question about how far an agency can move statutorily mandated functions through interagency deals. So keep applauding the pruning, but don’t get lazy: oversight matters, and Congress should keep its eyes on whether these changes truly help students and taxpayers — or just shuffle titles while crises lurk in the inbox.

Written by Staff Reports

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