Federal Reorganization: Proposed Merger's Impact on Existing Department of Education Activities

Pursuant to a congressional request, GAO discussed the proposed merger of the Departments of Education and Labor, the Equal Employment Opportunity Commission, and other selected federal programs into a new Department of Education and Employment. GAO noted that: (1) the proposed merger would generate savings of about $1.65 billion in certain administrative costs; (2) any staff reduction would likely include reductions in force in excess of the target number to achieve the cost savings; (3) the merger will significantly change Education's existing organizational structure and program and service mix; (4) some programs would remain intact in the new department, but other programs could be combined, eliminated, or transferred to other federal agencies; and (5) Congress, Education, and other federal officials must address program consolidation, workforce, accountability, implementation, and oversight issues to ensure that the surviving federal education and training programs meet national needs.