PSJD News Digest – January 9, 2026

January 9, 2026 at 1:34 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 a new year–and a return to our regular schedule.. Lots has happened since the last issue, including a number of major news stories regarding student loans. Also, a case in the 1st Circuit could upend IOLTA funds, the Vice President has announced a new attorney position that would report directly to the White House (not the DOJ, which recently fired its chief ethics official)…the list goes on. As always, these stories and more are in the links below. Solidarity,

Sam

Editor’s Choice(s)

First Circuit questions legal aid funding across entire US (Courthouse News; 5 Jan 2026)

“In 1993, the First Circuit upheld an IOLTA program against a similar First Amendment challenge. That case relied on a 1977 Supreme Court decision that allowed public-sector unions to force employees to pay union dues even if they didn’t support the union. In 2018, however, the Supreme Court overruled its 1977 decision in a case known as Janus. So Wescott claims the First Circuit’s 1993 decision is no longer good law and should be discarded as well.

U.S. Circuit Judge Julie Rikelman agreed that the 1993 case “held that the interest belonged to no one. It wasn’t the client’s money. And that doesn’t hold up after Janus.” But the unspoken backdrop to the new case is that a ruling for the plaintiff could upend bar and legal aid programs across the country, which have relied on IOLTA funding since changes to federal banking law allowed the first such program in Florida in 1981.”

Law School Student Groups Ask ABA to Review Accelerated Associate Recruiting Timelines (Law.com; 2 Jan 2026)
As ‘right to counsel’ programs for housing court flourish, policymakers strain to maintain the staffing pipeline (AM Ny; 23 Dec 2025)
As Federal Immigration Crackdown Intensifies, Coalition Calls for Major Investment in Legal Services and Swift Passage of Key Protection Bills (Vera Institute of Justice; 8 Jan 2026)

“The coalition of more than 100 organizations—including the Vera Institute of Justice, the New York Immigration Coalition, Immigrant Advocates Response Collaborative (Immigrant ARC), New York Civil Liberties Union, Neighbors Link, and Immigrant Children Advocates’ Relief Effort—highlighted the dramatic escalation in federal enforcement, record number of people in detention, and evisceration of due process rights. ”

Federal Restructuring & Funding

Vance rolls out new assistant attorney general to root out ‘fraud’ nationwide (Politico; 8 Jan 2026)

“Whoever fills the new Justice Department position will initially focus on Minnesota, but will ultimately have a nationwide mandate.”

Vance Says New Anti-Fraud Prosecutor Will Report to White House, Not DOJ (Bloomberg; 8 Jan 2026)
Office of Special Counsel resumes Hatch Act enforcement against former feds for violations during their service (Government Executive; 29 Dec 2025)
Deportation Judges, Counter-DEI Lawyers Top DOJ 2026 Hiring List (Bloomberg Law; 5 Jan 2026)

“Upheaval at DOJ has led to more than 5,500 career employees leaving since the start of President Donald Trump’s second term, according to estimates from Justice Connection, an organization supporting former and current employees. The administration is recruiting for the Civil Rights Division’s election integrity and anti-DEI focus, while seeking “deportation judges” to replace the dozens of judges fired in DOJ’s immigration courts in the past year. The Trump administration is also searching for more lawyers to fill in offices of loyalist US attorney picks, including three that have remained at offices after judges ruled they were unlawfully appointed.”

Trump’s DOJ hires voting rights lawyer behind L.A. case cited by conspiracy theorists (Los Angeles Times; 3 Jan 2026)

“The Trump administration’s new top voting rights lawyer is Eric Neff, a former L.A. County prosecutor who led a failed case against a voting software company that was the subject of conspiracy theories about the 2020 election.”

A top DoJ official trained Pam Bondi on ethics rules in the department. Then he was fired (The Guardian; 3 Jan 2026)
Trump’s return-to-office mandate exempted feds with disabilities. Many are being ordered to work in-person anyway (Government Executive; 8 Jan 2026)
Democrats decry reports that Trump will further slash FEMA's workforce (Government Executive; 7 Jan 2026)
Trump’s pay hike for law enforcement leaves out EPA, IGs (Politico; 8 Jan 2026)

“Trump last month signed off on a 1 percent increase in wages for all government employees in 2026 but tasked the Office of Personnel Management to determine which “certain Federal civilian law enforcement personnel” should receive a higher pay bump of almost 4 percent.”

