WASHINGTON – In a bold move, over 20 states led by Democrats are taking a stand against a recent policy introduced by the Trump administration. This policy aims to prevent nonprofit and government employees from accessing a student loan forgiveness program if federal authorities deem their employer to have a “substantial illegal purpose.”

The policy specifically targets organizations that work with immigrant communities and transgender youth.

On Monday, these states filed a lawsuit in Massachusetts, arguing that the Trump administration exceeded its authority by imposing new eligibility criteria for the Public Service Loan Forgiveness program. According to the lawsuit, this policy revision will exacerbate job shortages and disrupt workforce stability within state agencies.

Leading the legal effort are New York, Massachusetts, California, and Colorado. New York Attorney General Letitia James criticized the rule, labeling it as “a political loyalty test disguised as a regulation.” She emphasized that it is “unjust and unlawful to deny loan forgiveness to hardworking Americans based on ideology.”

In a parallel legal action, a group comprising cities, nonprofits, and labor organizations also filed a lawsuit in Massachusetts on the same day. This coalition includes Boston, Chicago, Albuquerque, San Francisco, Santa Clara, and the National Council of Nonprofits.

Responding to the lawsuits, Under Secretary of Education Nicholas Kent said it’s unconscionable that the plaintiffs are standing up for criminal activity.

“This is a commonsense reform that will stop taxpayer dollars from subsidizing organizations involved in terrorism, child trafficking, and transgender procedures that are doing irreversible harm to children,” Kent said in a statement. “The final rule is crystal clear: the Department will enforce it neutrally, without consideration of the employer’s mission, ideology, or the population they serve.”

Another lawsuit challenging the rule is expected to be filed Tuesday on behalf of the Robert F. Kennedy Human Rights advocacy organization, the American Immigration Council and The Door, a legal group. They’re being represented by the groups Student Defense and Public Citizen.

Congress created the program in 2007 to steer more graduates into lower-paying public sector jobs. It promises to forgive their federal student loans after they make payments for 10 years while working in government jobs or for many nonprofits. More than 1 million Americans have had their loans canceled through the program, including teachers, firefighters, nurses and public defenders.

Under the new policy finalized last week, employers can be removed if they engage in activities including the trafficking or “chemical castration” of children, illegal immigration and supporting terrorist groups. “Chemical castration” is defined as using hormone therapy or drugs that delay puberty — gender-affirming care common for transgender children or teens.

The education secretary gets the final say in determining whether a group’s work has an illegal purpose, weighing whether the “preponderance of the evidence” leans against them.

In their lawsuit, the states argue that entire state governments, hospitals, schools and nonprofits could unilaterally be ruled ineligible by the secretary. They say Congress granted the benefit to all government workers, with no room for the Education Department to add limits.

The states also object to the department’s reliance on the phrase “substantial illegal purpose,” saying it’s an “overbroad and impermissibly vague term” that is aimed “at chilling activities that are disfavored by this Administration.”

The lawsuit asks a federal judge to declare the policy unlawful and forbid the Education Department from enforcing it.

___

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.