Two federal judges block PSLF overhaul before July 1

Two federal judges blocked the Trump administration’s Public Service Loan Forgiveness overhaul on June 30, 2026, one day before the new rule was scheduled to take effect. The rulings came in Massachusetts and Washington, D.C., and the Education Department said it was reviewing next steps.

The policy fight started with President Trump’s March 7, 2025 executive order directing the Education Department to revise PSLF. The department finalized the rule on October 30, 2025 and said it would take effect on July 1, 2026.

What the blocked rule would have done

The rule would have let the Education Department exclude some employers from PSLF if the secretary determined they had a “substantial illegal purpose.” The department said the change was meant to protect taxpayers; challengers argued the agency lacked the authority to rewrite the program that way.

What it means now

For now, borrowers and employers stay under the existing PSLF framework. The new restrictions are on hold before the July 1 effective date, and any future change will likely depend on appeals or further court action.

Sources

• Associated Press — same-day roundup of the two PSLF rulings
• Reuters via Investing.com — Boston ruling on PSLF limits
• U.S. Department of Education — final rule announcement
• White House — presidential action on PSLF
• Public Citizen — lawsuit update on PSLF eligibility rule