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#AI #BDR #collegemania #collegemeltdown #edugrift #medugrift #nonviolence #veritas
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(Updated September 14, 2023)
The University of Phoenix (or at least its name) may soon enter the ash heap of US higher education history--and rise again as a state-run robocollege. But it shouldn't--at least not yet. Once hailed as the leader in affordable adult education for workers entering middle management, it is a shell of its former self--in an economy less certain for workers and consumers.
With the school's wreckage are approximately one million people buried alive in an estimated $14B-$35B in student loan debt.
Pattern of Fraud
As of January 2023, more than 69,000 of these student loan debtors have filed Borrower Defense to Repayment fraud claims with the US Department of Education against the University of Phoenix (UoPX). Many more could file claims when they become aware of their rights to debt relief. In the partial FOIA response below, the US Department of Education reported that 69,180 Borrower Defense claims had been made against the school.
In a recent federal case, Sweet v Cardona, most if not all of the 19,860 "denied" cases were overturned in favor of the student loan debtors. We estimate the smaller number of fraud claims alone to amount to hundreds of millions of dollars.
Through a FOIA request, we also discovered 6,265 consumer complaints in the FTC database. In 2019, the FTC and the University of Phoenix settled a claim for $191M for deceptive employment claims. Based on the consumer complaints, we have no reason to believe that Phoenix has changed its behavior as a bad actor.
On May 3, 2023, six US Senators (Warren, Brown, Blumenthal, Durbin, Merkley, Hassan) called for the US Department of Education, Department of Veterans Affairs, and Department of Defense to investigate the University of Phoenix for launching a new program suggesting that it was a public university. The letter stated that the school "has long preyed on veterans, low-income students, and students of color."
Wolves in Sheep's Clothing
University of Phoenix's owners could potentially be liable for refunding the US government for the fraud. But as a state-related organization, it may be more politically difficult to claw back funds, no matter how predatory the school is.
Purdue University Global and University of Arizona Global set a precedence in state-related organizations acquiring subprime schools (Kaplan University and Ashford University) and rebranding them as something better. Whether they are better for consumers is questionable. Phoenix will have to cut costs, largely by reducing labor. Using Indian labor (like Purdue Global) and AI could be profitable strategies. It's likely that this deal, even if profitable, will add fuel to the growing skepticism of higher education in the US.
University of Phoenix's Finances
Apollo Global Management and Vistria Group currently own University of Phoenix but have been trying (unsuccessfully) to unload the subprime college for more than two years. Little is publicly known about the school's finances. What is known is that UoPX gets about $800M every year from the federal government, through federal student loans, Pell Grants, GI Bill funds, and DOD Tuition Assistance.
Despite this government funding, US Department of Education data show the school's equity value for the Arizona segment declined significantly, from $361M in FY 2018 to $187M in FY 2021.
$347M of the University of Phoenix's $518M in assets are intangible assets. Intangible assets typically include intellectual property and brand reputation. The school has $348M in liabilities.
The University of Phoenix has been reducing expenses by cutting instructional costs, from $70M in FY 2020 to $60M in FY 2021. UoPX spends about 8 percent of its revenues on instruction.
Attempts to Sell UoPX
There have been two known potential buyers for the University of Phoenix: the University of Arkansas System and the University of Idaho. In both cases, the owners required the potential buyers to keep the deal secret until the sale was imminent.
Fear of the impending higher education enrollment cliff appears to be an important pitch to potential buyers.
Arkansas, the first target, was in the process of making the deal, and it might have gone through if nit for the voice of one whistleblower and one outstanding investigative reporter, Debra Hale Shelton of the Arkansas Times.
In the case of Idaho, news of the potential deal was publicly noted just one day before the preliminary agreement was made with the Idaho Board of Education. Two other secret meetings were held before that.
A number of journalists including Kevin Richert (Idaho EdNews), Laura Guido (The Idaho Press), Troy Oppie (Boise State Public Radio), and Noble Brigham (Idaho Statesman) have exposed some of the problems and potential problems with the deal. In June, Idaho legislators began questioning the acquisition.
