A federal judge on June 30 permanently blocked a Trump administration rule that would have let the U.S. Department of Education strip Public Service Loan Forgiveness eligibility from teachers, nurses, firefighters, and social workers whose employers support immigrants, gender-affirming health care, or diversity programs, according to a press release from the New York Attorney General’s office.
The Public Service Loan Forgiveness program cancels federal student loan debt for government and nonprofit employees after 10 years of qualifying public service. The rule from the Department of Education, which was set to take effect July 1, would have given the federal government power to declare state governments, hospitals, schools, and nonprofit organizations categorically ineligible for the program based on those employers’ stances on immigration, gender-affirming care, or diversity initiatives, effectively making a worker’s debt relief contingent on their employer’s politics.
In November 2025, New York Attorney General Letitia James led a coalition of 21 other attorneys general in suing the Department of Education to challenge the rule. On June 30, the U.S. District Court for the District of Massachusetts granted the coalition’s motion for summary judgment, declaring the rule illegal and permanently blocking it from taking effect.
“Public servants should not have to pass a political loyalty test to earn the loan forgiveness they were promised,” James said in a statement. “This rule was a blatant attempt to punish teachers, nurses, firefighters, social workers, and other public servants for working in states or for organizations that this administration does not like. Today, we have stopped the federal government from turning a program created to honor public service into a weapon for political retaliation.”
Featured image: Bushwick Daily archive
