The Supreme Court has cleared the way for the Trump administration to proceed with mass layoffs at the Department of Education, lifting a federal injunction that had blocked the move since May. The decision, issued Monday in an unsigned order, allows the administration to terminate roughly 1,300 employees, nearly one-third of the department’s workforce. Combined with voluntary buyouts and attrition, the total reduction is expected to reach 50%. The ruling follows a March executive order directing Education Secretary Linda McMahon to begin winding down the agency.
The layoffs had been frozen after U.S. District Judge Myong Joun ruled that the cuts would make it “effectively impossible” for the department to carry out its statutory obligations. The First Circuit upheld that injunction, but the Supreme Court’s majority overruled it without explanation. Justices Sotomayor, Kagan, and Jackson dissented, warning that the decision hands the executive branch unchecked power to dismantle agencies created by Congress.
The administration argues that the Department can fulfill its legal duties with a pared-down staff and that discretionary functions are better handled by states. The Justice Department told the Court that keeping laid-off employees on paid leave was costing taxpayers over $7 million per month. The plan includes transferring student loan oversight to the Small Business Administration and moving special education services to Health and Human Services.
The impact is already visible. Offices responsible for certifying colleges for federal aid have been gutted. Staff managing data used to allocate billions in funding to states have been removed. The plaintiffs, including 21 Democratic attorneys general and multiple school districts, warned that the damage may be irreversible even if the administration loses the case later.
Education Secretary McMahon praised the ruling, calling it a win for “efficiency and accountability.” She reiterated her goal of returning education policy to the states and eliminating federal bureaucracy. The administration maintains that it will continue performing all statutory duties, but critics argue that the scale of the cuts undermines that claim.
The case now returns to the First Circuit for a full hearing. But for now, the layoffs are moving forward. The Department has begun terminating employees who have been on administrative leave since March. The broader plan to dismantle the agency remains in motion.
Sources:
https://rollcall.com/2025/07/14/justices-allow-mass-layoffs-at-education-department/
https://www.politico.com/news/2025/07/14/supreme-court-education-department-ruling-00452134