More recently, the opinion editor at the Idaho Statesman argued that the deal may actually be worthwhile.
Particulars about the finances are sketchy at best and misleading at worst. The University of Phoenix is said to include $200M in cash in the deal, but they have not said how much of that sum is required by law as "restricted cash"--money the school needs if the Department of Education needs to claw back funds. Phoenix also claims to be highly profitable, but without showing any evidence.
What is known about the deal is that the University of Idaho will have to borrow $685M and put its (bond) credit rating at risk. The school has not identified important information how the bonds would be sold (underwriters, bond raters, date to maturity, interest rate).
The University of Idaho has created an FAQ to answer questions about the sale, but HEI has identified a number of misleading statements about University of Phoenix's present finances (failure to report the school's equity), potential liability (cost of tens of thousands of Borrower Defense claims), and leadership (lack of background information about Chris Lynne, the President of the University of Phoenix). These deficiencies have been reported to the University of Idaho and to the Representative Horman.
On June 20, Idaho Attorney General Raul Labrador filed a lawsuit to halt, or at least slow down the deal.
The University of Idaho submitted a Pre-Acquisition Review from the US Department of Education, and it may take up to three months before the application is completed.
As of September 2023, the deal is far from done. Since this article was first published there have been a number of developments:
On September 11, US Senators Elizabeth Warren, Dick Durbin, and Richard Blumenthal called on University of Idaho President Green to abandon the sale. The Senators also asked Green if he had a plan to pay for the Borrower Defense claims, noting that University of Arizona may be on the hook for thousands of claims against Ashford University (aka University of Arizona Global campus).
In November, the Joint Finance-Appropriations Committee of the Idaho Legislature is expected to discuss the issue again.
*The Higher Education Inquirer has made a FOIA request for more up-to-date numbers from the US Department of Education. We have also filed FOIA requests with the FTC.
Related link:
The Growth of "RoboColleges" and "Robostudents"More Transparency About the Student Debt Portfolio Is Needed: Student Debt By Institution
Borrower Defense Claims Surpass 750,000. Consumers Empowered. Subprime Colleges and Programs Threatened.As Americans celebrate Labor Day, the traditional holiday honoring workers, it is worth asking a blunt question: why do we set aside only one day to recognize the people who keep this country running? For the majority of working-class Americans, labor is not a seasonal event—it is a daily struggle. And yet, political and economic systems continue to undervalue, underpay, and exploit the very workforce that sustains them.
The numbers are stark. The U.S. Department of Labor reports that over 100 million Americans are part of the labor force. Yet median wages have barely budged in decades, while the top 1% of earners have seen their wealth multiply. In higher education, adjunct professors often earn less than $30,000 a year while carrying the teaching load of full-time faculty, and the majority of college graduates leave school with over $30,000 in student loan debt, only to find themselves in jobs that fail to utilize their skills or provide financial security.
The “gig economy” promised flexibility and empowerment, but in reality it has created precarious work with no benefits, no sick leave, and few protections. Companies like Amazon, Uber, and DoorDash rely on a workforce that bears nearly all the risk while executives reap outsized rewards. The same dynamic extends to knowledge industries: research assistants, graduate students, and postdocs often perform essential labor for universities without fair compensation, health care, or job security.
Labor Day should not simply celebrate the ideal of work—it should spotlight injustice. It should remind policymakers, university administrators, and corporate leaders that the human cost of economic growth is real and rising. Childcare costs, rent, healthcare premiums, and student debt are not abstract numbers—they are barriers that prevent workers from achieving economic stability or pursuing meaningful lives outside of work.
Across the country, workers are pushing back. Teachers strike to demand fair pay and better conditions. Nurses, long on the frontlines of a pandemic, advocate for safer staffing levels and respect. Fast-food workers, warehouse employees, and adjunct faculty organize for recognition and dignity. These struggles reveal a truth that is too often ignored: every worker deserves more than symbolic recognition; they deserve economic justice, security, and respect every single day of the year.
