Letitia James Leads Blue State Coalition, Teachers Unions Suing Trump For ‘Weaponizing’ Loan Forgiveness

A coalition of blue states led by New York AG Letitia James and a separate coalition of unions and municipalities led by Randi Weingarten both announced lawsuits Monday against the Trump administration, accusing it of “illegally hijacking” a loan forgiveness program by excluding organizations it says violate federal law.

The Department of Education (ED) on Thursday announced that after months of formal rulemaking, it is issuing an update to the Public Service Loan Forgiveness (PSLF) program to exclude entities that violate federal law. Now, two separate lawsuits are challenging the rule: one filed by 21 states and the District of Columbia, and another by Boston, Chicago, San Francisco, the American Federation of Teachers (AFT), the National Education Association (NEA), multiple pro-immigration organizations and several others.

“Attorney General James and the coalition are challenging a new federal rule that would deem entire state governments, hospitals, schools, and nonprofit organizations ineligible for PSLF if the federal government unilaterally determines they have engaged in activities the administration disapproves of, such as support for immigrants, gender-affirming health care, or diversity programs,” James’s office said in a press release. “The coalition argues that the sweeping new rule is unlawful, politically motivated, and targeted to punish states and organizations that the administration does not like.”

The latter lawsuit claims the administration is attempting “to silence governments and non-profit organizations that do work the Administration doesn’t like” and is therefore breaking “a decades-old bipartisan Congressional promise to support those who choose to dedicate their careers to public service.”