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

A high-profile Trump administration effort to restructure the Education Department through regulatory rollbacks has faced unexpected hurdles, raising questions about the feasibility of broader reforms. Officials had proposed streamlining oversight of student loan servicers and other key functions, but early missteps in implementation could weaken momentum for more sweeping changes. The Labor Department’s involvement in the process adds another layer of complexity, as agencies navigate competing priorities in reshaping federal education policy. Critics warn that delays or missteps in this phase could derail the administration’s ambitions to fundamentally alter how the department operates.

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 ...