The Government Performance and Results Modernization Act of 2010 defines major management challenges as programs or management functions that are vulnerable to waste, fraud, abuse, and mismanagement, and where a failure to perform well could seriously affect the ability of the U.S. Department of Education (Department) to achieve its mission or goals. In accordance with the Reports Consolidation Act of 2000, the Office of Inspector General (OIG) reports annually on the most serious management and performance challenges the Department faces. The reports include a brief assessment of the Department's progress in addressing the challenges. They also identify further actions that, if properly implemented, could enhance the effectiveness of the Department's programs and operations. To identify management challenges, the authors examined audit, inspection, quick response, and investigative work that was completed or part of a body of work that was completed between October 1, 2021, and September 30, 2024; reviewed corrective actions that the Department has not completed; assessed ongoing audit, inspection, and investigative work to identify significant vulnerabilities; and analyzed new programs and activities that could pose significant challenges. They also considered the accomplishments the Department reported as of September 30, 2024, and evaluated its progress for each management challenge. For fiscal year (FY) 2025, the authors identified four management challenges the Department faces as it continues its efforts to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. These challenges are: (1) oversight and monitoring of student financial assistance programs; (2) oversight and monitoring of grantees; (3) data quality and reporting; and (4) information technology security.