For policymakers, higher education leaders, and business executives, the lesson is clear: labor should not be celebrated just once a year. Fair wages, comprehensive benefits, and meaningful protections should be the baseline for every workplace. The fight for workers’ rights is ongoing, and the consequences of ignoring it are profound—not just for individual families, but for the health of the American economy itself.
This Labor Day, Americans should reflect on a simple truth: the nation thrives not because of CEOs, venture capitalists, or administrators, but because millions of people show up to work every day under conditions that are far from ideal. If respect for labor is genuine, it cannot be confined to a single Monday in September. Every day should be Labor Day.
Sources:
U.S. Department of Labor, Labor Force Statistics
Federal Reserve, Report on the Economic Well-Being of U.S. Households
National Center for Education Statistics, Adjunct Faculty Data
Economic Policy Institute, The State of American Wages
Brookings Institution, Gig Economy and Worker Precarity
The second Trump administration has unleashed a coordinated assault on reality itself—an effort that extends far beyond policy disagreements into the realm of deliberate gaslighting. Agency by agency, Trump’s lieutenants are reshaping facts, science, and language to consolidate power. Many of these figures, despite their populist rhetoric, come from elite universities, corporate boardrooms, or dynastic wealth. Their campaign is not just about dismantling government—it’s about erasing the ground truth that ordinary people rely on.
One of the starkest shifts has been renaming the State Department the “Department of War.” This rhetorical change signals the administration’s embrace of permanent conflict as strategy. Secretary Pete Hegseth, a Princeton graduate and former hedge fund executive, embodies the contradiction: Ivy League polish combined with cable-news bravado. Under his watch, diplomacy is downgraded, alliances undermined, and propaganda elevated to policy.
The Pentagon has been retooled into a megaphone for Trump’s narrative that America is perpetually under siege. Despite the promise of “America First,” decisions consistently empower China and Russia by destabilizing traditional alliances. The irony: many of the architects of this policy cut their teeth at elite think tanks funded by the same defense contractors now profiting from chaos.
Trump’s appointees have doubled down on dismantling federal oversight, echoing the administration’s hostility to “woke indoctrination.” Yet the leaders spearheading this push often come from private prep schools and elite universities themselves. They know the value of credentialism for their own children, while stripping protections and opportunities from working families.
Justice has been weaponized into a tool of disinformation. Elite law school alumni now run campaigns against “deep state” prosecutors, while simultaneously eroding safeguards against corruption. The result is a justice system where truth is malleable, determined not by evidence but by loyalty.
Public health has been subsumed into culture war theatrics. Scientific consensus on climate, vaccines, and long-term health research is dismissed as partisan propaganda. Yet many of the leaders driving this narrative hail from institutions like Harvard and Stanford, where they once benefited from cutting-edge science, they now ridicule.
The EPA has become the Environmental Pollution Agency, rolling back rules while gaslighting the public with claims of “cleaner air than ever.” Appointees often come directly from corporate law firms representing Big Oil and Big Coal, cloaking extractive capitalism in the language of freedom.
Workers are told they are winning even as wages stagnate and union protections collapse. The elites orchestrating this rollback frequently hold MBAs from Wharton or Harvard Business School. They speak the language of “opportunity” while overseeing the erosion of worker rights and benefits.
Reality itself is policed here, where dissent is rebranded as domestic extremism. Elite operatives with ties to intelligence contractors enforce surveillance on ordinary Americans, while elite families enjoy immunity from scrutiny.
What unites these agencies is not just Trump’s directives, but the pedigree of the people carrying them out. Far from being the populist outsiders they claim to be, many hail from Ivy League schools, white-shoe law firms, or Fortune 500 boardrooms. They weaponize their privilege to convince the public that up is down, war is peace and lies are truth.
The war on reality is not a sideshow—it is the central project of this administration. For elites, it is a way to entrench their power. For the rest of us, it means living in a hall of mirrors where truth is constantly rewritten, and democracy itself hangs in the balance.
