The expected initiatives to abolish or significantly reduce the scope of the U.S. Department of Education (ED) under the incoming Trump Administration pose a critical threat to numerous programs and contracts. This analysis identifies the programs most at risk, outlines their associated contracts, and quantifies the financial impact on prime and subcontractors.
Federal Student Aid (FSA), educational research, and technical assistance programs emerge as key areas vulnerable to budget cuts. Programs with substantial federal oversight, such as Title I and Individuals with Disabilities Education Act (IDEA) grants, may face administrative downsizing or devolvement to state-level control.
High-value contracts such as the $966 million COD System contract, $1.5 billion NextGen modernization effort, and $13.5 billion annual IDEA funding are under scrutiny. Key prime contractors like Accenture, Maximus, and Educational Testing Service (ETS), along with subcontractors such as Oracle, IBM, and Westat, will experience substantial financial and operational impacts.
While some programs are politically protected, supplementary initiatives like the 21st Century Community Learning Centers and technical assistance programs face potential elimination.
