The Supreme Court enabled the Trump administration to proceed with dissolving the Education Department, permitting nearly 1,400 layoffs and transferring operational responsibilities to other agencies. President Trump and Education Secretary Linda McMahon plan to decentralize key functions, including the management of federal student loans, potentially involving the Treasury Department. Extensive plans are in motion to outsource various programs, with the Education Department striking a $2.6 billion deal to transfer grant management to the Department of Labor. These changes will affect systems vital to millions of borrowers and education funding.
The Supreme Court cleared the way for the Trump administration to continue unwinding the Education Department, allowing it to move ahead with mass layoffs and outsourcing operations.
Trump and his education secretary, Linda McMahon, are free to execute layoffs and break up the department's work among other federal agencies.
Management of federal student loans, a $1.6 trillion portfolio affecting nearly 43 million borrowers, is one of the most important decisions to be made.
The Education Department agreed to send $2.6 billion to Labor to oversee grants, which are distributed to states to be passed down to schools and colleges.
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