An internal review warns the U.S. Department of Education has lost capacity to oversee student programs after major staffing cuts in 2025, with remaining functions still at risk of disruption. The Office of Inspector General review described elimination and consolidation of suboffices tied to legal requirements—such as civil rights oversight, English learner support, financial-aid administration, and cybersecurity responsibilities. It also reported hundreds of grants terminated or identified for cancellation and halted contracts. The Department has shifted functions to other federal agencies through a growing network of interagency partnerships. For higher education, the report heightens uncertainty around program oversight, grant administration, and compliance enforcement during a year of sweeping student-aid rule changes.