The bill transfers higher education programs from the Department of Education to the Department of Labor, repeals certain programs under the Higher Education Act of 1965, and authorizes the Secretary of Labor to assume the transferred functions. It also addresses personnel, assets, funds, and liabilities related to the transfer, prohibits an increase in employees at impacted federal agencies, and amends references in other federal laws. Additionally, the bill outlines a transition plan for ongoing legal proceedings and authorizes the use of resources for the transition period, defining "function" broadly and setting the effective date of the Act for 6 months after its enactment.
Less Bureaucracy, Better Higher Education Act
This bill transfers specified functions relating to postsecondary education programs from the Department of Education (ED) to the Department of Labor's Employment and Training Administration (ETA).
Specifically, the bill transfers to the ETA all the functions and authorities exercised by ED before the bill's effective date related to postsecondary education programs. These programs include, among others, TRIO programs and the Fund for the Improvement of Postsecondary Education. (On November 18, 2025, ED announced an interagency agreement with Labor for Labor to manage grant funds, provide technical assistance, and integrate ED's programs with Labor's existing programs, while ED must maintain its statutory responsibilities and program oversight.)
The bill also repeals the Leveraging Educational Assistance Partnership Program, the Robert C. Byrd Honors Scholarship Program, the College Access Challenge Grant Program, and the Project GRAD program.
Additionally, the bill transfers to the ETA all personnel and appropriations related to the functions that are transferred under this bill.
The bill outlines the authority of the Office of Management and Budget (OMB) related to the functions that are transferred under this bill, including that OMB must ensure that this bill does not create a net increase in full-time equivalent employees at the ETA or ED. Further, OMB must certify compliance with the bill to specified congressional committees.
The transfer of these functions does not affect any suits, proceedings, or applications for benefits, services, licenses, permits, certificates, or financial assistance that are pending on the date of this bill's enactment.
