The U.S. Department of Education laid off nearly 50% of its workforce of over 4,100 employee on Tuesday evening, marking one of the largest federal workforce reductions in recent history. The cuts, confirmed by agency sources and an official release, include 1,315 immediate layoffs and approximately 600 prior buyouts, slashing total staff to fewer than 2,200.
The department’s D.C. offices were closed on Wednesday for “security reasons”, heightening tensions.
The cuts were a part of a the Trump Administration's governmentwide strategy to reduce the federal workforce. All federal agency officials were told last month to start preparing for a “large scale reduction in force” and to eliminate all “non-statutorily mandated functions.”
Secretary of Education Linda McMahon framed the move as a push for “efficiency and accountability,” stating the decision ensures resources are “directed where they matter most: to students, parents, and teachers.” While the department pledged core programs like Pell Grants and student loan distribution would continue.
FAFSA and student aid systems at risk
The layoffs hit critical divisions, including the Office of Federal Student Aid (FSA), which oversees the federal aid system. Over 320 FSA roles were eliminated, decimating teams managing the recently overhauled Free Application for Federal Student Aid (FAFSA).
“Who will process FAFSAs to help students afford college? …”, asked Amy Laitinen, senior director of higher education at New America.
The cuts could have dire short-term consequences, especially for maintaining the Free Application for Federal Student Aid, which was recently overhauled and had just begun to recover from a disastrous launch plagued by technical glitches and system errors, experts and staffers said.
Staffers warned the cuts gutted expertise in technology operations, including teams handling IRS data integration and FAFSA’s data centers. “There’s no one left to oversee these systems,” one source said, noting the system had just stabilized after a glitch-ridden rollout.
Support infrastructure gutted
Call centers, the ombudsman’s office, and institutional support divisions—key lifelines for students and colleges navigating aid—were also dismantled. Higher education advocates warned the cuts could cripple oversight of $100 billion in annual student loans and $30 billion in Pell Grants, jeopardizing aid access for millions.
Backlash and calls for reversal
The American Council on Education condemned the move, with President Ted Mitchell calling the cuts “deeply alarming” and urging Congress to intervene. “This decision risks chaos for students and institutions alike,” he said. Critics argue the reductions, part of a broader federal workforce strategy, ignore the department’s $80 billion budget and statutory mandates to protect vulnerable borrowers and institutions.
As affected employees face administrative leave starting March 21, questions linger about the department’s capacity to manage crises, investigate civil rights complaints, or sustain FAFSA operations. With bipartisan pressure mounting, the cuts may test the administration’s pledge to prioritize education “greatness”—even as stakeholders brace for turmoil.