McMahon Cuts 50% of Education Department Staff, Slashing Over $1 Billion in Contracts
Updated
Updated · Bloomberg · Jun 29
McMahon Cuts 50% of Education Department Staff, Slashing Over $1 Billion in Contracts
3 articles · Updated · Bloomberg · Jun 29
Summary
Nearly half of the Education Department’s workforce has been laid off as Secretary Linda McMahon pushes what she calls the agency’s “final mission” — dismantling it from within.
More than $1 billion in contracts has been cut, and most programs and offices are being shifted to other federal agencies to hollow out the department without formally abolishing it.
Congress still must act to eliminate the department outright, meaning McMahon’s moves stop short of legally ending the agency even as they sharply reduce its capacity.
The effort advances President Donald Trump’s campaign promise to scrap the Education Department, leaving a diminished agency in place unless lawmakers complete the shutdown.
What happens to the expertise of a quarter-million federal workers affected by the government-wide downsizing initiative?
With FEMA also being overhauled, is the federal government systematically shifting its core responsibilities back to the states?
The 2025 Federal Education Downsizing: Impact of Mass Layoffs, Program Cuts, and Legal Battles on U.S. Schools
Overview
In 2025, the federal government made a major change in education policy by significantly downsizing the U.S. Department of Education’s workforce. This began with a large number of voluntary departures, followed by accelerated layoffs that affected many areas, including legal services. The administration’s actions were part of a broader political agenda linked to Project 2025, aiming to reshape federal involvement in education. Alongside staff cuts, there was a widespread termination of contracts and grants, which disrupted the department’s ability to process cases and support schools. These changes quickly reduced the department’s capacity to fulfill its core responsibilities.