National Council of Nonprofits v. McMahon

New York City, with assistance from Public Rights Project, filed an amicus brief in support of a coalition’s challenge to a proposed rule that would limit which employers are eligible under the Public Service Loan Forgiveness (PSLF) program. 

The rule would allow the U.S. Department of Education to disqualify nonprofit employers and state and local governments from the program if they engage in practices it disagrees with, including providing transgender-inclusive care; supporting immigrants; advancing diversity, equity, and inclusion (DEI); or participating in protests.

The brief argues that weaponizing this vital program — created by Congress to prevent public servants from carrying overwhelming student debt — would undermine the public service workforce and harm the communities it serves.

The brief points out how much the program has been essential to recruiting and retaining talent for municipal governments. Our brief outlines what’s at stake if the rule is finalized:

• Municipal governance would suffer: Effective local government depends on a skilled workforce. Without access to loan forgiveness, cities may struggle to attract and keep qualified civil servants.
• Critical services are at risk: Cities and states rely on professionals with advanced degrees — such as teachers, police officers, and doctors — to serve their communities. Eliminating loan forgiveness could shrink this workforce and disrupt essential services for millions of Americans.
• Higher education becomes less accessible: For many public service workers, loan forgiveness makes higher education financially possible. Changing the program for politically motivated reasons would increase the cost burden of higher education and put public service careers further out of reach for millions of people.

The brief makes clear that the federal administration is attempting to target and punish organizations and local governments that don’t align with its dangerous policies.

Read the amicus brief.