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Crypto Guide Daily — Your Source for Crypto News, Analysis & Web3 Innovation > Blog > Investing > Supreme Court Allows Trump’s Education Department Layoffs
Investing

Supreme Court Allows Trump’s Education Department Layoffs

Emily Johansson
Last updated: July 14, 2025 9:22 pm
Emily Johansson
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Contents
Layoffs Impact Oversight, Data Collection, and Loan ServicingPush To Dismantle The Department Moves ForwardWhat Happens Next?
Front facade of the US Supreme Court Building in Washington DC | Photo by PTHamilton

Key Points

  • The Supreme Court granted the Trump administration’s request to lift a lower court’s injunction, allowing more than 1,300 layoffs at the Department of Education to proceed.
  • Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson dissented, warning that the move allows potentially unlawful actions to go unchecked.
  • The layoffs are part of a larger effort by the administration to dismantle the Department of Education and shift oversight to states.

In a 6-3 decision, the Supreme Court on Monday paused a lower court ruling that had blocked the Trump administration from laying off nearly 1,400 federal employees at the Department of Education. Today’s order allows the administration to resume downsizing efforts while legal proceedings continue over the agency’s future.

The Court’s conservative majority agreed with the administration’s request to suspend the injunction issued by a federal district judge. That earlier ruling found the layoffs likely unlawful and a threat to the department’s statutory responsibilities. The administration argued that the cuts were needed as part of a broader strategy to transfer education oversight to states.

Justice Sonia Sotomayor, joined by Justices Elena Kagan and Ketanji Brown Jackson, issued a sharp dissent (PDF File). “When the Executive publicly announces its intent to break the law, and then executes on that promise, it is the Judiciary’s duty to check that lawlessness, not expedite it.“

The injunction had been issued by U.S. District Judge Myong Joun, who found that the administration’s reduction-in-force plan could cripple the agency’s ability to function and carry out legally mandated programs.

Now, with the Court’s stay in place, the layoffs are moving ahead.

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Layoffs Impact Oversight, Data Collection, and Loan Servicing

Roughly one-third of the Education Department’s workforce had received termination notices. Employees impacted include more than 300 in Federal Student Aid (FSA), many of whom manage loan servicing contracts, financial compliance, and school program eligibility. Another 100 employees from the Institute of Education Sciences, the department’s main statistical arm, were also affected.

Other offices hit hard by the layoffs include the Office for Civil Rights, which enforces anti-discrimination policies in schools, and the Office of General Counsel, where over 40 attorneys have been cut.

Officials within the department say federal responsibilities, especially those tied to financial aid, will remain operational, as legally required. Yet unions and education organizations warn that fewer staff may lead to delays in FAFSA processing, program oversight, and weakened enforcement of federal protections.

Push To Dismantle The Department Moves Forward

The layoffs follow a March executive order by President Trump directing Education Secretary Linda McMahon to begin shutting down the department “to the maximum extent appropriate and permitted by law.” A bill already introduced in the House, H.R. 899, proposes terminating the department by December 31, 2026.

While formally abolishing the department would require congressional approval, the administration is working to reassign many of its functions to other federal agencies. Under draft transition plans, student loan management would move to the Treasury Department, civil rights enforcement to the Department of Justice, and special education services to Health and Human Services.

Eliminate The Department of Education Infographic | Source: The College Investor

Critics say the changes are being made without proper legislative authorization. A coalition of state attorneys general, teachers unions, and school districts filed suit, alleging that the executive branch is unlawfully attempting to restructure an entire agency without congressional consent.

Judge Joun sided with the plaintiffs in April, ruling that the administration’s actions “effectively disable the department from carrying out its statutory duties.” But that order is now on hold.

What Happens Next?

The Supreme Court’s order raises concerns about the broader implications for checks and balances. By allowing the mass firings to move forward during ongoing litigation, the justices signaled support for executive authority to restructure federal agencies, even when those moves face legal challenges or may not be approved by Congress.

It remains unclear how the final case will be resolved when it returns to the appeals court for full consideration. For now, the administration’s restructuring efforts are advancing, raising questions about the future of federal education policy in the United States.

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The post Supreme Court Allows Trump’s Education Department Layoffs appeared first on The College Investor.

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