Education Dept. Lays Off 20% Of Staff Amid Shutdown

The U.S. Department of Education laid off 466 employees on October 10, according to a Justice Department court filing (PDF File), amounting to nearly 20% of the agency’s total workforce. The layoffs coincide with the tenth day of a federal government shutdown that has already forced about 87% of Education Department employees to take unpaid furloughs (PDF File).

The reductions are part of a broader move by the White House to pressure Congress to end the shutdown, which began after lawmakers failed to pass new funding bills at the end of the fiscal year on September 30. President Donald Trump and senior administration officials have framed the layoffs as a necessary response to stalled negotiations over health care and immigration funding. However, they are also part of a larger goal to reduce the size of the federal government, with the Director of the Office of Management and Budget tweeting:

The Education Department was already operating on a smaller staff after layoffs happened earlier this year. As of this week, the department’s headcount has fallen to roughly 1,981 full- and part-time employees, down from 2,447 before the latest reductions and more than 4,000 at the beginning of 2025. The Department is already the smallest federal agency, yet it oversees one of the largest financial portfolios of the Federal government (the student loan and financial aid system).

Areas Most Impacted

Reports indicate that the Office of Elementary and Secondary Education and the Office of Communications and Outreach sustained the most significant losses.

The Office of Elementary and Secondary Education oversees the implementation of federal programs such as Title I, which provides financial assistance to schools serving low-income students. It also monitors state compliance with the Every Student Succeeds Act, requiring states to assess whether students meet grade-level expectations in reading and math.

The Office of Communications and Outreach, which coordinates with state and local education agencies, has seen its state and local engagement team substantially reduced. 

With both offices operating at a fraction of their former capacity, the ability of the department to maintain routine oversight and distribute funds efficiently could be delayed or disrupted.

The department’s reduced workforce compounds existing challenges created by earlier cuts. Since the first round of layoffs in March, schools and colleges have reported slower processing times for financial aid and grant applications.

The loss of additional staff is expected to place further strain on systems that handle student loan servicing, Title I allocations, and data collection from states. Offices responsible for civil rights compliance and education research have also been operating with limited personnel since the spring - resulting in some annual reporting delays already.

The Education Department has not confirmed which specific positions were eliminated in this week’s layoffs but has acknowledged that the reduction in force applies across multiple divisions.

The Broader Context Of The Government Shutdown

The layoffs occurred as Congress remained deadlocked over federal spending and immigration policy, preventing passage of any appropriations bills since the fiscal year expired on September 30.

Federal agencies have been directed to implement contingency plans to manage the shutdown (PDF File), which has halted or slowed operations across the government. The Office of Management and Budget indicated that the layoffs are part of a broader plan to reduce operating costs during the funding lapse.

The Department of Education is still handling many items like FAFSA and student loans, simply because these are outsourced to contractors. But oversight, and issue resolution, is not happening.

The Education Department’s downsizing stands out because of the scope and timing. Unlike temporary furloughs, layoffs represent permanent separations from employment. Federal rules typically require 60 days’ notice before such actions, though exceptions can occur under certain shutdown conditions.

What Happens Next?

While the full impact of the cuts will take time to unfold, the reduction in staff is expected to slow several key functions that directly affect students and educational institutions.

Grant disbursements for K-12 programs could experience delays, particularly those tied to state accountability and school improvement initiatives. Colleges and universities may face longer response times from federal offices handling student financial aid and accreditation oversight.

If Congress reaches a funding agreement and the shutdown ends, the department may face difficult decisions about rehiring and reorganizing essential functions. Restoring capacity in critical areas such as financial aid, civil rights, and state accountability could require months of recruitment and training.

For now, the Education Department operates with its smallest workforce in decades, leaving states, schools, and families uncertain about the continuity of federal education programs.

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