WASHINGTON, DC — The Trump administration’s attempts to politicize the Public Service Loan Forgiveness Program are illegal, a federal judge ruled today.
The U.S. District Court for the District of Columbia has invalidated a U.S. Department of Education (ED) rule that threatened to disqualify certain employers from receiving PSLF.
The ruling is in response to a lawsuit filed in November 2025 by the Public Citizen Litigation Group and Student Advocates on behalf of the Robert and Ethel Kennedy Human Rights Center, the American Immigration Council, The Door Center of Alternatives, Inc., and the League of United Latin American Citizens (LULAC).
The lawsuit challenged a rule finalized in October 2025 that would allow ED to strip employers from the PSLF program if the Secretary of Education determines the organization has a “substantial unlawful purpose.” Under this rule, the ED gave itself unilateral authority to determine whether an organization has such objectives based on the organization’s participation in activities disapproved by the current administration regarding immigration, discrimination, gender-affirming care, etc.
As the plaintiffs explained in the motion granted today, this rule violated state governance of the PSLF program and allowed arbitrary coercion of mission-driven organizations from conducting activities or expressing opinions opposed by the government. These groups asked the court to declare the new regulations illegal, citing, among other things, that the ED lacks the legal authority to change the statutory standards for PSLF.
“The court’s decision is a major victory for those who work in the public interest and the communities they serve. Those who have dedicated their careers to public service and nonprofit work deserve loan forgiveness on the terms Congress promised, without the threat of retaliation from the Trump administration,” said Cormac Early, an attorney with the Public Citizen Litigation Group and lead attorney on the case.
“Today’s decision is a victory for student loan borrowers, for the First Amendment, and for the rule of law,” said Student Defense President Aaron Ament. “Public servants should no longer have to worry that the federal government will punish them for their perceived employer’s mission or political views. We are relieved that the court has ruled that, regardless of ED’s opinion, the government must honor its promise of loan forgiveness to the millions of teachers, military personnel, and other public servants who have dedicated their lives to making our country a better place.”
“The Trump administration’s baseless and blatant attempt to cancel Congressional-appointed benefits is not just a threat to nonprofit employees,” said Kerry Kennedy, director of the Kennedy Center for Human Rights. “This was a threat to everyone we serve, the women, men, and children who rely on our organizations to protect their most basic human rights. Today’s decision is an important victory and an affirmation of what Congress decided nearly 20 years ago: public servants should be supported.”
“Today’s decision protects public servants from rules that punish them simply for working to support immigrant families and other underserved communities that the government targets. “This ruling confirms that the government cannot rewrite the terms of that promise for political reasons,” said Jorge Lowery, managing director of programs and strategy at the American Immigration Council.
“Today’s decision is a victory for public service professionals and the communities they serve. The Public Service Loan Forgiveness program was created to encourage educators, counselors, social workers, attorneys, and other professionals to dedicate their careers to serving others and strengthening their communities. For organizations like The Door, that means being able to attract and retain talented staff who help young people access opportunities, overcome challenges, and build secure futures. We are grateful that the court upheld that commitment,” said Kelsey Louie, CEO of The Door. Door – A Center of Alternatives, Inc.
“This ruling is a victory for all public servants who choose to dedicate their careers to improving their communities, and for the Latino families they serve. The Department of Education cannot rewrite the promises of Congress, and it certainly cannot punish organizations like ours for the advocacy and civil rights work that is central to our mission,” said Juan Proaño, CEO of the LULAC Institute.
Read the judgment here.
Read the original complaint here.
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About the Robert and Ethel Kennedy Center for Human Rights:
The Robert and Ethel Kennedy Center for Human Rights is a nonpartisan nonprofit organization that works across courtrooms, boardrooms, and classrooms to build a more just and peaceful world. Inspired by the legacy of Sens. Robert and Ethel Kennedy, we work with domestic and international partners to protect fundamental human rights. We pursue strategic litigation that holds governments at home and abroad accountable. Promote a socially good approach to business. Developing the next generation of changemakers through human rights education programs.
About the American Immigration Council:
The American Immigration Council works to strengthen America by shaping the way we think and act about immigrants and immigration. The Council takes a four-pronged, coordinated approach to driving change: litigation, investigations, legislative and administrative advocacy, and communications. Follow us on LinkedIn, BlueSky, Instagram and YouTube for the latest Congressional news and information.
About The Door – A Center of Alternatives, Inc.
For over 50 years, The Door has been a trusted destination for young people aged 12 to 24. Everyone is welcome to be who they are, to be themselves, to meet their challenges, and to access services when and how they need it. With roots in the heart of New York City and locations in the boroughs, The Door provides comprehensive programs and services including mental health counseling, health and nutritional support, legal services, housing assistance, arts, education and career guidance. Everything at The Door is free and everyone is welcome.
Broome Street Academy, a charter high school located on the grounds of The Door, admits 300 students a year from all five boroughs, with seats reserved for students housed in transitional or foster care facilities.
About LULAC Institute
LULAC Institute is the nonprofit arm of The League of United Latin American Citizens Institute (LULAC), the nation’s oldest and largest Latinx civil rights organization. Founded in 1929, LULAC is dedicated to advancing the rights and opportunities of Latinos through advocacy, community building, and education. With a growing network of councils across the country, LULAC remains steadfast in its mission to protect and empower millions of Latinos, contributing to America’s prosperity every day. For more information about LULAC and its work, please visit www.LULAC.org.
About the Citizen Litigation Group
Public Citizen Litigation Group is the litigation arm of Public Citizen, a nonprofit consumer advocacy organization. For more than 50 years, our litigation group has worked to advance the interests of consumers, workers, and the public, and to hold governments and businesses accountable to the public. For more information, please visit www.citizen.org/litigation.
About student defense
The National Student Legal Defense Network (“Student Defense”) is a nonprofit organization that works through litigation and advocacy to advance students’ rights to educational opportunities and ensure that higher education is a springboard to economic mobility.
