US Education Department outsourcing unlawful, lawsuit claims, threatens K-12 and higher education funding and services nationwide
The US Department of Education’s (ED) plans to outsource key programmes to other federal agencies have been deemed unlawful in an amended lawsuit filed last week. The complaint, brought by a coalition of school districts, employee unions, and a disability rights organisation, argues that shifting core operations outside the department could disrupt critical funding and services for K-12 and higher education students nationwide, as reported by the Higher Ed Dive.The lawsuit comes amid ED efforts to improve efficiencies by transferring management of six programmes, including K-12 funding for low-income districts, migrant students, homeless youth, academic support, afterschool programmes, and Impact Aid, to agencies such as the US Department of Labor. The coalition claims these moves will “irreparably hurt children, families, educators, schools, and communities,” as quoted by the Higher Ed Dive from Democracy Forward, the nonprofit representing the plaintiffs.ED interagency agreements face legal challengesThe amended complaint, filed in the cases Somerville v. Trump and New York v. McMahon, seeks to halt the outsourcing of ED programmes. About $28 billion in K-12 funding and $3.1 billion in postsecondary institution-based grants are included in the interagency agreements, which are designed to let partner agencies handle day-to-day operations while ED retains overall responsibility.“Taking away the services and supports students rely on will irreparably hurt communities across the nation,” Democracy Forward stated in conversation with the Higher Ed Dive. The plaintiffs argue that ED’s outsourcing plan undermines the department’s mission and could delay or reduce essential support to students and educators.Administration cites efficiency, states’ controlED officials have defended the plan, arguing it reduces bureaucracy and gives states more control over education funding. Madi Biedermann, deputy assistant secretary for communications, told the Higher Ed Dive that “blue states and unions care more about preserving the DC bureaucracy than about giving parents, students, and teachers more control over education and improving the efficient delivery of funds and services.”The department has already implemented partnerships with the Labor Department to manage federal career and technical assistance programmes, a process critics say has caused delays in grant distribution for several state CTE programmes, as reported by the Higher Ed Dive. While special education, civil rights enforcement, and federal student aid management are not yet formally planned for outsourcing, ED officials confirmed these options remain under consideration.Courts continue to weigh ED actionsEarlier injunctions blocked some of the administration’s outsourcing attempts, though the US Supreme Court granted a stay allowing changes to proceed temporarily. Democratic lawmakers have raised concerns during hearings that these administrative shifts disrupt K-12 and higher education systems.The lawsuit’s plaintiffs now include The Arc of the United States, adding to the broad coalition seeking to maintain ED’s core responsibilities, as reported by the Higher Ed Dive. The case continues to unfold in district and appeals courts, with potential nationwide implications for federal education funding and services.
