The move by the justices represents an expansion of executive power, allowing President Trump to dismantle the inner workings of a government department.
Cuts have hit most of the department's main functions, which include investigating civil rights complaints, providing financial aid, researching what works in education, testing students and dispersing federal funding.
The Supreme Court on Monday cleared the way for the Trump administration to continue unwinding the Education Department, allowing it to move ahead with mass layoffs and a plan to outsource the department's operations to other agencies.