Federal Education Agency Faces Major Cuts Under Musk Administration

A federal research agency responsible for tracking the progress of America's students is facing nearly $900 million in cuts following a review by Elon Musk's Department of Government Efficiency. The review concluded that many of the agency's operations were unnecessary.

The future of the Education Department's Institute of Education Sciences (IES) is uncertain after Musk's team terminated at least 169 contracts on Monday, which significantly comprise the institute's core functions.

Among the cancelled contracts are essential long-term studies that monitor student learning from kindergarten through high school, initiatives aimed at assessing teaching strategies for elementary reading, and research focused on support for youth with disabilities. These details were revealed through documents obtained by The Associated Press.

Despite these cuts, Education Department spokesperson Madison Biedermann assured that the IES will continue essential operations, including the NAEP assessment, commonly known as the nation's report card, and the College Scorecard, which outlines university costs and outcomes.

This reduction in funding has raised concerns among education advocates, warning it could diminish the accountability of the American education system and obscure the effectiveness of schools. Historically, achievement gaps have shown that low-income students and students of colour are consistently falling behind their peers.

Rachel Dinkes, president and CEO of the Knowledge Alliance, described the cuts as "counterproductive and destructive," emphasising the importance of independent agencies that enhance student outcomes.

In a related development, Musk's influence over the Education Department faced a setback when the agency decided to temporarily block DOGE employees from accessing sensitive internal systems while a lawsuit regarding access was being considered.

The wide-ranging contracts cut from IES included both academic and logistical support, some of which were mandated by Congress. In one case, a contractor received $1.5 million for overseeing operations at a mail centre, while 29 grants totalling $101 million dedicated to diversity, equity, and inclusion training were also terminated.

As a primary source of information on the state of America’s education system, the IES monitors student progress and evaluates the effectiveness of federal programs—its research is crucial for colleges and schools aiming to enhance student outcomes.

Among the projects halted is the ReSolve study, which sought to improve math learning for fourth and fifth graders.

Small businesses affected by these cuts have begun layoffs, as they lose contracts crucial for conducting accurate reporting on educational progress. Last year, Congress allocated about $800 million to IES, which represents roughly 1 per cent of the Education Department's annual budget.

In response to the cuts, two major research associations urged the reinstatement of the contracts, asserting that much of IES's work is dependent on such contracts to maintain its limited workforce. The groups warned that without adequate research, student learning and overall development would suffer.

The IES conducts various responsibilities, including administering the NAEP exam and overseeing U.S. participation in international assessments like PISA. It also funds significant education research and maintains a database of successful educational strategies.

Mark Schneider, a former IES commissioner, remarked that the cuts offer a chance for the new administration to rethink long-standing programs. However, the future regarding the replacement of contracts remains unclear.

Senator Patty Murray voiced her deep concern over the cuts, condemning the actions as wasteful and harmful to the integrity of educational research and data.

The Trump administration previously indicated plans to dismantle the Education Department and transfer its powers to state governments, complicating the funding landscape further.