The Education Department’s new strategy to shift grant administration to other federal agencies is provoking litigation and operational headaches for colleges and K‑12 partners. The Labor Department’s takeover of career, technical and adult education funds and other moves sparked a coalition of school groups to sue to block what they call an illegal dismantling of ED functions. Officials and school leaders reported payment delays, technical integration failures, and communication breakdowns after early handoffs of a $1.4 billion program, problems amplified by the recent government shutdown. Critics say hurried transfer plans, nondisclosure agreements, and insufficient systems testing have jeopardized timely grant distributions. The disputes will matter to campuses and workforce programs that rely on federal grant flows; plaintiffs say courts should halt transfers while compliance and statutory authority are reviewed.