The ruling protects public-service careers at nonprofits like CLF, where staff work every day to defend New England’s communities, air, and water.
July 1, 2026 (Boston, MA) – In National Council of Nonprofits v. McMahon, a federal court has struck down a Trump administration rule that threatened the Public Service Loan Forgiveness program. The rule would have allowed Trump’s Department of Education to disqualify nonprofit and public service employers from the program based on vague and politically charged claims that an organization had a “substantial illegal purpose.” CLF filed a friend-of-the-court brief on behalf of environmental nonprofits in the case.
“Public Service Loan Forgiveness exists to help people dedicate their careers to serving the public, not to let the Trump administration punish organizations it dislikes,” said Maggie Nivison, Senior Attorney at CLF. “Fighting climate change, protecting clean air and water, and defending our communities is public service – and the court was right to stop the administration from turning this program into a political weapon.”
Congress created Public Service Loan Forgiveness in 2007 to encourage people to enter and remain in public service careers, especially jobs that often pay less than private-sector work. For nearly two decades, eligibility has turned on the type of employer – 501(c)(3) nonprofits and public agencies – not on whether the government approves of the organization’s work.
The U.S. District Court for the District of Massachusetts ruled that Trump’s Department of Education’s rule was unlawful, arbitrary, and capricious, and violated the First Amendment. The court vacated the rule, blocking it from taking effect.
CLF experts are available for further comment.
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