Resources
Additional Information
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Incident Nature:
Lawsuit
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Incident Political Orientation:
Not Clear -
Incident Responses:
Litigation
Title IX or other federal statute
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Incident Status:
In litigation Federal District Court
Appealed
- Did not involve Speech Codes
Summary
On November 4, 2025, the Robert F. Kennedy Center for Justice and Human Rights, American Immigration Council, The Door – A Center for Alternatives, Inc., and League of United Latin American Citizens Institute, Inc. filed a lawsuit against the U.S. Department of Education and Secretary of Education Linda McMahon in the U.S. District Court for the District of Columbia. The organizations challenged a new rule governing the Public Service Loan Forgiveness (PSLF) program, which provides loan forgiveness to borrowers who make 120 qualifying payments while working full time in qualifying public service jobs, including for certain nonprofits.
The lawsuit followed President Donald Trump’s March 7, 2025, executive order directing the Education Department to exclude organizations from PSLF that engage in activities “contrary to the national security interests and American values of the United States.” On October 31, 2025, the Department issued a final rule allowing the Secretary to exclude an otherwise qualifying employer if it engages in activities that have a “substantial illegal purpose.” The rule identified activities involving areas including immigration and gender-affirming care for minors. The plaintiffs alleged that the Department lacked authority to impose the new restriction and that the rule violated the Administrative Procedure Act and First Amendment.
On February 9, 2026, the plaintiffs moved for summary judgment, arguing that the Higher Education Act sets the requirements for qualifying employers and does not allow the Department to exclude otherwise eligible organizations based on their activities. The Department sought dismissal or summary judgment, arguing that it had authority to issue the rule and that the rule addressed unlawful conduct rather than protected speech. Following a June 3 hearing, the court on June 30 granted the plaintiffs’ motion for summary judgment and vacated the rule. The court held that the rule exceeded the Department’s statutory authority because Congress had not authorized the Department to add the new eligibility restriction.
On August 27, 2026, the Department and McMahon filed a notice of appeal in the U.S. Court of Appeals for the D.C. Circuit, where the appeal was docketed as No. 26-5308. A related case, National Council of Nonprofits v. McMahon, No. 25-13242, was filed in the District of Massachusetts on November 3, 2025, challenging the same PSLF rule. That court also vacated the rule on June 30, 2026, and the Department appealed to the U.S. Court of Appeals for the First Circuit on August 27. Both cases remain ongoing.