New York Times, Trump’s Cabinet and Their Elite Connections
Washington Post, How Trump Loyalists Are Reshaping Federal Agencies
Politico, The Ivy League Populists of Trump’s Inner Circle
ProPublica, Trump Administration’s Conflicts of Interest
Brookings Institution, Trump’s Assault on the Administrative State
Center for American Progress, Gaslighting the Public: Trump’s War on Facts
In 2001, conservative activist Grover Norquist declared that his goal was to shrink government “to the size where I can drag it into the bathroom and drown it in the bathtub.” More than two decades later, under the leadership of Secretary Linda McMahon, the U.S. Department of Education’s March 2025 reorganization delivers on that radical vision—not with fire and fury, but with vacancies, ambiguity, and quiet institutional collapse.
Vacant Seats, Hollow Power
With dozens of senior leadership roles left vacant, enforcement functions gutted, and policymaking handed over to political allies and industry insiders, the Department no longer resembles a federal agency tasked with protecting students and public investment. Instead, it has become a hollowed-out vessel primed for deregulation, privatization, and corporate exploitation.
The new organizational chart is littered with the word “VACANT.” From Chiefs of Staff and Deputy Assistant Secretaries to senior advisors in enforcement, civil rights, and postsecondary education, entire divisions have been effectively immobilized. The Office of Civil Rights is barely staffed at the top. The Rehabilitation Services Administration is leaderless. The General Counsel’s office lacks oversight in key regulatory areas. This is not streamlining—it is strategic self-sabotage.
Federal Student Aid (FSA), overseeing over $1.5 trillion in loans, is run by an acting chief. Critical offices such as the Office of Postsecondary Education (OPE) are fragmented, missing key leadership across multiple branches—especially those charged with accreditation, innovation, and borrower protections.
The Kent Controversy: A Symptom of Systemic Rot
The collapse of federal oversight is not only evident in the vacancies—it is also embodied in controversial political appointments. As education policy watchdog David Halperin has reported, the Trump administration’s nominee for Under Secretary of Education, Nicholas Kent, epitomizes the revolving door between the Department of Education and the for-profit college industry.
Kent’s career includes roles at Education Affiliates, which in 2015 paid $13 million to settle a Department of Justice case involving false claims for federal student aid, and later at Career Education Colleges and Universities (CECU), the lobbying group for the for-profit college sector. Under Kent’s policy leadership at CECU, the organization actively fought against borrower defense rules, gainful employment regulations, and other safeguards meant to protect students from exploitative educational institutions.
Despite this record, the Senate Health, Education, Labor and Pensions (HELP) Committee advanced Kent’s nomination on May 22, 2025, in a party-line 12–11 vote—without a hearing. HELP Ranking Member Bernie Sanders objected, saying, “In my view, we should not be confirming the former lobbyist that represented for-profit colleges.” Advocates, including Halperin and six education justice organizations, sent a letter to Chairman Bill Cassidy calling for public scrutiny of Kent’s background and the Trump administration’s destructive higher education agenda.
Among their concerns are the elimination of key enforcement staff and research arms at the Department, the cancellation of ongoing research contracts, the rollback of borrower defense and gainful employment protections, the $37 million fine reversal against Grand Canyon University for deceptive practices, and the Department’s silence on accreditation reform and oversight of predatory schools. These developments, the letter argued, mark a decisive return to the era of unchecked corporate education—where taxpayer dollars are funneled to dubious institutions and students are left with mountains of debt and worthless credentials.
“Mission Accomplished” for the Privatization Movement
This version of the Department of Education, stripped of its regulatory muscle and stocked with industry sympathizers, is not an accident. It’s the culmination of decades of libertarian, neoliberal, and religious-right agitation to disempower public education. The policy pipeline now flows directly from organizations like the Heritage Foundation and ALEC to appointed officials with deep ties to the industries they were once charged with policing.
Rather than serving the public, the department’s primary role now appears to be facilitating the private sector’s conquest of higher education—through deregulation, outsourcing, and the erosion of civil rights protections.
