Impact of Government Shutdown on US Education Department: Student Aid Continues While Civil Rights Investigations Halt

President Donald Trump has consistently advocated for dismantling the Education Department since beginning his term in office, claiming it has been dominated by liberal ideology.

The US Education Department, already significantly reduced by Trump administration cuts, faces further operational limitations due to the impending government shutdown.

While essential functions will continue during the shutdown beginning Wednesday, including federal financial aid disbursements and student loan payment collections, numerous critical activities will cease. Civil rights complaint investigations will be suspended, and no new federal grants will be issued. According to the department's contingency plan, approximately 87% of its workforce will be furloughed.

Trump administration officials have been developing plans to distribute the department's operations to other government entities. In July, the Supreme Court upheld significant layoffs that reduced the department's staff by half.

Unlike previous shutdowns where furloughed employees typically returned once funding was restored, the White House's Office of Management and Budget has suggested the possibility of permanent termination for federal workers during this shutdown.

Education Secretary Linda McMahon testified before the House Appropriations Committee in May that recent layoffs had made the department extremely lean—perhaps excessively so in certain areas. She acknowledged that some staff had to be reinstated after determining the cuts were too severe.

"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," McMahon explained. The department's workforce has decreased from approximately 4,100 employees when Trump took office to around 2,500 currently.

The department's management of the $1.6 trillion federal student loan portfolio will largely continue uninterrupted in the short term. Pell Grants and federal loans will still be disbursed, and borrowers must maintain their regular payment schedules. The department plans to furlough 632 of the 747 employees within the Office of Federal Student Aid, though it did not specify which positions would be affected.

Approximately 9.9 million students receive some form of federal aid across roughly 5,400 colleges nationwide. Most borrowers interact primarily with third-party loan servicers rather than directly with department staff.

The processing of Free Application for Federal Student Aid (FAFSA) forms will continue, which is crucial for colleges providing aid packages to incoming students. Staff involved in implementing student loan changes from the Republican-passed "One Big Beautiful Bill" will remain to meet legislative deadlines.

While the Education Department serves as a channel for billions in federal funding to state and local education agencies, most federal education grants were distributed during the summer months. The department anticipates minimal disruption to school districts and grant recipients, with Title I funding for high-poverty schools and Individuals with Disabilities Education Act funding continuing during the shutdown.

However, not all federal education funding is disbursed before the academic year begins. Impact Aid, which supports school budgets in areas where federal activities reduce taxable land revenue, will likely experience payment disruptions. This program serves more than 1,200 districts across all 50 states.

The department has indicated it would revise its contingency plan if the shutdown extends beyond one week to prevent significant disruptions to school districts.

During the shutdown, the department's investigations into alleged civil rights violations at schools and universities will be suspended entirely.

The department's civil rights branch has already been operating with significantly reduced capacity since March, when it lost approximately half its staff. This reduction raised concerns about the office's ability to address its backlog of discrimination complaints based on race, sex, or disability status.

Departmental data has shown a decrease in resolved civil rights cases despite an increase in new complaints from families. All work on pending cases will halt during the shutdown period.