
States and cities challenge Trump policy overhauling public service loan forgiveness
More than 20 Democrat-led states are challenging a new Trump administration rule designed to block nonprofit and government workers from a student loan cancellation program if federal officials conclude their employer has a “substantial illegal purpose.” In a lawsuit filed Monday in Massachusetts, the states argue the Trump administration overstepped its authority when it added new eligibility rules for Public Service Loan Forgiveness. It says the overhaul will worsen job shortages and create instability in state workforces. The legal challenge is being led by New York, Massachusetts, California and Colorado. A separate coalition of cities, nonprofits and labor organizations also filed a legal challenge Monday.