A Shrinking Federal Presence, an Expanding Crisis
The consequences are far-reaching. Marginalized students—Black, brown, low-income, first-generation, disabled—depend disproportionately on federal guarantees, oversight, and funding. As these protections recede, so too does their access to meaningful educational opportunity. Instead, they are increasingly funneled into high-debt, low-return programs or shut out entirely.
Meanwhile, the political vacuum left by this strategic dismantling is being filled by corporate actors, right-wing religious institutions, and profit-seeking "ed-tech" startups. The dream of public education as a democratic equalizer is being replaced by a market of extraction and exploitation.
The Dream Realized
Grover Norquist’s fantasy of drowning the government has now been partially fulfilled in the U.S. Department of Education. What remains is an agency in name only—a shell that no longer enforces its core mission. In the name of efficiency and deregulation, the department has abandoned millions of students and ceded its authority to those who view education as a commodity rather than a public right.
The danger now is not only what’s been lost, but what is being built in its place. The Higher Education Inquirer will continue to monitor the ongoing capture of education policy and fight for a system that serves students, not shareholders.
In an age where facts are contested and data manipulated, the question "Can we trust the numbers?" has become not just philosophical but political—and deeply consequential. Nowhere is this more evident than in higher education policy, where recent moves by the federal government have drastically undermined transparency, oversight, and public trust.
The dismantling of truth has reached new heights in 2025. Under the second Trump administration, the U.S. Department of Education has seen unprecedented budget cuts, including the near-evisceration of offices responsible for data collection and analysis. Key functions of the National Center for Education Statistics (NCES) have been gutted or quietly privatized, leaving researchers, journalists, and the public in the dark about the state of America's colleges and universities.
While much of the media has focused on the culture wars roiling campuses, the real war—against accountability—has played out more quietly through bureaucratic defunding and the removal of inconvenient truth-tellers.
In a stunning move this summer, President Trump fired the head of the Bureau of Labor Statistics (BLS), reportedly over the refusal to manipulate job figures and educational attainment data to suit administration talking points. The firing came just days after the BLS declined to revise downward the number of unemployed college graduates—a number that contradicted public claims of an “education-fueled economic boom.”
The Department of Labor's statistical integrity had been under increasing pressure in recent months. Sources within the agency described an atmosphere of intimidation and growing self-censorship. Internal memos revealed efforts to suppress long-term wage stagnation data and the underemployment rates among recent college grads.
Meanwhile, the Department of Education—once tasked with producing detailed reports on student outcomes, loan default rates, and institutional effectiveness—has abandoned major longitudinal studies. The College Scorecard website, once a marginal tool for transparency, now offers cherry-picked metrics and lacks any independent oversight. Public datasets are incomplete or years out of date. Critical tools like the Integrated Postsecondary Education Data System (IPEDS) are being quietly dismantled under the guise of "streamlining."
These changes don’t just affect policy wonks and higher ed insiders. They directly impact students, families, and communities trying to navigate a rapidly shifting and often predatory education marketplace. Without reliable data on debt loads, job placement, or graduation rates, how can anyone make informed decisions about college?
The answer, increasingly, is: they can’t. And perhaps that’s the point.
For an administration and its allies pushing voucher-style education reforms, expanded online programs, and reduced regulatory scrutiny, ignorance is a strategic asset. In a data vacuum, ideology prevails. Numbers become whatever those in power say they are.
This erosion of statistical integrity is part of a broader trend of de-democratizing knowledge. When facts become partisan tools and empirical research is defunded or delegitimized, the public loses its capacity to make informed decisions—not just about higher education, but about the future of the country itself.
The Higher Education Inquirer has long reported on the College Meltdown—the slow-motion unraveling of a bloated, debt-fueled, and increasingly corporatized higher ed system. But what happens when the meltdown is obscured by manipulated metrics and silenced dissent?
We are entering a phase where the collapse is not just structural or economic, but epistemological. Without reliable data, accountability vanishes. And when accountability dies, so does democracy.
