The U.S. Department of Education announced Wednesday the first round of grant competitions for K-12 programs under its new partnership with the Department of Labor — a collaboration designed to reshape how federal education initiatives are managed.

Originally unveiled in November, the partnership shifts oversight of several Elementary and Secondary Education Act programs to the Labor Department. These include initiatives supporting low-income districts, homeless and migrant students, academic assistance programs, afterschool services, and schools receiving Impact Aid.

The newly announced grant competitions focus on two key areas: improving literacy in high-need schools and districts, and introducing performance-based compensation systems for teachers and school leaders.

According to officials, funding decisions will prioritize programs that support at-home learning, emphasize merit-based approaches, align with workforce demands, and promote greater state-level control over education. Notably, the grants will be administered through the Department of Labor’s grant management system rather than the Education Department’s traditional platform.

The Education Department described the initiative as part of the Trump administration’s broader effort to better align education with workforce development, expand school choice, and strengthen teacher performance.

Kirsten Baesler, Assistant Secretary for Elementary and Secondary Education, called the new grant programs “an important milestone in supporting educators and empowering families with more educational options.”

The partnership is also tied to President Donald Trump’s long-standing goal of reducing the federal government’s role in education to the fullest extent allowed by law. By shifting certain programs to the Labor Department, the administration aims to create a more integrated system connecting education with job training and industry needs.

“Education reaches its full potential when it is closely connected to workforce opportunities,” said Henry Mack, Assistant Secretary for Employment and Training at the Labor Department.

However, the move has drawn criticism from some lawmakers and education advocates, who argue that transferring oversight could weaken accountability and complicate the delivery of federal education funding.

In a bipartisan statement released earlier this year, members of Congress warned that dividing responsibilities across multiple agencies could create inefficiencies, increase costs, and delay funding reaching states and school districts.

Critics have also raised concerns that the new structure could reduce federal protections for students and families under existing education laws.