US Education Department faces major disruptions as government shutdown begins

The US Education Department will see much of its work slowed or halted as the government shutdown begins Oct 1, affecting federal grants, civil rights investigations, and staffing across the agency.

While essential operations will continue, including the disbursement of federal student aid and collection of loan payments, the department plans to furlough about 87% of its workforce, according to its contingency plan.

Investigations into civil rights complaints will be paused, and no new federal grants will be issued during the shutdown.

Since taking office, President Donald Trump has pushed to reduce the size of the Education Department, arguing it is dominated by liberal agendas.

Staff reductions have been ongoing, with Supreme Court approval in July for layoffs that cut the agency’s workforce in half.

Currently, the department employs roughly 2,500 people, down from 4,100 when Trump assumed office.

Education Secretary Linda McMahon acknowledged that previous cuts left the department lean in some areas.

“You hope that you’re just cutting fat. Sometimes you cut a little muscle, and you realize it as you’re continuing your programs, and you can bring people back to do that,” she said.

The department manages a $1.6 trillion federal student loan portfolio, and officials said student aid will continue uninterrupted in the short term.

Pell Grants, federal loans, and the Free Application for Federal Student Aid (FAFSA) will remain operational, ensuring that roughly 9.9 million students at 5,400 colleges still receive support.

Most borrowers interact with loan servicers rather than department staff, so day-to-day loan operations are largely unaffected.

Certain staff involved in implementing legislation on student loans, including the "One Big Beautiful Bill," will continue to work to meet key deadlines.

Meanwhile, the department’s advisory and regulatory functions for schools and grant recipients will be suspended. Because most federal grants are distributed during the summer, officials expect minimal disruption to school districts.

Title I funding and Individuals with Disabilities Education Act support will continue, but programs such as Impact Aid, which helps districts affected by federal land holdings or military bases, may face delays.

The shutdown will also halt investigations into alleged civil rights violations at schools and universities.

The civil rights office, which lost about half its staff in March, has already struggled to resolve a growing backlog of complaints related to race, sex, and disability discrimination.

Work on these cases will stop until the shutdown ends, potentially delaying outcomes for students and families.

If the shutdown extends beyond a week, the department says it will update its contingency plans to prevent significant disruption to schools and students.