Copyright Newsweek
Four major U.S. cities and several prominent labor unions are suing the Trump administration over a new rule that would narrow eligibility for the Public Service Loan Forgiveness (PSLF) program. The lawsuit, filed Monday in federal court in Massachusetts, challenges a regulation allowing the Education Department to deny loan relief to workers whose government or nonprofit employers engage in activities deemed to have a “substantial illegal purpose.” The plaintiffs argue the rule gives the education secretary sweeping authority to punish cities and organizations that clash politically with the administration. Federal officials defend the change, saying it ensures taxpayer funds do not subsidize illegal activity. This is a breaking news story. Updates to follow.
