They think of secret as the broad classification of everything that the government doesn't want to disclose. They are surprised and even shocked to hear of the different gradients of classification and that "above Top Secret" only exists in cheap spy novels and in the movies.
It may be worth mentioning "For Official Use Only" is also a method of controlling information. FOUO is unclassified information that when associated with other unclassified information, could allow deduction of classified plans or actions.
Given the administration's ignorance of such matters, I believe that FOUO is truly the category they think they are trying to eliminate.
You nailed their motive too, to bail out the hildabeast.
Indeed and thanks.