The Department of Education has moved the Higher Education Programs Division into the Department of Labor as part of an interagency realignment emphasizing workforce outcomes. Officials described the shift as an effort to better align federal postsecondary programs with employer needs and the administration’s American Talent Strategy. The move transfers program staff and responsibilities and signals a policy tilt toward career and technical training over traditional higher-education program priorities. At the same time the Education Department announced a temporary pause on involuntary collections—like administrative wage garnishment and Treasury offsets—saying the delay will allow new student‑loan repayment reforms to be implemented without penalizing borrowers prematurely. The pause reprioritizes administrative effort toward regulatory changes tied to income-driven plans and loan rehabilitation pathways. Higher-education finance officers say the combined changes complicate compliance and grant management. Institutions will need to monitor which programs move to Labor, adjust grant-administering units, and track changes to borrower outreach and default remediation protocols.