PSJD News Digest – July 1, 2025

July 1, 2025 at 2:52 pm · Filed under Public Interest Law News Bulletin

Sam Halpert, NALP Director of Public Service Initiatives

Photo: Harris and Ewing Collection, Library of Congress

Hi Interested Public,

Thanks for your patience. (Last) week was quite eventful–even by the standards of 2025. The news below will bring you up to speed through last weekend–with a couple of exceptions where the information I had collected last week had already been superceded. Major news out of the Supreme Court last week; commentators moved swiftly to unpack what a ruling concerning the availability of “universal” injunctions as a remedy may mean for other Trump Administration policies currently enjoined by federal courts–including policies pertaining to federal reductions in force. Meanwhile, a draft purporting to be a plan to limit the availability of Public Service Loan Forgiveness to workers at certain employers leaked from the Department of Education.

High drama continues in the US Congress, as the Senate debates a budget bill which contemplates major changes to student loans and potentially federal benefits (student loan changes for current borrowers and changes to the structure of federal benefits were taken out by the Senate parliamentarian, when last I checked). At the state level, the Governor of Maryland implemented a hiring freeze, the Maine Commission on Public Defense Services warned it may run out of money, and the Oregon legislature approved a budget plan that included compensation incentives for public defenders to exceed state-imposed caseload limits (and provisions for slashing pay for defenders who don’t carry sufficient caseloads). In civil society, nonprofits work to adapt to ongoing changes to their funding environment, while the Department of Justice announced an investigation into the hiring practices of the University of California.

The Digest will be off on July 4th, and will return with stories from this week and next week on 7/11.

As always, these stories and more are in the links below. Solidarity,

Sam

Editor’s Choice(s)

  • Mass layoffs likely to remain blocked, for now, thanks to a Supreme Court footnote (Government Executive; 27 Jun 2025)

    “The Supreme Court on Friday limited individual judges’ capacity to strike down government policy on a nationwide basis, a decision with potentially far-reaching impacts on how federal agencies carry out their work. The high court left in place some carve outs, however, including one that could—at least temporarily—protect a judge’s ruling that is currently blocking the Trump administration from carrying out widespread layoffs…In a footnote of the opinion, however, Barrett added that nothing in the decision “resolves the distinct question whether the Administrative Procedure Act authorizes federal courts to vacate federal agency action.” District court judges in both the larger RIF injunction and one more specifically tailored to the Education Department relied in part on the APA to support their findings.”

  • Education Department Outlines Plan to Change Debt-Relief Program for Public Servants (Inside Higher Ed; 26 Jun 2025)

    “The Education Department is planning to put new limits on which employers can qualify for the Public Service Loan Forgiveness program, according to a draft proposal obtained by an advocacy group. Any employers who engage in what the department calls “activities that have a substantial illegal purpose” could be kicked out of the program, and any payments that borrowers make while working for them won’t count after their employers are no longer eligible, according to the draft document.” [draft proposal here]

  • Trump administration eyes cuts to student-loan forgiveness for public servants (MarketWatch; 28 Jun 2025)

    “In draft regulatory text circulated this week by the U.S. Education Department, the agency proposed stripping eligibility for Public Service Loan Forgiveness from organizations engaging in activities that have “a substantial illegal purpose.” Representatives from certain interest groups, including consumer advocates, borrowers and servicers, will debate the plan and its implications for the future of PSLF next week.”

Federal RIFs & Grant Cancellations

Civil Society

Non-Federal Funding

Student Debt & Other Student Concerns

Conflicts Over Diversity, Equity, Inclusion, and Accessibility

Access to Justice