Advocates say new rules let Education Department to politically punish groups working on immigration, transgender care.
The U.S. Department of Education has finalized rules allowing the exclusion of nonprofits from the Public Service Loan Forgiveness program if they engage in activities deemed to have a “substantial illegal purpose,” particularly targeting those involved in immigration advocacy and transgender care. Critics, including the National Council of Nonprofits, argue this grants the education secretary excessive power to politically discriminate against organizations based on controversial issues, potentially dissuading public service workers from entering fields that support marginalized communities. Supporters claim the rules protect taxpayer funds by preventing support for groups accused of harboring undocumented immigrants or performing prohibited medical procedures. The rules are set to take effect in July 2026, raising concerns over future administrations’ ability to alter eligibility based on political ideology.
