In National Council of Nonprofits et al. v. McMahon, Groups Seek to Halt Radical PSLF Rewrite in United Front Against ED’s Unconstitutional Attack on Teachers, Nurses, First Responders, and Advocates
On November 3, 2025, a diverse coalition of cities, labor unions, and non-profit advocacy organizations serving marginalized communities across the country filed a lawsuit against the Trump-Vance Admin for their unlawful Public Service Loan Forgiveness (PSLF) rule.
The rule would allow Secretary McMahon to disqualify employers she deems to be engaging in “substantially illegal activities,” which include: providing gender affirming care to transgender youth, supporting undocumented immigrants and their families, promoting “diversity, equity, and inclusion,” calling for an end to the war in Gaza and engaging in protests and demonstration activities.
Plaintiffs include City of Albuquerque, City of Boston, City of Chicago, City and County of San Francisco, County of Santa Clara, Amica Center for Immigrant Rights, Coalition for Humane Immigrant Rights, Legal Aid DC, National Association of Social Workers, National Council of Nonprofits, Oasis Legal Services, AFT, American Federation of State, County, and Municipal Employees, and National Education Association. The coalition is represented by Protect Borrowers and Democracy Forward in this matter; the County of Santa Clara and City and County of San Francisco represent themselves.
Read the Press Release: Cities, Workers, Civil Society Organizations Sue Trump-Vance Administration for Weaponizing Public Service Loan Forgiveness to Silence Critics and Stifle Dissent
Read a Spanish Translation of this Press Release here.
Read the Complaint: National Council of Nonprofits et al. v. McMahon