PSJD News Digest – August 22, 2025

August 22, 2025 at 1:48 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,

Welcome to the end of another week. Two bombshell stories this week, discussed in the “Editor’s Choices” section below. Lots of additional news which, as always, is covered in the links below. Solidarity,

Sam

Editor’s Choice(s)

Exclusive-DOJ blocks justice grants from giving legal aid to migrants in US illegally, email shows (Reuters; 21 Aug 2025)

“The U.S. Justice Department this week ordered states, local governments and non-profits not to use existing federal grant funds to provide legal services to immigrants in the country illegally or who could face deportation, according to an email seen by Reuters and interviews with grantees.” [emphasis added]

ED Publishes Proposed Rule on PSLF (NASFAA; 18 Aug 2025)

“Last month, during the negotiated rulemaking session on the topic, negotiators did not reach a consensus, meaning the department was not bound to the language negotiated by ED and the committee during the session. However, ED did retain a substantial amount of the negotiated rules from those discussions in its formulation of the NPRM…While the department kept many of the rules negotiated by the committee, ED deviated from a few key provisions discussed.”
- Trump releases new rules to limit a major student-loan forgiveness program for public servants (Business Insider; 18 Aug 2025)
  
  “President Donald Trump's administration published its new rules to narrow eligibility for the Public Service Loan Forgiveness program on Monday. The public comment period — during which anyone can submit comments on the new regulations to the administration — is officially open through September 17.”
- Trump administration moves to freeze student-loan relief for workers at organizations with ‘substantial illegal purpose’ (Fortune; 18 Aug 2025)
  
  “Teachers, social workers, nurses and other public workers would be cut off from a popular student loan cancellation program if the Trump administration finds their employer engaged in activities with a “substantial illegal purpose,” under a new federal proposal released on Friday…The Education Department took aim at nonprofits or government bodies that work with immigrants and transgender youth, releasing plans to overhaul the Public Service Loan Forgiveness program. Opponents fear the new policy would turn the loan forgiveness benefit into a tool of political retribution.”
- New PSLF Rule Could Limit Debt Relief Access for Thousands (Inside Higher Ed; 19 Aug 2025)
- Proposed Rule: William D. Ford Federal Direct Loan (Direct Loan) Program (Federal Register; 18 Aug 2025)

Federal RIFs & Grant Cancellations

The Trump administration is considering notifying probationary employees they were fired for cause, actually (Government Executive; 19 Aug 2025)

“The proposal comes despite a new audit finding 99.5% of the 7,300 fired IRS probationers had received fully successful performance ratings, or no ratings at all.”

Trump administration seeks permission to finalize mass layoffs at HHS (Government Executive; 18 Aug 2025)
IRS is canceling its layoff plans, will ask some it fired or pushed out to return (Government Executive; 21 Aug 2025)
Facing a Tough Job Market in Big Law, Staying Put Might Pay Off Later For Government Attorneys (Law.com; 21 Aug 2025)

“Ordinarily, career government attorneys tend to stick around regardless of who is in charge, but that is not the case this time, according to Steve Nelson, executive consultant The McCormick Group. Nelson said that many who are looking to leave government positions are doing so partly on principle, rather than for pure career advancement…Dan Binstock, also a partner at Garrison, said in an interview that competition is not the only reason some government attorneys are waiting to make a move. In some cases, the goal is to build up experience with the unconventional and shifting style of the new administration in order to supplement their existing government experience with the new skills necessary to navigate the Trump era.”

Judge denies Trump request to end policy protecting immigrant children in custody (Associated Press; 18 Aug 2025)
9th Cir. Skeptical of Union View on Federal Worker Firings (Bloomberg Law; 19 Aug 2025)
Fifth Circuit Decision On NLRB ALJs Raises Constitutional Questions For OSHRC Removal Protections (Mondaq; 22 Aug 2025)

“The Fifth Circuit Court of Appeals' August 2025 decision that addressed the constitutionality of dual for-cause removal protections for administrative law judges (ALJs) at the National Labor Relations Board (NLRB) has significant implications for the structure and operation of federal agencies, particularly the Occupational Safety and Health Review Commission (OSHRC). The ruling has also prompted renewed scrutiny of similar protections of ALJs at OSHRC.”

Civil Society

Adapt or Resist? How to Survive the Threat of Political Litmus Tests for Federal Grants [opinion] (The Chronicle of Philanthropy; 19 Aug 2025)
Texas Nonprofits Face Wave of Layoffs and Closures (Texas Border Business; 19 Aug 2025)
Donald Trump suffers major immigration legal blow (Newsweek; 21 Aug 2025)

“A federal judge in Illinois has dismissed a lawsuit filed by the Trump administration that sought to block the state's workplace privacy law on the grounds that it conflicted with federal immigration enforcement.”

Student Debt & Other Student Concerns

Lawmakers Slam DOE for Suspending 3 Million Borrowers’ Student Loan Forgiveness (Truthout; 21 Aug 2025)

““We write to express our strong opposition to the Department of Education’s (‘the department’) recent action to suspend forgiveness under the Income-Based Repayment (IBR) Program and to demand information on behalf of the millions of student loan borrowers who have been stripped of their ability to access forgiveness for which they are entitled to under law,” the senators wrote in a letter to DOE.”

GOP Memo Seeks End To Public Service Loan Forgiveness (The College Investor; 20 Aug 2025)

“Barely weeks after Republicans secured passage of the One Big Beautiful Bill Act, the Economic Policy Innovation Center (EPIC) is calling for a follow-up effort…This comes after a House member announced a working group to explore another bill. The group’s proposals include…eliminating Public Service Loan Forgiveness (PSLF)[.]”

Student Loan Forgiveness Backlog Surges (Newsweek; 20 Aug 2025)
How will the new Repayment Assistance Plan for student loans work? (The Week; 20 Aug 2025)
The Slow Demise Of Public Service Loan Forgiveness (Forbes; 20 Aug 2025)

“While PSLF remains on the books, these administrative actions and policy changes are slowly narrowing the scope of the program.”

Conflicts Over Diversity, Equity, Inclusion, and Accessibility

Maryland Federal District Court Blocks Education Department's Moves Against DEI Programs (Mondaq; 20 Aug 2025)
Harvard hiring investigation could upend employment practices for institutions well beyond academia (Boston Globe; 18 Aug 2025)

“Specifically, Harvard faces an Equal Employment Opportunity Commission investigation over allegations that it discriminated against white, Asian, male, or heterosexual job applicants and employees.

Regardless of whether the Trump administration is successful in extracting changes at Harvard — both are negotiating over a deal that would resolve several investigations of the university and restore its research funding — its targeting of the university’s hiring practices could have a nationwide chilling effect, observers said. Employers may feel the need to abandon any efforts, even initiatives currently permitted under state and federal laws, that focus on recruiting and retaining diverse workforces.”