Trump rule lets Ed Dept bar PSLF employers
A new Education Department rule lets the secretary bar employers from the Public Service Loan Forgiveness program if they are found to have a "substantial illegal purpose," citing activities such as terrorism, child trafficking and what the department defines as "chemical castration" (including puberty blockers and hormone therapy for transgender youth), with the secretary given final authority under a "preponderance of the evidence" standard. More than 20 Democrat-led states — led by New York, Massachusetts, California and Colorado — filed suit in Massachusetts on Nov. 3, and separate challenges by cities and nonprofit groups have been lodged or are expected, arguing the rule is vague and exceeds the department's congressional authority.
📌 Key Facts
- More than 20 Democrat-led states filed a lawsuit in Massachusetts on Nov. 3 challenging the Education Department's new Public Service Loan Forgiveness (PSLF) employer‑eligibility rule; the coalition is led by New York, Massachusetts, California and Colorado.
- A separate suit was filed by cities including Boston, Chicago, Albuquerque, San Francisco and Santa Clara and by the National Council of Nonprofits; another challenge is expected from RFK Human Rights, the American Immigration Council and The Door.
- The states argue the rule’s reference to a “substantial illegal purpose” is vague and contend Congress did not authorize the Education Department to add new limits that affect government and nonprofit employers.
- Under Secretary of Education Nicholas Kent defended the rule, saying it targets organizations involved in illegal activities such as terrorism, child trafficking, and what he called the “chemical castration” of children.
- The rule explicitly defines “chemical castration” to include puberty blockers and hormone therapy for transgender youth and gives the education secretary final authority to decide employer eligibility using a “preponderance of the evidence” standard.
📚 Contextual Background
- Congress created the Public Service Loan Forgiveness (PSLF) program in 2007 to encourage graduates into lower-paying public-sector jobs; PSLF provides federal student loan forgiveness after 10 years of qualifying payments while working in government jobs or for many nonprofits.
📰 Sources (2)
- More than 20 Democrat-led states filed a lawsuit in Massachusetts on Nov. 3 challenging the PSLF employer-eligibility rule; the coalition is led by New York, Massachusetts, California and Colorado.
- A separate suit was filed by cities (Boston, Chicago, Albuquerque, San Francisco, Santa Clara) and the National Council of Nonprofits; another challenge is expected from RFK Human Rights, the American Immigration Council, and The Door.
- Under Secretary of Education Nicholas Kent defended the rule in a statement, saying it targets organizations involved in illegal activities such as terrorism, child trafficking, and 'chemical castration' of children.
- The rule defines 'chemical castration' to include puberty blockers and hormone therapy for transgender youth, and gives the education secretary final say using a 'preponderance of the evidence' standard.
- States argue the term 'substantial illegal purpose' is vague and that Congress did not authorize the department to add new limits affecting government and nonprofit employers.