The reshuffle plan

Back in March 2025, the administration unveiled an ambitious plan to transfer the oversight of special education programs from the Department of Education (ED) to the Department of Health and Human Services (HHS). This plan primarily targeted the roles under the Individuals with Disabilities Education Act (IDEA), a landmark piece of legislation influencing approximately 7.5 million students annually with a budget close to $15 billion.

The executive order aimed at dismantling ED, and nearly half of the Office for Civil Rights (OCR) and most staff of the Office of Special Education Programs (OSEP) faced cuts. On November 18, 2025, ED announced six interagency agreements transferring various educational programs to the Departments of Labor, Interior, HHS, and State.

The rocky road of implementation

As of mid-2026, despite these steps, the major programs remained under ED’s purview. Congress blocked certain proposals for the fiscal year 2026, and without legislative approval, no complete statutory transfer of IDEA or core civil rights functions has taken place, as these require congressional approval. Internal documents from ED suggested ongoing difficulties in implementing these executive actions.

Resolution rates for discrimination cases are at a 12-year low amid staffing shifts, while special education oversight largely remains with ED into 2026 amid pushback.

What it means for investors and stakeholders

Funding levels under IDEA have been maintained in budget requests, but with proposals to consolidate programs into a “simplified funding program” allowing for increased state flexibility. Advocates remain concerned about how this potential state flexibility under proposed funding consolidations will affect students’ needs and protections amid reduced federal oversight capacity.