Legal Action
National Council of Nonprofits v. McMahon
Filed in: U.S. District Court for the District of Massachusetts
Summary
Plaintiffs, a coalition of cities, labor unions, and nonprofit organizations, are challenging a new U.S. Department of Education rule that would allow the disqualification of government and nonprofit employers that disagree with the administration’s policies from the Public Service Loan Forgiveness (PSLF) program. Plaintiffs allege the rule is a violation of the Higher Education Act (HEA) passed by Congress, which categorically provides that government and 501(c)(3) nonprofit employers are PSLF-eligible, and violates the First Amendment. Plaintiffs seek declaratory and injunctive relief to invalidate the rule and preserve the PSLF program as enacted by Congress.
Plaintiffs
- City of Boston
- City of Albuquerque
- City of Chicago
- City and County of San Francisco
- County of Santa Clara
- National Council of Nonprofits
- Amica Center for Immigrant Rights
- Coalition for Humane Immigrant Rights
- Legal Aid Society of the District of Columbia
- Oasis Legal Services
- American Federation of Teachers
- American Federation of State, County and Municipal Employees (AFSCME)
- National Education Association
- National Association of Social Workers
Plaintiffs' Counsel
- Democracy Forward Foundation
- Protecting Borrowers
- San Francisco City Attorney
- Santa Clara County Counsel
Defendants
- Secretary Linda McMahon
- U.S. Department of Education