The Numbers We Can Still Trust
Despite the chaos at the federal level, not all is lost. Gary Stocker, founder of College Viability and a long-time analyst of college financial health, emphasizes that historical data from IPEDS, audited financial statements, and IRS 990s remain largely intact—and still extremely valuable.
“There might be some risk for future numbers,” Stocker explains, “but I contend there is little risk for historical numbers from IPEDS, financial statements, and IRS 990s. Those numbers are baked in and would be very difficult to alter.”
This long-view perspective is critical in a time when many colleges and universities are trying to spin short-term narratives of recovery.
“If the enrollment trend is down over the past 8–10 years, that is the indicator of a college in trouble,” Stocker says. “Any college that tries to spin a 1-year, full enrollment recovery story will face extensive doubt and disbelief—especially from me.”
These longitudinal patterns—whether in enrollment, tuition discounting, administrative bloat, or student outcomes—are more important than ever. And while IPEDS may be on the chopping block, Stocker reminds us that nonprofit institutions are still legally obligated to submit audited financials and IRS 990 forms.
“Those two resources alone will be a tool with which to identify and expose those colleges willing to risk taking poetic license with their data.”
At The Higher Education Inquirer, we agree—and we thank Gary Stocker for his clarity and persistence. Transparency doesn’t depend solely on the federal government. It depends on those willing to dig, analyze, and expose the truth—even when that truth is buried in spreadsheets and footnotes.
We urge journalists, researchers, students, and faculty to continue examining the data that remains. The numbers don’t lie. But silence, distortion, and disappearance are forms of policy. And right now, those policies are accelerating.
Sources:
– U.S. Department of Education Budget Summary, FY2025
– Internal whistleblower reports from the Bureau of Labor Statistics
– “Bureau Head Fired Over Data Dispute,” Washington Post, June 2025
– American Council on Education analysis of NCES defunding, July 2025
– U.S. Department of Education, Integrated Postsecondary Education Data System (IPEDS): https://nces.ed.gov/ipeds/
– IRS Form 990 Search: https://apps.irs.gov/app/eos/
– Gary Stocker, College Viability – https://collegeviability.com/
– Gary Stocker, Personal communication with The Higher Education Inquirer, August 2025
– Chronicle of Higher Education, “Enrollment Trends and Institutional Closures,” accessed 2025
– National Association of College and University Business Officers (NACUBO), “Tuition Discounting Study,” various years
– Higher Education Inquirer archives on data transparency and College Scorecard manipulation
July 2025 was not simply a busy month for the U.S. Department of Education—it was a deliberate and coordinated effort to reshape higher education in line with the political goals of the Trump administration. Under the leadership of Education Secretary Linda McMahon, the Department issued a torrent of investigations, policy changes, and legal maneuvers aimed at asserting control over universities and redefining the role of postsecondary education in American life.
What emerged was not the repair of a broken system, but the acceleration of a political project: to narrow the mission of higher education, undermine its independence, and punish institutions that resist the administration’s agenda.
The month began with the Department entering a resolution agreement with the University of Pennsylvania over Title IX violations (July 1). By July 2, the administration had concluded a negotiated rulemaking session focused on reshaping the Public Service Loan Forgiveness program—signaling that student aid reforms would now be filtered through political priorities rather than bipartisan consensus.
On July 4, the One, Big, Beautiful Bill Act was signed into law. This sweeping legislation gave the administration a mandate to implement provisions on accreditation, federal aid restrictions, civil rights compliance, and so-called “viewpoint neutrality.” Within two weeks, McMahon’s team was already implementing key parts of the bill, using it to alter the rules that govern financial aid eligibility and institutional recognition.
Throughout the month, the Department launched a wave of investigations under Title VI and Title IX. But the choice of targets raised concerns. Rather than focus on systemic discrimination or long-standing legal violations, the Department directed its attention toward cases that aligned with conservative cultural concerns.
On July 8, an investigation was opened into the Connetquot Central School District after it banned a Native American logo.
