Broad Coalition of Nonprofit Organizations, Local Governments, and Labor Unions Successfully Stop Unlawful Effort to Punish Perceived Political Opponents

Boston – The Trump-Vance administration has abandoned its appeal in National Council of Nonprofits et al. v. McMahon, a case brought by a broad coalition of nonprofit organizations, more than a dozen local governments, and labor unions against the U.S. Department of Education. The case stopped a new rule that would have allowed the Secretary of Education to disqualify government and nonprofit employers that disagree with the administration’s policies from a program intended to support borrowers working in public service jobs. 

Earlier this year, a federal court ordered the Trump-Vance administration to stop its unlawful rewriting of the Public Service Loan Forgiveness (PSLF) program as a way of silencing nonprofit organizations and local governments that do work that runs counter to the administration’s political agenda. The government had filed an appeal of the ruling, but on Wednesday submitted a joint stipulation of dismissal, which will formally end the matter and ensure the new rule will never take effect. 

Plaintiffs in the case include City of Albuquerque, City of Boston, City of Chicago, City and County of San Francisco, County of Santa Clara, Amica Center for Immigrant Rights, Coalition for Humane Immigrant Rights, Legal Aid DC, National Association of Social Workers, National Council of Nonprofits, Oasis Legal Services, American Federation of Teachers, American Federation of State, County and Municipal Employees (AFSCME), and National Education Association. The coalition is represented by Democracy Forward and Protect Borrowers in this matter; the County of Santa Clara and City and County of San Francisco represent themselves.

“This administration tried to use student debt as a weapon against nonprofit workers who stand up for immigrant rights and other targeted communities,” said Michael Lukens, Executive Director at the Amica Center for Immigrant Rights. “We are proud to have helped challenge this blatant abuse of power.”

The legal team on this case includes Sarah Goetz, Victoria Nugent, Simon Brewer, Jennifer Fountain Connolly, and Robin Thurston from Democracy Forward, Persis Yu and Winston Berkman-Breen from Protect Borrowers, and attorneys from the County of Santa Clara Office of the County Counsel and San Francisco City Attorney’s Office.  

Read the opinion that decided the case here and learn more about the case here.