Trump Administration Backs Down; Drops Appeal of Court Loss Blocking Its Illegal Weaponization of Public Service Loan Forgiveness Program

California Attorney General Xavier Becerra - Press Releases · October 22, 2026 · g5378538

October 22, 2026 Contact: (916) 210-6000, agpressoffice@doj.ca.gov OAKLAND — California Attorney General Rob Bonta today issued the following statement after the Trump Administration dropped its appeal of a court decision vacating a U.S. Department of Education rule that would have allowed the Administration to strip Public Service Loan Forgiveness (PSLF) eligibility from employees of government and nonprofit organizations it deems to have a “substantial illegal purpose.” PSLF is the federal program that forgives the remaining federal student loans of borrowers who work in public service and make 10 years of qualifying payments. As part of a coalition of 22 attorneys general, Attorney General Bonta sued the Trump Administration in November 2025 over the rule and secured a decision from the U.S. District Court for the District of Massachusetts vacating it in June 2026. By dropping its appeal of the decision, the Trump Administration concedes the case, leaving the District Court’s ruling in place and resolving the matter in favor of California and the plaintiff states. “Our educators, healthcare workers, and first responders choose public service because they love their communities and want to make a difference. But that dedication often comes with significant financial sacrifice, which is why programs like Public Service Loan Forgiveness are so critical,” said Attorney General Bonta . “The Trump Administration tried and failed to turn a bipartisan promise into a political weapon, threatening the financial futures of hardworking Americans who have devoted their lives to the public good. The Trump Administration has now backed down and dropped its appeal, but our commitment remains unchanged: We will continue to fight for those who dedicate their lives to serving others, because a government that depends on public servants must also stand by them.” Congress created the PSLF program in 2007 with bipartisan support to encourage college graduates to work in the public sector, where salaries are often lower than jobs in the private sector. PSLF helps nonprofits, the armed forces, and federal, state, and local government recruit and retain skilled workers who might otherwise be forced to turn to private sector employment to repay their student loans. The Administration’s rule would have used an ambiguous standard to target legal but politically disfavored conduct, including providing legal services to immigrants, providing gender-affirming care to minors, participating in diversity, equity, and inclusion initiatives, and engaging in civil protest and assembly. In its June 2026 order, the court held that the U.S. Department of Education’s regulations were contrary to law, arbitrary and capricious, exceeded the agency’s statutory authority, and violated the First Amendment of the U.S. Constitution. Tags: Federal Accountability

Источник: California Attorney General Xavier Becerra - Press Releases