National Council of Nonprofits v. McMahon
Case Overview
A group of cities and counties, nonprofit organizations, and associations representing various occupations sued the Department of Education over a new rule that would allow the Education secretary to exclude employers from the program if an employer has engaged in activities for "a substantial illegal purpose" including activities related to "aiding and abetting violations of ... federal immigration laws."
The Application
Nonprofit organizations and local government entities challenge the new PSLF rule, arguing the employer-exclusion mechanism based on immigration law violations either exceeds the Department's statutory authority or was promulgated without adequate rational basis.
The Conclusion
The case is active in the District of Massachusetts before Judge Myong J. Joun as of November 3, 2025. Resolution will determine the validity of the immigration-conduct exclusion mechanism in the PSLF program.
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