Significant Workforce Reductions at the U.S. Department of Education and Their Potential Implications

Quick Hits

• The Department of Education announced a RIF for nearly 50 percent of its workforce.
• Impacted staff will be placed on administrative leave starting March 21, 2025.
• Affected employees will receive full pay and benefits until June 9, 2025.
• Employees are not expected to work during the deferred resignation, voluntary buyout, or RIF periods.
• The impact of the RIF on the overall operations and responsibilities of the department is unclear and potentially far-reaching.

The Department of Education was established in 1979 with the primary responsibility for administering federal elementary, secondary, and postsecondary education programs. The RIF will impact employees across all divisions within the department, including those in formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking.

The department has pledged to fulfill its obligations under all statutory programs despite an anticipated 50 percent reduction in personnel by early June 2025. It is not known how the RIF will affect the department’s overall operations and responsibilities including compliance with the Clery Act, Title IX of the Education Amendments of 1972, Campus SaVE, and other student safety measures such as the Bipartisan Safer Communities Act and the Emergency Management for Higher Education grant program.

The RIF impact is similarly unclear with regard to the Office of Safe and Drug-Free Schools, the Readiness and Emergency Management for Schools Technical Assistance Center, the Family Policy Compliance Office—which oversees student and parental privacy rights and protections under the Family Educational Rights and Privacy Act (FERPA)—and the Protection of Pupil Rights Amendment (PPRA), which allows parents to limit collection of student data, including data about religious practices or beliefs, political affiliation, and the student’s or family members’ mental or psychological problems. The department has committed to continue all statutory programs that fall under its purview, such as formula funding, student loans, Pell Grants, funding for special needs students, and competitive grantmaking.

The RIF is the result of several directives issued by President Trump during the first week of his administration. According to a March 11, 2025, press release, the department will place 1,550 impacted staff on administrative leave beginning March 21, 2025, providing them with full pay and benefits until June 9, 2025, and severance pay or retirement benefits ranging from $10,000 to $25,000 based on their length of service. Earlier rounds offered voluntary separation options under the federal government’s Voluntary Separation Incentive Payment (VSIP) and Voluntary Early Retirement Authority (VERA) programs. These programs are authorized by the Office of Personnel Management (OPM) and the Office of Management and Budget (OMB) and allow agencies to offer lump-sum payments or early retirement to employees who are in surplus positions or have skills that are no longer needed in the workforce. The programs are intended to minimize or avoid involuntary separations through the use of RIFs.

The department offered VSIP and VERA opportunities to its employees between January 28 and March 7, 2025, allowing employees to retain all pay and benefits regardless of their daily workload and to be exempted from in-person work requirements (and working) until September 30, 2025, or earlier if they chose to accelerate their resignation. According to frequently asked questions (FAQs) guidance regarding the RIF, employees are not expected to work during the deferred resignation period. They are allowed to get a second job in the private sector and are even encouraged to do so. The FAQs read in part, “We encourage you to find a job in the private sector as soon as you would like to do so. The way to greater American prosperity is encouraging people to move from lower productivity jobs in the public sector to higher productivity jobs in the private sector.” Additionally, the FAQs state that employees are welcome to take an extended vacation while on administrative leave, reading, “You are most welcome to stay at home and relax or to travel to your dream destination. Whatever you would like.” According to its March 11, 2025, press release, nearly 600 of the department’s employees accepted voluntary resignation opportunities and retirement, including:

• 259 employees who accepted the Deferred Resignation Program
• 313 employees who accepted the Voluntary Separation Incentive Payment

The employees affected by the RIF come from various departments and units, including those involved in policy-making, senior career executives, and other positions identified for reduction.

The remaining employees impacted by the RIF will be notified by March 18, 2025, and will be placed on administrative leave until their separation date. The department has committed to provide counseling, information, and assistance on their rights and benefits, as well as resources for finding alternative employment or training opportunities.

Key Takeaways

The RIF impact on the department’s ability to deliver on statutory programs, including formula funding, student loans, Pell Grants, special needs student funding, and competitive grantmaking are areas to watch. How the elimination and reorganization of divisions within the department affect services to students, parents, educators, and taxpayers, and other outcomes and challenges will be evaluated and a comprehensive report including the results of the president’s Workforce Optimization Initiative is scheduled to be submitted to the White House on October 8, 2025. This will include workforce reductions, hiring ratios, and large-scale RIFs across various agencies.

In addition, on March 13, 2025, twenty states and the District of Columbia sued the Department of Education and its officials for implementing the RIF. The plaintiffs allege constitutional, statutory, and regulatory violations, in addition to violations of established precedent. They argue that the reductions undermine the department’s ability to fulfill its statutory responsibilities. They also allege that reducing the department’s workforce by half violates separation of powers and the Administrative Procedure Act (APA). The plaintiffs allege that the RIF is part of an unlawful attempt to dismantle the department and override statutes that create and govern the department’s functions. The complaint seeks declaratory and injunctive relief against the actions taken by the department and its leadership, including an injunction preliminarily and permanently enjoining the defendants from implementing the president’s directive, including the reduction in force.

Ogletree Deakins will continue to monitor developments and will provide updates on the Governmental Affairs, Higher Education, and Reductions in Force blogs as additional information becomes available.

This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ New Administration Resource Hub.

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