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Government Shutdown Threatens Millions of Students as Education Department Furloughs 87% of Staff

The federal government shutdown enters its second day with devastating implications for K-12 and higher education, as civil rights investigations halt and new federal grants freeze while 10 million students depend on federal aid programs.
Government Shutdown Threatens Millions of Students as Education Department Furloughs 87% of Staff

Government Shutdown Threatens Millions of Students as Education Department Furloughs 87% of Staff

The federal government shutdown enters its second day with devastating implications for K-12 and higher education, as civil rights investigations halt and new federal grants freeze while 10 million students depend on federal aid programs.

  • Department of Education furloughs 2,117 of 2,447 employees, keeping only Federal Student Aid staff
  • Civil rights investigations affecting 25,000 pending cases immediately suspended across the nation
  • Impact Aid schools serving military families and Native American reservations face immediate funding cuts
  • 10 million students relying on federal financial aid programs remain protected in short term
  • Trump administration signals potential permanent layoffs rather than temporary furloughs
The process of determining and allocating Title I funds in U.S. education from Congress to school districts based on poverty rates

What happened

The federal government shutdown that began at 12:01 a.m. Wednesday has created immediate disruptions across America's education system, with the Department of Education placing approximately 87% of its workforce on unpaid furlough. Secretary Linda McMahon's contingency plan, submitted to the Office of Management and Budget on September 28, retains only 330 essential employees out of the department's reduced workforce of 2,447.The shutdown represents the first formal government closure since 2018, when a 35-day impasse during Trump's first term created similar disruptions. Unlike previous shutdowns where furloughed employees were typically reinstated once funding resumed, the Trump administration has indicated it may use this shutdown to implement permanent cuts across federal agencies.White House Press Secretary Karoline Leavitt confirmed Tuesday that federal workforce layoffs are "imminent," stating the number could reach "in the thousands". President Trump posted on Truth Social that he views the shutdown as an "unprecedented opportunity" to eliminate what he calls "Democrat agencies".

Why it matters

The shutdown's education impacts extend far beyond Washington bureaucracy, directly affecting vulnerable student populations nationwide. Schools serving military families and Native American communities face immediate funding disruptions through the Impact Aid program, which provides $1.4 billion annually to over 1,200 districts across all 50 states.Federal data shows these impacts disproportionately affect the nation's most vulnerable students. Title I funding, which serves 26 million students in nearly 90% of school districts, remains protected in the short term due to summer allocations. However, the 25,000-case backlog in civil rights investigations will grow larger as new complaints cannot be processed.The timing proves particularly challenging as schools nationwide already face uncertainty from $6.2 billion in federal K-12 funding that remains frozen from earlier this year. This shutdown adds another layer of disruption for districts that have already struggled with delayed federal support throughout 2025.

Official statements & data

Education Secretary Linda McMahon's September 28 memo to the Office of Management and Budget outlined which services would continue during the shutdown. "Federal financial aid will keep flowing, and student loan payments will still be due," the memo stated, while acknowledging that "investigations into civil rights complaints will stop, and the department will not issue new federal grants".The National Education Association, representing over 3 million educators, warned of severe consequences for military communities. "A shutdown means the public schools that serve military families and military communities across the United States will be cut off from funding they need for day-to-day operations," stated NEA President Becky Pringle.Congressional Budget Office data indicates the shutdown affects approximately 750,000 federal workers daily, resulting in $400 million per day in lost wages. For education specifically, the department's civil rights office has already dismissed 3,424 of 4,833 complaints received between March and June 2025, raising concerns about case processing even before the shutdown.

What's next

Congressional leaders indicate the stalemate could extend well beyond this week. Senate Majority Leader John Thune suggested it's "unlikely" the Senate will remain in session over the weekend, with voting potentially delayed until Monday. The House remains in recess until next week, further complicating resolution efforts.If the shutdown extends beyond October 15, military personnel will miss their first paycheck, affecting over 200,000 service members whose children attend Impact Aid schools. The Education Department has stated it would revise its contingency plan after one week to prevent "significant disruptions to school districts".Democrats remain firm in their demands for healthcare funding protections, while Republicans seek a "clean" continuing resolution. The impasse centers on extending Affordable Care Act subsidies set to expire at year's end, with neither side showing signs of compromise.

Analysis

This shutdown differs fundamentally from previous government closures due to the Trump administration's explicit intention to use it for permanent workforce reductions rather than temporary furloughs. The Education Department, already reduced from 4,100 to 2,500 employees since January, faces additional cuts that could permanently impair its ability to serve students and enforce civil rights protections.The timing particularly disadvantages students with disabilities and those facing discrimination, as civil rights investigations that typically take months to complete will face even longer delays. With some department attorneys already handling over 300 cases each due to previous layoffs, the suspension of new investigations creates a crisis of access to federal protections that could persist long after funding resumes.

Sources

  1. PBS NewsHour - How the government shutdown will affect the already diminished Education Department
  2. The Hill - The longer the shutdown, the worse for schools, education advocates say
  3. The Hill - Where will the federal shutdown impact education?
  4. Wipfli - How higher education can tackle a 2025 government shutdown
  5. K-12 Dive - How the federal government shutdown affects K-12
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