Democrats Unveil Resolution to Rescind ED’s PSLF Rule
By Hugh T. Ferguson, NASFAA Managing Editor
Congressional Democrats have unveiled an effort to rescind the Department of Education’s (ED) final rule concerning changes to the administration of the Public Service Loan Forgiveness (PSLF) program with the introduction of a bicameral Joint Resolution under the Congressional Review Act (CRA).
Last October, ED issued its final rule from a PSLF negotiated rulemaking committee, seeking to bar organizations that engage in “activities that are unlawful” from being qualifying PSLF employers. That committee did not reach consensus.
Specifically, the final rule allows for the disqualification of certain employers deemed to have “substantial illegal purpose,” with an effective date of July 1, 2026. The rule defines “substantial illegal purpose” as engaging in activities such as: aiding or abetting violations of federal immigration laws; supporting terrorism; providing transgender youth with, or assisting them in receiving, gender-affirming medical treatments; engaging in a pattern of aiding and abetting illegal discrimination; or engaging in a pattern of violating state laws.
For a full summary of the PSLF final rule, see NASFAA’s Analysis.
Throughout the rulemaking process, Democrats have accused the administration of seeking to “weaponize” PSLF and argue that the department’s rule will restrict program eligibility beyond the law that established the program in 2007.
In the Senate, Sen. Kaine (D-VA) introduced the resolution, saying that teachers, firefighters, social workers, and other public servants shouldn't be made "pawns in the Trump Administration's ridiculous, politically motivated crusades," and called the rule "a direct threat to the quality of the services our communities rely on."
Rep. Joe Courtney (D-Conn.), who introduced the House version of the resolution, said that the rule would result in the administration being able to “pick and choose which public servants are eligible for forgiveness based on the Trump Administration’s ideological agenda, which clearly goes against Congressional intent.”
The CRA is a legislative tool that allows Congress to overturn recently approved agency rules (issued in the preceding six months) and only requires a simple majority in each chamber. If passed, the agency cannot issue a similar rule without congressional authorization. If both the House and the Senate pass the joint resolution, it would then go to the President for his signature; otherwise, it would require a two-thirds majority vote in each chamber to override a presidential veto.
In addition to the joint resolution working its way through Congress, the PSLF final rule is also facing two lawsuits. The cases were brought by a coalition of states, cities, labor unions, and non-profits, both alleging that the rule violates the Administrative Procedure Act (APA), which governs the rulemaking process, and the First Amendment by unlawfully rewriting PSLF eligibility criteria contrary to congressional intent. As of March, the plaintiffs are seeking a court ruling in their favor without a full trial. ED has opposed that request, asking the court to dismiss the cases entirely.
Publication Date: 4/16/2026
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