# Interagency Agreement An **interagency agreement** is a written arrangement under which one federal agency performs work, provides services, or administers a program on behalf of another, usually with reimbursement. The authority is ordinary and long-standing — the Economy Act and program-specific transfer authorities — and the instrument requires no legislation, no rulemaking, and no public comment. Its significance in 2025–26 is that it became the primary mechanism for hollowing out an agency without abolishing it. Because a statutory program cannot simply be cancelled by the executive, day-to-day administration is instead contracted out to another department while the program, its authorizing statute, and its appropriation all remain formally in place at the original agency. The [[Department of Education]] is the worked example: as of July 1, 2026 it had published fourteen interagency agreements transferring day-to-day management of roughly 150 programs to six agencies, with the Department of Labor administering K-12 grants including Title I. See [[How a Federal Agency Is Dismantled]] for where this sits in the wider process.