The U.S. Department of Education has expanded its outsourcing model for major federal education functions through 10 new interagency agreements with five other federal agencies, moving program management responsibilities for areas including school safety, academic supports, Title I schools, and career and technical education. Under the agreements, ED retains statutory responsibility for the programs but shifts day-to-day management. One of the most consequential moves announced is the transfer plan for the $1.7 trillion student loan portfolio—starting with the U.S. Department of the Treasury taking over management and eventually aligning administration of parts of the student aid process. The changes are framed by the administration as reducing federal red tape and shifting more fiscal decision-making to states, but the department faces legal challenges in the courts. Union leaders representing ED employees also warned that the overhaul is creating confusion for schools and colleges while eroding public trust. A related development in the same federal restructuring arc is the agency’s physical downsizing: ED is set to vacate its longtime headquarters, reflecting a broader effort to shrink the federal education footprint as Congress restricts any actual closure of the department.