The Education Department gave another agency power to distribute its money. It hasn't gone well.

A controversial push to restructure the Education Department under the Trump administration has faced significant hurdles, raising concerns that its failure could weaken broader efforts to overhaul the agency. While the initial attempt to reorganize its regulatory responsibilities stumbled, critics warn that the setback may delay or complicate more sweeping plans to reshape federal education policy. The Labor Department’s involvement adds another layer of complexity to the debate over how best to streamline—or dismantle—key education functions. With the administration’s ambitions at stake, the outcome could have lasting implications for how federal education programs are administered.

The stumbles of an early Trump administration experiment to carve up the Education Department risks undercutting the president’s more dramatic demolition plan for the agency. The Labor Department ...