On July 10, George Mason University became the subject of a Title VI probe.
On July 23, five universities were flagged for offering scholarships that allegedly favored foreign-born students.
By July 25, five Northern Virginia school districts were found in violation of Title IX.
Harvard, Columbia, Duke, the University of Michigan, and Brown University were all pulled into scrutiny, with Columbia agreeing to pay $200 million and submit to new data-reporting requirements. These actions may appear to be standard enforcement but taken together they reflect a pattern of choosing high-profile or politically charged institutions as symbolic examples.
The use of federal compliance tools to pressure institutions seen as ideological opponents is not unprecedented—but under McMahon, it has become routine.
On July 10, the Department announced the termination of federal aid for undocumented students, marking a sharp reversal from past practices. Just five days later, the Department entered into a new partnership with the Department of Labor to promote workforce training, part of a longer-term effort to reorient higher education toward narrow economic outcomes rather than liberal arts or civic development.
While such initiatives are framed as “efficiency” or “innovation,” the underlying message is clear: colleges that do not align themselves with federal job-training goals or cultural expectations may find their access to funding, recognition, and legal protections limited.
The Supreme Court’s decision on July 14 to permit a reduction in federal staffing has further empowered the Department to cut or replace internal personnel. By July 24, two new negotiated rulemaking committees were established, tasked with translating the One, Big, Beautiful Bill into enforceable rules. These committees will likely define the next phase of McMahon’s agenda—on issues like accreditation, financial eligibility, foreign influence, and institutional autonomy.
At the state level, the Department approved Missouri’s new pilot assessment program on July 31, continuing a pattern of promoting alternatives to standardized federal oversight. Meanwhile, state education officials were encouraged (July 29) to request waivers from burdensome federal requirements—an invitation to bypass regulations established under previous administrations.
The July timeline reflects not just a burst of administrative activity, but a broader strategy to centralize decision-making power and reshape the ideological landscape of U.S. higher education. The Department has moved away from serving as a neutral enforcer of civil rights and federal law, and toward acting as a gatekeeper for cultural and political conformity.
Colleges that emphasize diversity, global engagement, or progressive research are increasingly viewed with suspicion. Those that fail to meet the administration’s evolving definition of compliance may face costly investigations, public shaming, or the loss of federal support.
The term “College Meltdown” once referred to financial instability, enrollment declines, and the erosion of public trust. Under Linda McMahon, it now also refers to a deliberate restructuring of the postsecondary system—where ideological alignment may determine institutional survival as much as financial solvency.
Sources:
U.S. Department of Education, July 2025 public statements and press releases
One, Big, Beautiful Bill Act, signed July 4, 2025
Columbia University settlement, July 23, 2025
Supreme Court ruling on federal workforce reductions, July 14, 2025
Negotiated Rulemaking updates from the Office of Postsecondary Education
Brown University agreement with the Department of Education, July 30, 2025
American Job Centers—once branded as One-Stop Career Centers—are touted as comprehensive solutions for job seekers. Yet in reality, they often fail to deliver. Procedural checkboxes have replaced meaningful employment outcomes, especially amid growing privatization, budgetary erosion, and ideological attacks on government itself.
For decades, One-Stops have been propped up as a silver-bullet answer to unemployment. Gordon Lafer’s The Job Training Charade lays bare how misguided this is: “For twenty years, every jobs crisis—whether inner-city poverty, jobs lost due to the North American Free Trade Agreement, or loggers put out of work by the spotted owl—has been met with calls for retraining. … The only trouble is, it doesn’t work, and the government knows it.” Lafer makes it clear that the real issues are structural—job shortages, wage stagnation—not worker deficits. Training programs serve as “phantom policies” that manage public frustration without changing economic realities.
Reinvention Without Impact
The Corporation for a Skilled Workforce (CSW) proposed bold reforms in 2012 and 2013, suggesting One-Stop centers evolve into dynamic hubs where “work and learning intersect,” and where job seekers and employers co-create career paths. These ideals, however, remain largely aspirational: fragmented implementation, siloed service delivery, and inflexible reporting requirements continue to dominate.
