The Education Department’s experiment to shift administration of federal career, technical and adult-education grants to the Labor Department has hit operational turbulence. Politico and Reuters report that a $1.4 billion program’s payment systems and communication pathways failed during the transfer, producing delayed disbursements and frustrated local grantees. Sources say the change was intended to streamline workforce funding, but technical problems, poor coordination and an unprecedented use of nondisclosure agreements have stalled payments and raised legal and oversight questions. The Labor Department began processing the funds under an interagency pact intended to centralize workforce programs. Federal shutdown-related delays aggravated the rollout, and administrators at state and local levels report opaque guidance that impeded grant execution. Education Department officials defend the move as legal and within ED’s policy control but acknowledge the transition was inadequately prepared. For campus leaders and financial officers, the breakdown threatens timely support for career-technical education at community colleges and school districts. Disrupted grant flows could force institutions to delay programs, pause hires, or shift local budgets while agencies sort out data and payment interfaces. Policymakers and higher-education finance officers will be watching whether the Department of Education adjusts processes or reverses parts of the experiment.