Economy March 26, 2026

U.S. Education Department to Leave Lyndon B. Johnson Headquarters as Agency Reorganization Continues

Administration says move to smaller Washington office and Energy Department lease swap are part of cost-saving measures amid wider efforts to redistribute agency functions

By Ajmal Hussain
U.S. Education Department to Leave Lyndon B. Johnson Headquarters as Agency Reorganization Continues

The Trump administration announced plans to vacate the Education Department's Lyndon B. Johnson headquarters in Washington, relocating the agency to a smaller office within the capital while the Department of Energy will occupy the LBJ building. Officials described the shift as a cost-saving reorganization as the administration continues steps to reduce the Education Department's footprint and reassign some of its functions across other federal departments.

Key Points

  • The Education Department will vacate the Lyndon B. Johnson headquarters and move to a smaller Washington office; the building is reported to be 70% vacant.
  • The Department of Energy will leave the James V. Forrestal building and take over the lease on the Lyndon B. Johnson building, a move the government says will save taxpayers over $350 million in deferred maintenance costs.
  • The relocation is part of a broader effort by the Trump administration to diminish the Education Department's role, including staffing cuts and transferring certain functions to other federal departments.

The U.S. Education Department will leave its Lyndon B. Johnson headquarters in Washington and move into a smaller office in the same city, the Trump administration said on Thursday, continuing a broader push to shrink the department's physical and operational presence.

In a joint statement, the Education and Energy Departments said the Education Department's headquarters building has been 70% vacant. The Departments added that the Department of Energy will vacate the James V. Forrestal building and assume the lease for the Lyndon B. Johnson building.

Federal officials framed the changes as a cost-saving measure. The joint announcement said that transferring the Education Department headquarters lease to the Energy Department will avoid more than $350 million in deferred maintenance costs for taxpayers.

The move occurs amid an administration effort to reduce the federal role in education. During his 2024 election campaign, President Donald Trump pledged to dismantle the Education Department as part of an agenda to shift more control over education to the states. The current administration has also substantially reduced staffing levels at the agency.

Beyond the physical relocation, the Education Department has been reassigning or sharing responsibilities with other parts of the federal government. Late last year the department reported new arrangements with four other federal departments - Labor, State, Interior and Health and Human Services - to share or transfer certain functions. More recently, last week the administration said the Education Department transferred a portion of its student loan portfolio to the Treasury Department.


Operational context

The administration's announcement ties a facility lease swap to broader organizational changes that include staffing reductions and interagency transfers of responsibilities and assets. Officials emphasize taxpayer savings from reduced maintenance liabilities as part of the rationale for consolidating leases and relocating offices.

Risks

  • Uncertainty around the operational impact of reducing the Education Department's staffing and relocating headquarters could affect continuity of services - potential implications for education-related administrative functions.
  • Reallocation of functions to other federal departments creates transitional risk as Labor, State, Interior and Health and Human Services assume shared or transferred responsibilities.
  • Shifting part of the student loan portfolio to the Treasury Department introduces execution risk during the handoff and could affect management of those loans in the near term.

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