Benchmarking studies dating back to the 2000s distilled “critical success factors” for One-Stops—from employer outreach to data systems—yet local variations and a lack of integrated data have stymied widespread adoption.
The Workforce Innovation and Opportunity Act (WIOA) formalized the shift toward privatization. One-Stops—now often rebranded as American Job Centers—are now commonly run under competitive contracts via workforce boards, often fragmented in execution and skewed toward short-term metrics rather than long-term, holistic support.
Underpinning these failures is a deliberate strategy of attrition and disinvestment. The Trump administration’s FY 2026 “skinny” budget proposed a staggering 35% cut to DOL funding—roughly $4.6 billion taken in one sweep—eliminating the Job Corps entirely and consolidating myriad workforce programs into a single “Make America Skilled Again” (MASA) grant framework with minimal oversight or protections. This proposal has drawn sharp criticism: the National Association of Workforce Boards (NAWB) warned it would devastate the backbone of workforce systems, and Secretary of Labor Lori Chavez-DeRemer confirmed the deep cuts and program eliminations—including Adult Education and Job Corps—during Senate testimony.
Within the department, attrition has compounded the crisis. Roughly 20% of DOL staff—around 2,700 employees—have departed through buyouts, retirements, and resignations in the wake of a reorganization push, leaving core functions like wage enforcement, safety, and civil rights enforcement dangerously understaffed. Meanwhile, $577 million in international labor grants were cut, and an additional $455 million in cost-saving measures implemented through Elon Musk’s so-called Department of Government Efficiency (DOGE) further gut the agency’s operational capacity.
Grover Norquist’s infamous bathtub image—“I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub”—is no longer hyperbole. It’s become strategy: shrink the DOL to dysfunction, then use the failure to justify privatization and further austerity.
The DOL’s One-Stop approach has turned into what we might call “FUBAR”: F—ed Up Beyond All Recognition. Understaffed and underfunded, the system still struggles to offer basic services—counseling, referrals, workshops—let alone structural support. Meanwhile, contractors may round up placements, but the quality of employment remains low and unstable.
Restoring DOL means more than reinvention—it demands a full reboot. That means reversing staffing attrition, reestablishing specialized programs like Job Corps and Adult Education, and rebuilding robust, public-sector-run infrastructure—not contracting out to private operators. We need integrated data systems that track meaningful outcomes (wages, retention, mobility) rather than just outputs. And services must be co-designed with local labor markets, job seekers, and employers, not imposed top-down or under narrow political logic
From Bathtub Backdraft to Real Accountability
“Lafer concludes that job training functions less as an economic prescription aimed at solving poverty than as a political strategy aimed at managing the popular response to economic distress.” One-Stops crystallize that danger—well-intentioned conceptually, but defunded, privatized, and bureaucratically crippled. Unless DOL breaks free of the bathtub logic and reaffirms its public mandate, it will remain an empty promise to vulnerable workers, not a ladder to economic mobility.
Lafer, Gordon. The Job Training Charade. Cornell University Press, 2002.
Corporation for a Skilled Workforce (CSW). One-Stop Career Centers Must Be Reinvented to Meet Today’s Labor Market Realities, 2012.
CSW. Reinventing One-Stop Career Centers (Version 2), 2013.
CSW. One-Stop Center Reinvention Paper, 2014.
CSW. Benchmarking One-Stop Centers, 2000.
U.S. Department of Labor. Study of the Implementation of the WIOA American Job Center Systems, 2020.
Bloomberg Law: DOL to see 35% funding cut under Trump budget plan.
NAWB report on FY 26 budget cuts to DOL.
Testimony by Secretary of Labor Lori Chavez-DeRemer, May 2025.
Guardian: Mass resignations at DOL amid looming cuts.
AP News: International labor grants axed under DOGE.
NPR 2001 quote by Grover Norquist.
‘Starve the beast’ strategy and Norquist quote.