The Trump administration is accelerating its effort to redistribute key responsibilities of the U.S. Department of Education (ED), announcing new interagency agreements that will shift oversight of foreign funding disclosures and several school safety programs to other federal agencies. The moves, framed by administration officials as a bid to streamline government and strengthen national security, are drawing scrutiny from lawmakers and higher education advocates concerned about federal overreach and institutional autonomy.
Under a newly announced partnership, the U.S. Department of State will assist the Education Department in enforcing Section 117 of the Higher Education Act of 1965, which requires colleges and universities receiving federal funds to disclose foreign gifts or contracts totaling $250,000 or more in a calendar year. The Education Department launched a new reporting portal in December and has intensified compliance efforts following an April 2025 executive order by President Donald Trump directing stricter enforcement of the statute.
The State Department will now help manage the foreign funding portal and apply what officials describe as national security expertise to reviewing compliance. “The Department of State will be applying our national security expertise and our expertise countering foreign malign influence to bolster oversight efforts by the Department of Education,” Under Secretary for Public Diplomacy Sarah Rogers said during a State Department briefing, according to Reuters.
Education Secretary Linda McMahon characterized the shift as part of a broader effort to decentralize the department.
“As we continue to break up the federal education bureaucracy and return education to the states, our new partnerships with the State Department and HHS represent a practical step toward greater efficiency, stronger coordination, and meaningful improvement,” McMahon said in a statement.
Federal data show the scale of foreign funding at issue. Colleges and universities disclosed 8,300 transactions totaling $5.2 billion in 2025, including funds from foreign governments, companies and individuals. The largest source last year was Qatar at $1.1 billion, followed by Britain at $633 million and China at $528 million, according to the Education Department.
While officials say the goal is improved transparency, they have declined to cite specific examples of foreign funding improperly influencing institutions. The administration has previously tied funding threats to campus protests, diversity, equity and inclusion initiatives, climate policies and transgender-related policies, raising concerns among critics about academic freedom and political pressure on universities.
In a parallel move, the Department of Health and Human Services will assume responsibility for administering several ED programs related to school safety, mental health and family engagement. According to Politico, HHS’ Administration for Children and Families will oversee hundreds of millions of dollars in grants established in response to school shootings, including programs supporting student mental health and recovery after violent events. The agency will also manage Project SERV, the Full-Service Community Schools program and the Ready to Learn initiative.
Health Secretary Robert F. Kennedy Jr. defended the expansion of his agency’s role, stating, “Nothing matters more than the safety of our children. HHS brings decades of frontline experience responding to crises and disasters, and we are putting that expertise directly into our schools. We will equip communities with the tools they need to protect students, support teachers, and keep families safe.”
The restructuring comes despite bipartisan language in a recent spending bill stating the Education Department has “no authorities” to transfer its duties to other agencies. Sen. Patty Murray (D-Wash.), the top Democrat on the Senate Appropriations Committee, criticized the agreements, saying, “These illegal agreements aren’t just creating pointless new bureaucracy that burdens our already-overworked teachers and schools; they are actively jeopardizing resources and support that students and families count on and are entitled to under the law.”
Administration officials maintain that statutory responsibilities will remain with ED and that states and grantees should not expect funding disruptions. Even so, the latest transfers represent another significant step in the administration’s broader campaign to shrink and reshape the federal role in education—an effort that continues to test the boundaries between federal oversight, state authority and institutional independence in American higher education.