US DOGE Service is hiring following mass workforce losses across the government (Government Executive; 7 Jan 2026)
Judge burns Russ Vought with his own words, sees right through DOJ effort to 'starve' Consumer Financial Protection Bureau 'with the stroke of pen' (Law & Crime; 30 Dec 2025)
House OKs $540M For Imperiled Legal Services Corp. (Law360; 8 Jan 2026)

“The "minibus" appropriations bill that the U.S. House of Representatives passed on Thursday includes a lifeline $540 million allocated toward the nonprofit Legal Services Corp. — representing a reduction of $10 million, or 3.6%, compared to fiscal year 2025's budget — whose funding the White House previously suggested should be slashed.”

Non-Federal Funding & Restructuring

[Kansas] VOCA grants boost legal aid, mental health for crime victims (KSNF Joplin; 8 Jan 2026)
Mamdani Names Lawyer Who Fought N.Y.C. Agencies to Human Rights Post (New York Times; 7 Jan 2026)
Mamdani Taps Ex-Paul Weiss Pro Bono Chief as NYC Law Leader (Bloomberg Law; 30 Dec 2025)
Fla. Justices Reject Atty Vacancy Proposal Backed by AG (Law360; 2 Jan 2026)

“The Supreme Court of Florida has rejected a proposal from the attorney general’s office to allow out-of-statelawyers to work in some state government roles, despite the support it got from the governor’s office and others[.]”

Fresno city attorney’s wage theft unit gets more teeth, higher fines as complaints surge (The Fresno Bee; 2 Jan 2026)
[HI] Counties Are On A Hiring Spree, But Recruitment Challenges Linger (Honolulu Civil Beat; 1 Jan 2026)
States Make a Pitch to Attract Public Sector Workers (Nat’l Conf. of State Legislatures; 23 Dec 2025)
- California Tries to Lure Federal Workers in Year of DOGE Cuts (Bloomberg Government; 23 Dec 2025)

Civil Society

Texas breaks with ABA, prompting other states to reconsider law school oversight (Just the News; 8 Jan 2026)
DOJ sues Virginia over tuition aid for migrants (The Hill; 30 Dec 2025)

Student Debt & Other Student Concerns

Federal student loans are changing. Here's what to expect in 2026 (NPR; 23 Dec 2025)
The Hill: Student loan borrowers face major changes to repayment options, loan limits this year (National Consumer Law Center; 8 Jan 2025)
Government Has Rejected Over 300,000 Requests for Lower Student Loan Repayments (NTD; 27 Dec 2025)
Garnishing wages for student loans is cruel. There's a better way. [opinion] (USA Today; 7 Jan 2026)

“Congress should offer people with educational debts the option of repaying the government through volunteer service in their communities by passing legislation that creates Volunteers for America…programs [like PSLF] have limited budgets and involve full-time employment in a much needed but limited range of jobs. These initiatives are not for everyone, nor could they accommodate every student borrower. What is needed by most student debtors is a way to pay down their obligations through community service while pursuing their chosen careers. The National Guard provides the model.”

The Student Loan Default Rate is Already High. The End of SAVE Could Make It Worse (Investopedia; 8 Jan 2026)
Student Loan Servicers Are Changing Repayment Terms Overnight (Saving Advice; 31 Dec 2025)
As Trump takes 2 hard swings at Americans with student loan debt, some are discovering a surprising way out (MoneyWise; 31 Dec 2025)
Bankruptcy success rate for student loan borrowers jumps to 87%, study finds (CNBC; 30 Dec 2025)
PA Rep. looks to mitigate ‘heavy burden’ of student loans with new bill (CBS WTAJ; 30 Dec 2025)

“Ciresi’s legislation would establish a Low-Interest Student Loan Program that would provide affordable, fixed-rate loans to Pennsylvania students attending approved institutions of higher education. Borrowers would need to complete a personal finance course, ensuring they are equipped to manage debt responsibly while building long-term financial stability.”

Conflicts Over Diversity, Equity, Inclusion, and Accessibility

The Justice Department is using a fraud law to target inclusive hiring (Quartz; 29 Dec 2025)
[Ed Note: I also refer readers out to NALP’s Weekly Industry News Digest, which has separate coverage of this topic]

Access to Justice

The looming decisions that could change Maine’s criminal defense landscape (Bangor Daily News; 31 Dec 2025)
State Supreme Court considers dismissing State of Maine from indigent defense lawsuit (Maine Public Radio; 8 Jan 2026)

“Assistant Attorney General Paul Suitter argued that the state is covered by sovereign immunity, and can't be named in the lawsuit brought by the ACLU of Maine. Instead, he said, the correct defendants are state agencies like the Maine Commission on Public Defense Services.”