Elizabeth Warren says GAO will investigate Trump’s Education Department and student loan transfers
Sen. Elizabeth Warren announced this week that the Government Accountability Office (GAO) is launching an investigation into the Trump administration’s efforts to move key Education Department functions to other federal agencies, marking a new front in Democrats’ battle against President Donald Trump’s plans to shrink the federal education bureaucracy.
The Massachusetts Democrat revealed the development in a post on X, writing, “The Government Accountability Office is launching an investigation into Trump ripping programs out of the Education Department and shipping them off to agencies with no expertise.
I pushed for this investigation because we can’t stop fighting for our students and teachers.”
The investigation comes as the administration moves ahead with transferring major Education Department responsibilities, including the federal student loan portfolio, to other agencies as part of a broader effort to reduce the department’s role.
GAO expands oversight of Education Department transfers
According to a letter sent by the Government Accountability Office to Warren, the congressional watchdog intends to broaden its examination of the Education Department’s interagency agreements. The move expands an existing probe into partnerships between the Education and Labor departments and adds scrutiny of the department’s transfer of student loan functions to the Treasury Department.
The GAO, a nonpartisan agency that provides Congress with fact-based evaluations of federal programs and operations, said it plans to begin reviewing the student loan transfer this summer.
Warren calls investigation a major step forward
Warren framed the inquiry as an important victory in her effort to challenge the administration’s restructuring of federal education programs.
“The Trump administration is hurting students, families, and teachers by ripping important programs out of the Education Department and shipping them off to agencies with no expertise. This independent investigation is a major step forward in our work to protect students and save our schools,” she said.
The senator has repeatedly argued that moving statutory education responsibilities to other agencies undermines the department’s ability to effectively serve students and educators.
One of the central issues under investigation is the administration’s decision to move management of the federal student loan portfolio to the Department of the Treasury.
The Education Department announced in March that it would transfer responsibility for the nation’s nearly $1.7 trillion student loan portfolio, arguing that the federal government’s student loan procurement and servicing systems required a significant overhaul.
The decision immediately drew criticism from congressional Democrats and education advocates who warned that the transition could create confusion for borrowers and disrupt critical services.
Millions of defaulted borrowers could be affected
The transfer carries particularly significant implications for borrowers whose loans are already in default. Millions of Americans have fallen behind on their student loan obligations for at least 270 days, making them subject to mandatory federal collections.
When loans enter default, borrowers can face serious consequences, including damage to their credit score and potential reductions in federal benefits such as Social Security payments.
Because Treasury plays a central role in federal collections activities, the GAO’s review could provide insight into how the transfer may affect enforcement practices and borrower protections.
Warren and Bernie Sanders push for broader review
The latest investigation follows requests from Warren and Sen. Bernie Sanders for a comprehensive GAO review of what the lawmakers describe as the Education Department’s unlawful dismantling.
The senators have argued that the administration is effectively winding down statutory functions assigned to the department by Congress and relocating them to agencies that were not originally designed to carry out those responsibilities.
Their request sought a broad examination of whether the transfers comply with federal law and whether they undermine the department’s mission.
Warren and other critics contend that the growing number of interagency agreements could create additional layers of bureaucracy and administrative inefficiency.
The lawmakers have specifically pointed to agreements between the Education and Labor departments, arguing that they have contributed to delays in adult education, family literacy, and career and technical education programs.
According to the senators, shifting responsibilities across agencies risks slowing decision-making and creating uncertainty for students, educators, and program administrators.
Labor Department defends partnership approach
The Labor Department has pushed back against criticism of the interagency arrangements.
A department spokeswoman said the agreements between Labor and Education are “resulting in more efficient delivery of funded programs and alignment of workforce and industry needs.”
Supporters of the partnerships argue that combining expertise across agencies can improve coordination and better connect education programs with labor market demands.
Administration officials have defended the student loan transfer as a practical management decision rather than an effort to weaken federal education programs.
Ellen Keast, the Education Department’s press secretary for higher education, said, “We are confident that our partnership with the Treasury, an experienced and proven fiduciary, will strengthen program administration and better serve American students, borrowers, and taxpayers.”
Officials maintain that Treasury’s experience managing large-scale financial operations makes it well suited to oversee key aspects of the federal student loan system.
White House links changes to Trump’s education agenda
The White House has framed the transfers as part of President Trump’s broader campaign promise to reduce federal involvement in education.
White House spokeswoman Liz Huston said in a statement to ABC News, “President Trump promised to dismantle the federal education bureaucracy and return education back to the states where it belongs.”
“By leveraging Treasury’s renowned financial expertise, the Trump Administration is confident that American students, borrowers, and taxpayers will benefit from more effective programs after decades of mismanagement,” the statement said.
The administration argues that decentralizing education functions and relying on agencies with specialized expertise will improve outcomes while reducing federal bureaucracy.
Save Our Schools campaign intensifies
The GAO investigation represents the latest development in Warren’s “Save Our Schools” campaign, an effort aimed at challenging Trump’s education policies and Education Secretary Linda McMahon’s mission to eliminate the department.
Over the past year, Warren has relied on congressional oversight requests, investigations, public advocacy campaigns, and legal challenges to scrutinize the administration’s actions. In April, she urged the Education Department to halt the transfer of federal student aid services to Treasury in an attempt to slow what she describes as the dismantling of the agency.
McMahon, who was selected by Trump to oversee the department’s restructuring, has argued that she is exercising all authority available under the law to carry out the president’s goal of reducing the department’s footprint. With the GAO now expanding its review, the administration’s efforts to redistribute key education functions are likely to face increased congressional scrutiny in the months ahead.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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